Canada Debates 100% Tariff on U.S.-made Boats
December 3, 2004
Filed under Features
The National Marine Manufacturers Association (NMMA) is warning U.S. boat builders that the Canadian government on November 23 announced the possibility of an imposition of a 100% surtax on U.S. manufactured recreational boats. The surtax would apply to imported products from the U.S., including pleasure vessels ranging from yachts to canoes.
The NMMA says the surtax is retaliation for the Byrd Amendment, a law that allows duties collected from antidumping and countervailing to be given to U.S. firms that petition for tax relief. The Byrd Amendment, named after Senator Robert Byrd (D-WV), was challenged by a number of countries in the World Trade Organization (WTO). The WTO ruled that the amendment violates their trade agreements and member countries can retaliate against the U.S. Canada also intends to levy tariffs on many other imported U.S. goods besides boats.
“This surtax would be devastating to U.S. boat manufacturers that export vessels to Canada. It would double the price of all American boats sold over the border, eliminating our competitiveness in the Canadian market,” said NMMA President Thom Dammrich.
The Canadian government is soliciting comments on the proposed tariffs until December 20, 2004. NMMA is asking its members to contact their dealers in Canada and urge them to register their opposition.
Visit the NMMA Government Relations website, http://www.nmma.org/government/issueadvocacy/index.asp?catid=234 for more information and to learn how to file comments.