Harley-Davidson and Adjusting to the Costs of Free Trade

Author / Creator

(1970), Elizabeth V. Baltzan, author

Available as

Online

Summary

This case study examines Harley-Davidson’s 1982 antidumping petition with the U.S. International Trade Commission against Japanese producers of motorcycles under Section 201 (known as the “Escape C...

This case study examines Harley-Davidson’s 1982 antidumping petition with the U.S. International Trade Commission against Japanese producers of motorcycles under Section 201 (known as the “Escape Clause” in the U.S., and “safeguards policy” under international law) of the Trade Act of 1974. The case illustrates protectionist characteristics in the U.S., beginning with the fact that trade policy measures like the Escape Clause are legalistic. Consequently, the ITC tends to be insulated from blatantly protectionist politics and must be persuaded that a petitioner’s case under that clause has merit. Harley Davidson was successful in its petition and used the respite from Japanese competition to reorganize and become competitive.

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