Coalition for American Hardwood Parity Files Unfair Trade Petition Against China

01/11/2010 12:00 - 471 Views

Washington, DC, October 21, 2010--The Coalition for American Hardwood Parity (CAHP), an association of U.S. manufacturers of multilayered (engineered) wood flooring, announced today that it has filed an unfair trade petition regarding imports of the product from China. The petition, filed with the U.S. Department of Commerce and the International Trade Commission, asserts that imports of the product are sold in the United States at dumped prices, and that Chinese manufacturers have gained an unfair competitive advantage.

The petition also asserts that U.S. manufacturers of multilayered wood flooring have suffered material competitive injury as a result of these unfair trade practices, and that the industry continues to be threatened by further injury by reason of the Chinese imports. The petition requests that the U.S.

government investigate these unfair trade practices and their harmful impact on this domestic manufacturing industry, and to apply antidumping and countervailing duties on imports of multilayered wood flooring from China in order to restore competitive parity in the U.S. market. The petition documents antidumping and countervailing duty margins in excess of 100 percent.

Over the last several years, the market share of U.S. multilayered wood flooring captured by manufacturers in China has grown from single digits to over one-third of the market. According to CAHP counsel and spokesperson, Jeff Levin, the market share growth of China has not been earned on a “level playing field” as China does not abide by the same rules as U.S.

manufacturers. “China has ‘dumped’ products into the U.S. market at prices that are well below fair value,” said Levin. “Furthermore, Chinese manufacturers receive an array of government subsidies, including that country’s manipulation of currency exchange rates. All of these factors equate to an enormous unfair advantage for Chinese manufacturers, and injure the entire domestic hardwood flooring industry. Even more ominously, these unfair trade practices present a fundamental, if not insurmountable, obstacle to the domestic industry’s ability to recover its competitive footing, even when underlying economic conditions in this country turn more favorable.”

In addition to U.S. manufacturers, other stakeholders such as flooring retailers and consumers have been negatively impacted by Chinese imports. Levin explains, “The profit margins for distributors and specialty retailers have continually diminished. Beautiful, well-styled domestic products that once earned a reasonable profit have been relegated to commodity status as Chinese companies simply appropriate the costly development and market-testing efforts of domestic manufacturers. In addition, service levels have suffered throughout the supply chain. In the end, everyone throughout U.S. commercial channels, up to and including the consumer, ultimately suffers.”

The CAHP petition has the support of domestic multilayered wood flooring manufacturers that together represent a majority of domestic hardwood flooring production. In line with regulatory timelines, CAHP expects a preliminary ruling and escrow deposit requirement could be implemented by early 2011 and a final ruling and duty to be implemented by end of 2011.

Thursday, October 21, 2010

Source: talkfloor.com