Congressman Peter Defazio

WASHINGTON, DC-- Oregon's congressional delegation applauded the United States International Trade Commission (USITC) for finding that there is a “reasonable indication” that the U.S. hardwood plywood manufacturing industry has been substantially injured by Chinese subsidized plywood sold in the U.S. at less than fair value. The U.S. Department of Commerce will continue to investigate Chinese hardwood plywood imports and make preliminary determinations on potential Chinese trade violations in December 2012 and March 2013.

In early November, U.S. Representatives Peter DeFazio (D-Ore.), Greg Walden (R-Ore.), Kurt Schrader (D-Ore.), Suzanne Bonamici (D-Ore.), Earl Blumenauer (D-Ore.); and U.S. Senators Ron Wyden (D-Ore.) and Jeff Merkley (D-Ore.) urged USITC to give full and fair consideration to the antidumping and countervailing duty (AD/CVD) petitions filed by the Coalition for Fair Trade of Hardwood Plywood (CFTHP).

“The AD/CVD petitions filed by the Coalition for Fair Trade of Hardwood Plywood (CFTHP) represent a serious attempt to address the type of illegal trade practices that China routinely employs to create artificial advantages in the marketplace,” the delegation wrote. “We ask that you give the antidumpting and countervailing duty petitions full and fair consideration and that the U.S. trade remedy laws are fully enforced.”

According to the CFTHP, illegal Chinese subsidies and “dumping” practices have substantially increased the market share growth of Chinese plywood imports in just a few short years. Because of the artificially low price of Chinese plywood, American manufacturers are priced out of the market and unable to compete. In September, CHTHP filed a petition with the Department of Commerce and the ITC to investigate China’s unfair trade practices and apply appropriate duties to “level the playing field”.

Murphy Plywood (Eugene, OR), Roseburg Forest Products (Dillard, OR), States Industries (Eugene, OR), Timber Products Company (Springfield, OR), and Columbia Forest Products (Klamath Falls, OR), led the petition along with a hardwood plywood manufacturer from New York.

Roseburg Forest Products President Allyn Ford issued the following statement in response to the determination.

"We are pleased with the progress in the Chinese Hardwood Plywood case. At Roseburg, we are simply looking for a level playing field in this product line and of course preserving jobs in our workforce,” said Ford.

Joe Gonyea III of Timber Products Company issued the following statement in response to the USITC announcement.

“We are pleased that the International Trade Commission has recognized the merit of our petition and they will now do a thorough investigation,” stated Gonyea. “Timber Products Company can compete with any hardwood plywood manufacturer in the world, as long as the playing field is level.  We hope this process will make that a reality. We applaud the bi-partisan efforts of Congressman DeFazio and other members of the Oregon delegation for being proactive on this issue that impacts literally thousands of family wage jobs in our state.”

Since China joined the World Trade Organization, the U.S. has lost over 2.8 million jobs including 47,900 in Oregon according to the Economic Policy Institute. China has repeatedly targeted U.S. manufacturing sectors using illegal subsides to undercut our industries.

For more information about the CFTHP petition and market information, please go to www.hardwoodplywoodfairtrade.org.

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