Hardwood Coalition Wins China Investigation

Washington, DC, Dec. 6, 2010 -- The U.S. International Trade Commission has paved the way for an investigation into allegations that China dumps engineered hardwood into the U.S. market.

The commission issued a unanimous affirmative determination in its preliminary investigation into the allegations. It determined that there is “a reasonable indication that a U.S. industry is materially injured by reason of imports of multilayered wood flooring from China that are allegedly subsidized and sold in the United States at less than fair value.”

As a result of the vote, the U.S. Department of Commerce will conduct a detailed investigation into the pricing practices of Chinese engineered wood flooring manufacturers and exporters, as well as subsidies provided to those companies.

Its preliminary countervailing duty determination is in January and its preliminary antidumping duty determination is due in March.

“The fact that today’s vote was unanimous, we believe, is a reflection of the weight of the extensive evidence reviewed by the commission, and the seriousness with which the agency viewed the concerns detailed by the domestic industry,” said Jeff Levin, counsel for the Coalition for American Hardwood Parity, which filed a petition for the investigation in late October.

Evidence presented to the commission indicates that imports of multilayered wood flooring from China have increased dramatically over the past several years and may account for nearly 50% of the U.S. market.  According to Levin, the rapid growth in market share captured by manufacturers in China has been achieved through unfair trade practices that have resulted in systemic underselling of domestically-manufactured multilayered wood flooring and has been a direct cause of the declining competitive position of the U.S. industry in recent years.

”Even more ominous than the harm suffered by the U.S. industry in recent years, is the fact that 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,” said Levin.

The coalition consists of Anderson Hardwood Floors LLC, Award Hardwood Floors, Baker's Creek Wood Floors Inc., From the Forest, Howell Hardwood Flooring, Mannington Mills Inc., Nydree Flooring, Forest, and Shaw Industries Group Inc. 

Related Topics:Mannington Mills, Anderson Tuftex, Shaw Industries Group, Inc.