Brooks: Trade tiff should not derail Clarksville-LG relationship

Kevin Brooks
Kevin Brooks

The Whirlpool plant in my hometown of Cleveland, Tenn., is the engine of our local economy. Roughly 2,400 people work there to produce high-quality ranges and built-in ovens for homes and businesses all over the U.S. The workforce is like a family, and they give back to our community in more ways than I could count.

That is why I am so eager for LG Electronics to open their own appliance factory in Clarksville so the people in that part of the state can enjoy the same well-paid manufacturing jobs and the same stable economic growth those jobs will generate for the entire community.

Those two companies - Whirlpool and LG - are currently engaged in a broader trade fight in Washington that could have an impact on Cleveland, Clarksville and dozens of other communities across our state, so I think it is important for Tennesseans to know just how the outcome will affect our economy.

The fight involves an appliance everyone uses but few people think about - washing machines. Since 2012, Whirlpool has been working hard to prevent foreign manufacturers, including LG, from selling imported washing machines in the U.S. at prices lower than it costs to make these household staples. Whirlpool argues this tactic creates unfair incentives that undermine its American workforce.

Three times, federal regulators unanimously agreed that these import practices hurt American workers. Three times those same regulators recommended tough sanctions to prevent the companies from engaging in unfair trade practices. And three times both companies moved their production to other countries to avoid sanctions.

Now, President Donald Trump is in a position to implement a policy to prevent future abuse and make sure our workers compete on a level playing field.

LG and its South Korean cousin Samsung have both threatened that a tough penalty will slow, or potentially stop, their investments here in the U.S. If true, that would be a big blow to Clarksville, where LG broke ground earlier this year on its first appliance factory in the U.S., a facility that promises to create 600 new jobs and potentially more for local vendors and suppliers.

But those threats seem a little overblown. Whatever rules President Trump announces will not apply to washing machines made in the U.S., so why would they discourage a company from investing here? In fact, it seems like LG and others would have an even stronger incentive to invest in American manufacturing, if the Trump administration establishes tougher sanctions on imported products.

That would mean more jobs for Clarksville, not less, and LG would have a strong motivation to accelerate production timeline to make sure most of the washing machines the company sells in the U.S. are made right here in Tennessee. That would be a big boost for local business owners, civic leaders and those residents hoping to land a good manufacturing job once the plant is up and running.

Cleveland has been manufacturing cooking appliances since Hardwick Stoves started production way back in 1879, and Whirlpool's roots in my hometown go back more than a century. A third of its current workforce has been with the company for at least 20 years.

Whirlpool redoubled its commitment to our community at the height of the Great Recession, when most manufacturers were sending work to other countries and most big businesses did not have the free cash flow to invest in new operations. But Whirlpool executives decided to continue their commitment to Cleveland, and to American workers, by building a sprawling $200 million, 1 million-square-foot facility that kept the company in Tennessee.

That decision means the world to Cleveland, especially those people who work there or whose jobs depend directly or indirectly on the Whirlpool plant. Over time, I hope my friends in Clarksville build similar bonds with LG.

Kevin Brooks is a Republican member of the Tennessee House of Representatives.

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