Petition Against Higher Taxes on Bicycling

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On September 1, 2005, the Canadian International Trade Tribunal ("CITT") recommended that the Government of Canada impose a 30\% surtax on certain bicycles primarily imported from developing countries. We the undersigned believe that this recommendation should be rejected because it is not in the public interest.

The CITT issued its recommendation in response to a complaint filed by 2 companies (Raleigh and Procycle) that are already protected by two layers of Canadian border protection - an unusually high 13\% customs tariff that is applied to every bicycle imported into Canada, and antidumping duties that have been imposed on bicycles from Taiwan and China for over a decade.

It would not be in the public interest to add a third layer of protection for many reasons, including:

- Higher bicycle costs will discourage a healthy family recreational activity at a time of rising concern over the physical fitness of Canadia adults and children.

- Given Canada's Kyoto commitments regarding greenhouse gas emissions, environmentally friendly means of transportation should be encouraged, not discouraged.

- It does not make sense to impose additional taxes on cycling when rising gasoline prices are making driving unafforable to many Canadians.

- It is unfair to hurt hundreds of small Independent Bicycle dealer ("IBD")
businesses located across canada to protect a relatively small number of jobs in a couple of towns.

- Imposing protectionist barriers on imports from developing countries will not help Canada to diversify and grow its trade with these increasingly important trading partners.

- Many Canadaians will refuse to pay these higher taxes, and cross-border bicycle shopping and smuggling will grow.

We therefore strongly oppose the proposed additional 30\% surtax on imported bicycles and hereby request that the Government of Canada reject the CITT's recommendation.