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Piaggio Comments on Proposed Tariff

Wednesday, December 10, 2008
Piaggio Group Americas, Inc. strongly opposes the recently proposed retaliatory action in conjunction with the EU-Beef Hormone trade dispute. According to a notice issued by the office of the U.S. Trade Representative (USTR), revisions are being considered to the list of meat and food products that currently have a retaliatory tariff imposed on them. Inexplicably, USTR is considering extending retaliatory tariffs to European motorcycles between 51cc and 500cc displacement. The recommendation is to add a 100% ad valorem tax to European-manufactured motorcycles and scooters that meet this displacement category – an action whose chief victims would be Piaggio Group Americas, the New York, NY headquartered firm that is responsible for the Vespa, Piaggio, Aprilia and Moto Guzzi brands in the U.S. market, as well as its network of dealers and customers.

Piaggio Group Americas, Inc. President and CEO Paolo Timoni has the following statement to make about these proposed changes to the EU-Beef Hormone dispute sanctions:

“We urge USTR not to punish the U.S. employees of a healthy and growing personal transportation company, along with the 400+ U.S. dealers and employees that retail our scooters and small displacement motorcycles, when the only focus of this trade dispute is an agricultural product. We also urge USTR not to punish the American consumer who in rapidly increasing numbers is choosing to add these clean-running, fuel-efficient machines to their transportation fleets in order to reduce U.S. fuel consumption, foreign oil dependence and today’s massive congestion and environmental issues. Finally, we urge USTR not to impose measures that would quickly force Piaggio Group Americas and a significant number of its dealers out of business.

“The intricacies of retaliatory tariff measures are not our bailiwick – but serving the thousands of American consumers who have a passion for our products and the dedicated U.S. dealers and partners who retail and service them most certainly is. We encourage USTR to find more appropriate and relevant measures to settle its beef with the European Union.”

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themountain -where is the beef!!  December 16, 2008 02:06 PM
first off the beef ban is not illegal , second just go ahead an d buy more chine crap...you will see to what that leads...oh Boy sometimes its real hard to follow your US logics!!
WMG -Lesser Evil?  December 12, 2008 08:38 AM
All business practices aside, I can't agree with this tariff. I can't agree with taking business away from European companies with a respected U.S. dealer network over problems with beef. I would much rather buy a fuel-efficient Piaggio or Vespa product that has an upscale and respectible dealership for service, than support any more back-alley and flea market operations selling Lifan and Zongshen products with no hope of honoring warranties or providing service. I also don't agree with the local KTM dirt bike dealer having to close his doors and lay off his employees. While I don't agree with EU actions supporting an illegal beef ban, it is certainly no worse than China's numerous human rights violations.
Tim -I Don't Think So  December 11, 2008 09:32 AM
You can keep your conspiracy theories. I think it's pure retaliation. Sorry, Piaggio America talk to your motherland and get them to change their ways before you try to talk the US government out of this. Sometimes you have to fight fire with fire.
Joe -a-bomb  December 11, 2008 08:31 AM
The first a-bomb was dropped on Japan (August 1945) three months after the unconditional surrender of Germany (May 1945).
Stevo -Tarrifs  December 10, 2008 04:13 PM
Ok, what if this is designed for our leaders to intimidate buying Euro and encouraging buying Chinese...? Just a thought. After all, the reason the U.S. nuked Japan in WW2 was to send a message to Germany that we did have the bomb....