Cycle News

Cycle News 2019 Issue 15 April 16

Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles

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Page 48 of 135

IN THE WIND P48 U.S. Targets Motorcycles in EU Trade Wars H ere we go again. Trade wars are heating up, and, once again, motorcycles are caught in the crosshairs. This time it's trade tensions with the European Union, and the United States' response to the ongoing dispute between aircraft manu- facturer subsidies, with EU's Airbus in one corner, and Ameri- can rival Boeing in the other—a 14-year-old quarrel that the World Trade Organization is struggling to litigate. The Trump Administra- tion has decided "the time has come for action," and has laid down a proposed $11 billion in EU tariffs. The White House pub- lished a list of products on April 8 that would be hit by retaliatory duties, which includes mostly cheeses, wine, airplane parts, and also motorcycles 500- 700cc, as well as "parts and ac- cessories for motorcycles (includ- ing mopeds)." (HTS subheadings 8711.40.30 and 8714.10.00) The proposed 100% tariff could have significant consequences for European-based motor- cycle manufacturers, including KTM AG. The Austrian-based manufacturer, home to KTM and Husqvarna Motorcycles, cur- rently produces nine motorcycles that would fall into the effected category, with multiple models based on the 510cc and 690cc platforms. Representatives from KTM are currently working with members in DC to get the motor- cycles and motorcycle accesso- ries off the list. While not a lot of European motorcycles fall into the oddly targeted range of 500-700cc, the parts and accessories line item could have much more far- reaching consequences for Euro- pean motorcycle manufacturers including Ducati, BMW, Triumph and Vespa. The issue already has the at- tention of the Motorcycle Industry Association (MCIA) in the UK. In an April 12 statement, the MCIA announced it is working with the British government to address the issue: "The U.S. Government have announced that they will likely introduce a 100% tariff on a number of imports from the EU, which will have a direct impact on several product groups from our industry. Please be aware that we are working closely with the UK Government and had already scheduled a meeting with the Minister for early May." As of now, the product list is "preliminary" and is open to public comment. The U.S. International Trade Commission will have a hearing in DC on May 15 before finalizing the list, which the U.S. aims to total $11 billion per year, directly countering the exact amount of damage it claims comes from the EU aircraft sub- sidies. "This case has been in litiga- tion for 14 years, and the time has come for action," said U.S. Trade Representative Robert Light- hizer in an April 8 press release. "Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional U.S. duties im- posed in response can be lifted." Jean Turner Is the cost of a KTM 690 Adventure R about to double?

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