WASHINGTON (AP): The U.S. International Trade Commission has begun investigating logging practices by China and other countries that could be affecting the U.S. hardwood industry.
Lawmakers from timber-producing states have complained that as much as 30 percent of U.S. hardwood imports are from suspicious or illegal sources.
Industry groups and members of Congress says timber harvested illegally in Honduras, Indonesia, Peru and elsewhere is sent to China, where it is processed at low cost and then exported to the U.S. and other countries, undercutting domestic producers.
Illegal logging costs U.S. companies as much as $1 billion a year in lost exports and reduced prices for timber products, according to the American Forest and Paper Association, a trade group that represents the wood products industry.
The commission, an independent federal agency, said it will review U.S. markets for solid and engineered wood flooring, as well as hardwood plywood.
The investigation will look at "principal countries that supply the U.S. market" and examine U.S. trade patterns, including tariffs and other border measures, the agency said in a news release.
A report is due by June 2008.
"I am hopeful that the results of the ITC's investigation will help make sure that China starts playing by the rules," said Sen.Ron Wyden, an Oregon Democrat.
Chinese Foreign Ministry spokesman Liu Jianchao said Chinese authorities supervise timber imports and crack down on illegal activities. "We have serious procedures for the import of timber," Liu said this week.
China has the second-largest wood products manufacturing sector in the world and is the largest trader in tropical timber. One of every two tropical logs traded globally is now destined for China, according to the environmental group Greenpeace.
A House bill introduced last month would ban U.S. imports of wood products derived from illegally harvested timber. Lawmakers said they hope to make U.S. consumers more aware of where their new bedroom dresser or hardwood floor comes from.
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