Canada to eye China complaint
By Michael J. Knell -- Furniture Today, July 12, 2004
Ottawa — Canadian manufacturers are considering whether they should follow the U.S. lead and file a complaint against Chinese furniture imports.
At the behest of this country's three regional factory associations, the Canadian Council of Furniture Manufacturers has retained a law firm to study the effect of Chinese imports in three product categories: wood case goods, leather upholstery and metal casual dining.
The law firm is studying whether there is sufficient evidence to file a complaint with the Canadian International Trade Tribunal. It is surveying Canadian manufacturers to determine the impact of rising imports on their businesses.
CCFM President Terry Clark, who is also chairman of the factory association Furniture West, said the study results probably won't be known until late summer.
"The challenge for (the lawyers) is to get Canadian manufacturers to analyze their own businesses and determine the level of injury because each case is different," Clark said. "For example, in the case of metal casual dining, the damage is much deeper and started earlier and there has been more attrition."
Over the past decade, a number of casual dining producers in Canada and the United States have gone out of business, thanks in part to the emerging strength of China as a low-cost producer.
"Right now our leather producers and our case goods producers are being decimated," said Hugh Owen, president of the Ontario Furniture Manufacturers Assn. "We're not on a level playing field."
Jean François Michaud, president and CEO of the Quebec Furniture Manufacturers Assn., said all three factory associations have been under pressure from their members to look into the situation, inspired in part by their U.S. counterparts.
"It's the entire conversation when manufacturers get together," Owen said.
"What the study will determine is what the impact really is on these industries. We want to document that if it's possible," Michaud said. "We're not taking any action at all right now. We're measuring the impact and trying to determine what the cause is."
The three association heads say import statistics show that Canadian factories have been losing ground both at home and in the vital U.S. market, but stress that only thoughtful action will help the industry.
"China is hurting us — that's for sure," Michaud said. "But we don't know what kind of action will help us. There is a new reality in the world and we have to adjust to it. What we need is time to adjust."
The associations have discussed the issue with Canadian government officials, mostly to learn the procedure the group must follow before filing a complaint with the Canadian International Trade Tribunal, a quasi-judicial body that rules on issues covered by international law and trade agreements.
