CASE – Consumer Action for a Strong Economy – the nation’s preeminent free-market consumer advocacy organization, issued the following statement opposing the International Trade Commission’s (ITC) extraordinary finding of injury to Whirlpool’s residential washing machine unit from LG and Samsung imports:
“CASE is disappointed with the ITC’s decision in favor of Whirlpool’s disingenuous request for trade barriers on LG and Samsung washing machines under Section 201 of the Trade Act of 1974. The Section 201 safeguard action holds great potential for misuse, as this case proves, and unintended consequences. Indeed, when President George W. Bush agreed to restrict steel imports in 2001, it caused enormous hardships for domestic steel consuming industries and prompted retaliation by countries overseas.
“As the ITC investigation moves into the remedy stage, the interests and decisions of consumers should be paramount. While Whirlpool is a well-known American brand, LG and Samsung have emerged as formidable competitors by offering consumers top notch products with numerous innovations.
“Should Whirlpool prevail, the loss for consumers will be compounded as other innovation-challenged companies seek refuge in protectionist remedies. Insulation from the competitive market isn’t a workable business strategy, and serves only to expedite the demise of those companies who embrace it. Rewarding companies who fail to keep pace with innovation punishes workers and consumers by both limiting markets and encouraging a needless trade war.”