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On Friday, January 9, 2004 the U.S. International Trade Commission
ruled that there is a "reasonable indication" that domestic
producers of wooden bedroom furniture have been "materially
injured" as a result of imports from China. The petitioners
are seeking duties as high as 440% on imports of wooden bedroom
furniture, which, in turn, could cause retail stores m ajor supply
disruptions, and their customers short term price volatility, as
well as limit their access to affordable wooden bedroom sets.
The case is an attempt by a group of domestic furniture manufacturers
to restrict access to Chinese imports and sever relations with other
domestic manufacturers who work cooperatively with Chinese companies.
Some manufacturers have adjusted well to the global market. (To
illustrate, the largest domestic furniture producer, Furniture Brands,
is actively opposing the petition.)
Numerous domestic producers benefit from imports and have been
importing Chinese bedroom furniture for years. Ironically, many
of the manufacturers who filed the case were responsible for establishing
the Chinese furniture export industry years ago.
The real targets of the domestic furniture producers' actions are
not Chinese imports themselves, but American retailers and importers
who have now established their own sources of product from China,
eliminating middleman profits, and thereby saving customers millions
of dollars. The question in this ITC case is, "who will limit
access to imported furniture?" not, "how will we save
U.S. jobs?" Contrary to the domestic producers' claims of protecting
and returning jobs to the U.S., these same domestic producers are
already setting up importing programs in other countries such as
Brazil, Chile, Vietnam and Indonesia. These actions undermine the
claims of "returning jobs" to the U.S.
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