DHA eNews – Commerce Department Issues Preliminary Countervailing Duties On Hardwood Plywood
The Commerce Department has released the long-awaited preliminary affirmative countervailing duty determination on hardwood and decorative plywood, after finding significant subsidies provided by the governments of China, Indonesia, and Vietnam. This is an important step in the trade cases filed by the Coalition for Fair Trade in Hardwood Plywood. Hopefully, this will dramatically reduce dumped and subsidized hardwood plywood imports and provide a level playing field for U.S. manufacturers.
Unfortunately, the war of words between the U.S. and Canada is ramping up again and threatens the current renegotiation of the U.S.-Mexico-Canada Free Trade Agreement (USMCA). President Trump has threatened 100% tariffs on Canada as a result of Canada's trade agreement with China. Preventing transshipment by China through U.S. partners is a priority for the Trump administration and is a contentious issue in USMCA discussions. Like it or not, Prime Minister Carney's Davos speech was poorly received by the Trump administration and is likely to make agreements harder to reach.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
PHOTO © JERRY GLASER USCBP
On January 16, the U.S. Department of Commerce released its preliminary affirmative countervailing duty findings on hardwood and decorative plywood after identifying significant subsidies provided by the governments of China, Indonesia, and Vietnam. Commerce calculated preliminary countervailing duties of 81.34% on imports from China, 2.40% to 128.66% on imports from Indonesia, and 4.37% to 26.75% on imports from Vietnam.
These rates will be added to existing tariffs on products from these countries and are now in effect, as the determination has been published in the Federal Register. In addition, preliminary antidumping rates are scheduled to be announced in late February. Final rulings are expected in early May.
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