China is dealing a blow to rural America, but Trump can stop it

President Trump ran a successful presidential campaign promising to restore American exceptionalism and pride. Despite all the hard work this administration has done for American workers, more is still necessary, especially for the U.S. hardwood plywood industry, an industry decimated by unfair and illegal Chinese trade practices.

U.S. hardwood plywood facilities across the nation manufacture products found in cabinets and furniture that we have in our homes, offices and schools. But hardwood plywood provides more than just a decorative and renewable finish to our homes and offices. The industry provides jobs and a stable way of life to thousands of Americans, mostly in rural America. These facilities and mills are the backbone of small and local communities, and they support families whose lives depend on the industry’s future.

{mosads}The U.S. hardwood plywood industry has been under extreme attack from illegal trade practices in China. It’s a travesty that has destroyed jobs, ruined livelihoods and laid waste to hard working communities across the country. Since China began illegally subsidizing hardwood plywood products, 42 American mills have been forced to close their doors, and those remaining have significantly cut jobs.

Chinese hardwood plywood imports have surged from $54 million in 2001 to nearly $1.1 billion in 2016. China is the world’s largest importer of logs, which it uses to supply its many wood products industries, according to the International Union of Forest Resource Organizations. In just the last two years, imports of Chinese hardwood plywood have increased 35 percent, and the value of hardwood plywood imports from China rose to half of the $2.5 billion estimated U.S. hardwood plywood market.

The nonprofit organization, Forest Trends, published a 2015 report asserting that the U.S. was regularly purchasing one-fifth of China’s hardwood plywood exports. Under the Lacey Act, importing illegally sourced products into the U.S. is prohibited under federal law, and China is violating its terms. These data points suggest that a stricter enforcement of the Lacey Act is necessary to keep Chinese imports from increasing, thus allowing the U.S. hardwood plywood industry to be competitive.

These numbers show the staggering and devastating reality of an industry that has been crippled, receiving little support from past administrations. The Trump administration has the perfect opportunity to reassure thousands of U.S. hardwood plywood workers that our president is committed to putting American workers first.

I am proud of President Trump’s leadership and appreciate his support. Since his administration came into office, the Commerce Department and International Trade Commission have launched investigations into illegal imports of hardwood plywood. More importantly, these investigations have proven once again that China is selling hardwood plywood far below a fair market price and is illegally subsidizing companies who export these products.

In April, Commerce Secretary Wilbur Ross and the Department of Commerce announced that their initial investigations had determined that hardwood plywood imports were being subsidized by the Chinese government. They promised to impose countervailing duties on the imports ranging from nearly 10 percent to more than 111 percent, while continuing to investigate 26 other Chinese companies. In June, the Commerce Department determined it had reached a preliminary decision that Chinese companies also were dumping hardwood plywood products into the United States, at margins of up to 114 percent.

Concurrently, the International Trade Commission has been conducting an investigation to determine if American producers have been injured by these illegal imports. Should the International Trade Commission conclude American producers have indeed been injured, permanent antidumping and countervailing duty orders would be put in place. The agency has scheduled an Oct. 26 hearing on the issue.

More decisive action is needed to reaffirm Trump’s commitment to U.S. workers. Ultimately, working with sympathetic members of Congress and the administration, the Commerce Department and International Trade Commission need to impose strong duties on illegal hardwood plywood imports and apply these duties to the broadest scope of products, in order to prevent ongoing duty evasion. The U.S. hardwood plywood industry cannot afford to be forgotten by another administration and watch as their livelihoods, communities and jobs are cast aside.

When allowed to operate under fair international trade rules and regulations, U.S. mills can be just as competitive as Chinese mills. All that U.S. hardwood plywood workers are asking for is a level playing field. Now is the time for President Trump to take decisive action and work with the Commerce Department and International Trade Commission to put American workers first and bring much needed relief to the iconic U.S. hardwood plywood industry.

Kip Howlett is the president of the Hardwood Plywood Veneer Association.