Saving Seafood

U.S., China Plot Road Map to Resolve Trade Dispute by November

August 20, 2018 — Chinese and U.S. negotiators are mapping out talks to try to end their trade standoff ahead of planned meetings between President Trump and Chinese leader Xi Jinping at multilateral summits in November, said officials in both nations.

The planning represents an effort on both sides to keep a deepening trade dispute—which already has involved tariffs on billions of dollars of goods and could target hundreds of billions of dollars more—from torpedoing the U.S.-China relationship and shaking global markets.

Scheduled midlevel talks in Washington next week, which both sides announced on Thursday, will pave the way for November. A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will meet with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22-23.

The negotiations are aimed at finding a way for both sides to address the trade disputes, the officials said, and could lead to more rounds of talks.

The talks represent a clear move by Beijing to get relations with Washington back on track that were cordial early in the Trump presidency and involved coordination to rein in North Korea. Those relations have soured, especially after Mr. Trump’s initial tariffs on Chinese imports, which he said were designed to punish Beijing for alleged intellectual-property violations and technology theft. The resulting tit-for-tat of trade threats and retaliation has hit China’s currency and stock markets.

Read the full story at The Wall Street Journal

Trade wars forcing Canadian seafood businesses to make tough decisions

August 17, 2018 — American-initiated tariffs are impacting Canadian seafood businesses in unexpected ways.

The growing trade war between the United States and its neighbor to the north began with a 25 percent surcharge on steel and aluminum initiated in May by the administration of U.S. President Donald Trump.

In reaction, Ottawa used the symbolism of Canada Day to launch CAD 16.6 billion (USD 12.6 billion, EUR 10.8 billion) in retaliatory tariffs strategically targeted to products like orange juice, yogurt, coffee, soya sauce, mayonnaise, and bourbon, which are produced in the home districts of key Republican allies of President Trump.

As a result of this, Galen G. Weston, CEO of Loblaw Companies, Canada’s largest food retailer, believes the trade war may result in higher prices for retail goods sold in Canada.

“We see a very strong possibility of an accelerating retail price inflation in the market,” Weston said at a recent press conference. On the upside, he added, “We don’t think it’s going to be meaningful [or] super significant, but it certainly will be higher than what it is today.”

Krishen Rangasamy, an economist with the National Bank of Canada, agreed the Canadian tariffs won’t have an overly significant impact on consumer prices. He thinks importers are unlikely to pass on higher prices and those that do will have minimal impact on the consumer price index, around 0.01 percent. However, Karl Littler, a representative of the Retail Council of Canada, suggested in the Financial Post that already-thin retail margins will mean prices have to rise, but not by the full 10 percent Canadian tariff of targeted goods.

Read the full story at Seafood Source

ASMI to comment on impact of proposed tariffs

August 17, 2018 — Board members of the Alaska Seafood Marketing Institute are keeping watch on the trade war between the U.S. and China and plan to submit formal comments in advance of the Sept. 6 deadline, says Jeremy Woodrow, ASMI’s communications director.

“We are going into this with the assumption that this is an opportunity to educate the U.S. trade representative on the importance of Alaska fisheries to the U.S. economy and Alaska workers,”

Woodrow said. “While we understand the reasons behind the proposal, the intended impact doesn’t achieve the goal. Instead of having consequences to Chinese consumers, this negatively impacts us consumers and products and U.S. fishermen and companies,” he said.

Woodrow said ASMI’s understanding at this time is that seafood products going from Alaska to China would be subject to these proposed tariffs only if consumed in the Chinese domestic market. If that seafood is being reprocessed to ship elsewhere, it would not be subject to tariff, but if it is being shipped back to the U.S., there is potential that it will be subject to the tariffs because of the proposal by Robert Lighthizer, the U.S. trade representative.

The proposed U.S. tariffs came under consideration in the wake of China’s decision to implement an additional 25 percent tariff for exported products destined for China’s domestic market. The proposed tariffs could impact the bottom line for Alaska companies that sell black cod, rockfish, flatfish and salmon roe into Chinese domestic markets.

Read the full story at The Cordoba Times

Group sues to expand protected orca habitat along West Coast

August 17, 2018 — An environmental group sued President Donald Trump’s administration Thursday to make officials move more quickly to protect the Pacific Northwest’s endangered orcas.

The recent grieving of one whale for her dead calf and scientists’ extraordinary attempts to save another from starvation highlight the urgency of their plight, the Tucson, Arizona-based Center for Biological Diversity said as it filed the lawsuit in U.S. District Court in Seattle.

There are just 75 orcas remaining in the Pacific Northwest population, the lowest number in 34 years. They’re struggling with a dearth of chinook salmon, their preferred prey, as well as toxic contamination and vessel noise.

The lawsuit says the National Marine Fisheries Service has failed to act on the center’s 2014 petition to expand habitat protections to the orcas’ foraging and migration areas off the coasts of Washington, Oregon and California — even though the agency agreed in 2015 that such a move was necessary.

The center says the protections would help reduce water pollution and restrict vessel traffic that can interfere with the animals.

“Time is running out fast for these magnificent, intelligent orcas,” Catherine Kilduff, an attorney with the organization, said in an emailed statement. “It’s heartbreaking to watch them starving to death and mourning their dead calves. Every day that Trump’s people delay action is a step toward extinction for these whales.”

Read the full story from the Associated Press

NCFC Members Urge BOEM to Include Commercial Fishermen in Windmill Siting Decisions in the New York Bight

August 17, 2018 — WASHINGTON — The following was released by Saving Seafood’s National Coalition for Fishing Communities:

Late last month, members of Saving Seafood’s National Coalition for Fishing Communities (NCFC) submitted two letters asking Interior Secretary Ryan Zinke and the Bureau of Ocean Energy Management (BOEM) to consider the economic importance of the commercial fishing industry before deciding where to site windmills in the New York Bight.

367 individuals signed a national letter calling on Secretary Zinke not to rush offshore energy development and to ensure projects are “sited, constructed, and operated using the best scientific information available.”

“The Interior Department should provide for intelligent and deliberate offshore renewable energy development, rather than fall prey to the gold rush mentality promoted by BOEM and financially-interested wind developers, most of which are foreign-owned,” the NCFC members wrote.

The signers also invoked President Donald Trump’s campaign promise to support working class Americans.

“When President Trump campaigned and was elected, he promised to look after America’s working middle class, of which we are all a part,” the letter stated. “You will not be honoring the President’s commitment if you allow BOEM to lease ocean areas first, and ask and answer the necessary questions later.”

Another 103 individuals and 32 vessels and businesses from Massachusetts signed a separate letter asking BOEM to reconsider its plan to develop four offshore wind farms in the New York Bight. They specifically cited the damage such development would cause to important Northeast fisheries such as the scallop fishery.

“This is an ill-conceived idea that will cause irreparable economic harm within the fishing communities along the entire East Coast,” the signers wrote. “The harm to Massachusetts will be especially significant, given that it is the center of the Atlantic sea scallop fishery and contains major surf clam and ocean quahog operations.”

The letter pointed out that, on average, nearly $54 million is generated by scallop landings annually from the areas under consideration in the New York Bight, according to data from the National Marine Fisheries Service. An additional $8 million is generated by surf clam and ocean quahog.

 

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

Maine lobster industry feels impact of China’s tariffs

August 16, 2018 — The ongoing trade war kicked off by U.S. President Donald Trump is beginning to hurt the lobster industry in Maine, U.S.A.

In response to a wide swath of tariffs on Chinese goods instituted by the U.S., China created a set of tariffs of its own that target U.S. seafood and have already hurt some members of the lobster industry who relied on shipping their product to China. Once a niche export market of just USD 4 million (EUR 3.5 million) in 2010, Maine exported USD 132 million (EUR 116.3 million) worth of the crustacean in 2017, according to the Maine International Trade Center.

Of that number, exports to China have been steadily increasing. Maine exported USD 42 million (EUR 37 million) worth of raw and frozen lobster to the country through June in 2017. This year, that number had more than doubled to USD 87 million (EUR 76.6 million) over the same period.

Those numbers have made China the second-largest export market, equal to the entire European Union. As the market grew, some exporters began to increasingly plan on shipping lobsters to China. The new tariffs, however, have made thrown those plans into disarray.

Stephanie Nadeau of The Lobster Co. in Arundel, Maine, has become the “poster child of Chinese tariffs,” she said.

Nadeau has been featured in a wide number of news reports, from the local Portland Press Herald to stories on CBS. Her company relied on Chinese exports, but now is struggling to find a way to make up the lost sales.

Read the full story at Seafood Source

Alaska seafood industry braces for China tariff pain

August 15, 2018 — Alaska fishermen are used to coping with fickle weather and wild ocean waves. Now they face a new challenge: the United States’ trade war with China, which buys $1 billion in Alaskan fish annually, making it the state’s top seafood export market.

Beijing, in response to the Trump administration’s move to implement extra levies on Chinese goods, last month imposed a 25 percent tariff on Pacific Northwest seafood, including Alaskan fish, in a tit-for-tat that has engulfed the world’s two largest countries in a trade war.

The results could be “devastating” to Alaska’s seafood industry, the state’s biggest private-sector employer, said Frances Leach, executive director of United Fishermen of Alaska, the state’s largest commercial fishing trade group.

“This isn’t an easily replaced market,” she said. If the tariff war continues, she said, “What’s going to happen is China is just going to stop buying Alaska fish.”

For Alaska’s seafood industry, the timing could not be worse. The state has worked for years to attract the Chinese market, and just two months ago, Governor Bill Walker led a week-long trade mission to China in which the seafood industry was heavily represented.

Read the full story at Reuters

The Trump administration is ensnared in another border dispute — this time with Canada

August 13, 2018 — Canadians often boast that their 5,525-mile boundary with the United States is the longest undefended border in the world. But tempers have frayed on at least one small stretch.

Machias Seal Island is a 20-acre, treeless island teeming with puffins, razorbills, terns, eiders and other seabirds, making it a prime destination for birdwatchers. Canada and the United States both claim sovereignty over the island, which is about 10 miles off the coast of Maine, and the surrounding 277-square-mile Gray Zone, where fishermen from both countries compete over valuable lobster grounds.

In late June and early July, Canadian fishermen said, U.S. Border Patrol agents in speedboats intercepted Canadian lobster boats in the Gray Zone.

“I have no idea where they came from,” said Laurence Cook, a lobsterman and representative of the Fishermen’s Association from nearby Grand Manan Island. “We’ve never seen U.S. Border Patrol in the Gray Zone before.”

Read the full story at The Washington Post

Alaska Seafood Marketing Institute prepares to protest Trump’s seafood tariffs

August 10, 2018 — The Alaska Seafood Marketing Institute will push back against a steep seafood tariff suggested by the Trump Administration.

In a board meeting Thursday morning, ASMI executive director Alexa Tonkovich said the organization is preparing a draft letter to the Office of the U.S. Trade Representative about the importance of Alaska seafood.

ASMI’s action comes as the USTR considers a proposal to levy a 10 percent tariff on $200 billion worth of Chinese imports. Since that proposal was announced in early July, the USTR has announced that the tariff could be increased to 25 percent.

Among the items on the tariff list is Alaska seafood sent to China for processing.

“We believe there is value in ASMI as an apolitical industry representative (speaking up),” Tonkovich said, and the board agreed to consider the draft.

“I know that other industry groups are kind of looking for ASMI to take the lead because of their connection with (the National Fisheries Institute) and their representation of the Alaska industry,” said board member Tom Enlow, who works for the seafood company Unisea.

“We better do it, definitely,” said board chairman Jack Schultheis of Kwik’ Pak Fisheries.

ASMI is the joint marketing arm for fisheries across Alaska and is funded by a small tax on catches as well as federal grants and state assistance. This year, the Alaska Legislature approved a budget of less than $21 million for the agency.

Read the full story at the Juneau Empire