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December 8 2008 Office of the United States Trade Representative Attn William L Busis Chair Section 301 Committee Docket No USTR 2008 0036 RE HTS 87112000 HTS 87113000 Dear Mr Busis As President of KTM North America Inc I welcome the opportunity to provide the enclosed comments to demonstrate why retaliatory tariffs should not be imposed on motorcycles in connection with the EC Beef Hormone dispute KTM is a small volume motorcycle distributor of Austrian made motorcycles In 1968 KTM manufactured motorcycles were imported into the United States under the brand name Penton Motorcycles In 1978 KTM began import under the KTM brand name and the United States became the first United States subsidiary of KTM AG KTM motorcycles are distributed to hundreds of small motorcycle dealerships throughout the United States Many dealerships are family owned businesses that started with a dream of business ownership and a passion for motorcycles Hard work dedication years of family ownership and financial loss will occur if the USTR enacts a one hundred percent tariff on 51cc 500cc motorcycles If the tariff is imposed motorcycles will be too expensive for consumers to purchase thus forcing these dealers out of business Many dealerships are single or dual branded stores which by state franchise law must adhere to distance limitations in carrying brands In other words a dealer cannot switch brands it carries easily and more often not at all due to locations of other same brand dealerships KTM North America Inc will be forced to completely close United States operations if a one hundred percent tariff is placed on the 51cc to 500cc motorcycles The KTM dealership network is comprised of numerous small business owners Traditionally small and medium size businesses have been the American backbone for generating U S jobs and with the possibility of the proposed tariff the tradition of small business ownership will be shattered for many individuals In the current economic conditions actions that create more jobs need to be taken not enacting tariffs that cause closure for small business owners Due to the economic climate KTM has already been forced to tighten the belt on company operations and has seen dealerships and venders alike do the same a tariff on the motorcycles will undoubtedly place KTM and many of its dealers out of business

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