Large Residential Washers ) Ta-201-76 (Remedy)
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UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) Investigation No.: LARGE RESIDENTIAL WASHERS ) TA-201-76 (REMEDY) Pages: 1 - 283 Place: Washington, D.C. Date: Thursday, October 19, 2017 Ace-Federal Reporters, Inc. Stenotype Reporters 1625 I Street, NW Suite 790 Washington, D.C. 20006 202-347-3700 Nationwide Coverage www.acefederal.com 1 1 UNITED STATES OF AMERICA 2 BEFORE THE 3 INTERNATIONAL TRADE COMMISSION 4 5 IN THE MATTER OF: ) Investigation No.: 6 LARGE RESIDENTIAL WASHERS ) TA-201-76 (REMEDY) 7 8 9 10 11 Main Hearing Room (Room 101) 12 U.S. International Trade 13 Commission 14 500 E Street, SW 15 Washington, DC 16 Thursday, October 19, 2017 17 18 The meeting commenced pursuant to notice at 9:36 19 a.m., before the Commissioners of the United States 20 International Trade Commission, the Honorable Rhonda K. 21 Schmidtlein, Chairman, presiding. 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 2 1 APPEARANCES: 2 On behalf of the International Trade Commission: 3 Commissioners: 4 Chairman Rhonda K. Schmidtlein (presiding) 5 Vice Chairman David S. Johanson 6 Commissioner Irving A. Williamson 7 Commissioner Meredith M. Broadbent 8 9 10 11 12 Staff: 13 William R. Bishop, Supervisory Hearings and Information 14 Officer 15 Yasmyne Hilliard, Student Intern 16 17 Nathanael Comly, Investigator 18 Robert Casanova, Investigator 19 Dennis Fravel, International Trade Analyst 20 Jeffrey Horowitz, International Trade Analyst 21 John Benedetto, International ZEconomist 22 David Boland, Accountant/Auditor 23 Karl von Schriltz, Attorney/Advisor 24 Michael Anderson, Director, Office of Investigations 25 Ace-Federal Reporters, Inc 202-347-3700 3 1 APPEARANCES: 2 State Government Official: 3 The Honorable Henry McMaster, Governor of South Carolina 4 5 Congressional Witness: 6 The Honorable Ralph Norman, U.S. Representative, 5th 7 District, South Carolina 8 9 State Government Witness: 10 The Honorable Bob Rolfe, Commissioner, Tennessee Department 11 of Economic and Community Development 12 13 Embassy Witnesses: 14 Embassy of the Republic of Korea 15 Washington, DC 16 Hee-Sang Kim, Deputy Director-General of the Bilateral 17 Economic Affairs - Bureau of the Ministry of Foreign Affairs 18 19 Embassy of Vietnam 20 Luong Kim THANH, Commercial Attache 21 22 Taipei Economic and Cultural Representative Office 23 Washington, DC 24 Chien Chi Chao, Economic Officer 25 Ace-Federal Reporters, Inc 202-347-3700 4 1 APPEARANCES (Continued): 2 Opening Remarks: 3 Petitioner (Jack A. Levy, Cassidy Levy Kent (USA) LLP) 4 Respondents (Daniel L. Porter, Curtis, Mallet-Prevost, Colt 5 & Mosle LLP) 6 7 In Support of Remedies: 8 Cassidy Levy Kent (USA) LLP 9 Adducci, Mastriani & Schaumberg LLP 10 Washington, DC 11 on behalf of 12 Whirlpool Corporation 13 Staber Industries, Inc. 14 Joseph Liotine, President, North America Region, 15 Whirlpool Corporation 16 Casey Tubman, General Manager for Laundry Products, 17 Whirlpool Corporation 18 Dr. Richard L. Boyce, Econometrica International, Inc. 19 Bill Staber, President, Staber Industries, Inc. 20 Jack A. Levy, Myles S. Getlan and Deanna Tanner Okun - 21 Of Counsel 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 5 1 Thompson Hine LLP 2 Washington, DC 3 on behalf of 4 Revere Plastics Systems, LLC 5 Glen Fish, President, Revere Plastics Systems, LLC 6 Mark Lunn - Of Counsel 7 8 TRADEWINS LLC 9 Washington, DC 10 on behalf of 11 Haier US Appliance Solutions d/b/a GE Appliances ("GEA") 12 Earl Jones, Executive Counsel for Public Policy and 13 Industry Relations, GE Appliances 14 John R. Magnus and Sheridan S. McKinney - Of Counsel 15 16 17 18 19 20 21 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 6 1 In Opposition to Remedies: 2 Curtis, Mallet-Prevost, Colt & Mosle LLP 3 Washington, DC 4 on behalf of 5 LG Electronics USA, Inc.; LG Electronics, Inc.; 6 LG Electronics Vietnam Haiphong Co., Ltd.; 7 LG Electronics Thailand Co., Ltd., and Nanjing 8 LG-Panda Appliances Co., Ltd. 9 (collectively "LGE" or "LG") 10 John Riddle, Senior Vice President of USHome 11 Appliances, LGEUS 12 John Toohey, Director of Strategy, LGEUS 13 Dr. Rodney Ludema, Associate Professor, Georgetown 14 University 15 Daniel Klett, Economist, Capital Trade Inc. 16 Daniel L. Porter and James P. Durling - Of Counsel 17 18 19 20 21 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 7 1 Arnold & Porter Kaye Scholer LLP 2 Covington & Burling LLP 3 Washington, DC 4 on behalf of 5 Samsung Electronics Co., Ltd.; Samsung Electronics America, 6 Inc.; 7 Samsung Digital Appliances Mexico; Samsung Electronics HCMC 8 Complex; Suzhou Samsung Electronics Co., Ltd., and Suzhou 9 Samsung Electronics Co., Ltd.-Export 10 (collectively "Samsung") 11 Tony Fraley, Plant Manager of the Newberry, South 12 Carolina Facility, Samsung Electronics Home Appliances 13 America 14 John Herrington, Senior Vice President and General 15 Manager - Home Appliances, Samsung Electronics America, Inc. 16 John K. Veroneau, Shara L. Aranoff, J. David Park, Lynn 17 Fischer Fox and James M. Smith - Of Counsel 18 19 Rebuttal/Closing Remarks: 20 Petitioners (Jack A. Levy, Cassidy Levy Kent (USA) LLP 21 Respondents (John K. Veroneau, Covington & Burling LLP) 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 8 1 I N D E X 2 Page 3 The Honorable Ralph Norman, U.S. Representative, 5th 4 District, South Carolina 13 5 6 The Honorable Henry McMaster, 7 Governor of South Carolina 22 8 9 The Honorable Bob Rolfe, Commissioner, Tennessee Department 10 of Economic and Community Development 31 11 12 Hee-Sang Kim, Deputy Director-General of the Bilateral 13 Economic Affairs - Bureau of the Ministry of 14 Foreign Affairs 35 15 16 Luong Kim THANH, Commercial Attache 39 17 18 Chien Chi Chao, Economic Officer 41 19 20 21 22 23 24 25 Ace-Federal Reporters, Inc 202-347-3700 9 1 I N D E X 2 Page 3 Opening Remarks: 4 Petitioner (Jack A. Levy, Cassidy Levy 5 Kent (USA) LLP) 43 6 7 Respondents (Daniel L. Porter, Curtis, Mallet-Prevost, 8 Colt & Mosle LLP) 46 9 10 Joseph Liotine, President, North America Region, 11 Whirlpool Corporation 56 12 13 Casey Tubman, General Manager for Laundry Products, 14 Whirlpool Corporation 62 15 16 Earl Jones, Executive Counsel for Public Policy and 17 Industry Relations, GE Appliances 67 18 19 Bill Staber, President, Staber Industries, Inc. 71 20 21 Glen Fish, President, Revere Plastics Systems, LLC 75 22 23 John K. Veroneau - Of Counsel 151 24 25 Shara L. Aranoff - Of Counsel 152 Ace-Federal Reporters, Inc 202-347-3700 10 1 I N D E X 2 Page 3 Tony Fraley, Plant Manager of the Newberry, 4 South Carolina Facility, Samsung Electronics 5 Home Appliances America 157 6 7 John Herrington, Senior Vice President and 8 General Manager - Home Appliances, Samsung Electronics 9 America, Inc. 164 10 11 John Toohey, Director of Strategy, LGEUS 168 12 13 John Riddle, Senior Vice President of USHome Appliances, 14 LGEUS 172 15 16 James P. Durling - Of Counsel 177 17 18 Daniel Klett, Economist, Capital Trade Inc. 181 19 20 Rebuttal/Closing Remarks: 21 Petitioners (Jack A. Levy, Cassidy Levy Kent (USA) LLP 263 22 23 Respondents (John K. Veroneau, Covington & Burling LLP) 275 24 25 Ace-Federal Reporters, Inc 202-347-3700 11 1 P R O C E E D I N G S 2 9:36 a.m. 3 MR. BISHOP: Will the room please come to order? 4 CHAIRMAN SCHMIDTLEIN: Good morning. On behalf 5 of the U.S. International Trade Commission I welcome you to 6 this hearing in the remedy phase of Investigation No. 7 TA-201-76 involving large residential washers. As you are 8 aware, on October 5, 2017 the Commission determined that 9 large residential washers are being imported into the United 10 States in such increased quantities as to be a substantial 11 cause of serious injury to the Domestic Industry. 12 Having reached an affirmative determination with 13 respect to injury the Commission is now engaged in the 14 remedy phase of the investigation. Pursuant to section 202E 15 the Commission is required to recommend the action that 16 would address the serious injury of the Domestic Industry 17 and be most effective in facilitating the efforts of the 18 Domestic Industry to make a positive adjustment to import 19 competition. We are here today to hear from the parties and 20 others regarding the potential remedy recommendations. 21 The Commission is potentially scheduled to vote 22 on remedy on November 21, 2017 following the vote the 23 Commission will submit a report to the President that 24 contains the Commission's determination and views regarding 25 serious injury as well as one or more remedy Ace-Federal Reporters, Inc 202-347-3700 12 1 recommendations. That report is due to be delivered to the 2 President by December 4, 2017. 3 It is the President who will ultimately decide 4 whether to impose the remedy and what that remedy will be. 5 Schedule setting forth the presentation of this hearing, 6 notices of investigation and transcript order forms are 7 available at the public distribution table. All prepared 8 testimony should be given to the Secretary. Please do not 9 place testimony directly on the public distribution table. 10 All witnesses must be sworn in by the Secretary 11 before presenting testimony. I understand that the parties 12 are aware of the time allocations. Any questions regarding 13 the time allocations should be directed to the Secretary. 14 Speakers are reminded not to refer in their remarks or 15 answers to questions of business proprietary information. 16 Please speak clearly into the microphone and state your name 17 for the record and for the benefit of the court reporter.