In October 2012, the IWPA argued that US hardwood plywood producers would raise their prices if those of Chinese imports were raised due to increased duties, with the result that US plywood converters would become less competitive internationally.
Alternatively, if Chinese plywood prices increased as a result of the increased duties, other countries might seize the opportunity to import cheap plywood to the US, thus negating any advantage to the converters of the increased duties.
The KCMA also stated that US plywood producers could only produce a limited quantity, if any, of the grades currently imported from China and that this could lead to supply problems for the converters, resulting in cabinet production moving out of the US.
The International Trade Commission launched a preliminary investigation into hardwood plywood imports from China in September 2012 and was expected to complete this some time in November.
