Would you be willing to pay 30% more for your bicycle to protect US workers?
That's the issue in Canada where the Canadian International Trade Tribunal has recommended the government slap a 30% import tax on all bicycles headed for the country from China, the biggest bike manufacturer in the world.
Retailers around the country have been opposed to the proposal, which will drive up the cost of bicycles for consumers. Late last week, Canadian Tire, went to court to seek a judicial review of the proposed tax.
Imports into the Canadian bicycle market have doubled over the past five years, says the Globe and Mail newspaper, which reports 45% of those imported bicycles come from China.
The newspaper says the surtax would mainly affect the price of mass market bicycles that sell for $400 or less.
The import tax is primarily aimed to protect two bike makers — Groupe Procycle Inc. and Raleigh Canada Ltd. — which have factories in Quebec.
The Research and Markets website reports that China exported $1.6 billion worth of bicycles in 2004, but it is worried about the pending trade protectionism raised by its success. The proposed 30% anti-dumping duty proposed by Canada pales next to the 48% imposed by the European Union.
Recent Comments