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Bike Surtax Creates Stir in Canada

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OTTAWA, Canada ( Oct 5) – Out of every 10 bikes sold in Canada, seven are built abroad, mostly in China. And the flood of cheap imports is threatening to put Canadian bike makers out of business and kill about 500 jobs. “We’re in dangerous waters here in terms of the ability of the companies […]

OTTAWA, Canada ( Oct 5) – Out of every 10 bikes sold in Canada, seven are built abroad, mostly in China. And the flood of cheap imports is threatening to put Canadian bike makers out of business and kill about 500 jobs. “We’re in dangerous waters here in terms of the ability of the companies to carry on,” said bicycle industry lawyer Michael Flavell.
The recommendation of the Canadian International Trade Tribunal is to slap a 30 % tariff on imports, which would add about $70 to the cost of a $200 bicycle. But China’s president lobbied against the tariffs on his visit to Canada on Sept. 9, and Liberals seem to be shying away from the tariffs – even though the jobs at risk are mainly in Quebec.
The Canadian cabinet is struggling with the decision on whether to protect two factories in vote-rich Quebec and risk angering China, or risk a backlash from voters and the manufacturing sector by doing nothing.

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