America is facing a historical supply chain reckoning, with ripple effects impacting virtually all Americans, and nearly all sectors of the U.S. economy. The wood products industry is no exception. U.S. trade policy leaders have their work cut out for them, but they have displayed a willingness to work with and listen to our industry. Some positive signs are emerging, including the Administration’s rollout of a China trade strategy, in that it allows a broader trade agenda to take shape; developments with the European Union on Section 232 tariffs and aircraft subsidies; and the Port of Los Angeles’ announcement about opening around the clock, which alleviates at least some supply chain pressure. So, too, is the recently announced Agreement between the Office of the U.S. Trade Representative (USTR) and Vietnam to resolve the Section 301 timber investigation without imposing tariffs.

The agreement represents a win for American consumers, manufacturers, workers, and exporters, as well as the wood products industry, as imported Vietnamese timber products are important inputs to U.S. manufacturers. It also presents a replicable approach to trade policy, generally – one in which tariffs are avoided and dialogue through Trade Investment and Framework Agreements (TIFAs) is pursued. This approach could lead to more Free Trade Agreements (FTAs), as it links incentives on environmental and other such policies to greater access to the U.S. market. Equally as important, the agreement shows the U.S. is serious about eliminating illegal logging and strengthening the sustainable harvest of timber from forests around the globe. Avoiding tariffs and pursuing commitments through the TIFA with Vietnam is a positive outcome for our trade relationship.

Section 301, spelled out in the Trade Act of 1974, is an important “tool” in the U.S. trade “toolbox.” It allows USTR to investigate certain foreign trade practices. This can, but need not always, result in duties upon a foreign country. The Vietnam 301 timber investigation, begun by the Trump Administration in October 2020, stemmed from concerns that illegally-harvested timber from other countries could be present in Vietnam’s supply chain. The pertinent U.S. law in this situation is the Lacey Act, which prohibits the trade in wood products sourced from illegally-harvested timber.

We at the International Wood Products Association (IWPA) are committed to the promotion of sustainable, legal forestry practices worldwide. Our association brings together every segment of the global supply chain, from producers and service providers to importers, distributors, manufacturers, and retailers. Enabling importers to source from suppliers following the relevant laws, particularly the Lacey Act, is paramount. This is why we conveyed to USTR that we are “committed to working with the U.S. government and key stakeholders to ensure trade in wood products with Vietnam uses legal inputs.”

Vietnam is an important source of timber not grown in North America, that is used in the creation of an array of U.S. products, a significant amount of which have considerable value added by American workers – from furniture on which you sit and desks on which you work, to flooring and doors Americans use every day. Many of these products include U.S. hardwoods, and are ultimately exported to Vietnam, which makes this Agreement good for exporters and importers alike. An imposition of tariffs on Vietnam would have made these goods more expensive, less unique, and brought uncertainty to their American manufacturers and workers. Not to mention the possibility of retaliation by Vietnam, a strategic partner whose trade relationship we should value at a premium amid ongoing, and likely long-lasting, U.S.-China trade tensions. The wood products industry supports U.S. jobs up and down the supply chain, and across the country, particularly in rural areas. Levying duties could have jeopardized these jobs and U.S. market share in this sector.

We commend USTR for choosing the course outlined in the Agreement. Negotiation through the TIFA, which was established to assist with just such trade policy issues, is the more prudent course than punitive tariffs. Using the TIFA as a mechanism for securing additional commitments, controls, and due diligence in the wood products supply chain benefits all these stakeholders in the long run and shows good faith to a strategic and important trade partner. We urge USTR and our partners in Congress to leverage this dialogue to advance towards a broader trade agreement, and to view avoidance of tariffs and the use of TIFAs as a model for pursuing FTAs with additional countries.

The commitments laid out in this important Agreement lend confidence that Vietnam takes the U.S. concerns very seriously and is taking steps to continually improve at preventing illegal logging and promoting sustainable forestry around the world. More importantly, as additional trade irritants emerge, we hope the Administration will continue to make a good-faith effort at dialogue that can lead to greater trade ties which benefit U.S. consumers, manufacturers, and workers. IWPA and its members view this as a win for “free and fair” trade, and stand ready and willing to support USTR, its interagency partners, Congress, and other stakeholders during the implementation of this and future such agreements.

Bradley A. McKinney is Executive Director of the International Wood Products Association.

Indonesia is a key trading partner and one that U.S. wood importers and exporters will continue to pursue. This announcement underscores the importance for Congress to reauthorize GSP prior to its December 31, 2020 expiration.

Indonesia is a key trading partner and one that U.S. wood importers and exporters will continue to pursue. This announcement underscores the importance for Congress to reauthorize GSP prior to its December 31, 2020 expiration.

Alexandria, Virginia – The 2020 World of Wood Convention is being reimagined as the first-ever Virtual World of Wood Convention from April 1-3, the International Wood Products Association (IWPA) announced today. Escalation of the spread of coronavirus (COVID-19), which the World Health Organization today characterized as a pandemic, has led to concerns being raised by attendees, exhibitors, and speakers who have been prohibited from traveling due to government travel advisories and bans as well as employer restrictions on attendance at large meetings, among other reasons. In response, IWPA has decided to transition from its industry gathering in Savannah, Georgia to a virtual event.

“The well-being of attendees and our community is our number one priority. We have been closely monitoring the progression of the coronavirus and it is with deep regret that we announce that the 2020 World of Wood Convention will not take place in Savannah,” IWPA President Kenny MacMaster of Argo Fine Imports said. “Given the alarming spread of the virus in the U.S. and more than 100 countries, U.S. health officials have stressed the importance of limiting mass-gatherings in order to ‘flatten the curve’ to slow down the rate of advancement of the coronavirus. Therefore, we feel that transitioning to a virtual conference is the most prudent decision at this time.”

IWPA Executive Cindy Squires is confident that IWPA will be able to deliver the value of World of Wood attendance utilizing video conferencing tools. “While we are disappointed that our attendees won’t be able to come together in Savannah, transitioning to a Virtual World of Wood on the same dates that they were scheduled to be in Savannah will allow them to access industry-leading business intelligence and critical information remotely,” said Squires.

IWPA invites all attendees to aid in the effort to control the spread of COVID-19 by following the U.S. Centers for Disease Control and Prevention interim guidance on large community events and embrace video conferencing.

All registrants will automatically be enrolled in the Virtual World of Wood. IWPA staff will follow up with all registrants with detailed information about how to participate in the Virtual World of Wood.

Further updates about Virtual World of Wood will be posted on the 2020 World of Wood website.

Established in 1956, the International Wood Products Association (www.IWPAwood.org) is the leading international trade association for the North American imported wood products industry, representing 220 companies and trade associations engaged in the import of hardwoods and softwoods from sustainably managed forests. Association members consist of three key groups involved in the import process: U.S. importers and consuming industries, offshore manufacturers and the service providers that facilitate trade.

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IWPA’s World of Wood Convention is expected to go on as scheduled and if you are sick, have been sick, or have been to China, Korea, Iran or Italy after March 15^th please do not come.

These countries (China, Korea, Iran & Italy) have been designated "Level 3 - Widespread Sustained (Ongoing) Transmission for COVID-19" and so out an abundance of caution we are making this unusual request.  If you are impacted by this, we look forward to you joining us in 2021 at the World of Wood Convention in San Diego, California. 

Please be aware that as of March 4, 2020, the US has suspended and limited the entry of non-U.S. Citizens who were physically present within Iran and the People's Republic of China, excluding the Special Administrative Regions of Hong Kong and Macau, during the 14-day period preceding their entry or attempted entry into the United States, subject to certain exceptions.  U.S. citizens or lawful permanent residents will be subject to additional restrictions and health screenings on arrival to the United States.  Please ensure that you allow for time for screening. 

IWPA is closely monitoring the situation and will update as conditions change. Here are some helpful resources:

• Complete information on CDC travel restrictions.
• Information on symptoms of Coronoavirus Disease.
• What to do if you are sick.
• How to protect yourself.
  

The IWPA World of Wood Convention will have a firm no handshakes policy and a near obsessive amount of required hand washing.

The Hyatt Regency Savannah has informed IWPA that it will remain vigilant and utilize precautionary measures to protect the health and safety of guests and colleagues. As always, Hyatt properties will continue to follow recommended procedures and protocols to ensure that all hotel practices meet the latest coronavirus guidance. Expect to see hand sanitizer wipes stations by lobby elevators, hand sanitizer dispensers in all public area restrooms and the front desk. In addition, the Hyatt has implemented the Ecolab cleaning guide and is using approved products for Novel Coronavirus for Housekeeping and Night Cleaners

Please do let us know if you have any questions or concerns (contact membership@iwpawood.org or call 703-820-6696). 

1. Only exports from the neotropical range were included in the listing (this is the same range limitation that is currently in place for exports of Genuine Mahogany).
   
   
2. Instead of applying to all products including Cedrela species, including finished products such as musical instruments, the listing was restricted to Annotation #6: Logs, sawn wood, veneer sheets and plywood.
   
   
3. To allow sufficient time for CITES national authorities and industry alike to prepare for this listing, its implementation was delayed for twelve months rather than the normal 90-day implementation requirement. For the subsequent twelve-month period current requirements for those Cedrela species that are currently listed on CITES Appendix III remain in effect. Because COP18 adopted this proposal on August 28, 2019, we anticipate that it will take effect on or around August 28, 2020.
   

The Parties also added to Appendix II less widely traded species Mulanje Cedar and Mukula.

Additionally, the Parties adopted a proposal that adds the term “transformed wood” to the annotation for Afrormosia. For this annotation, transformed wood is defined by HS code 44.09 so that it includes wood “continuously shaped along any edges, ends or faces…”

IWPA staff is working with U.S. Fish and Wildlife Service staff to prepare resources and guidance that will assist industry in complying with these new listings. One key deadline to be aware of is that, unless a delay was explicitly agreed to as in the case of Cedrela, the changes go into effect in 90 days or on or about November 28, 2019. While USFWS has not communicated the exact dates of implementation as of this writing, IWPA will share this information with members as soon as it is available.

The next Conference of the Parties will take place in Costa Rica in 2022. If you are interested in participating in IWPA’s member-led engagement on CITES issues such as implementation of these changes as well as future proposals to list additional species, please consider joining our Lumber/CITES Committee.