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  1. #1
    Wood Licker Maelstrom's Avatar
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    Scary news for canadians buying bikes

    As most canadians know we already pay a premium compared to the states for bikes. This has always been an issue but sometimes we can find deals. In all the wisdom of our gov't we have instituted a tarrif system to charge companies building bikes outside the country to make pricing fair. All I see it doing is screwing the lbs's more and the end use more than that.

    This is definately sad news. Looks like I am going to have to find cleaner source in the states to buy my bikes and bike parts. I can already barely afford canadian pricing.

    For more info.
    http://www.nsmb.com/shore_news/tarriffs_09_05.php

  2. #2
    cab horn
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    We'll start a bike/bike part smuggling business from the states...

  3. #3
    Huachuca Rider webist's Avatar
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    A common social solution to an economic problem. Doesn't work - but it is common. Sorry for you guys.
    Just Peddlin' Around

  4. #4
    'Mizer Cats are INSANE Mentor58's Avatar
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    Quote Originally Posted by operator
    We'll start a bike/bike part smuggling business from the states...
    We'll bring in Bikes and Smokes, and come back across the border with High-Flush Toilets and Back Bacon.

    Steve W.
    Who made money when he drove from alaska to the lower 48 buy getting cartons of smokes at the PX before he left, and didn't have a single pack left at the end of the trip. <and he doesn't even smoke>
    *Surly LHT ... Slow and Steady, *Motobecane Century Pro ... Better than Me
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  5. #5
    Twincities MN kuan's Avatar
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    You sell us your prescription drugs, we'll sell you our bikes.

  6. #6
    Wood Licker Maelstrom's Avatar
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    Quote Originally Posted by Mentor58
    We'll bring in Bikes and Smokes, and come back across the border with High-Flush Toilets and Back Bacon.

    Steve W.
    Who made money when he drove from alaska to the lower 48 buy getting cartons of smokes at the PX before he left, and didn't have a single pack left at the end of the trip. <and he doesn't even smoke>
    Hmmm...deal. Although we have a sudden influx of low flush toilets...backbacon, no problem...

    You sell us your prescription drugs, we'll sell you our bikes.
    I didn't know how expensive drugs were down there until I had several friends ask me for helpers. Its insane how much more your drugs are..haha

  7. #7
    cyclotourist
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    The bikes in question, with an FOB (Freight On Board) price of $225CAD or less would be hit with a 30% surtax in the first year, 25% in the second and 20% in the third year. Procycle and Raleigh originally asked for a 48% tariff.
    We complain about American protectionism (softwood lumber) then we go and put up our own trade barriers.

    It looks like it will be only the cheaper bikes , FOB price of $225 CAD will sell for about $400 in the shop. Correct me if I am wrong.

    Inporting an American made bike shouldn't be affected because it is covered by NAFTA - if that is still in effect.

    Question: If China can make cheap bikes, why not Mexico?

  8. #8
    Senior Member
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    The tariff applies only to Bikes sub-$400 coming from China, Taiwan or India.

    It does not apply to more expensive bikes or bikes from other locations.

  9. #9
    No longer in Wimbledon... womble's Avatar
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    Quote Originally Posted by operator
    We'll start a bike/bike part smuggling business from the states...
    Via an underground tunnel at the border?

  10. #10
    Senior Member DannoXYZ's Avatar
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    You should see the elaborate tunnels they dig in from Mexico! With the heavily-wooded regions on the northern border, we can probably hide an entire highway underground!!!
    Last edited by DannoXYZ; 09-09-05 at 11:48 AM.

  11. #11
    Senior Member doctorSpoc's Avatar
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    doesn't affect me since it's only the cheap bikes but i really think it will affect the LBSs in a big way since they usually start their relationships with individuals with a cheap bike and as they get hooked they upgrade. this might make a lot of people go straight to department stores for their first bikes.

    this is just dumb, these guys can't compete because they make crap and use old outdated technology... give me a break!!

  12. #12
    Senior Member
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    Quote Originally Posted by doctorSpoc
    doesn't affect me since it's only the cheap bikes but i really think it will affect the LBSs in a big way since they usually start their relationships with individuals with a cheap bike and as they get hooked they upgrade. this might make a lot of people go straight to department stores for their first bikes.

    this is just dumb, these guys can't compete because they make crap and use old outdated technology... give me a break!!
    This was brought in because Groupe ProCycle, a privately held company based in Quebec that makes a lot of department store bikes said they were being harmed by the competition. They lobbied privately and the issue didn't even get picked up until it was a done deal.

    You should let Procycle know what you think of this http://www.procycle.com/en/default.asp

    I reckon if people stopped buying their flagship brand - Rocky Mountain - in protest, they may reconsider.

  13. #13
    Senior Member
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    There was an asertion in the article stating that a chromoly bicycle was of poorer quality than one of Aluminum. Nothing could be further from the truth and I'll take a 4130 frame any day over a cheap alu frame.

    As for protectionism, every country has it including China so why can't Canada??

  14. #14
    cab horn
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    Because we're not China.

  15. #15
    Airborne Titanium EricDJ's Avatar
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    Quote Originally Posted by DannoXYZ
    You should see the elaborate tunnels they dig in from Mexico! With the heavily-wooded regions on the northern border, we can probably hide an entire highway underground!!!

    I guess you missed the tunnel from Canada into the US a couple of months back.

  16. #16
    No longer in Wimbledon... womble's Avatar
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    Quote Originally Posted by Dahon.Steve
    As for protectionism, every country has it including China so why can't Canada??
    I've only scratched the surface of international trade/economics in a recent postgrad degree, but generally protecting inefficient local industry is a bad idea for the society whose government implements it. It saves a smallish number of local jobs at the much greater expense of everyone else in the country, and discourages innovation.

    One example: The continuing insistence of Malaysia to protect its only domesticly produced car, the Proton. Imported cars are incredibly expensive. As a result, the Proton can get by with being an outdated, unreliable piece of junk. The company has not had to improve its product- without protection, it would have had to either shape up or go bust a decade ago.

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