China's furniture industry is likely to become a target for Canada's trade protection measures.

The Canadian Council of Furniture Manufacturers claims Chinese competitors are taking over too much of their market.

It has filed a complaint with the Canadian International Trade Tribunal (CITT), asking for safeguard measures against Chinese-made residential furnishings.

It has asked the government to impose high-level duties on imports of Chinese furnishings over a three-year period: 60 percent in the first year, 50 percent and 25 percent in the second and the third years.

The China Furniture Association has called on domestic enterprises to respond actively so as to protect themselves from the charge.

Zhu Changling, a deputy director of the association, said it has started collecting information and will coordinate with the Chinese Government and various enterprises.

"We will take immediate action once the Canadian Government puts the case on file for investigation," he said.

Zhu said the impact of this case might not be as large as that of the dumping charge initiated by the United States because the Canadian market is not a major one for the Chinese industry.

"But it is likely to effect more categories and enterprises in China," he said, as the US charge focused on wooden bedroom furniture.

Fu Donghui, a legal expert with the All Bright Law office in Beijing, said that safeguard measures might be a bigger blow to exporters than dumping charges, as these require less complex procedures, and time, to bring in.

Earlier this year, Canadian bicycle manufacturers sought to protect themselves with safeguard measures.

The Canadian Industrial Council claimed that inexpensive Chinese furnishings have flooded their market and called it a "crisis" to its domestic industry.

David Hanna, president of the Ontario Furniture Manufacturers' Association, was quoted by the Globe and Mail newspaper as saying that the Canadian furniture industry, which now employs about 35,000 people, has already seen the loss of 2,000 jobs. These have been lost over the past two years at 15 plants because of businesses closures or through staff reductions. He expects there will be 10,000 jobs losses by 2007 if Ottawa does not act.

According to the safeguard procedure, the Canadian Government first decides whether to accept the case, which should be done this month. It will have another 90 days to make a final ruling.

Local media said that it was the first time that Canadian furniture manufactures had sought such duties.

According to statistics from Canada, its furniture imports from China increased to about US$500 million last year, accounting for over 41 percent of the market.

Insiders are worried about a possible chain effect on some other markets.

As the past several years have seen a rapid increase in Chinese furniture exports, many foreign furniture manufacturers fear Chinese products might flood their markets and hurt their own businesses.

The United States ruled last year that Chinese furniture makers were selling in the US market at unfairly low prices and decided to impose penalty duties ranging from 2.22 to 198 percent.

The European Union also increased its restrictions on furniture imports last year.

(China Daily November 9, 2005)