Global Geo-political Series: U.S. commerce department announces final AD and CVD on hardwood, plywood products from China

Just days after U.S. President Trump concluded his trip to China, where he received a lavish welcome, the U.S. state department announced final AD (Anti-Dumping Duty)/CVD (Countervailing Duty) on hardwood and plywood products from China. China’s commerce ministry said on Tuesday that it expresses strong dissatisfaction with the ruling by the United States over imported hardwood plywood products from China. Unreasonable U.S. actions and rulings will seriously impact China’s exports of hardwood plywood and damage the interests of Chinese firms, the ministry said in a statement posted on its website.

According to U.S. commerce department, exporters from China sold hardwood plywood products in the United States at 183.36 percent less than fair value and China is providing unfair subsidies to its producers of hardwood plywood products at rates ranging from 22.98 to 194.9 percent. The commerce department has directed the United States’ customs and border protection agency to collect cash deposits from importers based on the final rate.

The U.S. Commerce Secretary Wilbur Ross was quoted saying, ““The dumping and unfair government subsidization of products is something this Administration takes very seriously…..While the United States is committed to free, fair and reciprocal trade with all countries, this is not our idea of a properly functioning trade relationship.”

In 2016, imports of hardwood plywood products from China were valued at an estimated $1.12 billion.