The results of a federal agency investigation into the competitiveness of U.S. hardwood flooring and hardwood plywood imports was released Sept. 16 by the U.S. International Trade Commission (ITC). The study was conducted to better understand import challenges facing the industry.

The investigation was requested by the Senate Finance Committee in March 2007. As requested, ITC, an independent non- partisan agency, said it provided an overview of the U.S. markets for solid and engineered wood flooring (both unfinished and factory finished products) and hardwood plywood. This includes, among other things, a description of U.S. industries for wood flooring and hardwood plywood and those of the principal countries supplying the U.S. market, including trends in production, capacity, employment and consumption. Among the factors affecting the competitive position of U.S. producers and principal foreign suppliers to the U.S. market is illegal logging and environmental policies.

“We will review all the tariffs and laws of countries we receive wood from to make sure no country is giving us an unfair advantage or import tax,” said Ed Korczak, executive director of the National Wood Flooring Association ( NWFA).

The report offers a mixed view of the U.S. wood flooring and hardwood plywood industries competitiveness. Overall, it suggests an increased chance that an antidumping duty (AD) and/or countervailing duty (CVD) cases will be filed against imported wood flooring and hardwood plywood (mostly against product manufactured in China, but also Brazil, Canada and Malaysia. The report warns importers should be preparing for possible action now.

Some key findings include:

U.S. production, consumption and trade of these products increased significantly from 2002 to 2007.

China has become the U.S.’ main competitor in this market, accounting for most of the increased imports since 2002.