News Article

Bicycle Exporters Face Trade Barrier

Home

BEIJING,China (Mar 17) – An investigation launched by the Canadian International Trade Tribunal (CITT) into imported bicycles and bicycle frames from foreign makers is expected to hurt Shenzhen’s bicycle exporters, the Shenzhen Special Zone Daily reported. Shenzhen is the country’s leading bicycle exporter and the number of bicycle exporters in the city alone is more […]

BEIJING,China (Mar 17) – An investigation launched by the Canadian International Trade Tribunal (CITT) into imported bicycles and bicycle frames from foreign makers is expected to hurt Shenzhen’s bicycle exporters, the Shenzhen Special Zone Daily reported.

Shenzhen is the country’s leading bicycle exporter and the number of bicycle exporters in the city alone is more than 20, accounting for one third of the country’s total.

Exported bicycles from Shenzhen accounted for 70% of the country’s total last year (51.75 million units, 2004). The city exported USD 17.4 million worth of non-motorized bicycles and USD 1.5 million worth of bicycle frames and accessories to Canada last year, the newspaper said.

The Canadian Court of International Trade said on February 10, it would launch a safeguarding investigation against all imports of bicycles and bicycle frames, one month after it received a complaint from the association of Canadian bicycle makers that they were hurt by surging foreign imports.

The measures might have a major impact on China, the world’s largest bicycle producer, although the measures were not only directed at bicycles made in China, Xiaofeng Hu, an official from the China Bicycle Association, said.

If the investigation supports the safeguard measures, bicycles from China will probably face higher duties, quantity restrictions or a combination of punitive measures.

A source from the association said China exported some 605,000 completed bicycles to Canada in 2003. The figure for last year was 552,000 completed units.

An unnamed official from a Shenzhen bicycle firm said the possible Canadian safeguard measures were expected to have some negative impact on the firm as a 30.6 % anti-dumping duty imposed by the European Union since 1993 had largely dented the firm’s profit margins, the paper said.

Officials from several Shenzhen bicycle firms told the newspaper that they would fight against the Canadian charge as they did not want to lose the Canadian market. (Source: Shenzhen Daily)

Comment on this article