Saving Seafood

Alaska pollock industry: Trump’s China tariff exceptions help the Russians

September 20, 2018 — If president Donald Trump was hoping to get a pat on the back from the Alaskan pollock industry for keeping its re-processed fillets off the list of seafood products to receive additional tariffs when imported from China, he will be sadly disappointed.

Rather, thanks to some apparent confusion over the harmonized tariff codes, the administration’s exemptions appear to help the Russian pollock industry more, advises James Gilmore, the director of public affairs for the At-Sea Processors Association (APA), one of the loudest voices for Alaska pollock producers, in an email to Undercurrent News.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on US seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition—Russian pollock processed in China—enjoys tariff-free access to our domestic market.”

Gilmore’s comments follow closely those made by Fedor Kirsanov, the CEO of Russian Fishery Company, one of the country’s largest pollock quota holders, who told Undercurrent the trade war is helping to boost his prices.

Read the full story at Undercurrent News

Bipartisan bill addresses human trafficking impact on global seafood trade

September 20, 2018 — Guam’s delegate to Congress filed a bill this week that would amend an existing law that targets human trafficking to address the seafood industry’s role.

U.S. Delegate Madeline Bordallo, a Democrat, explained in a release that she offered the legislation because the country needs to eliminate human rights abuses worldwide and that American fishermen should not have to compete against imported seafood caught using slave or forced labor. Bordallo’s cosponsors include U.S. Delegate Aumua Amata (R-American Samoa), U.S. Representative Suzanne Bonamici (D-Oregon) and U.S. Representative Raul Grijalva (D-Arizona).

H.R. 6834, if passed, would bring on the Secretary of Commerce, who oversees NOAA Fisheries, as part of the President’s Interagency Task Force to Monitor and Combat Trafficking in Persons. The panel, which currently includes nearly 20 federal agencies, is responsible for coordinating the government’s actions to combat trafficking.

Bordallo’s bill also comes three months after the State Department’s human trafficking report found fisheries in more than 40 countries benefit from forced labor.

Currently, the Trade Facilitation and Trade Enforcement Act, passed in February 2016, prohibits the United States from accepting imported goods made or processed by forced labor. Officials from U.S. Customs and Border Protection said the law, in its first two years, helped stop 15 shipments of Chinese seafood that were processed by North Korean laborers.

Read the full story at Seafood Source

China retaliates against US tariffs; seafood largely unaffected

September 19, 2018 — China has retaliated against US tariffs, but seafood will be largely unaffected by its counter-measures.

On Sept. 18, China announced it would levy new tariffs of up to 10% on imports of US goods worth $60 billion. The measures came in retaliation to US tariffs of 10% on $200bn worth of Chinese goods, confirmed by president Donald Trump’s administration the same day.

Both sets of tariffs will come into effect on Sept. 24.

China said the counter-measures were to “defend the legitimate rights and interests of the Chinese economy caused by the violation of international obligations by the US”. Prior to the announcement in a more solemn statement it said the US measures were “regretful”.

Among the 5,000-plus US products to be hit are smoked Pacific salmon and a type of fishmeal (see below). No other fisheries or seafood products are affected.

Read the full story at Undercurrent News   

 

Pollock’s dodge of US tariff could leave market open to Russia

September 18, 2018 — Another round of tariffs on Chinese goods approved by U.S. President Donald Trump on Monday may have inadvertently left the market open to Russian-sourced pollock processed in China.

The tariffs, initially proposed in July, will go into effect on 24 September and affect an additional 5,745 products from China. While initially tariffs on frozen cod and pollock were planned, lobbying efforts by industry leaders successfully kept those items off the final list.

However according to Jim Gilmore, director of public affairs for the At-sea Processors Association (APA),  the wording of the exemption for Alaska pollock may leave the U.S. market open to Russia-origin pollock that is processed in China and shipped to the U.S.

The issue, said Gilmore, is the use of the term “Alaska pollock.”

“We believe this is an anachronism of a misleading geographical indicator remaining in use.  That is, the term ‘Alaska pollock’ is used to define Russian-origin pollock as well as U.S.-origin Alaska pollock,” he said. “If we are reading the situation correctly that the [a]dministration is not distinguishing between U.S. and Russian origin pollock in excluding two HTS Code lines from tariffs, then Alaska pollock producers continue to be disadvantaged in this trade war with China.”

The specific issue, said Gilmore, has to do with two HTS Codes: 0304.75.10 and 0304.94.10. Under the decision on 17 September, the door could be open for pollock of Russian origin and processed in China to enter the U.S. duty-free using those codes.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on U.S. seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition – Russian pollock processed in China – enjoys tariff-free access to our domestic market.”

Read the full story at Seafood Source

Trump Sets Tariffs On $200 Billion In Imports From China

September 19, 2018 — President Trump announced Monday that he is ordering 10 percent tariffs on $200 billion worth of imports from China.

Trump also threatened to add tariffs on about $267 billion of additional imports if China retaliates against U.S. farmers or other industries.

It’s the latest round of an escalating trade dispute between the two countries.

The tariffs follow duties on $50 billion in goods imposed earlier this year. The latest levies are set to go into effect Sept. 24 and remain at 10 percent until the end of the year. If China doesn’t make concessions, the new tariffs will then jump to 25 percent, a senior administration official said.

The new tariffs will apply to hundreds of items — ranging from seafood to handbags to toilet paper — that were on a list released July 10. But, the official said, they will exclude some consumer electronics such as smartwatches and Bluetooth devices as well as health and safety products such as high chairs, bicycle helmets, child car seats and playpens.

The U.S. has complained that Beijing forces American companies doing business in China to transfer technology and intellectual property.

“These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy,” Trump said in a White House statement. Trump urged Chinese leaders to “take swift action to end their country’s unfair trade practices.”

Read the full story at NPR

USTR cuts cod, pollock fillets from final China tariffs list

September 18, 2018 — The US Trade Representative (USTR) has excluded frozen fillets of Alaska pollock and cod from its final list of products to be hit with 10% tariffs.

According to a statement from the USTR, the tariffs will come into play on Sept. 24 at 10%, and then go to 25% on Jan. 1, 2019.

The proposed list (which you can see here), published on July 10, at the direction of US president Donald Trump, included the following customs codes, all of which have been omitted from the final list, which you can see in full here.

This will mean that cod and pollock from Alaskan fishing companies which is sold to China and brought back to the US as fillets will not be hit with the tariffs.

The tariffs still apply to around $200 billion-worth of Chinese products, the USTR said.

Still on the list is fillets of salmon, while other salmon products are also on the list.

Imported under the HS code 0304.81.50 and described “Other frozen salmon fillets”, fillets are of farm-raised salmon and wild salmon, such as sockeye and pink salmon. This will impact Alaska’s wild salmon fishery.

Read the full story at Undercurrent News

African countries fighting back against illegal fishing

September 18, 2018 — One in four fish in Africa is still caught illegally, despite the efforts of many African nations to overcome the problem.

According to the organization Stop Illegal Fishing, an independent non-profit based in Africa dedicated to ending illegal fishing in the continent’s waters, ongoing efforts are being made by the majority of African maritime states to end illegal, unreported, and unregulated (IUU) fishing, but greater momentum is needed if the “New Frontier of African Renaissance” – hailed by the African Union earlier this year – is to come to fruition.

IUU fishing is threatening the sustainability of fish stocks, damaging the ecosystem, depriving governments of income, and African people of their livelihoods, according to Peter Thomson, United Nations Special Envoy for the Ocean. And the scourge of IUU is affecting a majority of African nations; 38 of the 54 African countries have coastal borders and many inland countries have vast lakes, which are also affected by illegal fishing and poor fishing practices.

The issue of IUU in Africa has been well-studied, and numerous solutions have been proposed. A report in 2016 by the Overseas Development Institute and Spanish research and journalism group PorCausa used satellite tracking to monitor the methods and scale of the problem, pointing out that transhipments, lack of inspection of containerized shipments, inadequate legal frameworks, poor technology, and a lack of political will were all partly to blame. The report estimated that by developing and protecting Africa’s fisheries, around USD 3 billion (EUR 2.6 billion) could be generated in additional revenue and some 300,000 jobs created.

China, which is the largest fishing power in West Africa with more than 500 industrial fishing vessels operating in the region’s waters, must play a bigger role in stamping out illegal practices in its fleet, including the widespread use of illegal nets and frequent engagement in the practice shark-finning, according to Greenpeace. But spurred by growing intolerance on behalf of the governments of many African nations, China is taking action. Since 2016, China has cancelled subsidies worth USD 111.6 million (EUR 99.3 million) for 264 vessels caught fishing illegally. China has also revoked the distant-water fishing licenses of several companies and blacklisted others, alongside their ships’ captains.

Read the full story at Seafood Source

Trump hits China with another USD 200 billion in tariffs, but Alaska gets a break

September 18, 2018 — U.S. President Donald Trump has approved another round of tariffs on an additional USD 200 billion (EUR 170.7 billion) of Chinese goods, the Office of the U.S. Trade Representative (USTR) announced on Monday, 17 September.

The latest round of tariffs was initially proposed in July, but through a seven-week review period, the number of items to be included in the tariffs was reduced from 6,031 to 5,745. Spared from the final list of goods subject to the tariffs were frozen cod and pollock, a victory for Alaskan seafood companies that send those items to China for processing and reexport.

Beginning 24 September, 10 percent tariffs will be levied on a wide range of goods, including most Chinese seafood entering the United States. On 1 January, 2019 – after the holiday shopping season – the tariffs will increase to 25 percent, according to a USTR announcement.

“We are taking this action today as a result of the Section 301 process that the USTR has been leading for more than 12 months,” Trump said in a statement. “After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy.”

In the statement, Trump threatened an additional USD 267 billion (EUR 228 billion) in tariffs – covering practically all Chinese exports to the U.S. – if China takes retaliatory action. The Trump administration has already instituted two rounds of tariffs on China, affecting approximately USD 50 billion (EUR 42.7 billion) in Chinese goods.

China’s Ministry of Commerce responded on Tuesday, 18 September, with a statement that the country will retaliate “in a synchronous manner.” Reuters reported that China will impose five to 10 percent tariffs on USD 60 billion (EUR 51.2 billion) worth of American goods beginning 24 September

Read the full story at Seafood Source

Many US lobster companies coping well with tariff impact

September 14, 2018 — As the trade war between the United States and China continues, with indications that it may escalate even further, most U.S.-based lobster companies have seen their exports to China fall dramatically.

Despite the decrease, many companies say the market for lobster is still strong enough to keep the impact to their companies at a minimum. Some companies that never invested heavily into Chinese exports said2018 has been a better-than-average year.

“I’ve been processing lobster since 1993,” John Norton, CEO of Cozy Harbor of Portland, Maine, U.S.A, which specializes in fresh and frozen lobster tails, told SeafoodSource. “I’ve never seen a market this strong for lobster tails, ever.”

That strong demand is largely offsetting the effects of the tariffs on most of the lobster industry. Boat prices for lobster, said Norton, have remained similar to those seen in 2017.

The frozen market in Maine, said Norton, typically consumes around 50 percent of the state’s catch, while exports to China only make up between five and 10 percent.

Norton said his company has largely avoided shipping products to mainland China over the years, as the market for frozen lobster tails and meat in the country isn’t as strong as it is elsewhere in the region.

Read the full story at Seafood Source

 

NFI president: American jobs are fueled by international trade in seafood

September 13, 2018 — The US’ National Fisheries Institute (NFI) has joined ‘Americans for Free Trade’, a multi-industry coalition aimed at opposing tariffs and highlighting the benefits of international trade.

Over 80 US trade associations representing thousands of businesses and workers announced the formation of the group, which will immediately join Farmers for Free Trade, the coalition backed by the nation’s largest ag commodity groups, in a multi-million dollar national campaign called Tariffs Hurt the Heartland.

The campaign will focus on telling the stories of the American businesses, farmers, workers and families harmed by tariffs through town-hall style events, grassroots outreach to Congress and the administration, social media, rapid response and digital advertising.

The campaign includes a geographically searchable map (TariffsHurt.com) that allows users to find stories of job losses, deferred investments, higher prices and other negative consequences for farmers and businesses in communities across the country impacted by tariffs.

Read the full story at Undercurrent News