Saving Seafood

Seafood industry leaders reviewing new USMCA trade pact

October 2, 2018 — The day after U.S. and Canadian government officials announced a deal on a new trade agreement, seafood industry leaders from the neighboring countries expressed optimism about the accord, albeit with some uncertainty as they still pore over the details.

Canada’s participation, which was confirmed late in the evening of 30 September, means a new deal will replace the North American Free Trade Agreement, the accord governing trade between the U.S., Canada and Mexico for the past two decades. In late August, Mexican and American officials had reached a tentative agreement on a new deal.

“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA),” U.S. Trade Representative Robert Lighthizer said in a joint statement with Canadian Foreign Affairs Minister Chrystia Freeland. “USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade, and robust economic growth in our region.  It will strengthen the middle class, and create good, well-paying jobs, and new opportunities for the nearly half billion people who call North America home.”

Officials from the Fisheries Council of Canada received a high-level briefing on the USMCA on 1 October.

“We look forward to this apparent deal to help heal our trading relationship with the US and lead to more trading opportunities in the future,” said Paul Lansbergen, council president, in an email to SeafoodSource.

The desire to revamp NAFTA has been one leg of a global trade strategy by the administration of U.S. President Donald Trump. That strategy has also included numerous proposals to raise tariffs on Chinese imports, including numerous seafood products, as the president seeks to reduce the trade deficit.

The National Fisheries Institute has lobbied heavily in recent months that tariffs on seafood products hurt U.S. jobs as the country imports more than 90 percent of the seafood Americans consume.

Read the full story at Seafood Source

State Dept. Appoints NOAA’s Chris Oliver Alternate Commissioner to IPHC

October 1, 2018 — SEAFOOD NEWS — Earlier this month, the State Department announced two new appointments to the three-member U.S. delegation of the Seattle-based International Pacific Halibut Commission. Yesterday, the third new commissioner was announced.

As with the previous announcement, yesterday’s appointment of Chris Oliver, Assistant Administrator for NOAA Fisheries, to replace Dr. Jim Balsiger, regional administrator for NOAA Fisheries in Alaska is being done on a temporary basis until the President’s “duly designated” commissioner is appointed.

In all three cases, it is expected President Trump’s designation will be the same names appointed under ‘alternate’ status. They are: Bob Alverson, executive director of the Fishing Vessel Owners Association; Richard Yamada, president of the Alaska Charter Association and owner of Shelter Lodge; and Chris Oliver. Only Alverson is a reappointment.

“While NOAA awaits the Presidential appointments for the International Pacific Halibut Commission commissioners, Chris Oliver, the Assistant Administrator for NOAA Fisheries, has been appointed by the Department of State as an Alternate Commissioner to the IPHC serving in the Federal Commissioner role,” the announcement read.

Alverson and Yamada were appointed to terms ending January 31, 2019. That is one day before the end of the annual IPHC meeting; presumably the President’s designation will be done for a longer term so the Commissioners can complete the annual meeting. Oliver’s term is through the end of March 2019.

“As Assistant Administrator for NOAA Fisheries, Chris oversees the management and conservation of recreational and commercial fisheries across the United States. He previously served as the Executive Director of the North Pacific Fishery Management Council where he had direct experience working with the Pacific halibut fishery,” read yesterday’s release.

The statement referred to the Northern Pacific Halibut Act of 1982 as the defining legislation in the U.S. that put the Canadian-U.S. Treaty into law.

Below is the section of the law relevant to appointments of Commissioners.

“16 U.S. Code § 773a – International Pacific Halibut Commission

The United States shall be represented on the Commission by three United States Commissioners to be appointed by the President and to serve at his pleasure. The Commissioners shall receive no compensation for their services as Commissioners. Each United States Commissioner shall be appointed for a term of office not to exceed 2 years, but is eligible for reappointment. Any United States Commissioner may be appointed for a term of less than 2 years if such appointment is necessary to ensure that the terms of office of not more than two Commissioners will expire in any 1 year. A vacancy among the United States Commissioners shall be filled by the President in the manner in which the original appointment was made, but any Commissioner appointed to fill a vacancy occurring before the expiration of the term for which the Commissioner’s predecessor was appointed shall be appointed only for the remainder of such term. Of the Commissioners—

(1) one shall be an official of the National Oceanic and Atmospheric Administration; and

(2) two shall be knowledgeable or experienced concerning the Northern Pacific halibut fishery; of these, one shall be a resident of Alaska and the other shall be a nonresident of Alaska. Of the three commissioners described in paragraphs (1) and (2), one shall be a voting member of the North Pacific Fishery Management Council.

(3) Commissioners shall not be considered Federal employees except for the purposes of injury compensation or tort claims liability as provided in section 8101 et seq. of title 5 and section 2671 et seq. of title 28. This subsection shall take effect on the 90th day after May 17, 1982.

(b) Alternate United States Commissioners

The Secretary of State, in consultation with the Secretary, may designate from time to time alternate United States Commissioners to the commission. An Alternate United States Commissioner may exercise, at any meeting of the Commission, all powers and duties of a United States Commissioner in the absence of a duly designated Commissioner for whatever reason. The number of such alternate United States Commissioners that may be designated for any such meeting shall be limited to the number of authorized United States Commissioners that will not be present.”

This story originally appeared on Seafood News, it is republished here with permission.

 

Who Has The Edge In The Lobster Trade War?

September 27, 2018 — There are few New England scenes as iconic as the ol’ lobster shack. Local crustaceans being served up fresh and delicious in whole or in roll form. Well, it turns out that “just-off-the boat” experience has pretty broad appeal … like as far away as China.

“There’s always been a demand for it, but they wanted the live lobster,” said Arthur Sawyer, a Gloucester lobster fisherman and President of the Massachusetts Lobstermen’s Association. “Live lobster — ya know — it’s like a 36 hour thing to get to China.”

A decade ago, the Chinese market for U.S. live lobster was essentially nonexistent. But a few years back, shippers finally worked out how to reliably get fresh live lobster to China. It was a game changer. Last year, the country imported nearly $150 million worth.

“There’s a whole lot of exporters that have gotten into the lobster business strictly because of China,” said Sawyer.

But live lobster got swept up in the trade war this July, when Beijing slapped a 25 percent tariff on U.S. imports. And just three months in, it’s already having an impact here. Vince Mortillaro, a local wholesaler, said China has stopped buying from him completely, and he’s has had to lay off three employees.

“They’re affecting me a lot,” he said of the tariffs. “We’re losing like 40,000 pounds of sales a week.”

For now, the pinch wholesalers are feeling has yet to trickle down to lobster fishermen on the boats, who sell to the wholesalers, or the lobster-craving public. As for why? Well, it’s complicated. Live lobster exports are an important part of the equation. But a sizable chunk of New England total haul each year gets sold off to be processed.

Read the full story at WGBH

Federal officials promote aquaculture, or fish farms, as next big thing in seafood production

September 26, 2018 — Offshore fish farms could soon dot the seascape along with those oil and gas platforms being proposed for U.S. waters by the Trump administration.

The fish farms, which would be installed from 3 to 200 miles out, are being touted as a way to boost seafood production, provide jobs and reduce the nation’s $16 billion trade deficit due to America’s importing nearly 90 percent of its seafood favorites.

The U.S. Commerce Department is holding meetings around the country through November to talk about its strategic plan for getting aquaculture off the ground. At a recent session in Juneau, NOAA Fisheries Assistant Administrator Chris Oliver said that wild harvests simply can’t keep up with global demand.

“Aquaculture is going to be where the major increases in seafood production occur, whether it happens in foreign countries or in U.S. waters,” Oliver said.

“Aquaculture would seem like an ideal industry for the country, since it has the second-largest exclusive enterprise zone in the world — meaning it has proprietary marine resource rights over an area totaling roughly 4.4 million square miles in three oceans, the Caribbean Sea, and the Gulf of Mexico,” wrote Seafood Source.

Read the full story at the Anchorage Daily News

 

China tariffs hit Alaska Amendment 80 fleet in midst of $285m recap effort

September 25, 2018 — US president Donald Trump’s 10% tariffs that went into effect Monday for nearly 6,000 Chinese goods are bad news for all of the US harvesters of seafood sent to China for processing, but they come at a particularly unfortunate time for the five companies with flatfish-catching vessels in Alaska’s Amendment 80 fleet.

Those harvesters have spent more than a combined $285 million over the past six years to replace or significantly improve their 19 ships, according to Chris Woodley, executive director of the Groundfish Forum, the trade group that represents them.

Woodley told Undercurrent News on Friday that he doesn’t know how the tariffs will immediately impact his members or if any of the additional cost might make them want to hit pause on their recent recapitalization effort.

“As far as specific business arrangements with individual companies, each A80 [Amendment 80] company has got its own supply chain and its own buyers,” he said. “It’s not a monolithic block. So, all we know right now is that the fish products harvested by the A80 fleet are on the list to have tariffs imposed, and that’s where we are.”

Read the full story at Undercurrent News

Tariffs could harm NW fishing industry in markets on both sides of the Pacific

September 24, 2018 — First, it was Washington wheat farmers and apple growers. Then it was regional wineries. And now, Pacific Northwest seafood companies are getting sucked into the escalating trade war between the Trump administration and China.

The fleet that fishes in the North Pacific, much of it based in Puget Sound, was first caught up in the fight in July, when China imposed sweeping sanctions on many U.S. imports, including virtually all seafood. The immediate risk was clear: China’s tariffs threatened to block access to what many believe will become the world’s largest consumer market for seafood products.

But now there’s a new risk: a Trump administration trade policy that was meant to punish the Chinese, but which could end up making American seafood more expensive for American consumers — a bizarre outcome that could expose the Northwest’s seafood industry to trade-war damage both at home and abroad.

That risk became clear on Monday, when Robert Lighthizer, the United States Trade Representative, released a list of some 5,700 imported Chinese food products that will be hit by heavy new tariffs. Among them, roughly $2.7 billion in imported Chinese seafood items—everything from salmon and flounder to sole and snow crab.

Read the full story at The Seattle Times

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

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