Global/Europe – Following on from our article in early March – Harley-Davidson – Doing Stupid! – which looked at the possibly of a looming trade war against the world and specifically Europe from the United States over steel and aluminium imports, ACEM the motorcycle manufactures representative in Europe are keeping everyone abreast of their stance on the situation.
Comments by European Commission President Jean-Claude Juncker at that time were, “So now we will also impose import tariffs. This is basically a stupid process, the fact that we have to do this. But we have to do it. We will now impose tariffs on motorcycles, Harley Davidson, on blue jeans, Levis, on Bourbon. We can also do stupid. We also have to be this stupid!“
“Nobody wins with trade wars”
One day ahead of the Brussels European summit, where the 28 Heads of State and Government will discuss trade policy, the European Association of Motorcycle Manufacturers (ACEM) calls on EU governments to exclude motorcycles from the lists of American products on which the EU will increase customs duties. The EU stands ready to retaliate against the US following the decision of the Trump administration to impose additional duties on imports of steel and aluminium products including European ones.
ACEM wrote to the European Commissioner for Trade, Cecilia Malmström, and to the Vice-President of the European Commission, Jyrki Katainen, to express its concern about the escalation of this trade conflict. In its letter, the European motorcycle industry explained that by enacting retaliatory tariffs on American motorcycles, the EU may end up triggering American retaliatory measures against European-made motorcycles and scooters.
Since this would severely damage not only motorcycle manufacturers in Europe, but also European manufacturers of parts, components and accessories (many of which are SMEs) and providers of services demanded by motorcycle companies, ACEM calls on EU governments and the European Commission to exclude American motorcycle exports from their retaliation and compensation lists. ACEM will elaborate on the negative consequences for the motorcycle sector of this trade dispute in its reply to a public consultation launched by the European Commission.
ACEM President and CEO of KTM AG, Stefan Pierer, who is today attending the ACEM General Assembly hosted by Peugeot Scooters in Sochaux (France), said: “Europe is one of the most important markets for American exporters of motorcycles, and about 30% of all European motorcycle exports go to the US. This trade dispute could be extremely damaging for both sides. Nobody wins with trade wars”.
ACEM Secretary General Antonio Perlot said: “We call on EU Member States to urgently exclude American motorcycle exports from its retaliation and compensation lists. We also encourage the European Commission to work constructively with Washington to reach a negotiated solution to the steel and aluminium issues, and to de-escalate the conflict. The motorcycle sector must not be brought into this trade dispute”.
Motorcycle Minds comment, One might say that the motorcycle manufactures are protecting motorcycling for riders?
About ACEM And Motorcycle Manufacturing In Europe
About 300,000 jobs depend on the motorcycle, moped, tricycle and quadricycle industry in the EU.
According to EUROSTAT figures, in 2016 the EU’s exports of motorcycles to the US amounted to € 483.1 million, which represented 29.1% of all European motorcycle exports. Furthermore, EU-based companies exported € 139.6 million in motorcycle parts and components to America (30.8% of the total). In 2016, the US was the first destination for European exports of motorcycles as well as parts and components.
The European Association of Motorcycle Manufacturers (ACEM) represents manufacturers of mopeds, motorcycles, three-wheelers and quadricycles (L-category vehicles) in Europe. ACEM members include 17 manufacturing companies and 17 national industry associations.
ACEM manufacturing members, which include some of the largest multinationals in the sector, are: BMW Motorrad, Bombardier Recreational Products (BRP), Ducati Motor holding, Harley-Davidson, Honda, Kawasaki, KTM, KYMCO, MV Agusta, Peugeot Scooters, PIAGGIO, Polaris Industries, Renault, Royal Enfield, Suzuki, Triumph Motorcycles and Yamaha.
Original Source – ACEM President and CEO of KTM AG, Stefan Pierer: “Nobody wins with trade wars”
If you wish to contact ACEM regarding these details:
Manuel Ordonez de Barraicua
ACEM communications manager
E. press@acem.eu
M. +32 496 52 65 17
Federation of European Motorcyclists’ Associations – “25% extra tax on American motorcycles
In reaction to the US restrictions on steel and aluminium affecting the EU that the US government announced on 30 May, the European Commission will charge an additional import tax of 25% on American motorcycles with a displacement of more than 500 cc and on chains for motorcycles and bicycles.
Earlier this year FEMA sent a letter to commissioner Malmström to ask her to leave motorcycles out of the countermeasures because of the damage this would impose to European riders and workers in the motorcycle industry. From her answer we could already deduct that she was not willing to do so.
We regret both the measures of the US government and the countermeasures of the European Commission and think this is not the way to solve problems. Furthermore, we will keep fighting to limit the damage to European riders and workers.
FEMA – Facebook
European Commission reacts to the US restrictions on steel and aluminium affecting the EU
Brussels, 31 May 2018
The US announced that starting on 1 June 2018 it will impose additional duties of 25 % and 10 % respectively on imports of steel and aluminium from the EU.
President of the European Commission, Jean-Claude Juncker said: “I am concerned by this decision. The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation rules. This is protectionism, pure and simple. Over the past months we have continuously engaged with the US at all possible levels to jointly address the problem of overcapacity in the steel sector. Overcapacity remains at the heart of the problem and the EU is not the source of but on the contrary equally hurt by it. That is why we are determined to work towards structural solutions together with our partners. We have also consistently indicated our openness to discussing ways to improve bilateral trade relations with the US but have made it clear that the EU will not negotiate under threat. By targeting those who are not responsible for overcapacities, the US is playing into the hands of those who are responsible for the problem. The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US. We will defend the Union’s interests, in full compliance with international trade law.”
Commissioner for Trade Cecilia Malmström said: “Today is a bad day for world trade. We did everything to avoid this outcome. Over the last couple of months I have spoken at numerous occasions with the US Secretary of Commerce. I have argued for the EU and the US to engage in a positive transatlantic trade agenda, and for the EU to be fully, permanently and unconditionally exempted from these tariffs. This is also what EU leaders have asked for. Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business, and certainly not between longstanding partners, friends and allies. Now that we have clarity, the EU’s response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO, since these US measures clearly go against agreed international rules. We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these US restrictions.”
Original Source – European Commission
UK motorcycle industry warns trade tariffs on motorcycles will result in job losses in the UK
The UK’s Motorcycle Industry Association (MCIA) is strongly urging the UK Government to exclude motorcycles from the list of American products on which the EU will increase customs duties.
Failing to do so will have a detrimental effect on the industry, which employs an estimated 58,500 people across 5700 businesses in the UK and will inevitably result in job losses.
MCIA is backing the position of ACEM, the European body which represents 17 national motorcycle industry associations and 17 motorcycle manufacturers in the EU.
ACEM is concerned about EU plans to retaliate against the US, following the decision of the Trump administration to impose additional duties on imports of steel and aluminium products, including European ones.
ACEM has written to the European Commissioner for Trade, Cecilia Malmström, and to the Vice-President of the European Commission, Jyrki Katainen, to express its concern about the escalation of this trade conflict. In its letter, the European motorcycle industry explained that by enacting retaliatory tariffs on American motorcycles, the EU may end up triggering American retaliatory measures against European-made motorcycles and scooters.
Tony Campbell, CEO of the Motorcycle Industry Associations says:
“Targeting high profile brands is headline grabbing but won’t have any real value in resolving this situation and will seriously harm an industry which is already under pressure.
“I am hopeful that common sense will prevail.”
ACEM President and CEO of KTM AG, Stefan Pierer said:
“Europe is one of the most important markets for American exporters of motorcycles, and about 30% of all European motorcycle exports go to the US. This trade dispute could be extremely damaging for both sides. Nobody wins with trade wars”.
Original Source – UK motorcycle industry warns trade tariffs on motorcycles will result in job losses in the UK