June 08, 2023

DHA eNews - Commerce Postpones Vietnam Hardwood Plywood Circumvention Ruling—Again

This Week's Insights

Two weeks ago, we held our 2023 Annual Meeting in Clearwater, Florida. It was fantastic seeing many long-term and new members and hearing from expert speakers on issues key to our industry, including trade policy, new technology, and methods to identify Russian birch—which continues to fund the Russian war effort, despite restrictions. It was also a pleasure to recognize the commitment of our long-term members and those members who serve on the DHA leadership team. Please save the date for DHA’s 2024 Annual Meeting, May 14–16, in Scottsdale, Arizona. I look forward to seeing you there.

Unfortunately, the U.S. Department of Commerce has again delayed its final ruling in the Vietnam hardwood plywood circumvention case. The new date is July 14. This case, filed by the Coalition for Fair Trade in Hardwood Plywood, has been going on for about three years. At least duties have been applied since the time of the July 2022 preliminary ruling.

The U.S. Supreme Court continued to push back against regulatory overreach by the Biden administration and federal regulatory agencies in a ruling on the waters of the U.S. (WOTUS). The ruling will significantly narrow the reach of federal agencies and give landowners, including forest companies, more control over their lands that have little or no relationship to "navigable waters."

Cabinets, a key market for hardwood plywood, have seen sales fall by nearly 12% in volume year-to-date through April.

If you have questions or comments, contact me. I look forward to hearing from you.


Keith A. Christman, President
Decorative Hardwoods Association

Photo © Philippe Hall 123rf.com

Commerce Postpones Vietnam Hardwood Plywood Circumvention Ruling—Again

On May 26, The U.S. Department of Commerce again extended the deadline to issue a final determination in the Vietnam hardwood plywood circumvention case, setting a new deadline of July 14. Duties assessed in last July's preliminary ruling will stay in effect during this delay.

Farm Bill Coalition Fights For Forestry

The Forests in the Farm Bill coalition, made up of the Forest Resources Association, Decorative Hardwoods Association, and more than 70 forestry and conservation organizations, continues its work to improve the forestry sections of the farm bill. Recommendations include establishing regional forest industry workforce training hubs, expanding wood innovation grants, and improving the Forest Inventory and Analysis program.

Supreme Court Rules On WOTUS

In an important decision for landowners, the U.S. Supreme Court narrowed the reach of the federal government, ruling that it may only regulate wetlands with a continuous surface connection to rivers and lakes. This means that the Biden administration will need to rework its waters of the U.S. (WOTUS) rule.

Cabinet Sales Fall By Nearly 12%

Sales of cabinets have fallen by 11.7% in volume this year through April. The value of cabinet sales has grown by 7.6%, however. Similar trends were observed for April vs. March.

EU Council Adopts New Rules On Deforestation

The Council of the European Union gave the final go-ahead to a regulation designed to minimize the risk of deforestation and forest degradation from products that are sold on the EU market or exported from the EU. The regulation sets mandatory due diligence rules for all importers and traders for a number of commodities, including wood.

Michigan Sets New VOC Limits On Wood Coatings

In Michigan, effective April 18, the volatile organic compounds limit for wood coatings is 275 grams per liter. This includes wood flooring finishes. The new VOC limit for wood stains is 250 grams per liter. However, coatings manufactured before April 18 may continue to be sold for up to three years.

Russian Conflict Timber Is Still Finding Its Way Into International Markets

Timber Development UK, the largest supply chain body for timber in the UK, is warning countries to be on high alert for illegal imports of conflict timber from Russia and Belarus. New reports suggest that birch plywood and other conflict timber are being exported into North America, Europe, and Australia, disguised as having originated in countries including Vietnam and China.

Russia's Plywood Production Continues To Fall

Russian plywood production during the first four months of 2023 fell by 24% vs. 2022. Due to EU sanctions, Russia has completely lost its share of the European plywood market. While plywood from Russia is still reaching the U.S., imports fell by 77% in Q1 2023 vs. 2022.

Canada's Rampant Wildfires Are Visible From Space

Fires have burned through nearly 2,000 square miles in British Columbia, Alberta, and Saskatchewan, sending massive plumes of smoke into the air. NASA shared a satellite photo that shows smoke from wildfires sweeping over Canada and the U.S.

Canada Calls For International Help Fighting Wildfires

Wildfires are burning out of control and spreading across the western half of Canada. Officials said that their 2,500 firefighters plus 400 military personnel in Alberta are not enough and called for international help. Australia and New Zealand responded and will send 222 firefighters to Canada.

Source: Forestry Corporation

Fires In Nova Scotia Force 16,000 People Out Of Their Homes

Officials say the fires, burning across more than 25,000 acres, are "out of control." Wildfires have destroyed numerous buildings and caused huge plumes of smoke over the region, displacing more than 16,000 people near Halifax.

U.S. Has No Shortage Of Old Growth

For more than 40 years, anti-forestry activists have rallied around saving the "last of the old growth" on federal land. A recent in-depth report by the Biden administration, a year in the making, stated there is no shortage of mature and old growth trees on land managed by the U.S. Forest Service and Bureau of Land Management.

Canada's Carbon Emissions Are Small

Despite a growing population and a sharp rise in oil output, Canada's share of global carbon emissions has fallen from 2.2% in 2000 to 1.5% today. 70% of emissions come from developing countries. China is the world's biggest polluter; its share of global emissions is more than 20 times Canada's share.

New Building Is "Like Entering A Forest"

Constructed of mass timber, Asia's largest timber building is made almost entirely of wood, including handrails, benches, door frames, and even the bus stop. CNN highlighted the climate benefits of building with wood, stating that "unlike concrete and steel, whose energy-intensive production is responsible for a significant portion of buildings' environmental footprint, trees absorb carbon dioxide throughout their lifetime" and that carbon is then stored in the building.

U.S. Housing Starts Increase
U.S. Single-Family Homebuilding Permits Rise
U.S. New Home Sales Reach A 13-Month High
Canada's Housing Starts Are Up By 22%
Canadian Home Builders' Confidence Is Growing
Expect U.S. Economy To Slow, But Housing Construction To Improve
Builder Confidence For New Single-Family Homes Up By 5 Points
Low Existing Home Inventory Boosts Buyer Interest In New Homes
New Single-Family Home Sizes Trend Lower
Build-To-Rent Activity Reaches Record Levels
After A 7-Month Low, Construction Backlog Increases
Forest Trivia: Test Your Knowledge

What is the U.S. Fish & Wildlife Service celebrating this week—and how can you join in?

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