Saving Seafood

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

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

US Commerce Department eyes aquaculture for job creation

September 18, 2018 — Bolstering the U.S. seafood industry has been a major priority for Wilbur Ross since he became the Secretary of Commerce under U.S. President Donald Trump last year.

In speeches, he’s talked frequently of reducing the seafood trade deficit in a country where 90 percent of the fish consumed comes from foreign markets. One way he and other Commerce Department officials want to make that happen is through increasing seafood production, with aquaculture existing as a key component in that strategy.

“A strong U.S. marine aquaculture industry will serve a key role in U.S. food security and improve our trade balance with other nations,” the department said in its recent 2018-2022 Strategic Report, which focuses on increasing opportunities for aquaculture as a job creation strategy.

Aquaculture in America has floundered while the industry has boomed elsewhere. In 2015, more than 106 million metric tons of seafood were produced in marine farms. However, the U.S. accounted for just 0.4 percent of that total.

One of the reasons for that has been the regulatory process for approving fish farms in federal waters. Often aquaculture projects have been stalled because they’ve required permits from various agencies, such as the Army Corps of Engineers and the Environmental Protection Agency.

The Commerce Department wants to see a “one-stop shop” set up for the permitting process, and a bill filed earlier this year by U.S. Sen. Roger Wicker would make the National Oceanic and Atmospheric Administration, a Commerce agency that oversees the fishing industry, the lead agency for that process.

Read the full story at Seafood Source