Canadian bicycle makers want 48% tariff for imported bikes

The Canadian International Trade Tribunal (CITT) has received a complaint from the Canadian Bicycle Manufacturers' Association (CBMA) requesting a “global safeguard action” covering imports of bicycles. The action is likely aimed at imports of Chinese bicycles but the complaint cites bike imports "regardless of price or country of origin."
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In September 2004, the Canada Border Services Agency announced that its anti-dumping re-investigation concerning bicycles and frames from Taiwan and the People's Republic of China resulted in an all-clear: there was to be no duties on Taiwanese and Chinese built bikes.

The Canadian Bicycle Manufacturers Association - which represents, among others, Raleigh Canada and the Procycle Groupe, which owns high-end brands such as Rocky Mountain and Balfa and low-end brand CCM -cried foul, claiming bike industry jobs will be lost.

Now, the Canadian International Trade Tribunal has received a complaint from the CBMA requesting a “global safeguard action” covering all imports of bicycles, regardless of price or country of origin.

In this complaint the CBMA alleges that bicycles are being imported in such increased quantities and at prices that threaten to cause serious injury to the domestic producers. The CBMA further alleges that there is a high degree of substitutability between domestic and imported products, and that price is the single most important determining factor in purchase decisions of mass merchants, buying groups, and independent bicycle dealers.

In this global safeguard complaint the CBMA is requesting a tariff of 48 percent be placed on all bicycles and a quota limiting import quantity to 1997 volumes.

The CITT has decided to commence an inquiry into the complaint. A questionnaire will be sent to manufacturers, importers, foreign manufacturers, buying groups and retailers.

The Bicycle Trade Association of Canada - which represents independent bicycle retailers in Canada said it will "not be responding in an official format to the CITT on this issue."

http://www.citt-tcce.gc.ca/.../gs2e01a_e.asp

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