December 30/04 8:11 am - Potential 100% Duty on U.S.-Made Bikes

Posted by Editor on 12/30/04
 

Potential 100% Duty on U.S.-Made Bikes

The WTO (World Trade Organization) has ruled that Canada, the EU and other affected nations can retaliate against the U.S. Continued Dumping and Subsidy Offset Act of 2000 (more commonly referred to as the Byrd Amendment). Canada has announced a list of potential industries to be affected by the application of a 100 percent surtax on imports of selected products from the United States, and has included bicycles in the list.

The Byrd Amendment has been used by the U.S. in both the steel and softwood lumber industries to apply duties against imports, and disburse the proceeds to U.S. companies directly. The Amendment has been struck down in international trade hearings, but the U.S. Congress (i.e., specific states) continues to support it. in addition to bicycles (tariff heading 87.12), the Canadian government has selected a large number of potential industries, including water, alcohol, paper products, and selected fruits and vegetables. The complete list can be found Here.

The manufacturers mostly likely to be affected by the retaliation are Trek and Cannondale, and both have made representations to Congress.