I just read this on my usual forum nsmb.com - if this has been double posted, I'm sorry and feel free to delete.
------
DECEMBER 30, 2004 -- OTTAWA, Ontario (BRAIN)--Canada is threatening to slap 100 percent import duties on American-made bicycles and a couple of hundred other U.S. products ranging from beans and fish through plywood to skis. The proposed duties are part of a recent and serious escalation in a trade dispute that has dragged on for several years.
The clash revolves around the Continued Dumping and Subsidy Offset Act of 2000, commonly called the Byrd Amendment, which the World Trade Organization declared contrary to international trade agreements. The U.S. has promised but failed to repeal the act for the past two years, and now Canada, the European Union, Mexico, Japan, Brazil, Chile, South Korea and India are fed up and promising to retaliate.
"We are aware of that issue, and we sent letters off to Washington, D.C., letting them know what impact that would have on our company. We also sent a letter to our customers in Canada, informing them of the impending sanctions," said Mike Hietpas, Canadian sales manager for Trek.
About 1,000 Canadian businesses and individuals commented on the government's list of products up for possible sanctions, and the Trade Ministry is reviewing them now. A spokesperson said that it will probably be several months before Canada singles out the specific products and sets the actual duties.
Up to 10 percent of the comments may be from Trek's Canadian customers, Hietpas said.
"A lot of Canadian businesses stated that if they weren't able to buy Trek and Fisher bicycles, they'd be forced to close their doors. Some commented that 60 to 100 percent of their bicycle purchases come from our company. It would cause a lot of injury to the Canadian retailers if they weren't able to get bicycles from Trek or from Cannondale," Hietpas said.
A full 100 percent duty would essentially prevent Trek and other U.S. manufacturers from selling American-made bikes in Canada, he said.
Although the European Union and other countries are compiling lists of U.S.-made products that could be hit with big import duties, Canada is the only one with bikes on its list of potentially targeted products, Hietpas said.
The Byrd Amendment was originally a favor to the U.S. steel industry, and the softwood lumber industry is poised to benefit next. Potentially targeted products' relevance to the dispute had little to do with that, however.
An EU spokesperson noted that the offended nations are targeting the home states and home industries of Congressmen and Senators who continue to support the Byrd amendment, and/or who swing a big stick in Washington. An example: Caterpillar Inc.'s heavy machinery is on the EU list. Cat headquarters are in Illinois, home state of House Speaker Dennis Hastert.
The Byrd Amendment directs the U.S. government to pay anti-dumping and countervailing dumping duties that it collects from foreign exporters directly to affected U.S. industries instead of putting the money into the U.S. Treasury.
U.S. companies, mostly in the steel and ball bearing industries, have collected about $800 million to date, but the amount will grow into the billions within the next few years if the amendment stays in place.
The other countries contend that this is essentially double-dipping: U.S. industries receive the benefits of protective duties, they say, then receive the duties' proceeds as an additional subsidy.
For more information, start with this Canada Gazette story.
http://canadagazette.gc.ca/partI/20...ml/extra-e.html
------
DECEMBER 30, 2004 -- OTTAWA, Ontario (BRAIN)--Canada is threatening to slap 100 percent import duties on American-made bicycles and a couple of hundred other U.S. products ranging from beans and fish through plywood to skis. The proposed duties are part of a recent and serious escalation in a trade dispute that has dragged on for several years.
The clash revolves around the Continued Dumping and Subsidy Offset Act of 2000, commonly called the Byrd Amendment, which the World Trade Organization declared contrary to international trade agreements. The U.S. has promised but failed to repeal the act for the past two years, and now Canada, the European Union, Mexico, Japan, Brazil, Chile, South Korea and India are fed up and promising to retaliate.
"We are aware of that issue, and we sent letters off to Washington, D.C., letting them know what impact that would have on our company. We also sent a letter to our customers in Canada, informing them of the impending sanctions," said Mike Hietpas, Canadian sales manager for Trek.
About 1,000 Canadian businesses and individuals commented on the government's list of products up for possible sanctions, and the Trade Ministry is reviewing them now. A spokesperson said that it will probably be several months before Canada singles out the specific products and sets the actual duties.
Up to 10 percent of the comments may be from Trek's Canadian customers, Hietpas said.
"A lot of Canadian businesses stated that if they weren't able to buy Trek and Fisher bicycles, they'd be forced to close their doors. Some commented that 60 to 100 percent of their bicycle purchases come from our company. It would cause a lot of injury to the Canadian retailers if they weren't able to get bicycles from Trek or from Cannondale," Hietpas said.
A full 100 percent duty would essentially prevent Trek and other U.S. manufacturers from selling American-made bikes in Canada, he said.
Although the European Union and other countries are compiling lists of U.S.-made products that could be hit with big import duties, Canada is the only one with bikes on its list of potentially targeted products, Hietpas said.
The Byrd Amendment was originally a favor to the U.S. steel industry, and the softwood lumber industry is poised to benefit next. Potentially targeted products' relevance to the dispute had little to do with that, however.
An EU spokesperson noted that the offended nations are targeting the home states and home industries of Congressmen and Senators who continue to support the Byrd amendment, and/or who swing a big stick in Washington. An example: Caterpillar Inc.'s heavy machinery is on the EU list. Cat headquarters are in Illinois, home state of House Speaker Dennis Hastert.
The Byrd Amendment directs the U.S. government to pay anti-dumping and countervailing dumping duties that it collects from foreign exporters directly to affected U.S. industries instead of putting the money into the U.S. Treasury.
U.S. companies, mostly in the steel and ball bearing industries, have collected about $800 million to date, but the amount will grow into the billions within the next few years if the amendment stays in place.
The other countries contend that this is essentially double-dipping: U.S. industries receive the benefits of protective duties, they say, then receive the duties' proceeds as an additional subsidy.
For more information, start with this Canada Gazette story.
http://canadagazette.gc.ca/partI/20...ml/extra-e.html
