100% Tariff on all European bikes - Husky, KTM, Gas Gas, etc

[Coffee]

I've just spent a considerable amount of time on the phone with the Office of the United States Trade Representitive (USTR) to Washington DC and can assure everyone this situation is very very real.


The highlights:

1. In the 1980's or 1990's the European Union banned beef that contained growth hormones from the United States.
2. The United States did tests to prove the growth beef with growth hormones was 'benign'.
3. The United States then went to the World Trade Organization with this information and a WTO arbitration committee ruled in the United States favor - They ordered Europe to allow hormone beef into the EU.
4. When the EU did not comply, the WTO authorized the United States to collect $116.8 million in tariffs from products imported from the EU – that number has not changed.
5. There are now several products that have a 100% tariff from the EU into the United States – almost all of those products are food related, with the notable exceptions of Yarn from France & Germany and some ‘glue’ from France.

The USTR is re-visiting what products should and should not have a tariff because apparently it is not having the desired effect of getting the EU to comply with the court order to allow USA beef to be imported to the EU.
As of today – Thursday December 4th 2008 they are open to receive comments regarding what products should have the default tariff of 100% applied, as of Monday December 8th at 5pm EST they will no longer be open to comments.

From the office of the United States Trade Representitive (USTR):
"Federal Register/Vol. 73, No. 216/Thursday, November 6, 2008/Notices"
Contains 2 lists of products - Annex I and Annex II, it is important to note those lists have not changed since 1999.

• Annex I products have a default tariff rate of 100%.
• Annex II products have no special tariffs imposed over this issue.

That document is asking for comments regarding which products should be on the 100% Tariff list - they are asking which products from Annex I should no longer have a Tariff, and which products from Annex II should be put on the annex I list and therefore have the default 100% tariff.

The last 2 items on the Annex II list that could have a 100% tariff are EU motorcycles, specifically:
(87112000) Motorcycles (incl. mopeds) and cycles, fitted with reciprocating internal combustion engine with cylinder capacity of over 50cc but not over 250cc
(87113000) Motorcycles (incl. mopeds) and cycles, fitted with reciprocating internal combustion engine with cylinder capacity of over 250cc but not over 500cc

Apparently in the 1980s & 1990s Italy was one of the more vocal proponents of the sanctions of the hormone beef products from the USA. Because Italy does not export a signficant amount of agricultural products to the USA they looked for other products to tariff i.e. motorcycles. If the motorcycles get on the Annex I list it will almost certainly apply to all EU bikes - KTM, Gas Gas, Husqvarna, etc.

The goal is to get the EU to resume the importation of the USA beef, after that all special tariffs go away. To that end the people who decide what tariffs to impose (USTR) have the following goals:

1. Minimize the impact on USA consumers and producers
2. Impose some ‘pain’ to the EU producers of products in retaliation & compensation for the fiscal harm they have cause the USA producers of EU banned products (beef with hormones).

If you want to buy a European bike i.e. Husqvarna in the future there are things you can do - now, not later

Send these types of thoughts/comments:

• How will it affect you? Will your income be affected?
• Do you think they will collect any Tariff $ if the bikes cost 2X what they do now? $17,000?
• Are there any domestic products as suitable substitutions for European bikes? Especially the 2st and dirtbikes with factory plates...
• Do you think if USA importers/dealers no longer exist you will be able to buy parts for existing bikes easily?

Please keep in mind the USTR is truly searching for input cause they really want to know, please be polite.

Please fax your comments to:
(202) 395-3640
(202) 395-4579 backup fax number

Or you can view the document, view comments, and add your own comments here:
http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=USTR-2008-0036
.

 

[Coffee]

Please post that you have sent your comments.

It is really really easy not to read long posts or to put things off. Please post up that you have sent your comments.


It this thread does not get a good & timely response I'll arrange it so most of Cafe Husky disappears till the comments are sent in.

I'm posting this on TT, if anyone has a KTM talk or Husky talk account you may want copy my first post and alert those sites.

(*quote, select all, copy*)

 

[Motosportz]

Unfortunately we HAVE to have fair trade if we are to survive. If it takes $17,000 bikes that's what it takes. yes, I will be out of biz as will a lot of people but in the big picture not doing it is worse. We HAVE to get back to the manufacturing / inventing society that made us great. If I have to change directions for the good of the country so be it.

- It might just be time to hoard a couple 09 bikes. :devil:

 

[scoobywrx05]

Good info to know,Thank you for posting it up, I'm gonna foward this info to my dealer tomorrow so he will know.

 

[Coffee]

This has nothing to do with fair trade at all. The USTR is in charge of deciding what to tariff to make things painful enough for the EU so they will comply with the WTO court order.


That is the entire purpose of the tariff.


For the record I've been talking to Jay Hall - info from his site started all of this research.

 

[Motosportz]

This has nothing to do with fair trade at all.

While that may be true I believe it is just around the corner from happening.

 

[Coffee]

They are meeting in 2 weeks to revise the list. I see no reason that the changes would not take effect asap.


A cabinet member - "United States Trade Representative" Susan Schwab - will most certainly be replaced.

http://www.whitehouse.gov/government/sschwab-bio.html




EDIT - I added the pdf from that link to my first post, that site is not easy to navigate.


EDIT2 - think this is how to use that site in the first post

 

[scoobywrx05]

hmmm.....pay twice as much for tampons,or pay twice as much for a new bike. Not a hard choice for me. I'm going to leave a comment after I do a little more research into what is actually being taxed at the higher rate right now and what else can be taxed at the higher rate. After reading through the comments that are already posted,it seems that a few people are worried about the price of their mustard going up.

 

[scoobywrx05]

They are meeting in 2 weeks to revise the list. I see no reason that the changes would not take effect asap.


A cabinet member - "United States Trade Representative" Susan Schwab - will most certainly be replaced.

http://www.whitehouse.gov/government/sschwab-bio.html




EDIT - I added the pdf from that link to my first post, that site is not easy to navigate.


EDIT2 - think this is how to use that site in the first post

You thinking she'll be replaced because she is a rep.? Chances are,,probably yes.

 

[Coffee]

You thinking she'll be replaced because she is a rep.? Chances are,,probably yes.

I'm no expert but did think each president picked their own staff, and she is in a cabinet position.




The 2 guys I talked to really had no clue how it would affect people in the USA. When I asked them "would you pay 2x for a certain car? What would the dealers in the USA do if the price of that car doubled?" it put things in perspective.

They want to put the squeeze on the EU nations without hurting the USA. I really don't think this issue will be difficult to resolve if comments are made to the USTR.

 

[MOTORHEAD]

Pardon my ignorance, but don't we ( the U.S. ) import a lot of beef ?

Then why are we worried about exporting ?

 

[Boom Boom]

Coffee,
Can you forward your opening letter to Ryan Young at ryan@rypusa.com (Sherco and Scorpa importer), Dale Malasek at Gasusa@gasgas.com (Gas Gas importer) and to Ron Commo at winrcs1@aol.com (Beta importer).
If you did post on Thumper Talk under the Husky link, the exotics and trials section are both very active also.
My fax will be going out in the morning when I get to the office.

 

[Colo moto]

Pardon my ignorance, but don't we ( the U.S. ) import a lot of beef ?

Then why are we worried about exporting ?

Still trying to figure this out my self. If the EU isn't currently importing us beef then they obviously don't really need it. So why are we trying to force our beef on them?

http://www.ers.usda.gov/news/BSECoverage.htm

 

[Coffee]

Coffee,
Can you forward your opening letter to Ryan Young at ryan@rypusa.com (Sherco and Scorpa importer), Dale Malasek at Gasusa@gasgas.com (Gas Gas importer) and to Ron Commo at winrcs1@aol.com (Beta importer).
If you did post on Thumper Talk under the Husky link, the exotics and trials section are both very active also.
My fax will be going out in the morning when I get to the office.

Can you forward the info to those people? Or do you think it would sound better coming from me? While this is very important I really don't want to appear as 'spam'. Your input would be great.

I really cannot start another thread about this on TT. The rules are extremely clear over there and I'd rather not loose my posting privileges. There are threads running in the Husqvarna, general, and TT members sections. If someone else wants to start a thread... that is your business.

 

[Coffee]

Still trying to figure this out my self. If the EU isn't currently importing us beef then they obviously don't really need it. So why are we trying to force our beef on them?

http://www.ers.usda.gov/news/BSECoverage.htm

Cause that is the way politics works?


For the record this issue has zero to do with Bovine Spongiform Encephalopathy (BSE)... nothing.

They want the EU to allow importing beef with hormones from the USA i.e. comply with the WTO court order. That's it.

They do not want to damage anyone in the USA. So if there are dealers and after market part people reading this thread and you think sales might be affected if the price is doubled... might want to fax them some comments.

They are good people and need ammo to show their boss why a 100% tariff might not be good for the consumers & other people in the USA.

 

[Colo moto]

They want the EU to allow importing beef with hormones from the USA i.e. comply with the WTO court order. That's it.

They do not want to damage anyone in the USA. So if there are dealers and after market part people reading this thread and you think sales might be affected if the price is doubled... might want to fax them some comments.

They are good people and need ammo to show their boss why a 100% tariff might not be good for the consumers & other people in the USA.

Ohhh, I'm on it. Fax will be sent out tomorrow. Stocking up with info ammo right now.

 

[Coffee]

Can anyone figure out how to suck the info out of the pdf attached to the first post?

I'll try printing then scanning using OCR....

 

[North]

So because of banned beef there is a 100% tax on certain Bikes. Makes sense to me. (Makes no sense.)

Does the EU ban all beef that contained growth hormones or just that from the USA?

But than there is the WTO ruling in favour of the USA. But nobody does what the WTO says if they don't like the ruling anyways.

This is all above my pay grade.

The bottom line is, anyone selling those bikes or parts, etc, etc. Is screwed.

 

[MOTORHEAD]

If they want to help the U.S., and the rest of the world for that matter, then they should put a 100% tariff on anything from China and none on anything from EU.

 

[Coffee]

So because of banned beef there is a 100% tax on certain Bikes. Makes sense to me.
Not currently, but they are being considered, they are on the non-active list with no special tariff

Does the EU ban all beef that contained growth hormones or just that from the USA? No clue

But than there is the WTO ruling in favour of the USA. But nobody does what the WTO says if they don't like the ruling anyways. Appears that way

This is all above my pay grade. Me too, just thought I would follow up and find out what the scoop is

The bottom line is, anyone selling those bikes or parts, etc, etc. Is screwed. YES

Answers in RED