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White House Signs New Memorandum on Trade Relief for Lobster Fishery

June 25, 2020 — The following was released by the White House:

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1.  Policy.  On May 22, 2018, the United States Trade Representative (Trade Representative) concluded an investigation under section 301 of the Trade Act of 1974, as amended (19 U.S.C. 2411), finding that China had engaged in multiple unreasonable and discriminatory trade practices that had harmed American intellectual property rights, innovation, and technology development.  In response to China’s unfair and unreasonable conduct, the United States imposed tariffs on several categories of Chinese products.

Rather than reform its practices, China responded to the Trade Representative’s findings with unjust retaliatory tariffs designed strategically to inflict financial harm on America’s farmers, fishermen, and workers in other industries.

My Administration has forcefully addressed China’s unfair assault on American producers.  Among other measures, I directed the Secretary of Agriculture to deliver a comprehensive trade aid package to American farmers.  He did so, providing more than 14 billion dollars in direct payments to American farmers under the authority of the Commodity Credit Corporation (CCC) Charter Act.

China’s retaliatory assault on the American lobster industry was particularly aggressive.  On July 6, 2018, China imposed retaliatory 25 percent tariffs on American lobster.  On September 1, 2019, China raised those retaliatory tariffs to 35 percent.  On February 14, 2020, China reduced its punitive lobster tariffs to 30 percent.  When those retaliatory tariffs are added to China’s prevailing Most Favored Nation tariffs of 5 percent and 7 percent, depending on the species of lobster, American lobsters currently face tariffs of either 35 percent or 37 percent.

On January 15, 2020, I signed the landmark Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic of China (“Phase One Agreement”).  The Phase One Agreement requires important structural reforms from China related to issues such as intellectual property theft, forced technology transfer, and exchange rate manipulation.  As part of the Phase One Agreement, China made binding commitments to purchase large quantities of United States manufactured goods, agricultural products, and services.  Seafood, including lobsters, is one of the agricultural products China agreed to purchase.  To help fulfill this purchase commitment, China has made available exclusions from its retaliatory tariffs for imports of United States lobster.

At this time, it remains unclear to what extent China’s exclusions from its retaliatory tariffs will result in increased exports of United States lobster.  Such exports are particularly important because exports to the European Union, another large market for United States lobster, appear to have been significantly and negatively affected by the recent implementation of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.

The lobster industry is a crown jewel of America’s seafood industry.  From 2015 to 2018, American lobster was the most valuable single seafood species harvested in the United States, with Maine accounting for approximately 80 percent of that value each year.  It is, therefore, the policy of my Administration to mitigate the effects of unfair retaliatory trade practices on this important industry.

Sec. 2.  Protecting the United States Lobster Industry.  (a)  The Secretary of Agriculture shall, within 60 days of the date of this memorandum, consider taking appropriate action, to the extent permitted by applicable law, to provide assistance to fishermen and producers in the United States lobster industry that continue to be harmed by China’s retaliatory tariffs.

(b)  The Secretary of Agriculture shall also consider including, to the extent permitted by applicable law, the United States lobster industry and other segments of the United States seafood industry in any future assistance provided to mitigate the effects of China’s retaliatory trade practices.

Sec. 3.  Reciprocal Tariffs.  (a)  The Trade Representative shall, beginning August 15, 2020, submit a monthly report to the President detailing:

(i)   China’s progress in meeting its purchase commitments under the Phase One Agreement with respect to United States seafood; and

(ii)  the value of monthly Maine and other United States lobster exports to China, beginning with China’s imports for June 2020.

(b)  In the event that the Trade Representative determines that China is not meeting its purchase commitments under the Phase One Agreement with respect to seafood, the Trade Representative shall consider, to the extent permitted by law, taking all appropriate action to impose reciprocal retaliatory tariffs on seafood exports from China.

Sec. 4.  Addressing Negative Effects of the CETA between Canada and the European Union on the United States Lobster Industry.  Pursuant to section 1332(g) of title 19, United States Code, and section 5-301 of Executive Order 12661 of December 27, 1988 (Implementing the Omnibus Trade and Competitiveness Act of 1988 and Related International Trade Matters), the Trade Representative shall request that the United States International Trade Commission (USITC) provide a report that details any negative effects of the CETA on the United States lobster industry.  The Trade Representative shall submit such report to the President.  The Trade Representative, in consultation with the Secretary of Agriculture and Secretary of Commerce, shall recommend appropriate actions that may be taken to minimize or eliminate any negative effects identified in the USITC report.

Sec. 5.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Fact checking Trump’s claims about the Maine lobster industry

June 25, 2020 — In another tweet rife with falsehoods, President Trump on Wednesday alleged that his predecessor, Barack Obama, “destroyed the lobster and fishing industry in Maine.”

He added: “Now it’s back, bigger and better than anyone ever thought possible. Enjoy your ‘lobstering’ and fishing! Make lots of money!”

The truth is that in 2016, the last year of Obama’s presidency, Maine had a record lobster catch. Not that Obama had anything to do with it, but during his eight years in office, Maine’s lobster catch nearly doubled in landings and value.

The catch rose from less than 70 million pounds in 2008 to more than 132 million pounds in 2016, which remains the record. In the same period, the value of the catch surged from $245 million to a record $540 million.

Read the full story at The Boston Globe

China social media strategy pays dividends for Alaskan seafood

June 24, 2020 — A recent social media campaign by the Alaska Seafood Marketing Institute (ASMI) yielded an impressive 55 million impressions on the leading Chinese social media platform Weibo.

The campaign was part of a social media promotion this winter by ASMI, where 50 Weibo influencers posted about Alaska seafood and fans of the posts were entered to a lucky draw for Alaskan seafood prizes.

Read the full story at Seafood Source

White House pledges support for lobster industry

June 24, 2020 — President Donald Trump today signed an executive order to support the lobster industry, following conversations that started with the roundtable discussion in Maine on June 5.

“It’s a promise made, promise delivered,” said John Horstman, director of media affairs and special assistant to the president.

Though details are still developing, the executive order is expected to give the lobster industry the same assistance farmers received as a result of the retaliatory tariffs coming from China.

Read the full story at National Fisherman

China demanding safety guarantees from trading partners, food exporters

June 23, 2020 — The General Administration of Customs China (GACC) has written to the food safety agencies of most of its main trading partners to officially request assurances that food processing establishments eligible to export to China follow measures to prevent any COVID-19 contamination of food products during food production.

Additionally, U.S. seafood companies have gotten a form from customers in China requiring them to sign a declaration stating their compliance with Chinese laws, regulations, and standards and the COVID-19 guidance for food businesses published by the United Nations’ Food and Agriculture Organization and the World Health Organization to ensure that food imported into China is not contaminated with the COVID-19 virus. The FAO and WHO have both declined to make any link between COVID transmission and seafood.

Read the full story at Seafood Source

China Imposes its First Closed Season for Distant-Water Fishing Fleet

June 22, 2020 — In early June, the Chinese Ministry of Agriculture’s Bureau of Fisheries announced plans for two closed seasons on squid fishing in parts of the south-west Atlantic and eastern Pacific, to give two species a better chance of reproducing.

The closed seasons cover what are believed to be the main spawning grounds of the Humboldt squid, in waters to the west of Ecuador’s Galapagos Islands, from July to September, and of the Argentine shortfin squid, off Argentina, Uruguay and Brazil, from September to November.

This is the first time China has voluntarily imposed a closed season on the high seas. Some experts regard it as an important step forward in China’s management of distant-water fishing (DWF), and crucial for protecting the squid fishing industry. But others say the impact will be limited and that stronger oversight of fishing vessels is needed, or even a new fisheries management body specifically for squid.

Read the full story at The Maritime Executive

MAINE: Green Plate Special: Eat more lobster — this is the kind of ask we really like

June 22, 2020 — Maine’s iconic lobster industry has taken its share of lumps in the past year. Stricter 2019 quotas on the herring catch drove bait prices up. A cold 2019 spring meant the bugs molted later than usual, delaying when lobstermen could bring popular soft-shell lobsters (sometimes sold as “new-shell”) to market. On Sept. 1, China raised tariffs on live, American-caught lobster by 10 percent. And throughout the winter, scientists, environmentalists and the courts demanded the lobster fishery change to better protect endangered right whales  (the population hovers at just 400). The overall lobster haul dipped by 16% between 2018 and 2019, although harvesters were buoyed to some extent by higher than normal prices.

Yarmouth resident Rebecca Spear — wife, daughter-in-law and mother of lobster fishermen — explains that when the COVID-19 crisis first hit Maine in March, she didn’t immediately panic over how the pandemic might affect the 2020 income of the lobstermen and boys in her life (her 10-year-old son, Jack, holds a student lobster and crab license). “That’s always the slow season for us,” Spear said.

But as restaurant service in Maine and across the country remains truncated leading into prime lobster-eating season, she is worried now. Selling direct to customers was a good springtime stopgap solution. Spear is grateful that Maine eaters have sought out more locally sourced food as the national food supply has struggled in response to the pandemic. She urges Mainers to continue to buy lobster early and often this summer to help keep the fleet afloat. Here’s my suggestion: buy a few extra, cook them all for dinner, and serve the leftovers with eggs for breakfast.

Read the full story at the Portland Press Herald

National Fisheries Institute Statement on the Safety of Seafood from the United States

June 22, 2020 — The following was released by the National Fisheries Institute:

Seafood from America is safe.  The World Health Organization, United National Food and Agriculture Organization, and all major national food safety agencies report there is no connection between seafood and COVID-19.  Simply stated, people cannot get COVID-19 from eating seafood.  Specific to imported seafood that Chinese families enjoy, experts at the Chinese National Health Commission stated, “There’s no evidence so far showing salmon are the origin or intermediate hosts of the coronavirus.”

Consumers in China and in other countries should be aware that seafood portioned and prepared in America must comply with the rules and regulations of the United States Food and Drug Administration to ensure safe food.  Importantly, the systems that seafood companies in the United States have implemented for more than 20 years now serve as a model for other countries and foods.  Companies must also keep their workers safe by following the directives of the United States’ Occupational Safety and Health Administration.
 
Since the onset of COVID-19, members of the National Fisheries Institute, the major seafood trade association in the United States and many of whose members export American seafood to China, have also implemented the laws of numerous states, and the guidelines of the Centers for Disease Control and Prevention, industry  best practices, CODEX Alimentarius, the United Nations Food and Agriculture Organization, and the World Health Organization, and the recommendations of academics and other public health experts. 
 
NFI member companies have strict protocols in place to prevent, detect, and isolate any spread of COVID-19 on their boats or in their processing plants, and follow sanitary transport rules to prevent contamination of seafood being exported to China.  American seafood remains safe and healthy for Chinese families.

Alaska’s salmon industry contends with a rumor from China that you can get COVID-19 from seafood

June 19, 2020 — China has stopped imports from European salmon suppliers due to fears of a connection between salmon imports and coronavirus, according to a report by Reuters. State-run newspapers in China reported the coronavirus was discovered on chopping boards used for imported salmon at a market in Beijing. The initial cluster of infections came from the same market, and some fear the discovery of virus there indicates a second wave of the coronavirus in China.

Several fisheries organizations are pushing back against those reports. The National Fisheries Institute compiled statements on Tuesday  from health professionals and agencies like the World Health Organization and the U.S. Food and Drug Administration saying there is no connection between seafood and COVID-19.

Fish marketing experts are assessing how the rumors could affect Alaska salmon’s image in the world. If people think eating salmon could put them at increased risk of contracting the virus — even if that information is incorrect — that could harm markets.

“Any time there’s information or misinformation, we have to wait and see how consumers respond to that,” said Andy Wink, executive director of the Bristol Bay Regional Seafood Development Association.

Read the full story at KTOO

Norway Wants To Resume Salmon Sales After China All-clear

June 18, 2020 — Norway said Wednesday it wanted to resume exports of its salmon to China after Beijing appeared to rule it out as a possible source of COVID-19.

Norwegian salmon came under scrutiny after a recently discovered cluster of new coronavirus cases was reportedly traced to the Xinfadi meat market in Beijing and a chopping board used for cutting up imported salmon.

However, Norwegian and, crucially, Chinese health officials appear to have now given the salmon the all-clear.

“We currently have no evidence that salmon is a carrier or an intermediate carrier of the coronavirus,” the deputy director of the China Center for Disease Control and Prevention, Shi Guoqing, said on Tuesday.

Stressing that no case of contamination by food had been reported, the authorities responsible for food safety in Norway said their salmon was fit for consumption.

Read the full story at the International Business Times

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