ITC Ruling: Canadian Lumber Subsidies Harmed U.S. Producers

The United States International Trade Commission (ITC) ruled that the U.S. lumber industry is materially injured by Canadian government subsidies of their softwood lumber industry.

Voting 4-0 in favor of the U.S. lumber industry, the ITC ruling follows a U.S. Department of Commerce determination that imports of softwood lumber from Canada are sold in the United States at less than fair value and subsidized by the government of Canada. The antidumping and countervailing duties on imports of Canadian softwood lumber products have been collected pending the final demermination of the ITC.

“The U.S. Lumber Coalition fully supports the enforcement of America’s trade laws. The evidence presented to the ITC was clear – the massive subsidies that the Canadian government provides to its lumber industry and the dumping of lumber products into the U.S. market by Canadian companies cause real harm to U.S. producers and workers,” said U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company, Jason Brochu.

“Now, with a level playing field, the U.S. lumber industry, and the 350,000 hardworking men and women who support it, can have the chance to compete fairly.” Pleasant River stamps each board with a Made in USA label at its Sanford, Maine sawmill.

Under the Trump Administration, the Department of Commerce, which operates the International Trade  Commission, has been ratcheting up pressure on U.S. trading partners over what it sees as subsidies across several industries, beginning the forest products sector. Last week China was hit with a formal determination by the ITC that it subsidized plywood exports to the U.S., effectively dumping low-priced plywood to the detriment of the domestic manufacturers. The Department of Commerce is expected to pursue solar panel manufacturers in China in coming weeks.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/canadian-lumber-subsidies-harmed-us-producers-trade-commission-rules?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

ITC Rules China Dumped Subsidized Plywood, Injuring U.S. Mills

The International Trade Commission (ITC) issued its final determination, activating significant tariffs – nearly 200 percent – on some on imports of Chinese hardwood plywood, voting 4-0 that the domestic industry is materially injured, or threatened with material injury, by reason of these dumped and subsidized imports.

The trade group Coalition for the Fair Trade of Hardwood Plywood, which initiated efforts to get tariffs on Chinese plywood twice before times, commended the unanimous decision by the ITC, as “meaningful relief” for the U.S. hardwood plywood manufacturers. The Coalition says 42 mills have closed many more have had to reduce capacity, with a loss of 52,000 jobs in the U.S., and $2 billion in wages.

“Today’s decision demonstrates that the U.S. Government will not tolerate unfair trade practices and will support American manufacturing and workers,” said Kip Howlett, president of the Hardwood Plywood Veneer Association. “This puts American interests first by standing up to the illegal imports of Chinese hardwood plywood.”

Less exuberant are furniture and kitchen cabinet makers that favor the less expensive plywood from China, including members of  Kitchen Cabinet Manufacturers Association (KCMA), and other buyers who have lobbied against the ITC decision, which will lead to high tariffs. KCMA and other members of American Alliance for Hardwood Plywood – mostly distributors of Chinese plywood – expressed shock at the punitive tariffs that were not disclosed until President Trump returned from his recent trip to Asia following meetings with China’s President Xi.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/verdict-china-dumped-subsidized-plywood-injuring-usmills-says-itc?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

China Plywood Dumping Gets Third Review By International Trade Commission

The United States International Trade Commission says there is a “reasonable indication that a U.S. industry is materially injured by reason of imports of hardwood plywood from China that are allegedly subsidized and sold in the United States at less than fair value.”

Noting all six of its commissioners voted in favor, the U.S. Department of Commerce will continue to conduct its antidumping and countervailing duty investigations on imports of hardwood plywood. A judgment on whether countervailing duties should be levied to discourage the imports is due February 13, 2017, and its preliminary antidumping duty determination due on or about April 27, 2017.

The issue is contentious, with U.S. plywood makers – the Hardwood Plywood Coalition – battling to restrict China’s exports, while an opposing group that buys plywood for casegoods, the American Alliance for Hardwood Plywood (its members include the Kitchen Cabinet Makers Association) wants to allow imports to continue as is.

Indeed, the American Alliance for Hardwood Plywood issued a statement expressing disappointment in the ruling by the International Trade Commission. AAHP Chairman Greg Simon issued the following statement:

“We are disappointed that this investigation will proceed, but remain very confident that the facts continue to be on our side. This is now the third time that the federal government will conduct a thorough review and we believe they will reach the same finding as before–imported hardwood plywood products from China are traded fairly at competitive prices and have a rightful place in the global consumer market. This continued legal harassment by CFTHP against imports is putting thousands of U.S. jobs at risk during a time when manufacturing is in desperate need of revival. Our alliance of small medium and large American importers, distributors, retailers of hardwood plywood and domestic kitchen cabinet manufacturers remains united in opposition to these bogus charges and look forward to presenting our side to the ITC and Department of Commerce in the coming months.”

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/china-hardwood-plywood-dumping-gets-third-review-international-trade?ss=news,news,woodworking_industry_news,news,almanac_market_data,news