The Department for International Trade (DIT) has officially confirmed that it is keeping EU anti-dumping rules on cheap bikes from China and several other countries following the end of the Brexit transition period, although it says that the measures will be reviewed at some point and may be dropped if it is not felt that they are “appropriate to the UK.”
In early December, we reported how the DIT had confirmed to trade body the Bicycle Association (BA) that it had decided against scrapping the anti-dumping measures on bicycles and e-bikes made in China, which were first introduced by the EU in 1993 and currently impose a 48.5 per cent tariff.
> EU anti-dumping rules on cheap Chinese bikes to stay post-Brexit after government U-turn
The BA welcomed what it described as the “certainty” afforded by the continuation of the measures, which are aimed at preventing Chinese manufacturers from flooding the market with cheap bikes, to the detriment of local manufacturers and jobs, as well as bringing concerns over safety standards.
On New Year’s Eve, the DIT published a ‘Notice of determination’ on its website in which it confirmed that international trade secretary Liz Truss had determined that “the anti-dumping duty on bicycles and certain bicycle parts originating in the People’s Republic of China (including bicycles consigned from Cambodia, Indonesia, Malaysia, Pakistan, the Philippines, Sri Lanka and Tunisia)” – countries that Chinese manufacturers had used to try and circumvent the measures – would be “transitioned,” that is, brought within the UK’s trade remedies system.
https://www.gov.uk/government/publications/trade-remedies-notice-anti-du...
“This determination follows a Call for Evidence conducted by the Department for International Trade to identify anti-dumping and countervailing duties imposed by the EU it would be appropriate to transition in the United Kingdom (UK) system,” the DIT continued.
“The identified trade remedies measure will be transitioned so it will continue to apply when the UK begins operating an independent trade remedies system. This is once the UK ceases to apply the EU’s Common External Tariff, unless this notice is revoked, or the EU terminates the measure before the UK begins operating an independent trade remedies system.”
However, the DIT added that it will review the anti-dumping measure to assess whether it is “appropriate to the UK.”
It said: “The Trade Remedies Authority (or pending establishment, the Secretary of State) will assess whether the measure is necessary or sufficient to prevent or remove injury to UK industry and whether there would be injury to UK industry if it were no longer applied.”
Last month, when the BA confirmed that the DIT had told it that it planned to keep the existing EU measures, there was no hint that they would be reviewed.
There doesn’t seem to be any immediate prospect of another U-turn on the issue by the government, although it does leave the door open for a reversal of policy in the future, for example if the UK were pressured into dropping the anti-dumping measures as part of the negotiation of any future trade deal with China.
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"aimed at preventing Chinese manufacturers from flooding the market with cheap bikes"
Oh no! Consumers might get bikes cheaper! This is a tax on all cyclists in the UK, but especially poorer folk who can't afford prestigious European bike brands - just to protect a special interest group who can't cope with competition. Economically it's a really crappy policy, but politicians keep on doing it because special interests are organised.
One of the best parts of the EU is getting rid of beggar-thy-neighbour policies between European countries. (The EU didn't have a flawless record on reducing tariffs applied to imports from outside the EU, but it did make some big improvements in other areas if not bikes).
All depends who you are competing against.
So if you are competing against countries operating on a more or less equal footing, absolutely agree. But there is no such equivalence competing with China.
It's the same reasoning as why we don't allow competition against people using performance enhancing drugs. The choice is to compete on their terms - take the same drugs - or lose. But neither of those is a favourable option - so we disallow the competition.
Now, if we want to adopt the Chinese work/life balance, standard of living, human rights, political system, labour practices, and so on then we can compete. Or else we can lose. Or we can disallow the competition.
Does anyone think that "cheap Chinese" bikes are not finding their way here? Check your local Facebook marketplace or Gumtree. Any adult bike with horrible plastic mag wheels wasn't sold by a bike shop in this country, nor were any of the 1000W ebikes from makers you haven't heard of that look like out-takes from Robot Wars.
Frankly most of them are probably no less safe than the cheapest ranges stocked by Halfords or *spit* Sports Direct, it's not like we have a (cheap) bike manufacturing base here to protect, and the many quality bike brands based here won't lose any custom. Why not let them in?
It is a bit different with one or two sold like that and every Halfords stocking chinese brand names bikes.
Amazon Daily "Deals" shows what happens when unrestricted items are allowed in to the market place as pretty much every manufacturer in those lists is Chinese. Lots of stories of them failing Electrical safety standards but you can't tell from reviews as thousands of them have also been bought.
Safety is a complete red herring.
These bicycles are allowed to be sold, they just have to be sold at elevated prices.
If safety was a concern they wouldn't be allowed to be sold.
The question that should be asked before applying any tariff is why?
What good does it do the UK to apply this tariff?
I can't think of a single benefit of tariffs on entry level bikes?
I guess the 48.5% makes them so uncompetitive that it's the same as a ban. But I agree, we should be told which local manufacturers are being protected and why safety can't be enforced with safety checks.
China: Drop the ban.
UK: Yes Sir.
/the end
This isn't aimed at you Eddy.
If you are thinking of buying anything Chinese, then this is what you are helping to support.
Two of the headlines today,
The head of the World Health Organization says he is "very disappointed" China blocked the entry of its investigators
The team had been due to investigate the origins of Covid-19 in the Chinese city of Wuhan....
and....Hong Kong has arrested dozens of pro-democracy activists and politicians, accusing them of trying to "overthrow" the city's government.
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