Canada to impose 100% tax on U.S. boats?

From IBI Magazine...

The National Marine Manufacturers Association (NMMA) said that it is warning US boat builders that the Canadian government may double its surtax on US-imported boats. "The surtax would apply to imported products from the U.S., including pleasure vessels such as yachts, sailboats, motorboats, inflatables and canoes," said a press release.

"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 surtax is retaliation, according to the release, for the Byrd Amendment, a US law that allows duties collected from antidumping and countervailing to be given to U.S. firms that petition for tax relief. The World Trade Organisation ruled that the amendment violates its trade agreements and member countries can retaliate against the U.S.

Canada also intends to levy tariffs on many other imported U.S. goods. The Canadian government is soliciting opinions on the proposed tariffs until December 20, 2004. NMMA urged US boatbuilders and their Canadian dealers to file objections with the Canadian government. More information, it said, can be found on the NMMA web site.

"NMMA will be aggressively pursuing a repeal of the Byrd Amendment in the 109th Congress, and will be meeting with key Congressional staff next week," said Monita Fontaine, NMMA Vice President of Government Relations. "The amendment must be repealed immediately in order to prevent not only Canada but other WTO countries from seeking to impose tariffs on the boating industry."