Birch is cut to size at Industrie Ergie Inc., a company that specializes in veneer face manufacturing and distributing on May 12, 2023 in Victoriaville, Quebec. Carlos Zarate, president of Industrie Ergie, said Canadian decorative plywood companies have seen their market share in Canada drop because they are unable to compete with plywood products imported from China at prices domestic producers could never hope to match, let alone beat.
The industry wants duties imposed on Chinese exporters, who they say enjoy unfair advantages such as heavy government subsidies and access to illegally harvested wood, flooding global markets with cheap goods that drastically undercut competitors. "Producers must increasingly look to other export markets to sell their products. The primary export market is the United States, which is now protected against dumped and subsidized Chinese imports."
He said Canadian firms find themselves competing in a "disrupted market," where Chinese-made products cost half or even a third of the price of those made in Canada. "The CBSA is not a shrinking violet. If there was a shred of evidence that showed dumping, if there was a shred of evidence they could have relied on to find a particular market situation, would have done it, but they didn't," LaFortune said.
Ultimately, the agency did not find the existence of a "particular market situation" in the decorative plywood space involving a number of Chinese firms, though it did find some were indeed dumping product and receiving subsidies.
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