Question
According to the U.S. Department of Commerce, in 2015 there were $1.1 billion of large residential washers imported from China. Whirlpool, a Michigan manufacturer, filed
According to the U.S. Department of Commerce, in 2015 there were $1.1 billion of "large residential washers" imported from China. Whirlpool, a Michigan manufacturer, filed petitions for AD duties on washers made in China by Samsung and LG (Respondents). Commercial washers and stacked washer-dryer units were excluded. The normal tariff rate is 1%. The ITC determined that there was a high degree of discounting of all washers and a substantial portion of sales occurred during sales, compared to prices these washers were sold outside the United States. Large U.S. retailers decide which models to display on the floor. Placement at the end of aisles is considered a favorable location. Most floor space was allocated on the basis of consumer demand and the profitability of individual units. U.S. retailers often place U.S. models at the end of aisles and discounted Chinese models at more remote places of the store and bundle their sales with full-price dryers. The respondents claimed that the discounted washers are designed, displayed, and usually sold together with full-price dryers thus offsetting the losses on the washers.
1. Discuss based on your knowledge of anti-dumping, how should ITC use to determine dumping? What is some information ITC might need? Has a dumping occurred in this case? What should be the remedies?
2. At the same time, China alleges that the U.S. has violated National Treatment of the WTO by allowing retailers to display their models at less desirable locations of the store, do yo agree with China's assertion?
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