For the time being, no US punitive tariffs on European motorcycles

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For the time being, no US punitive tariffs on European motorcycles
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For the time being, no US punitive tariffs on European motorcycles

For the time being, no US punitive tariffs on EU motorcycles
Topic in discussion for the third time

It is thanks to the committed lobbying work of the manufacturers’ associations that European motorcycle manufacturers are avoiding the US punitive tariffs on motorcycles, engine and accessory parts. For now.


Dina Dervisevic

08/19/2020

The American motorcycle manufacturers’ association, the Motorcycle Industry Council (MIC), and its European counterpart – the European Association of Motorcycle Manufacturers (ACEM) – have campaigned to ensure that European manufacturers do not raise their US import duties one hundred percent. Successful. But considering the “Airbus affair” possibly not conclusive.

Background: The USA recently increased the import tax on German Airbus aircraft from ten to 15 percent because the German government is supporting the manufacturer Airbus in a way that distorted competition and is therefore illegal, in the opinion of the USA. In 2018, the World Trade Organization (WTO) agreed with the Americans on this matter and allowed the US government to impose punitive tariffs on Europe of $ 7.5 billion.

Punitive tariffs under discussion for the third time

For a long time, the United States Trade Representative (USTR) saw motorcycles between 500 and 700 cc as a possible sector that could be affected by the punitive tariffs – including all engine and accessory parts from Europe to which also 100 percent of the additional import duties would have been added. Now this topic has been taken off the table. However, for the third time, which is why we cannot assume a final decision here. Europe and Great Britain still take a contrary position to the USA because of the European government’s alleged support for the aircraft manufacturer Airbus.

25 percent EU punitive tariffs

Conversely, the EU has been levying countervailing duties on US products since 2018 – including motorcycles. “According to the EU, the protective measures taken by the USA are not in accordance with the rules of the WTO (World Trade Organization), which is why appropriate countermeasures are permitted.”, such an official statement from the EU. Motorcycles from the USA are taxed with a 25 percent surcharge. So the European Union wants 2.8 billion from Americans for “unfair” Reclaim state aid to American steelmakers.

This is what the manufacturers’ associations say

John Hinz, CEO of KTM North America Inc. and board member of the American motorcycle manufacturers’ association MIC: “We are incredibly pleased that European motorcycles, parts and accessories have been removed from the recent discussions on EU tariffs related to the Airbus situation. We are extremely grateful that the U.S. Trade Representative heard our concerns and recognized the unintended and potentially devastating effects tariffs could have on our industry. This would not have been possible without the support of the MIC and several congressmen, our dealers and employees, and the support of all of our industrial partners. Thank you to everyone who wrote letters, made calls, and made Washington D.C. informed about the value of our industry and our businesses here in the United States. “

Erik Pritchard, President and CEO of the American Motorcycle Manufacturers Association MIC: “This was the third time that the USTR [ed. d. Red .: the Office of the United States Trade Representative] made this proposal, and for the third time that the industry has been able to prevail with joint support. The MIC Government Relations Office will continue to monitor the situation in the hope that the USTR will not propose these rates a fourth time.”

Conclusion

First of all, take a deep breath. However, the situation is not really easing because experience shows that the US trade representative could put the motorcycle issue up for discussion again. As long as the EU and the USA do not agree on the basic question, it will unfortunately remain exciting. And that can take a while – possibly at least until the next US president takes office on January 20, 2021.

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