Importers to fight tariffs
Meeting set for Nov. 25
Michael J. Knell -- Furniture Today, November 22, 2005
OTTAWA -- A group of importers will challenge the Canadian Council of Furniture Manufacturers’ efforts to impose safeguard tariffs of up to 60% on imports of household furniture from China.
As of last week, the group included Hamilton & Spill, Primo International and Magnussen Home Furnishings, all based in Canada. In addition, U.S.-based importers Lifestyle Enterprise and DeCoro say they will support the effort because they do considerable business with Canadian retailers, even though they don’t have operations in the country.“We want to be heard on this thing,” said Rick Verjee, executive vice president of Hamilton & Spill. “We’ve got legal counsel involved. This firm was also involved in the antidumping process in the United States last year and was also involved in the recent action here concerning gas barbecues and bicycles.”The law firm will hold a meeting and conference call in Toronto Nov. 25 that will be open to Canadian retailers, importers and other interested in helping to fight the CCFM’s attempt to impose surtaxes on imports from China over a three-year period.The Canadian International Trade Tribunal is expected to rule within days on whether the CCFM’s complaint merits further investigation. If the tribunal believes the council has met the requirements laid down by the World Trade Organization, it will then have 90 days to investigate and make recommendations to the Canadian minister of finance.Although rarely used, safeguard measures are designed to protect an industry from sudden surges in imports. Any tariffs or quotas imposed normally last no longer than three to five years.Verjee said preliminary discussions have been held with retailers The Brick Group, Sears Canada, Leon’s Furniture and The Bay, and he expects they will offer some support. “We will also be sending out an e-mail to everyone sometime over the next few days telling retailers about the conference call and how they’ll be able to participate,” he said. Canadian importers voiced opposition to the proposed safeguards, and most said they wondered why the manufacturers want them.“We were quite surprised by this,” Verjee said. “I don’t know why they would do this, considering a lot of them are already importing themselves.”Import executives maintained that all the action would do, if successful, is add costs for retailers and consumers without addressing the fundamental problems manufacturers face. Safeguards won’t restore lost jobs and investments, they said. “The reality is, it’s a world market and we have to compete in a world market,” said Richard Magnussen, chairman of Magnussen Home Furnishings. “This isn’t necessary. It’s a negative. My opinion is (manufacturers) have to work on issues that add value to the product they make, not just add to overhead. This is an overheard approach.” “I think it’s just grasping at straws,” said David Itzkovitz, president of Primo International. He said Canadian manufacturers are “so far behind that they’ll never catch up. Instead of spending money to protect something that can’t be protected, they should be looking for ways to improve their business.”Importers also suggested that adding tariffs would give consumers another reason not to buy furniture.
“If successful at whatever level, it will mean price increases at the consumer level and it’s already hard enough to persuade the consumer to part with their disposable dollar to buy furniture,” Verjee said. “And it won’t bring any more jobs back into Canada.” Magnussen added that as its economy develops, China will become increasingly important as a customer, not as a competitor. China already is his company’s third-largest customer, after Canada and the United States. “Trade is going to be both ways with China, as China is a huge developing market,” he said. “What we have to do is find ways to compete internationally.” internationally.”
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Importers to fight tariffs
Dec 4, 2005
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