WORLD TRADE  
ORGANIZATION  G/SG/N/8/CAN/2 
14 September 2005 
 
 (05-4014) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
 
CANADA 
 
(Bicycles and Finished Painted Bicycle Frames
) 
   The following communication, dated 13 September 2005, is being circulated at the request of 
the delegation of Canada. 
 
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 In light of the agreed format for notifications (G/SG/W/1, 23 February 1995), Canada provides notification to the Committee on Safeguards of  findings of serious injury or threat thereof 
caused by increased imports.   On 1 September 2005, the Canadian Internati onal Trade Tribunal (CITT) made an affirmative 
determination that bicycles are being imported in to Canada from all sources in such increased 
quantities since the beginning of 2000 to the end of 2004 and under such conditions, as to be a 
principal cause of serious injury to domestic producers of like or directly competitive goods.    On 1 September 2005, the CITT also reached a ne gative determination on bicycle frames.  It 
determined that bicycle frames are not being impor ted into Canada from all sources in such increased 
quantities from 2000 to 2004, and under such conditions, as to be a principal cause of serious injury or 
threat thereof to domestic producers or  like or directly competitive goods. 
  The initiation of the investigation that led to these determinations was notified to the 
Committee on Safeguards in G/SG/N/6/CAN/2 (1 March 2005).  
 The CITT submitted its report to the Government  on 1 September 2005.  The report contains 
the CITT findings and reasoned conclusions reached on all pertinent issues of fact and law, and a 
summary of the information collected during the in vestigation.  Canada will provide a copy of the 
CITT report to the Secretariat.
1  We understand that the Secretariat will make a copy of the report 
available to Members on request.  The report is a public document that can also be downloaded from 
the CITT website at: ftp://ftp.citt-tcce.gc.ca/doc/english/ safeguar/global/finalrep/gs2e001_e.pdf . 
  
                                                     
 
1 A copy of the Canadian International Trade Tribun al on the Inquiry into the Importation of Bicycle 
and Finished Painted Bicycle Frames is available for re view by interested delegations, who are requested to 
contact Miss Susan Aspinall, Office 1028, telephone 022 739 51 09. G/SG/N/8/CAN/2 
Page 2  
 
  The CITT’s full analysis is set out in the report. Consistent with Article 12.3 of the 
Agreement on Safeguards, Canada is prepared to consult with those Members having a substantial 
interest as exporters of the products concerned, with a view to, inter alia , reviewing the information 
provided in this notification and the CITT repor t, exchanging views on the measure proposed and 
reaching an understanding on ways to achieve the objec tive set out in Article 8.1 of the Agreement.  
Such Members are also requested to provide a direct  contact point so that Canada may inform them 
without delay of any developments rega rding the subject of any consultations. 
 
1. Provide evidence of serious injury or threat thereof caused by increased imports 
 The CITT’s analysis of serious injury to the domestic industry producing bicycles and its 
analysis of causation by increased imports appears on pages 13-32 of the CITT report.  
 
2. Provide information on whether there is an absolute increase in imports or an increase 
in imports relative to domestic production  (please see also Article 2.1 for the context) 
 The CITT found that there has been an increase in imports of bicycles into Canada both in 
absolute volume and relative to the production in  Canada of like goods.  The CITT’s findings 
regarding increased imports of bicycles appear on pages 13-15 of the CITT report.  
3. Provide precise description of the product involved 
 The products involved are bicycles, assembled or unassembled, with a wheel diameter greater 
than 15 inches or 38.1 cm with a FOB value of C $225 or less. Chapter IV of the CITT report lists the 
products for which the CITT recommends to exclude goods from any remedy. 
 
4. Provide a precise description of the proposed measure 
 Pursuant to the Referral Order made on May 10, 2005 (P.C. 2005-804), the Canadian 
International Trade Tribunal provided recommenda tions in respect of the goods as to the most 
appropriate remedy to address any injury or threat  of injury that may be found in this case over a 
period of three years, in accordance with Canada’s  rights and obligations u nder international trade 
agreements.  The Government will examine the CITT report and recommended safeguard measure, 
and will decide on any actions re quired to address the situation. 
  Recommendations applicable to all proposed safeguard measures :  The CITT 
recommended that none of the additional duties appl y to imports from Canada’s free trade partners, 
which include the United States, Mexico, Israel or another CIFTA beneficiary, and Chile.  The CITT 
also proposes that any safeguard measure not appl y to developing country Members whose imports 
meet the conditions set out in Article 9.1 of the Agreement on Safeguards.   
 Surtax :  The CITT recommended the imposition of a surtax of 30% for the first year, 25% for 
the second year, and 20% for the third year.  
5. Provide proposed date of introduction of the measure 
 The Government is not subject to a statutory timeline from receipt of a CITT report 
containing an affirmative determina tion of serious injury, or threat thereof, to decide what safeguard 
action, if any, will be taken. 
  The Government will examine the repor t and respond to the CITT recommendations. 
   G/SG/N/8/CAN/2 
 Page 3 
 
 
 6. Provide expected duration of the measure 
 As noted in item 4, the proposed measure recommended by the CITT would have a duration 
of three years.  
7. For a measure with a duration of more than three years, provide the proposed date for 
the review (under Article 7.4) to be held not later than the mid-term of the measure, if 
such a date for the review has already been scheduled 
 The measure recommended by the CITT does not exceed three years. 
 
8. If the expected duration is over one year, provide expected timetable for progressive 
liberalization of the measure 
 As noted in item 4, the proposed measure provid es for progressive liberalization.  The term of 
the liberalization is indicated in that item.  
9. Provide information relating to the extension of a safeguard measure 
 Not applicable. 
 
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