A group of U.S. plywood makers has launched a trade war with their counterparts in China. Just as domestic engineered flooring makers did in October 2010, the plywood makers allege that plywood imports are dumped in America and that the Chinese government is unfairly subsidizing its plywood industry.
The U.S. manufacturers, collectively known as combined antidumping and countervailing duties of roughly 4.81 percent on the majority of engineered wood flooring coming from China.
In the petition the U.S. makers allege they have been materially injured as a result of the plywood imports from China, and they request the U.S. government institute antidumping and countervailing duties on those products. In making its case, the plywood coalition alleges China is benefitting from antidumping and countervailing duty margins-the amount by which a product's normal market value exceeds the export price-in excess of 300 percent (in its petitioning the U.S. government, engineered flooring producers alleged dumping margins of 194.49 to 280.6 percent).
The plywood coalition also argues that over the last several years, the share of the U.S. hardwood plywood market captured by imports from China has grown from single or low double-digits digits to about 50 percent. As with the engineered flooring case, the manufacturers' rallying cry is that they are attempting to "level the playing field" in the U.S. plywood market.
The plywood coalition expects preliminary rulings in Spring 2013 and final rulings by late Fall 2013.
