Canadian Cyclist Cervelo S2 24-7 2 - March 29
   Follow us on Twitter
 
Find us on Facebook
 
Norco Tactic - April 1
 
BikeSports - November 17
 
D'Ornellas (+1528) - Jan 31
 
IMBA Canada - Dec 14
 
Share the Road - Dec 14
 


 

 

 
OGC Survey CC1 - April 16
 

Daily News


 

May 1/06 4:28 am - Possible CITT Tariff Resolution Tomorrow


Posted by Editor on 05/1/06
 

Possible CITT Tariff Resolution Tomorrow

On Friday (April 28th), an exchange took place in the House of Commons during Question Period. According to Hansard:

Mr. Robert Vincent (Shefford, BQ): Mr. Speaker, last February, I wrote to the finance minister to find out his position on the Canadian International Trade Tribunal's recent recommendation to impose a surtax on the growing number of cheap imported bicycles. The main manufacturers affected are located in Quebec, namely, Raleigh Canada Ltd. in Waterloo, in my riding, and Groupe Procycle Inc. in Saint-Georges-de-Beauce, in the riding of the current industry minister.

Does the Minister of Finance intend to enforce the tribunal's decision and support the Quebec and Canadian bicycle industry?

Ms. Diane Ablonczy (Parliamentary Secretary to the Minister of Finance, CPC): Mr. Speaker, the member knows that the minister is well aware of this issue and I urge him to wait for the budget to see how it is dealt with.

Mr. Robert Vincent (Shefford, BQ): Mr. Speaker, is the government going to subject the bicycle industry to the same fate as the softwood lumber industry, and by that I mean will it do nothing until the industry is forced to throw in the towel at the last minute? What will it take for him to do something?

Ms. Diane Ablonczy (Parliamentary Secretary to the Minister of Finance, CPC): Mr. Speaker, the member will find that all will become clear next week. I urge him to be patient and wait for the budget.


The answer "all will become clear" suggests that the government intends to address the proposed 30% tariff on bikes below FOB $225 Canadian in the budget which will be presented tomorrow.

The Canadian International Trade Tribunal (CITT) recommended last September that domestic manufacturers receive protection from imports for a three year period for bicycles retailing below $400 Canadian. The CITT suggested that an FOB price of $225 would meet this threshold, however, members of the IBD (Independent Bicycle Dealer) channel (including BTAC - Bicycle Trade Association of Canada) believe that specialty bicycle manufacturers and importers will feel the impact on bicycles retailing for up to $700 (or more).

The government has thus far avoided commenting on the issue, although prior to the election the Conservative stance was against tariffs. Since the election, the government has been more evasive on whether they will implement the recommendations.

Tomorrow's budget could see the tariffs implemented (in whole or reduced form), or money funneled towards domestic manufacturers (Procycle and Raleigh Canada), to assist them in becoming more competitive.

 


Return to Canadian Cyclist homepage | Back to Top
Williams Cycling March 28
 
Mont Tremblant Gran Fondo - Feb14
 
Wheels of Bloor - March 7
 
ACS Apollo Bikes - November 19
 
ARG Time Button - April 7
 


 
Dundas Speed Shop - Jan 11 (+524)
 
  


 
 © Copyright 1998-2014 Canadian Cyclist. All rights reserved.  Privacy Policy | Contact | Subscribe to RSS Feed  | Login