However, I am wierded out because the proposal for the surtax seems to have been originally called for by 'big-box' types. I do agree with the idea that making it more difficult to buy bikes right when we are in dire need of sustainable transporation options seems stupid, but it's not as if there are no other options than buying new bikes made overseas. It makes me wonder whether I am being too optimistic in thinking that this surtax will encourage people buying fancier import bikes to decide to get one custom-made here instead, or heaven forbid buy a second hand bike.

*funny- that's not the same explanation I got last time from the same guy .

Anyone around babble have some insight into this issue? It's pretty new to me, so I don't really know where to look.

[ 07 October 2005: Message edited by: Amy ]

The issue seems to be for the low end bikes (less than $700). The more expensive bike manufacturers are doing fine, thank you (a ref to a Canadian bike in the Tour de France).

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Originally posted by chubbybear:
My favourite bikes are from Norco, which is Canadian. Why buy an import?

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That's the thing, though. So many 'Canadian' bikes are made in Taiwan or China and assembled in Canada; they've moved production overseas in the past dozen years or so. I think a lot of people won't even be aware of where their bike is made until this is (if this is, I guess) implemented. One definite bonus will be that people like me, who look for bikes made in Canada, is that rather than look for manufacturing info (which can be hard to get) I can just ask if there will be a surtax if I buy the bike. That way the debates on various internet message boards about whether X company is Canadian-made or just Canadian owned can be a thing of the past; we'll know for sure.)

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Well, the way things are now means that Canadian manufacturers will just have to compete labour-wise with Taiwanese manufacturers. Cos, gee, it's working so well right now. The above mentioned salesguy blamed overseas bike production on factory workers being too demanding.

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The smart thing would be if the government used the bicycle surtax period to invest in upgrading the two affected plants so that they can shift to the "high end" of the market, in worker retraining etc.

If its just a straight surtax with nothing else done, sooner or later there'll be pressure to remove the tax...either from Chinese industry and/or from retailers.

Maybe we can level the playing field better by reducing tax deductions (actually, subsidies paid by workers) that business, large and small, enjoy.

That is, if you want to start pointing fingers.

I wouldn't be surprised that the motorcycle part of the business is a loss leader for their clothing line, and other merchandizing.

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Harley had other problems (quality among them). The company turned itself around and actually asked to have the tariffs removed ahead of schedule.

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That would be a good thing wouldn't it?

If quality was a problem, imagine if they had to dig themselves out of that hole without the benefit of the import tarrif protection.

As far as the bike manufacturers here in Canada who would make a lot of basic starter bikes certainly not marquee ones, they may require the tarrifs for as long as the competitors overseas have cheap labour costs including no benefits not to mention poor enviromental regulations also increasing their advantage with cost.

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...imagine if they had to dig themselves out of that hole without the benefit of the import tarrif protection.

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Would have been "interesting" to say the least. But the fact is that they did dig themselves out of the hole and then asked that the tariffs be removed.

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...they may require the tarrifs for as long as the competitors overseas have cheap labour costs...

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In Harley's case, I doubt there was a significant change in their competitors' costs. Rather Harley fixed their own problems. The easy thing would have been to have sat on their laurels and complained about unfair competition because overseas manufacturers had lower costs.

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Originally posted by radiorahim:

The smart thing would be if the government used the bicycle surtax period to invest in upgrading the two affected plants so that they can shift to the "high end" of the market, in worker retraining etc.

If its just a straight surtax with nothing else done, sooner or later there'll be pressure to remove the tax...either from Chinese industry and/or from retailers.

Something similar went on in the EU over clothing imports from China. With tons of imported Chinese clothing sitting in warehouses and pressure from retailers not having enough stock I understand the EU caved in to the pressure from retailers.

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Yeah, it's when I said something to this effect that the salesguy told me that I'd obviously never dealt with big business. The thing that's bugging me most about this whole deal is the attitude that since I don't automatically agree with the 'anti-surtax' side, I must be totally ignorant.

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Harley-Davidson is, apparently, a joke among serious motorcycle enthusiasts.

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