In the News: Planned surtax splits bicycling community

In article <[email hidden]>,

Jason Spaceman said:

From the article:
--------------------------------------------------------
Bike retailers say imports are already heavily taxed

By Charles Wyatt - Business Edge
Published: 05/25/2006 - Vol. 3, No. 11

Quoted message said:

But the euphoria over the increasing numbers of bike riders remains
muted as Canadian bike retailers, bike makers, importers and cycling
associations, await the federal government's decision on whether to
impose a proposed 30-per-cent surtax on low-cost imported bikes. The
charge is aimed at protecting Canadian bicycle assemblers from
low-cost Asian imports.

The Canadian International Trade Tribunal (CITT) recommended last fall
that the federal government impose a surtax on imported bikes selling
in Canada for $400 or less. The surtax would be 30 per cent in the
first year, 25 per cent in the second year and 20 per cent in the
third year.

What the article doesn't say is that the split is basically between
Procycle (most famous for their Rocky Mountain brand, but also the owner
of several other Canadian bike brands) and everyone else in the country.

It's a BS duty that Procycle wants so it has a chance of competing in
the low end of the bicycle market. But with the bar set at $400, it
affects some bike-shop-grade bikes. Entry level, to be sure, but real
bikes usable every day.

I tend to take umbrage at the idea that I need to be protected from
Taiwan's manufacturing capability.

--
Ryan Cousineau [email hidden] http://www.wiredcola.com/
"I don't want kids who are thinking about going into mathematics
to think that they have to take drugs to succeed." -Paul Erdos

Tarriffs screw the consumer, plain and simple. They force buyers to
overpay local manufacturers for being less efficient.

Jason Spaceman said:

From the article:
--------------------------------------------------------
Bike retailers say imports are already heavily taxed

By Charles Wyatt - Business Edge
Published: 05/25/2006 - Vol. 3, No. 11

More than 1.5 million bicycles will be sold in Canada this year and
$550 million spent on Canada's fourth most popular leisure activity,
as Canadians in increasing numbers take up biking.

But the euphoria over the increasing numbers of bike riders remains
muted as Canadian bike retailers, bike makers, importers and cycling
associations, await the federal government's decision on whether to
impose a proposed 30-per-cent surtax on low-cost imported bikes. The
charge is aimed at protecting Canadian bicycle assemblers from
low-cost Asian imports.

The Canadian International Trade Tribunal (CITT) recommended last fall
that the federal government impose a surtax on imported bikes selling
in Canada for $400 or less. The surtax would be 30 per cent in the
first year, 25 per cent in the second year and 20 per cent in the
third year.
------------------------------------------------------------

Read it at http://www.businessedge.ca/article.cfm/newsID/12654.cfm

J. Spaceman

MyakkaMike <[email hidden]> wrote in
news:[email hidden]:

Quoted message said:

Tarriffs screw the consumer, plain and simple. They force buyers to
overpay local manufacturers for being less efficient.

In overall costs to society, I believe the figures show that in the general
history of this kind of protectionism the 'tax' paid by the consumers to
save the 'endangered' industries far and away surpass any loss of revenue,
tax or otherwise, from closure of the ineffiecient employers.

I believe the history is also that the products so protected end up in a
spiral of 'why improve the breed when we got the government protecting us'.

Even the Labour party in the UK let Rover die... after paying the
employees off until after the election.

Ryan Cousineau says...

Quoted message said:

I tend to take umbrage at the idea that I need to be protected from
Taiwan's manufacturing capability.

China, not Taiwan.

In article <[email hidden]>,

Barnard Frederick said:

Ryan Cousineau says...

Quoted message said:

I tend to take umbrage at the idea that I need to be protected from
Taiwan's manufacturing capability.

China, not Taiwan.

Fair enough. Taiwan probably still sells some bikes into this cheap end
of the market, but China is the main source.

--
Ryan Cousineau [email hidden] http://www.wiredcola.com/
"I don't want kids who are thinking about going into mathematics
to think that they have to take drugs to succeed." -Paul Erdos