The European Commission has announced the launch of a new anti-dumping investigation into unfairly priced imports of hardwood plywood from China into the European Union.
Procedurally, the initiation of the investigation, for the first time ever, will require registration of all imports of Chinese hardwood plywood at EU borders. This would allow European customs officials to collect additional duties retroactively if they are imposed because of the Commission’s findings after the investigation.
The investigation was initiated at the request of nine leading European plywood producers who formed the Greenwood Consortium, saying: “The investigation will now examine whether Chinese producers are indeed dumping hardwood plywood in the EU, and what the consequences of those practices for European businesses are. Several other countries and markets, including the US, Morocco, Turkey and South Korea, have already taken action to protect their own industries from similar unfair trade practices.”
Established in 2023, as an ad hoc Consortium by leading EU producers of hardwood plywood from Bulgaria, Czech Republic, Finland, France, Hungary, Latvia, Italy, Poland, and Spain, Greenwood leverages trade policy instruments to further its commitment to fostering a level playing field that ensures fairness and sustainability in the EU hardwood plywood industry.
Jaroslaw Michniuk, CEO of consortium member Paged Morag – with plywood production facilities in Poland and Estonia – said: “We are pleased that the Commission has granted the Greenwood Consortium’s request and launched an investigation, the course of which we will be following closely. The investigation itself takes up to 14 months, however, as was the case in the proceedings against Russian birch plywood producers, the European Commission can impose so-called provisional duties after about six months. We also welcome the Commission’s announcement of the registration of hardwood plywood imports at the EU border, as this makes retroactive duties possible.
Paged has been an active supporter of fair competition in the EU plywood market for years. The company co-founded the Woodstock Consortium, at the request of which the European Commission conducted anti-dumping proceedings and imposed tariffs on Russian plywood even before Russia’s invasion of Ukraine, as well as tariffs on Turkey and Kazakhstan for circumventing these regulations.
“The imposition of sanctions on plywood from Russia and Belarus has caused these countries to try to find ways to reach the EU market with their illegal goods,” added Michniuk. “One of the directions that is gaining dynamic importance today is China. Keeping in mind that already today China is the largest supplier of plywood to the European Union, it is so important that trade with this country takes place in accordance with WTO regulations.”
The Greenwood Consortium and its supporters are committed fully to co-operating with the European Commission to ensure a successful outcome for the industry and its workers.
EUDR Delayed
The upcoming EU Deforestation Regulation (EUDR) is set to reshape how businesses trade timber and wood products in the European market, with many implications for global supply chains. The EUDR’s core requirement is straightforward. Companies supplying timber – either entering or leaving the EU market – must be legally sourced, free from deforestation or degradation, based on a cut-off date of 31 December 2020, and verified by a robust due diligence system. This includes sawn timber, wood-based materials, paper, and furniture, as well as rubber, palm oil, soy, coffee, cacao, and beef.
On 2 October 2024, the European Commission proposed to delay implementation a full year to 30 December 2025 for large companies and 30 June 2026 for and small and medium enterprises. The scope of implementation has been vastly underestimated, with a statement from the European Commission saying: “The Commission recognizes that three months ahead of the intended implementation date, several global partners have repeatedly expressed concerns about their state of preparedness, most recently during the United Nations General Assembly week in New York. Moreover, the state of preparations amongst stakeholders in Europe is also uneven. While many expect to be ready in time, thanks to intensive preparations, others have expressed concerns.”
Companies must still prepare to implement rigorous due diligence systems that trace the wood from harvest to the marketplace. This includes supplying geolocation data that pinpoints the exact areas where the timber is grown. The Commission update in October also stated: “The Commission is intensifying dialogues with most concerned countries, which will feed into the speedy finalization of the country benchmarking system through a proposed Implementing Act by 30 June 2025.”
