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The EU is launching an anti-dumping investigation into low cost plywood imports after complaints by the bloc’s home producers, opening one other entrance in its commerce battle with China.
EU producers say there was a surge in low cost hardwood plywood coming from China, a lot of which they imagine originates in Russia. Brussels banned Russian wooden imports after its full-scale invasion of Ukraine in February 2022.
The probe follows the EU’s imposition of tariffs of as much as 45 per cent on Chinese language electrical automobiles final week. China responded to that with provisional tariffs on EU brandy exports and had already opened anti-dumping probes into pork and dairy merchandise,
The transfer has sparked fears by EU member states of an prolonged cycle of retaliatory strikes on necessary merchandise, whereas China argues the EU is being protectionist. As tensions heighten, the 2 sides have additionally filed a number of challenges to the opposite’s commerce defence measures on the World Commerce Group.
“This investigation is crucial to protect the entire EU hardwood plywood value chain,” stated the Woodstock Consortium, which represents forest house owners, loggers and suppliers to producers. “Unfairly priced Chinese imports — now apparently also using cheap conflict Russian timber that is banned in the EU — threaten the survival of many European businesses and jobs.”
Light-weight. sturdy and constructed from bushes resembling beech, birch and poplar, layered hardwood plywood panels are utilized in roofs, partitions and flooring, in addition to furnishings, automobiles and ships. Able to enduring very low temperatures, plywood merchandise additionally line the holds of supercooled liquefied pure fuel tankers.
The primary EU producers are in Poland, Finland, France and the Baltic states. Woodstock says the trade employs 10,000 individuals.
The EU has already put tariffs on birch plywood imports from Kazakhstan and Turkey after discovering they included some Russian content material.
New EU guidelines to forestall corporations dodging tariffs by stockpiling throughout the investigation, which might take virtually a 12 months, might be used for the primary time.
All imports of Chinese language items should be registered at EU borders. If the EU decides to levy tariffs, they’d then be utilized retroactively.
The EU imported about 750.000 cubic metres of hardwood plywood value €327mn in 2023, in accordance with Eurostat figures.
That accounted for greater than half of the bloc’s imports and 30 per cent of the whole EU market.
A number of different international locations together with the US, Morocco, Turkey and South Korea have already positioned punitive tariffs on Chinese language wooden imports.
Brussels has condemned China for subsidising industries and exporting its overcapacity in manufactured items under price, opening greater than a dozen investigations into merchandise together with tin plate, glue and monosodium glutamate.
Alicia García Herrero, senior fellow on the Brussels-based Bruegel think-tank, stated the EU’s fractured single market meant its corporations couldn’t compete with Chinese language rivals.
With Beijing increasing into industries the EU used to steer, the bloc might be pressured to guard them.
“The European Commission’s duties on Chinese electric vehicles signal that the time in which China-EU relations were governed by engagement is over,” she stated. “China and the EU now compete with the same type of products on third markets. It is more important than ever that the rules of the game are fair.”
