Even with a strong economy, threats to your business can be right around the corner. Being nimble is the key to success in today’s wood products market.
In March, the TSCA Title VI import certification for composite wood products came online. At press time it appears that President Trump is on the verge of a huge trade deal with China that could eliminate the additional 10% tariffs on imported wood products from that country. In late May, IWPA staff will be traveling to Colombo, Sri Lanka to advocate on behalf of our industry at the 18th meeting of the CITES Conference of the Parties where the assembled countries will consider proposals to further regulate the trade in species such as Ipé and the genus Cedrela.
In addition to these issues that have been years in the making, there have been recent developments that even industry insiders may not be aware of. Formaldehyde may come under review by the U.S. Environmental Protection Agency as part of the TSCA chemical risk evaluation process. EPA is expected to release its list of 20 high priority chemicals that will be subject to risk assessment in late March. This process could eventually lead to the addition of restrictions on use of formaldehyde.
IWPA has already alerted members about another emerging issue that we have seen gaining some traction both at home and abroad is the desire to prevent or disincentivize procurement of even certified tropical timber species. The California Assembly is considering legislation that would require a deforestation-free certification for a range of agriculture products being procured for state projects. How this certification would be made and verified is not at all clear from the legislative text. A group of Scandinavian countries that came together to promote the Nordic Swan ecolabel has proposed an extensive list of timber species that would be ineligible for the label. It is troublesome that even certified legally- and sustainably-harvested wood products would be excluded from eligibility.
Meanwhile, pressure for congressional approval for the U.S.-Mexico-Canada Agreement is building. IWPA has joined over 300 industry associations in a coalition to support its passage.
IWPA works with our members and groups that share our passion for beautiful and high performing wood products to advance our mission of building acceptance and demand for the sustainable products our members supply in the North American market. The support of our members allows us to be a strong voice standing up to ill-conceived proposals that would have profound impacts for our industry. Just as important is the role we play in warning members about unforeseen risks that could be looming over the horizon.
If you are not already a member of IWPA, please reach out to us to discuss how we can help ensure your company remains nimble in the face of oncoming challenges.