B.C. cyclists received good news at the beginning of April when the end of the HST meant new bicycles became seven per cent cheaper.
Unfortunately this positive change will shortly be followed by a negative one after the federal budget takes hold. All Canadians will be paying more for their bikes due to the Conservative governments nonsensical decision to increase the tariffs on bikes while decreasing them on many other sporting goods, such as hockey gear.
The government will eliminate a preferential tariff rate on products that are manufactured in more than 70 countries outside Canada, including China, pushing up the price of imported bikes by an additional five per cent. The import tariff currently amounts to eight per cent. It could climb to 13.2 per cent for bicycles that are manufactured overseas, which is almost every new bike sold in Canada. I learned from a source that an estimated $75 will be tacked on to a $700 bike, for example.
The change is intended to protect domestic industries, but given the very limited amount of bicycle manufacturing that takes place in Canada, theres no significant local industry to benefit. Companies like Rocky Mountain that previously built their bikes locally have long since relocated their production facilities to cheaper overseas locations.
Even managers at Devinci Bicycles, which still maintain a manufacturing facility in Quebec, say the tariffs arent a benefit to them because they specialize in a higher-end segment of the market where a higher cost is not as prohibitive and that Devinci, too, imports a number of their products from overseas.
On Thursday, I spoke to David Régnier-Bourque, the director of marketing for Devinci. As the company most often mentioned as the lone, large remaining Canadian bike manufacturer and, presumably, the company most likely to benefit from any kind of tariff on imported bikes. But Régnier-Bourque said the company also imports products from Asia and isnt all too concerned with the tax hike, especially because Devinci specializes in higher-end bikes.
Were not really competing in that entry-level market, so Im not sure it affects us much, he said. Were growing really fast right now.
For Canadian bike retailers, the increased import tax is bad news because it reduces their ability to compete with sellers in the U.S. As with many other consumer goods, most bikes are already available at a lower cost south of the border, a situation that will be exacerbated by the latest changes to the tariff system and the higher price tags at stores.
For Canadian cyclists, its bad news because were hit in the pocketbook each time we purchase a new bike.
It seems hypocritical of the federal government to triumph the fact that its cutting duties on most athletic equipment while excluding bicycles. Nor does it send a good message about the Conservatives overall approach to cycling. While this is not a government that has ever committed to environmental responsibility, its very disappointing to know they will discourage a vital mode of green transportation that also encourages Canadians to live a healthier lifestyle.
At a time when many Canadian cities are investing in cycling infrastructure and promoting cycling as a sustainable transportation method at the municipal level, it makes little sense that the federal Conservatives would implement this particular change.
Cycling organizations have been campaigning for years to have the tariffs on bikes removed completely. To find out the costs are going up instead is disappointing, to say the least.
The Bicycle Trade Association of Canada created a petition on April 1 to compel the House of Commons to eliminate the tariffs on imported bicycles. To sign, visit canadiancyclist.com.
Kay Cahill is a cyclist and librarian who believes bikes are for life, not just for commuting. Have something to say about paying more for a bicycle? Email her at [email protected].
