It's a history lesson

Editor: One of President Bush's favorite props when preaching the benefits of free trade is the Harley-Davidson motorcycle. He frequently refers to the company as an example of US manufacturing reaping the benefits of a global company. But is the Harley-Davidson story really one of free trade success?

An April 1983 story in the LA Times tells the real story: "Harley-Davidson successfully petitions for tariff relief."

With the storied motorcycle manufacturer days from shutting its doors forever due to bad business decisions, the US government imposed a tariff on all imported Japanese motorcycles 700 cc or larger. The tariff, scheduled to end in five years, gave Harley some breathing room while the company was retooling for a new brand new engine, addressing quality issues and implementing a new business plan.

The Reagan Administration saved Harley-Davidson from bankruptcy by making imported motorcycles more expensive, giving a domestic manufacturer an edge in the marketplace. Not exactly free trade now was it?

History proved this temporary example of protectionism did give H-D the time and breathing space to implement its new business and product line reorganization plans. The company did so and has over the last two decades become wildly successful.

This history lesson is important at a time when the US auto industry is facing the same sort of problems as Harley-Davidson did in the recession of the early 1980s. While some taxpayer money will be needed to save our auto industry, the amount needed can minimized through temporary changes in US trade policy.

With our unemployment rate is at its highest in 25 years and our automobile industry facing an uncertain future, could a way out of the current recession be found by learning from our past success? Will the president (both outgoing and incoming) and Congress have the collective courage to act?

Andrew Mattos

Hanford

(Dec. 15, 2008)