Unlock the Editor’s Digest at no cost
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
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 vital 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 essential to guard your entire EU hardwood plywood worth chain,” mentioned the Greenwood Consortium, which represents forest homeowners, loggers and suppliers to producers. “Unfairly priced Chinese language imports — now apparently additionally utilizing low-cost battle Russian timber that’s banned within the EU — threaten the survival of many European companies and jobs.”
Light-weight. sturdy and made out of timber similar to 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 gasoline tankers.
The principle EU producers are in Poland, Finland, France and the Baltic states. Greenwood says the business employs 10,000 folks.
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 firms dodging tariffs by stockpiling throughout the investigation, which might take nearly a 12 months, can 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 price €327mn in 2023, based on Eurostat figures.
That accounted for greater than half of the bloc’s imports and 30 per cent of the entire 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, mentioned the EU’s fractured single market meant its firms couldn’t compete with Chinese language rivals.
With Beijing increasing into industries the EU used to guide, the bloc can be pressured to guard them.
“The European Fee’s duties on Chinese language electrical automobiles sign that the time by which China-EU relations have been ruled by engagement is over,” she mentioned. “China and the EU now compete with the identical sort of merchandise on third markets. It’s extra vital than ever that the foundations of the sport are honest.”
