The Korea Electronics Association (KEA) said in its report on October 29 that Whirlpool is likely to cause trade disputes concerning imported vacuum cleaners as well as washing machines. The company recently submitted a request for safeguard measures against Imported Korean washing machines.

Whirlpool currently produces 570,000 units of vacuum cleaners a year in the United States, which is equivalent to 52.3% of its annual vacuum cleaner production volume, and its current share in the U.S. vacuum cleaner market is 25% while the respective figures are 200,000, 4.8% and 2% when it comes to washing machines.

This means vacuum cleaners are a very important business item for Whirlpool and, as such, its request for safeguard measures against imported vacuum cleaners is an established fact. This is even more so in view of the size of the American consumer electronics market, which is the largest in the world. Last year, the American consumer electronics market accounted for 25% of the global total with a size of US$25.868 billion. The runner-up was the Chinese market (15.2%, US$15.655 billion). The KEA pointed out in the report that American consumer electronics manufacturers such as Whirlpool are resorting to an increasing number of anti-dumping suits in order to protect the market.

The KEA also advised that South Korean companies need to take a leaf from Haier’s book in order to avoid trade disputes in the U.S. market. Haier has increased its production volume in the United States since it acquired GE Appliances in 2016. 

Source: Business Korea