OTTAWA, Ontario – Pricing of Chinese hardwood plywood faces fresh scrutiny, this time in Canada, where the Canada Border Services Agency (CBSA) has launched an antidumping investigation.
The CBSA’s probe into allegedly unfair pricing was sparked by a complaint filed on April 21 by Columbia Forest Products, Husky Plywood, Rockshield Engineered Wood Products ULC, and the Canadian Hardwood Plywood and Veneer Association (CHPVA). The complaint is supported by Precision Veneer Products Ltd. and ProPly Custom Plywood Inc. The complainants allege that the Canadian industry is facing an increase in the volume of the allegedly dumped and subsidized imports, loss of market share and sales, price undercutting, price depression, underutilization of capacity, threat to continuous investments, impacted financial results, and reduced employment.
Decorative plywood, commonly used in applications such as kitchen cabinets, furniture, wall paneling and architectural woodwork, is the focus of the complaint.
The CPHVA said it “welcomes Canada Border Services Agency’s decision today to initiate an anti-dumping and countervailing duty investigation concerning decorative and other non-structural plywood exported from China. For many years, China has sold large volumes of decorative plywood in Canada at very low prices.”
The CBSA, as well as the Canadian International Trade Tribunal (CITT), will play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and is scheduled to issue a decision by Aug. 10. Meanwhile, the CBSA will investigate whether the imports are being sold in Canada at unfair prices, subsidized prices or both. It will make preliminary decisions by Sept. 9.
The Canadian case against Chinese hardwood plywood follows similar investigations conducted in recent years in the United States. U.S. hardwood plywood manufacturers successfully pleaded their case for the imposition of counterveiling duties on Chinese plywood.
Last fall, the U.S. Commerce Department expanded counterveiling duties to include Chinese decorative plywood and veneers made with certain softwoods, including radiata pine or agathis pine.
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