Competitiveness in the U.S. Flooring & Plywood Markets David L. Ingersoll USITC Chatham House July 10, 2007

USITC & US Trade Policy Agriculture Commerce Banking Appropriations Treasury Justice Interior EPA USITC Office of the President USTR United States Congress House Ways & Means Committee Senate Finance Committee USDA State Commerce

Wood Flooring and Hardwood Plywood: Competitive Conditions Affecting the U.S. Industries Requested by Senate Finance Committee on February 28, 2007 Requested by Senate Finance Committee on February 28, 2007 Initiated by USITC on April 11, 2007 as Inv. No Initiated by USITC on April 11, 2007 as Inv. No Report Due by June 6, 2008 Report Due by June 6, 2008

U.S. Flooring & Plywood Shipments ( ) billions of dollars

U.S. Flooring & Plywood Trade ( ) billions of dollars

U.S. Flooring & Plywood Imports, By source, millions of dollars

Study Objectives Overview of U.S. Markets Overview of U.S. Markets Profiles of U.S. & Foreign Industries Profiles of U.S. & Foreign Industries Hardwood PlywoodHardwood Plywood Engineered & Solid Wood FlooringEngineered & Solid Wood Flooring Factors affecting Trade Patterns Factors affecting Trade Patterns Comparative advantagesComparative advantages Tariffs and other border measuresTariffs and other border measures Illegal loggingIllegal logging CertificationCertification Analysis of Competitive Factors Analysis of Competitive Factors

Competitive Factors Industry structure Industry structure Raw material supply Raw material supply Capacity, investment, and capital costs Capacity, investment, and capital costs Production and Marketing Costs Production and Marketing Costs raw material, labor, transportation, etc.raw material, labor, transportation, etc. Marketing practices Marketing practices Prices Prices Government programs & policies Government programs & policies

Study Coverage NAICS Industries NAICS Industries – Other Millwork – Other Millwork – Hardwood Veneer Plywood – Hardwood Veneer Plywood HS Headings 4409, 4412, 4418 HS Headings 4409, 4412, 4418 Countries Countries Brazil, Malaysia, IndonesiaBrazil, Malaysia, Indonesia Canada, China, RussiaCanada, China, Russia

Research Tools & Analysis Literature, Reports, Industry & Trade Data Literature, Reports, Industry & Trade Data Mandatory Questionnaires Mandatory Questionnaires ProducersProducers ImportersImporters Public Participation Public Participation Public Hearing on October 3, 2007Public Hearing on October 3, 2007 Public SubmissionsPublic Submissions Domestic and Foreign Fieldwork Domestic and Foreign Fieldwork Qualitative & Quantitative Methods Qualitative & Quantitative Methods

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