WASHINGTON--A U.S. trade panel Friday cleared the way for the
Commerce Department to consider imposing retaliatory tariffs on
more than $600 million in annual imports of hardwood and decorative
plywood from China.
The International Trade Commission found a "reasonable
indication" that U.S. producers are being hurt by Chinese exports
of the wood, typically used in flooring or furniture.
The decision allows Commerce to pursue an investigation launched
last month into whether the wood is being unfairly subsidized and
sold at below-market prices.
A group of U.S. producers have sought antidumping and
countervailing duties of more than 300% on the Chinese goods.
Members of the Coalition for Fair Trade of Hardwood Plywood include
Columbia Forest Products of North Carolina, Commonwealth Plywood of
New York and Oregon-based Murphy Plywood, Roseburg Forest Products
Co., States Industries Inc. and Timber Products Co.
However, some distributors of wood products that sell the
Chinese imports in the U.S. have warned that any tariffs could lead
to price increases and hurt supply. Canadian distributor Hardwoods
Distribution Inc. (HDIUF, HWD.T) said last month that since the
majority of its imported hardwood and plywood comes from China,
about 13% of its U.S. sales, the duties could hurt business.
Write to Tom Barkley at tom.barkley@dowjones.com
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