Hardwood plywood imported from China does not injure the U.S. industry and will not be subjected to antidumping duties, the U.S. International Trade Commission (USITC) ruled today.
The ITC determination ran contrary to the Sept. 17 final determination by the U.S. Department of Commerce (DOC) that Chinese hardwood plywood sold in the United States is subsidized at less than fair value, ITC instead ruled that there is not enough evidence to show that U.S. industry is materially injured nor threatened with material injury by Chinese hardwood plywood.
ITC voted 5-0, with Chairman Irving Williamson and Commissioners Shara Aranoff, Dean Pinkert, David Johanson, and Meredith Broadbent voted against the antidumping petitioners.
“We are extremely disappointed by today’s decision by International Trade Commissioners,” said Joe Gonyea III, partner and CEO of Timber Products Co., a member of the Coalition for Fair Trade of Hardwood Plywood (CFTHP), which claims Chinese hardwood plywood is being dumped on the U.S. market. “We continue to advocate for free trade that must be fair trade.”
“Despite three earlier rounds of preliminary decisions that supported the case of domestic producers, the ITC turned a deaf ear to overwhelming statistical evidence that Chinese hardwood plywood manufacturers had put U.S. manufacturers at a disadvantage and that international trading laws were being violated,” Gonyea added. “Today’s decision by the ITC is a crushing blow to U.S. manufacturers, their employees, and the communities where we do business.”
The CFTHP was challenged by a group known as the American Alliance of Hardwood Plywood (AAHP), which included more than a dozen hardwood plywood importers and the Kitchen Cabinet Manufacturers Association (KCMA) among its members.
In its Sept. 17 final determination, DOC said its investigation revealed that imports of hardwood and decorative plywood from China were sold in the United States at dumping margins ranging from 55.76 percent to 121.65 percent. It also determined that all but three companies received countervailing subsidies, ranging from 13.58 percent to 27.16 percent.
The ITC’s will issue a public report, Hardwood Plywood from China (Investigation Nos. 701-TA- 490 and 731-TA-1204 (Final), USITC Publication 4434, November 2013). It will contain the views of the Commissioners and information developed during the investigations. Copies will be available after Dec. 16 by emailing email@example.com, calling 202-205-2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436.
Gonyea said, “Timber Products Company will move forward and continue to support the hardwood plywood needs of our customers with competitive products that are sourced from sustainably managed forestlands, manufactured in the USA.”
Want to understand how trade cases are settled in plain English? See our graphic: The Anatomy of a Trade Case.