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Price hike for Far East bikes

12:29 11th November 1999 by Bikemagic
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You know those Far Eastern bikes and bike parts that
you’re keen on? They could be shooting up in price next year thanks to the European
Commission starting “anti-dumping” proceedings concerning imports of bicycle
frames, forks and wheels originating in Taiwan and China. Previous – and successful
- complaints have been won against importation of full bicycles from the Far East.




The latest notice of proceedings follows the anti-dumping complaint filed by the
protectionist Paris-based European Bicycle Manufacturer’s Association in September.
EBMA claim that its members make over 55 percent of the bikes sold in the EU and
that their anti-dumping complaint is to give members “a level playing field.”



Were it to be successful the complaint could lead to massive price hikes. The dumping
allegations are based on a comparison of the normal cost of the products with their
export price into the EU. As a ‘control’ the commission is using the Mexican economy
to set the normal cost of Chinese products (which, after all, is a state-controlled
economy).



In the UK, the Bicycle Association and the Association of Cycle Traders are to lobby
the EU to drop the complaint. Most of the top-end brands who import frames from the
Far East could be affected by any adverse ruling but their UK-based subsidiaries
and agents are generally not members of the BA.



Organisations and companies who wish to fight the anti-dumping complaint have until
the middle of December to supply the commission with statements and information.
A decision from the EU would then be expected in the Spring.

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