The Canada Border Services Agency has confirmed preliminary findings that Chinese plywood is being dumped into the Canadian market at unfair prices and subsidized by Beijing.

Temporary anti-dumping and countervailing duties are now being collected on decorative and other non-structural plywood imported from China. Combined provisional duties reach as high as 227.5 percent for some exporters.

The duties apply to affected goods released by the CBSA beginning August 24 and will remain in place while the investigation continues.

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The agency launched its investigation in April following a complaint from Columbia Forest Products in Hearst, Ontario, and the Canadian Hardwood Plywood and Veneer Association.

Canadian producers alleged that Chinese exporters were selling plywood in Canada below fair market value while benefiting from government subsidies, costing domestic mills sales, market share and jobs.

In June, the Canadian International Trade Tribunal found a reasonable indication that the dumped and subsidized imports had caused, or threatened to cause, injury to Canada’s plywood industry.

The CBSA subsequently issued preliminary determinations confirming both dumping and subsidization.

The agency’s findings undercut arguments that American complaints about unfair foreign trade practices are merely an excuse for protectionism. Canada is now using its own trade laws to protect domestic manufacturers from Chinese products sold under allegedly distorted market conditions.

The products covered include decorative and non-structural plywood used in cabinetry, furniture, wall panelling, flooring and other interior applications.

The duties are provisional. The CBSA must still complete its investigation and issue final decisions on dumping and subsidies.

The Canadian International Trade Tribunal has launched a final injury inquiry to determine whether the Chinese imports have caused injury, delayed the establishment of Canadian production or threatened domestic manufacturers.

The tribunal is scheduled to issue its finding on December 22.

If the tribunal finds that Canadian producers were harmed, permanent anti-dumping and countervailing duties could be imposed. If it finds no injury, the proceedings will end, and provisional duties will be refunded.

Canadian plywood producers had warned for months that cheap Chinese imports were eroding sales and threatening jobs. The CBSA’s preliminary findings now confirm that those concerns were not imaginary.