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Mar 22, 2002

AMA Opposes Euro Plan To Slap Tariffs On Harleys In Steel Trade War

From an AMA press release:<BR><BR>AMA Denounces Stiff European Tariffs Proposed for Harleys<BR><BR>PICKERINGTON, Ohio -- The American Motorcyclist Association (AMA) has strongly denounced a proposal by the European Union to slap Harley-Davidson motorcycles with a stiff tariff in a trade war with the United States over steel.<BR><BR>To retaliate against tariffs recently placed on imported steel by the United States, Pascal Lamy, trade commissioner of the 15-nation European Union, is assembling a list of American goods that could be subject to heavy European tariffs. The list includes Harley-Davidson motorcycles, Tropicana orange juice, textiles and steel products.<BR><BR>If the proposal is approved by the European Union, Harleys could be hit with the tariff in about a year.<BR><BR>"There is no reason for motorcycles to be caught up in this trade war," said Edward Moreland, AMA vice president for government relations. "Tariffs would not only be detrimental to the Harley-Davidson Motor Company, but could make Harleys too expensive for European enthusiasts.<BR><BR>"Harley-Davidson is being made a pawn in a high-stakes international chess match," Moreland added.<BR><BR>The AMA plans to work with European motorcycling groups to convince the European Union to drop the idea of tariffs on Harleys.<BR><BR>This isn't the first time that motorcycles have been caught up in a trade war between the United States and Europe. Several years ago U.S. trade officials threatened to impose a 100 percent import duty on certain European motorcycles sold in the United States, which would have essentially doubled their price.<BR><BR>Those import duties were being proposed in retaliation for the European Union's ban on the importation of hormone-treated American beef. U.S. officials drew up a list of products that would be subject to a 100 percent import duty, including European motorcycles ranging from 51cc to 500cc in engine displacement.<BR><BR>Thanks to the efforts of the AMA, its members and the motorcycle industry, U.S. trade officials decided against imposing the 100 percent import duty on the European motorcycles.<BR>