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Canadian tariffs on US goods go into effect, but spare seafood industry

July 3, 2018 — Canada has placed tariffs valued at CAD 16.6 billion (USD 12.6 billion, EUR 10.8 billion) on American products as retaliation for a 25-percent tariff on steel and 10-percent tariff on aluminum the United States instituted earlier this year by U.S. President Donald Trump.

Canada’s tariffs took effect 1 July – Canada Day. While the new tariffs affect goods ranging from beer kegs to ball point pens, orange juice to candy to bourbon, they appear to have largely spared the seafood industry.

It’s an extraordinary situation for the two countries which traditionally tout their undefended border, close relationship, and are the world’s second-largest trading block.

More than USD 1.5 billion (EUR 1.3 billion) in goods and more than 300,000 people cross the U.S. Canada border every day. The value of trade crossing the Ambassador Bridge between Windsor, Ontario and Detroit, Michigan is equal to all of Japan’s exports to the U.S. Canada is a bigger market for U.S. goods than the 27 countries of the European Community. For example, 4,000 shipments of ingredients for Campbell’s Soup products cross from the US into Canada each day and 3,500 travel from Canada into the U.S.

Since introduction of the North American Free Trade Agreement in 1985, there has been a 350 percent rise in trade between the U.S. and Canada. Canada is one of the top five investor nations in the U.S. and is America’s primary energy source (oil, natural gas, and electricity), while Saudi Arabia is number three.

Read the full story at Seafood Source

MASSACHUSETTS: Local lobsterman to test ropeless buoy equipment

July 2, 2018 — Sonar technology used in Australia for southern rock lobster commercial fishing will be tested in July, possibly in Cape Cod Bay, as a method to better protect imperiled North Atlantic right whales from rope entanglements.

“Getting these and other systems into the hands of the fishermen and incorporating their ideas and feedback into their development is the key,” said Patrick Ramage, marine conservation program director for the International Fund for Animal Welfare, which has its operations center in Yarmouth Port.

IFAW will pay $30,000 to provide the equipment, a trainer and onboard support for what is expected to be a test by one member of the Massachusetts Lobstermen’s Association of the acoustic release equipment manufactured by Desert Star Systems, a company based in Marina, California, and founded by Marco Flagg.

The equipment replaces the typical surface buoy and vertical rope that lobstermen attach to their traps on the seafloor to identify the trap locations. Instead, the new equipment has a bottom-anchored mesh bag full of rope and floats that can open and pop up to the surface with an acoustic command from a boat. The equipment dates from the mid-1990s when a lobster fisherman in Australia wanted to prevent trap losses from gear entanglement with ships.

The equipment was tested earlier this year by five commercial snow crab fishermen in Canadian waters, Flagg said.

“The Massachusetts test is on the small side but I’m happy it’s happening,” Flagg said of what is the first pilot of the product in United States waters. Each release mechanism costs about $1,500 to $1,700 and lasts for 10 years, he said.

A Sandwich-based lobsterman is expected to pilot the equipment, according to the lobstermen’s association president Arthur “Sooky” Sawyer.

Read the full story at the Cape Cod Times

Maine lobster industry braces for looming bait shortage

July 2, 2018 — Maine’s lobster industry is on watch as fisheries regulators weigh whether to make significant cuts to herring catch limits, which could drive up bait costs that have already seen a sharp increase over the past decade.

Maine’s lobstermen draw their bait from the Atlantic herring stocks, which are managed by the New England Fishery Management Council and National Marine Fisheries Service.

In recent updates, the council said it planned on setting a significantly lower herring catch quota in 2019 than in 2018. The catch limit for 2018 was 111,000 metric tons, the same as it was in 2017. But the herring fleet landed many fewer fish than that last year, harvesting just 50,000 metric tons.

The council also called for a reduction to the catch cap for the rest of 2018 amid concerns about low densities and slow replenishment in the fish stock.

“The decline of the most important forage stock in New England is a significant blow, not only for the lobster industry that uses it for bait, but also for those species that rely on herring as forage like groundfish, tuna, whales, and seabirds,” Ben Martens, executive director of the Maine Coast Fishermen’s Association, wrote in a recent post. “Without this motion, rumor has it that the herring fishery would need to be capped at 15 metric tons in 2019, far lower than the 100-metric ton fishery that has operated in recent years.”

A herring stock assessment group held meetings in late June to try to determine its next steps and come closer to determining what quota it might propose. The group should release more details about the expected catch limits in the fall.

“Everyone’s worried about the quota and what that’s going to be,” said Kristan Porter, a Cutler lobsterman and president of the Maine Lobstermen’s Association. “There’s bait around right now, but what happens in the fall? We just don’t know.”

Read the full story at the Bangor Daily News

MASSACHUSETTS: Sen. Elizabeth Warren pushes for new lobster markets

July 2, 2018 — U.S. Sen. Elizabeth Warren moved Friday to try to protect international markets for American lobsters, urging the U.S. trade representative to explore new markets to compensate for the detrimental impact of new Chinese import tariffs.

In a letter to Robert Lighthizer, the U.S. trade representative, Warren said the 25 percent tariffs to be imposed on American lobster imports after July 6 will economically harm American lobstermen and the fishing communities in which they live and operate their businesses.

“China is a large and growing market for lobsters, with total lobster imports from America topping $100 million in recent years,” Warren said in her letter. “Large Chinese tariffs on American lobster will effectively close off that market because China can substitute cheaper lobsters from Canada or Europe for American lobsters.”

The new Chinese tariffs on $50 billion worth of American goods, imposed in response to new tariffs ordered by President Donald Trump on Chinese imports into the United States, actually will mean that American lobster exporters will be paying the new 25 percent on top of the current 7 percent tariff — resulting in a tariff of 32 percent on imported American lobsters.

Read the full story at the Gloucester Daily Times

Fishermen feeling bait price squeeze

June 28, 2018 — “We made no money this spring,” said Bass Harbor fisherman Justin Sprague.

The cost of operations for lobstering continues to increase while the boat price of lobster has hardly budged. The cost of herring, the preferred bait for most Maine lobsterman, has gone up especially sharply.

“We don’t have any margin at this point,” Sprague said. “It’s frustrating, to say the least.”

Bruce Colbeth manages the C.H. Rich lobster wharf in Bass Harbor.

“By the time these guys pay for fuel, bait and stern men, there ain’t too much left for them,” he said. “I remember six years ago you could sell (herring) bait for $26 a bushel. Now it’s doubled.”

Herring bait is sold in trays. Fisherman Chris Goodwin said he paid almost $80 per tray for herring bait the last time he stocked up.

A ton of bait can be divided into about 13 trays, Cody Gatcomb of C.H. Rich explained. A tray of fish bait is equivalent to 1.5 bushels, Colbeth said. He saw a recent 3-cent per pound increase at his operation.

That adds up fast.

At the moment, not considered prime season, C.H. Rich Co. is selling between 350 and 400 trays of herring bait a week, Colbeth said. Once the season begins in July, they can expect to sell up to 800 trays of bait each week.

Some fishermen have reserved barrels of herring bait for the upcoming season in preparation for a possible shortage, Gatcomb said.

Read the full story at the Mount Desert Islander

Environmental group plans lawsuit calling for ban on lines used by lobstermen

June 27, 2018 — Another environmental group is threatening a lawsuit to stop Maine lobstermen from using vertical fishing lines that it says pose a danger to right whales.

Whale Safe USA has served the Maine Department of Marine Resources with a written notice of its intent to sue that agency, the Maine Lobstermen’s Association and individual Maine lobstermen for violating an Endangered Species Act prohibition on killing and injuring endangered species such as the right whale.

The paperwork serves as a 60-day notice of civil action.

Led by Massachusetts advocate Max Strahan, who has called himself the “Prince of Whales,” the group wants to stop Maine from issuing licenses to fishermen who use lobster pot gear that can entangle right whales, especially the ropes that connect lobster pots that sit on the ocean floor to the buoys that float on the surface.

“The MDMR in its current and past incarnations has been responsible for the killing and injuring of many endangered whales and sea turtles since before the passage of the Endangered Species Act in 1973,” Strahan said in a prepared statement. “It knows it (is) killing endangered whales and sea turtles but it simply will not stop.”

Some scientists who study right whales say the species, whose numbers have dropped to about 450 animals, could be doomed to extinction by 2040 if society doesn’t take significant steps to protect them.

Seventeen right whales were found dead in the summer and fall of 2017 in the waters of the Gulf of St. Lawrence and off Cape Cod, many because of ship strikes or entanglements.

Read the full story at the Portland Press Herald

Fish wars loom as climate change pushes lobster, cod, and other species north

June 22, 2018 — Over the past 50 years, as Atlantic waters have warmed, fish populations have headed north in search of colder temperatures. Lobsters have migrated 170 miles and the iconic cod about 65 miles, while mid-Atlantic species such as black sea bass have surged about 250 miles north, federal surveys show.

But fishing limits and other rules, by and large, haven’t shifted with them.

The rapid movement of fisheries, in New England and around the world, has outpaced regulations and exacerbated tensions between fishermen in competing regions and countries, threatening to spark conflicts that specialists fear could lead to overfishing.

“This is a global problem that’s going to be getting worse,” said Malin Pinsky, an assistant professor of ecology at Rutgers University, who led a recently released study on the movement of fisheries in the journal Science.

With climate change expected to accelerate in the coming years, new fisheries are likely to emerge in the waters of more than 70 countries and in many new regions, the study found.

Fishing quotas in the United States have been traditionally set by councils overseeing specific regions, based on the belief that fish don’t move much.

Read the full story at the Boston Globe

Climate Change Brought a Lobster Boom. Now It Could Cause a Bust.

June 21, 2018 — At 3:30 in the morning on a Friday in late May, the lobstermen ate breakfast. Outside, their boats bobbed in the labradorite water, lit only by the dull yellow of streetlamps across the bay. It was windy, too windy for fishing, but one by one the island’s fishermen showed up at the Surfside cafe anyway. Over pancakes and eggs, they grumbled about the season’s catch to date.

Some of the lobstermen said it was just too early in the season. Others feared that it was a sign of things to come. Since the early 1980s, climate change had warmed the Gulf of Maine’s cool waters to the ideal temperature for lobsters, which has helped grow Maine’s fishery fivefold to a half-billion-dollar industry, among the most valuable in the United States. But last year the state’s lobster landings dropped by 22 million pounds, to 111 million.

Now, scientists and some fishermen are worried that the waters might eventually warm too much for the lobsters, and are asking how much longer the boom can last.

“Climate change really helped us for the last 20 years,” said Dave Cousens, who stepped down as president of the Maine Lobstermen’s Association in March. But, he added, “Climate change is going to kill us, in probably the next 30.”

Read the full story at the New York Times

China tariffs threaten booming lobster business

June 20, 2018 — China’s proposed retaliatory tariffs on U.S. lobsters would have a crushing impact on Gloucester lobster exporters such Mortillaro Lobster Inc. and Intershell, likely pricing their lobsters and all others from the U.S. completely out of the most vibrant lobster market in the world.

“I think this is going to kill us,” said Vince Mortillaro of the Commercial Street lobster sellers that bears his family’s name. “We’re already dealing with the treaty Canada has with the European Union that allows them to sell their lobsters cheaper there. Now with this on top of it, forget about it.”

On Friday, China announced additional 25 percent tariffs on approximately 545 American exported products with a collective value of $50 billion and the seafood industry — particularly U.S. lobster harvesters, processors and sellers — was hit hard.

Those tariffs were in retaliation to U.S. import tariffs on Chinese goods announced earlier by President Donald Trump.

China said it is imposing new tariffs — set to go into effect July 6 — on about 170 U.S. seafood products worth approximately $1 billion.

While the number of seafood products represents about 31 percent of the total U.S. products affected by the new tariffs, it accounts for only 2 percent of the $1 billion value of all U.S. products facing additional 25 percent tariffs from the Chinese.

Read the full story at the Gloucester Daily Times

China threatens tariffs on US lobsters as business booms

June 18, 2018 — A set of retaliatory tariffs released by China on Friday includes a plan to tax American lobster exports, potentially jeopardizing one of the biggest markets for the premium seafood.

Chinese officials announced the planned lobster tariff along with hundreds of other tariffs amid the country’s escalating trade fight with the United States. China said it wants to place new duties on items such as farm products, autos and seafood starting on July 6.

The announcement could have major ramifications for the U.S. seafood industry and for the economy of the state of Maine, which is home to most of the country’s lobster fishery. China’s interest in U.S. lobster has grown exponentially in recent years, and selling to China has become a major focus of the lobster industry.

“Maine’s lobster industry is an irreplaceable piece of our state’s economy that supports thousands of jobs and entire coastal communities,” the state’s congressional delegation said in a statement. “Just two weeks ago, the Maine delegation heard directly from our state’s lobster industry about the economic hardship a trade war with China would cause them.”

The delegation — Republican Sen. Susan Collins, Independent Sen. Angus King; Democratic Rep. Chellie Pingree and Republican Rep. Bruce Poliquin — said they plan to outline their concerns to federal trade officials.

“Hopefully cooler heads can prevail and we can get a solution,” said Matt Jacobson, executive director of the Maine Lobster Marketing Collaborative. “It’s a year round customer in China. This isn’t good news at all.”

Read the full story at the Associated Press

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