Saving Seafood

Will Trade Tariffs Cause The American Fish Industry To Flop?

August 16, 2018 — An estimated $900 million worth of American-caught or -farmed seafood — from fish sticks to cod fillets — may get a lot more expensive thanks to the U.S.’s current trade war with China.

How? Well, last month the Trump administration proposed a 10% duty on a wide range of imports from China, including many varieties of fish. Trade representatives will finalize the tariffs, which could increase to 25%, in September. While these tariffs are designed to punish China for unfair trade practices, when it comes to seafood, it’s the U.S. that may be on the hook.

Here’s a surprising fact: In many cases seafood labeled as “from China” is actually American. That $900 million of seafood I mentioned earlier? It’s seafood that is first caught or raised in the U.S., sent to China for processing, and then subsequently imported back into the U.S. by companies that sell it to American consumers.

Why would pink salmon or squid that’s caught in U.S. waters be labeled a product of China? Well, thanks to our confusing Country of Origin Labeling law (COOL for short), American products that undergo a “substantial transformation” abroad — such as calamari being breaded or pink salmon being filleted and canned — must then be labeled as coming from the country where they were processed. For example, in some cases a package of frozen “Alaskan Cod” fillets may say “product of China” on the back. The fish was caught in Alaska, but it was cleaned, filleted, and frozen in China. (If you’re interested in more, the USDA has a good blog post on the subject.)

Read the full story at Forbes

NFI Expands “Seafood, See Jobs” Trade Education Campaign

August 7, 2018 — SEAFOOD NEWS –After rebranding its AboutSeafood.com website late last week to support the stories of American seafood workers, the National Fisheries Institute (NFI) has announced that they have now expanded their content offerings.

The “Seafood, See Jobs” campaign “tells individual stories of the American seafood workforce to illustrate that both importers and exporters fear the harmful effect of the trade policies the U.S. Government is imposing via tariffs on seafood.” The campaign initially launched with three “Featured Videos” and four “Faces of Seafood Jobs” videos on the AboutSeafood.com home page. Just a day after the launch NFI has added an additional two videos to their “Featured Videos” section and one more video to their “Faces of Seafood Jobs” section. The organization plans on updating the site weekly with new videos and content.

NFI hopes to portray the message that “seafood trade is not a simple matter of import vs. domestic.”

“To understand the negative impact these tariffs will have on American workers you have to go see them, you have to talk to them, you have to hear their concerns,” NFI president John Connelly said in a press release. “We’re brining these stories to policy makers so they understand; this is not a theoretical, economic chess game. These tariffs have the potential to do a lot of harm to the seafood community and that community’s jobs are right here in the U.S.”

Visit AboutSeafood.com to learn more. Or visit SeafoodSeeJobs.com to go directly to the campaign videos.

This story originally appeared on SeafoodNews.com, a subscription site. It is reprinted with permission.

Trump leans in on SNAP work requirements

August 3, 2018 — President Donald Trump on Thursday jumped into the farm bill debate once again — on Twitter, of course — in an effort to tip the scales toward House Republicans ahead of conference negotiations.

“When the House and Senate meet on the very important Farm Bill – we love our farmers – hopefully they will be able to leave the WORK REQUIREMENTS FOR FOOD STAMPS PROVISION that the House approved,” the president wrote on Thursday afternoon.

The U.S. seafood industry is starting an education campaign to convince Trump and other policymakers that American workers would be hurt, not helped, by his proposed new tariffs on China. The National Fisheries Institute, which represents the seafood industry, has rebranded its AboutSeafood.com website to tell the stories of American seafood workers threatened both by the proposed tariffs, as well as the retaliatory tariffs that China has already imposed in response to U.S. duties on more than $34 billion worth of Chinese goods.

“To understand the negative impact these tariffs will have on American workers, you have to go see them, you have to talk to them, you have to hear their concerns,” National Fisheries Institute President John Connelly said in a statement. “We’re bringing those stories to policymakers so they understand; this is not a theoretical, economic chess game. These tariffs have the potential to do a lot of harm to the seafood community and that community’s jobs are right here in the U.S.”

Political opposition: Sens. Jeanne Shaheen (D-N.H.) and Susan Collins (R-Maine) both raised concerns about the impact of China’s retaliatory duties on their states’ lobster exports during a hearing last week with U.S. Trade Representative Robert Lighthizer.

Their complaints were echoed by Sen. Lisa Murkowski (R-Alaska), who told Lighthizer China’s actions have “clearly rattled my state.” The increased duty affects about 40 percent of the state’s salmon exports and 54 percent of its cod exports that went there last year, she said.

Read the full story at Politico

US fishermen seek relief from trade war tariffs

August 2, 2018 –The U.S. Chamber of Commerce has estimated that the country’s seafood industry may need more than USD 1 billion (EUR 860.9 million) in aid as a result of the tariffs being discussed by the adminstration of U.S. President Donald Trump and Chinese officials. And that figure only stands to go up as administration officials announced Wednesday, 1 August, that they’re considering boosting the proposed tariffs on Chinese goods from 10 percent to 25 percent.

U.S. Trade Representative Robert Lighthizer said in a statement Wednesday that the 15 percent increase would give the administration more flexibility in dealing with the world’s second largest economy. The list of goods that would be impacted by the 25 percent tariff includes a wide variety of seafood products.

“The Trump administration continues to urge China to stop its unfair practices, open its market, and engage in true market competition,” he said in a statement. “We have been very clear about the specific changes China should undertake.  Regrettably, instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers, and businesses.”

The revision to the tariff plan means the public comment period will now be extended through 5 September.

After the U.S. Department of Agriculture announced it would offer USD 12 billion (EUR 10.3 billion) in aid to American farmers affected by the tariffs, officials from the U.S. Chamber of Commerce said that relief package would cover less than a third of the damage caused to U.S. businesses, including the seafood industry.

Read the full story at Seafood Source

US hits back at China with more tariffs; most seafood hit with 10 percent duty

July 11, 2018 — The administration of U.S. President Donald Trump announced tariffs on USD 200 billion (EUR 170 billion) of Chinese goods on Wednesday, 11 July – the latest escalation in the ongoing trade war between the two countries.

The move will add 10 percent tariffs to a wide assortment of Chinese goods, with seafood featuring prominently. The 6,031 items included in the list published by U.S. Trade Representative Robert Lighthizer include a litany of seafood items, including many categories of shrimp, tilapia, salmon, pollock, tuna, flatfish, crab, scallops, squid, and fishmeal.

“As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional USD 200 billion of Chinese imports. This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies,” Lighthizer said in a press release. “USTR will proceed with a transparent and comprehensive public notice and comment process prior to the imposition of final tariffs, as we have for previous tariffs.”

If and when they are imposed – scheduled for 60 days from their announcement – the new tariffs will cover almost 40 percent of the USD 505 billion (EUR 430 billion) worth of products China shipped to the United States in 2017. Retaliatory tariffs recently put in place by China on USD 50 billion (EUR 42.6 billion) worth of U.S. goods equate to about 38 percent  of the USD 130 billion (EUR 111 billion) worth of goods the U.S. sent to China in 2017.

According to data from the National Oceanic and Atmospheric Administration, the U.S. imported USD 2.7 billion (EUR 2.3 billion) of Chinese seafood in 2017, while sending USD 1.3 billion (EUR 1.1 billion) worth of seafood to China.

Read the full story at Seafood Source

China’s tariffs will hit farm states hard, spare service-heavy states

July 11, 2018 — Whether it’s Iowa soybeans or Alaskan salmon, don’t expect the tariffs China is imposing on the U.S. to fall equally. Some states are at more risk than others.

Farm and seafood-producing states are going to be hit hardest by China’s new tariffs on U.S. goods, according to an analysis by Paul Armstrong-Taylor, resident professor of international economics at the Hopkins-Nanjing Center at Nanjing University in China. States where cars and SUVs are made and shipped to China are on the hook, as well.

The Chinese government imposed $34 billion in new duties on goods exported from the U.S. last week in retaliation for the Trump administration’s round of tariffs aimed at driving better deals on trade. Economists have warned the trade war could risk jobs, industry profits and lead to higher prices for consumers.

“Agricultural states, I think, are being hit the hardest,” said Rodney Ludema, a Georgetown University professor and former senior international economist in the White House Council of Economic Advisers under President Barack Obama. The tariffs spare states “that are heavily service-dependent, like New York.”

In terms of value, some 38 percent of products on the tariff list are agricultural, including soybeans, sorghum, tobacco and meat, said Chad Bown, a senior fellow at the Peterson Institute for International Economics. That’s bad news for farm-belt states, primarily in the Midwest.

Read the full story at USA Today

US Senator Roger Wicker files bill to further aquaculture industry

July 9, 2018 — U.S. Senator Roger Wicker (R-Mississippi) has filed a bill that he said would further develop the aquaculture industry in the country.

S. 3138, named the “Advancing the Quality and Understanding of American Aquaculture Act,” calls for the creation of the Office of Marine Aquaculture within NOAA Fisheries. That office would oversee regulatory issues within NOAA and push for development opportunities to spur aquaculture’s growth, especially within the country’s exclusive economic zones.

“Aquaculture is the fastest-growing sector of the agriculture industry,” Wicker said in a press release. “This bill would give farmers a clear, simplified regulatory path to start new businesses in our coastal communities. The AQUAA Act would also fund needed research to continue the growth and success of this important industry.”

The bill itself twice mentions it aims to address the U.S. seafood trade deficit. It notes that the country imports about 90 percent of the seafood Americans consume, with half of those imports coming from aquaculture.

U.S. Senator Marco Rubio (R-Florida) is listed as a co-sponsor, and a trade group has started a letter-writing campaign to land additional co-sponsors.

Read the full story at Seafood Source

What they’re saying: Local industries react to Trump’s trade war

July 9, 2018 — Local agricultural industries caught in the crossfire of President Trump’s trade disputes with some of the country’s biggest trading partners are increasingly worried that they will suffer from retaliatory tariffs on American goods.

Why it matters: From Florida to Wisconsin to Washington state, Trump risks threatening the very industries he pledged to protect on the campaign trail — and his tariffs could mean a brutal blow for the economy in states that he won in 2016.

What they’re saying:

In the Florida Keys, commercial fishermen are worried about the retaliatory tariffs China slapped Friday on 545 U.S. products, which target Florida lobster:

“At this moment I don’t know what is going to happen, we’re all just in limbo. We’ve been very fortunate over the last several years with the Chinese market.” — Gary Nichols, a lobster fisherman who voted for Trump, told CBS Miami.

Washington’s seed industry could face issues, too. Dave Armstrong, the CEO of Sakata Seed Company, told the Skagit Valley Herald that the company’s top customers are in Asia, Europe, Canada, and Mexico — and a prolonged trade war could cause the company to consider moving its operations elsewhere.

“It’s a global hub of seed movement. The actions being taken and threatened would absolutely add complexity and barriers to our ability to move seed in and out of the U.S.” — Dave Armstrong, the CEO of Sakata Seed Company

Read the full story at Axios

RHODE ISLAND: Limited Availability of Local Seafood in New England

July 9, 2018 — Those looking to buy local seafood at grocery stores and fish markets in New England may have a difficult time finding much, especially if you’re searching for something other than shellfish. Just 15 percent of the seafood available at markets in the region originated in New England, according to a pilot study by the Rhode Island-based nonprofit Eating with the Ecosystem.

“Unfortunately, the results weren’t super surprising to me,” said Kate Masury, the program director for Eating with the Ecosystem who coordinated the project with University of Rhode Island professor Hiro Uchida and student Christina Montello. “We’re a seafood-producing region, it’s a big part of our economy, but we’re not making it available to our own consumers.”

Rhode Island’s results were better than the regional average, though still not as high as one might expect. About 24 percent of the seafood in Ocean State markets was captured in New England waters, which compares favorably to Massachusetts and Connecticut, at 12 percent each, and New Hampshire and Vermont, at 5 percent. Only Maine, at 33 percent, had more local seafood available in the markets surveyed than those in Rhode Island.

The findings are the result of a citizen science project called Market Blitz that took place over a two-week period in March. Volunteers visited 45 supermarkets and seafood markets in all six New England states to identify what species were available and where they were captured.

Read the full story at ecoRI

NOAA Says Seafood for Reprocessing Exempt from Chinese Tariffs, but Rebate System May Impose Costs

June 28, 2018 — SEAFOOD NEWS — NOAA has confirmed via email to people in the Alaska seafood industry that the 25% Chinese retaliatory tariff will not apply to re-processed products for export.

John Henderschedt, NMFS director of the Office of International Affairs and Seafood Inspection, wrote  “In consultation with Embassy Beijing, NOAA Fisheries has confirmed that the following products are not subject to the additional 25% tariff recently announced by the Chinese government:

-Imports of U.S. seafood that is processed in China for re-export and some fishmeal products.”

“Affected U.S. seafood exports arriving at Chinese ports on July 6 or later will be subject to the new tariff rate,” he said in an email dated Tuesday, June 26th.

There was some uncertainty following China’s June 15 announcement at the beginning of a long holiday weekend for the Dragon Boat Festival that prevented clarification until government offices re-opened last Tuesday, June 19th, according to Jim Gilmore, Director of Public Affairs for the At-Sea Processors Association.

“Really, no one knew at that time, so the news coverage was of an issue with a lot of confusion and not much time for the U.S. government to get clarification.  The holiday didn’t help matters, but it might also have been that the Chinese government language wasn’t clear.  Not sure what factors were all at play,” Gilmore said.

One unresolved issue is that China has two types of import exemptions for re-processing for export.  One involves no tariff, for products that are exempt, and the other collects the tariff, but then rebates the value back to the company when the product is exported.

One sentence in the Chinese announcement suggests that the 25% tariff will be applied to everything, but then rebated for products that are exported.  When asked about this, Henderschedt had no comment.

If this is the final interpretation, the tariffs will add significant costs for exporters, even though they will ultimately get the 25% tariff refunded.  For example, a Chinese plant that purchases 1000 tons of cod for re-processing and pays $3.6 million, would have to pay an additional $900,000 to bring the product into the country, but then get this money back when the product was exported.  This adds costs to the process, even if the tariffs are ultimately not applied.

Ultimately, the answer will come after July 6th, when importers of record have to deal with Chinese customs officers.

Jim Gilmore says not much of offshore Alaska’s pollock is re-processed.  His group, the At-Sea Processors Association,  represents the Bering Sea pollock factory trawlers. He said that’s more common with salmon and cod.

But shore plants, especially in the Gulf of Alaska, export a lot of H&G pollock for reprocessing.  In fact, Trident recently spent millions of dollars in the last several years to upgrade its plant in Kodiak to efficiently produce a frozen H&G product.

Also the Bering Sea Amendment 80 factory trawler flatfish fleet’s catch goes to China for reprocessing, especially yellowfin sole, according to Chris Woodley, executive director of the group’s trade association, the Groundfish Forum.

The vast majority of the U.S. exports of frozen seafood to China are reprocessed in China and then re-exported, Woodley said.  Such U.S. exports to China that are then re-exported from China are not subject to Chinese duties or the Value Added Tax (VAT).  However, U.S. seafood exports that are imported for consumption in China face high tariff rates.  For example, frozen flatfish species, and other Alaska seafood exports to China that are consumed in China currently face a duty of 10 percent and are also subject to a 13 percent  VAT.

The Dragon Boat Festival is held annually in honor of poet Qu Yuan, who drowned himself in a river in 278 BC, as a political protest. Villagers tried to save the beloved figure in their little boats, but when they couldn’t find him, they threw rice in the water in the hopes that the fish would eat the rice, and not the poet and activist, during the Warring States period of Chinese history.

This story originally appeared on SeafoodNews.com, a subscription site. It is reprinted with permission.