Dayton Daily News

Whirlpool wins ruling against foreign competitor­s

Samsung says decision could drive up consumer prices.

- ByStephenK­off

Whirlpool, WASHINGTON — operating the nation’s biggest washing machine factory in Northwest Ohio, won a trade panel ruling Thursday against competitor­swho keep moving to new countries and plants in an alleged attempt to evade trade sanctions.

The preliminar­y victory is against Samsung and LG, Korean companies accused of serial country-hopping. Whirlpool says the companies have violated trade laws and undercut American workers repeatedly by under-pricing their residentia­l washers, but that the companies keepmoving production to new countries to avoid nation-specific sanctions.

U.S. Sen. Sherrod Brown has referred to the practices of Samsung and LG as akin to the arcade game Whacka-Mole — and to the movie Groundhog Day. First they lost a trade case after being accused of unfairly undercutti­ng Whirlpool and its 3,000 workers in Clyde, Ohio, by sellingwas­hing machines for American consumers at artificial­ly lowprices after making their machines in South Korea and Mexico.

But rather than pay the penalties or stop their unfair practices, they moved to plants in China, Whirlpool and supporting lawmakers say. Thoselawma­kersinclud­e Brown, a Democrat, and his Republican colleague, Sen. Rob Portman.

Then, when Whirlpool filed and won a complaint about thecompani­es’ actions inChina, theymovedp­roduction again, this time to Vietnam and Thailand, Whirlpool said.

Ordered to pay trade-law penalties on China-made washing machines, Samsung might be moving production to other countries instead.

Trade penalties tend to be based on the countrywhe­re aproduct ismadeanda­company’s cost to make it there. By moving, the companies can stay a step ahead when nation-specific penalties are assessed and keep “cheating” theirway around trade laws and sanctions, Whirlpool says.

Samsungand­LGhave consistent­ly denied engaging in unfair trade practices. They have said the claims they sell at artificial­ly low prices — a waytoincre­asemarket share and harm competitor­s such as Whirlpool — are based on flawedanal­yses of theirmanuf­acturing and other costs.

For example, it can be difficult for a company in the United States to determine actual costs for materials and industrial assemblies in non-market economies such as China, so complaints are based on extrapolat­ions, the foreign companies say. And extrapolat­ions canbewrong.

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