The European Union (EU) has started an investigation into the import of hardwood plywood from China in the fall of 2024. The investigation was requested by nine European plywood producers who claim that China is selling the product to Europe at unfairly low prices. In addition, Chinese manufacturers are believed to be using timber from Russia, whose timber imports have been banned in the European Union since Russia invaded Ukraine in 2022. Such illegal timber trade threatens European businesses and jobs.<\/p>\n
Impact on prices of wood products<\/strong><\/p>\n The complaint was filed on August 27, 2024 by the **Greenwood Consortium**, which represents forest owners, loggers and suppliers. They point out that imports of hardwood plywood from China have increased significantly recently, causing losses to local producers as these imports affect both the price level and sales volumes of local products.<\/p>\n The investigation will examine whether Chinese companies are selling their products at prices below production costs and whether this is hurting European producers. Countries such as Poland, Finland, the Baltic States and France, which have many plywood producers, are already feeling strong competition from China.<\/p>\n It is suspected that much of China's plywood is actually produced from Russian timber, which is exported to China by circumventing European Union bans. To control this, the European Union will introduce a new system that will allow all plywood imports from China to be registered. If the investigation proves unfair timber imports, the European Union will be able to impose retroactive tariffs so that companies cannot avoid paying by stockpiling goods in advance.<\/p>\n The investigation is likely to last more than a year. In 2023, the European Union imported about 750,000 cubic meters of Chinese hardwood plywood valued at \u20ac327 million. It accounted for more than half of the total EU wood imports and about 30% of the EU market.<\/p>\n Manufacturers struggle with unfair competition in the wood market<\/strong><\/p>\n A similar investigation has already been carried out on other products, such as birch plywood imported from Kazakhstan and Turkey, as Russian timber was found. Also, in May 2024, an investigation was launched into the import of multilayer wooden floors made in China, as European producers suffered from dumping, where the price difference reached as much as 160%. This resulted in a regulation requiring the registration of these imports in order to determine possible tariffs. The European Commission plans to set temporary payments from mid-November 2024, which will be effective from December and will last for six months. These measures will help protect European producers from unfair competition and promote fair trade.<\/p>\n Forgetting about the pro\u2019s?<\/strong><\/p>\n The investigation that has been initiated will now examine whether the product under investigation is dumped and whether the Union industry is injured by the dumped imports. The investigation of dumping and injury covers the period from July 1, 2023 to June 30, 2024. The investigation of developments relevant to the injury analysis covers the period from January 1, 2021 to the end of the investigation period. If this is confirmed, further examination will be carried out to determine whether the imposition of measures would not be contrary to the Union interest. That is precisely the subject of a heated debate within the European industry.<\/p>\n The applicant, Greenwood Consortium, was founded by nine European producers - originally to curb the illegal import of Russian birch plywood via third countries. However, according to the Plywood Trade Interest Alliance, recently founded by 15 importers, the general suspicion of all Chinese hardwood plywood products seems over the top. Critics assume that there is a deliberate concentration on Chinese companies, while other potential market distorters are ignored.<\/p>\n In addition, the comparison with Turkey appears to be flawed, which means that the dumping margins are exaggerated. There are also doubts as to whether the analysis of the damage caused took into account all the forces currently influencing the market. The advantages of Chinese goods for the EU market are also ignored. The PTIA therefore warns against inappropriate protectionism, which could harm the industry even in the investigation phase, as European manufacturers would not be able to supply the quantities required in the market and this could lead to a shift in demand towards other products.<\/p>","protected":false},"excerpt":{"rendered":" The European Union (EU) has started an investigation into the import of hardwood plywood from China in the fall of 2024. The investigation was requested by nine European plywood producers who claim that China is selling the product to Europe … Continue reading