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

2. 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

3. 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. 332-487 Initiated by USITC on April 11, 2007 as Inv. No. 332-487 Report Due by June 6, 2008 Report Due by June 6, 2008

4. U.S. Flooring & Plywood Shipments (2002-2006) billions of dollars

5. U.S. Flooring & Plywood Trade (2002-2006) billions of dollars

6. U.S. Flooring & Plywood Imports, By source, 2002-2006 millions of dollars

7. 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

8. 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

9. Study Coverage NAICS Industries NAICS Industries 321918 – Other Millwork321918 – Other Millwork 321211 – Hardwood Veneer Plywood321211 – 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

10. 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

11. Thank You! Web Site: www.usitc.gov Web Site: www.usitc.govwww.usitc.gov E-Mail: alfred.forstall@usitc.gov or dave.ingersoll@usitc.gov E-Mail: alfred.forstall@usitc.gov or dave.ingersoll@usitc.govalfred.forstall@usitc.gov dave.ingersoll@usitc.govalfred.forstall@usitc.gov dave.ingersoll@usitc.gov Formal or informal commentary and questions welcome! Formal or informal commentary and questions welcome!