When was the petition filed?
The petition was filed November 18, 2016
Who filed this petition?
The petition was filed by several of the world’s largest hardwood plywood manufacturers who collectively comprise 80% of the U.S. hardwood market. These companies include Columbia Forest Products, Greensboro, NC., Roseburg, OR, States Industries LLC, Eugene, OR; Commonwealth Plywood, NY; and Timber Products Company, Springfield, OR combined as The Coalition for Fair Trade of Hardwood Plywood.
How will this impact my pricing on plywood?
If the petitioned tariff is approved, up to half of the world’s supply of hardwood plywood – used by US manufacturers of furniture, cabinetry, boars, shipping containers and other products – would be unavailable to manufacturers, creating an economic advantage for overseas products producers of these products.
Who has the most to gain if this petition is successful?
Nobody. The companies filing this case may hope that stiff duties will increase their prices and market share but in fact most unfair trade cases do not result in any benefit to petitioning companies. High duties will limit supply to U.S. manufacturers relying on domestic and imported hardwood plywood. The ensuring supply disruption will benefit other supplying countries that step in to fulfill the unmet demand. Nobody wins in these cases — not the petitioners, the importers, or certainly consumers. Antidumping and countervailing duty cases truly are a “lose lose” endeavor.
Who has the most to lose if this petition is successful?
Over a thousand U.S. companies, that depend on global resources to enable them to compete in the world marketplace. If these companies are denied the critical and unique inputs they need, their jobs will be lost to overseas competitors.
Does this have anything to do with illegal logging?
Contrary to recent claims by the petitioners, the fiber for Chinese hardwood plywood is procured from rapidly renewable poplar and eucalyptus plantations that were planted on retired agricultural lands specifically for this purpose. These plantations are managed to ensure their sustainably. Since 2008 all wood products entering the United States must comply with amendments to the Lacey Act which bans trade in products containing illegally-logged wood.