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This strange, lobster-fueled border dispute off Maine has been simmering long before Trump

July 23, 2018 — For all the attention being paid on southern immigration, the shared border itself between the United States and Mexico is actually something on which all sides have agreed for decades.

However, the efforts by President Donald Trump’s administration to ramp up immigration enforcement all along the perimeter of the United States recently shed light on a uniquely unsettled border dispute much closer to home. Machias Seal Island, a 20-acre island 10 miles off the coast of Maine, is claimed by both Canada and the United States.

“We have a 5,525-mile-long border with Canada, and all but this little chunk of it is firmly established and accepted by both countries,” says Stephen Kelly, a research scholar at Duke University and former diplomat who has long urged the two neighbors to settle the disagreement.

The conflict was recently cast into international focus after reports that U.S. Border Patrol agents were stopping Canadian fishermen in the area, causing a modest uproar in the Great White North. It was likely the first time many Americans had even heard of Machias Seal Island, if the story broke through at all.

Read the full story at Boston.com

Ex-manager says processor repacked expired seafood

July 19, 2018 — Gloucester Seafood Processing, the largely shuttered local subsidiary of Illinois-based Mazzetta Co., is a defendant in a lawsuit accusing the seafood giant of artificially manipulating lobster prices and repackaging expired seafood into new packaging with new expiration dates.

The accusations are contained in a wrongful termination suit brought by Corey Thompson, a former general manager at Mazzetta’s Atwood Lobster subsidiary in South Thomaston, Maine. Besides Gloucester Seafood Processing, the action also names Mazzetta Co. and its parent company, JorZac Inc., as well as Atwood, Londonderry Freezer LLC., and other Mazzetta subsidiaries as defendants.

Thompson claims in the lawsuit that he was fired with no explanation on May 26, 2017 — five days after he sent an email to Mazzetta Co. owner Tom Mazzetta and another company executive “expressing his concern that artificially deflated raw material prices” to benefit other Mazzetta subsidiaries “was illegal and in violation of domestic and international tax laws.”

In the same email, attached to the lawsuit as an exhibit, Thompson “expressed his concern that repacking expired seafood with new expiration dates was morally wrong and illegal.”

Read the full story at the Gloucester Daily Times

MAINE: Those lobster license plates are supporting $340,000 in research on vital industry

July 18, 2018 — The Maine Department of Marine Resources is using $340,000 from the sale of specialty license plates to bankroll lobster research.

The state agency is using lobster license plate profits to fund six research projects, including five run by the University of Maine and one by the Gulf of Maine Research Institute, and give $5,000 mini-grants to four other researchers. Project data will be shared through a research collaborative created to address the impact of a changing ocean environment on Maine’s lobster industry.

“Maine’s lobster industry is our most valuable and is a critical piece of the economy of nearly every community along the coast,” Marine Resources Commissioner Patrick Keliher said in a prepared statement Tuesday. “We know that change is happening in the Gulf of Maine and we want to be positioned with improved science to adapt to those changes.”

The agency in charge of regulating the state’s $1.5 billion industry is trying to up its own scientific efforts with these grants, which will be shared and shaped by a research collaborative made up of state officials, scientists and industry leaders. At the centerpiece of the new emphasis is research to support Maine’s most valuable fishery. The plan was to fund $500,000 in lobster science projects.

Read the full story at the Portland Press Herald

Lobster amendment could win industry support for Young’s MSA update

July 16, 2018 — By adopting an amendment submitted by the US state of Maine’s two representatives Bruce Poliquin, a Republican, and Chellie Pingree, a Democrat, proponents of Alaska representative Don Young’s update to the Magnuson-Stevens Act (MSA) may have won over at least one seafood group: the Maine lobster industry.

Young’s bill, HR 200, cleared the House of Representatives by a 222-193 vote on Wednesday after a heated debate that involved both sides displaying lists of commercial fishing industry organizations that they said agreed with them, for and against the measure.

The bill now awaits a Senate companion, a similar circumstance faced by Young’s attempt in 2015 to update MSA. His bill that year, HR 1335, expired when the session ended, as a Senate bill never arrived. Young and others are hoping for a different outcome this time.

The amendment proposed by Poliquin and Pingree would help pave the way for lower federal inspection fees, and wait times, on lobster sales to Europe, the Portland (Maine) Press Herald reports. Though China has been growing as a more important export destination, Europe accounted for 31% of US lobster shipments abroad in 2017, the newspaper notes.

Read the full story at Undercurrent News

It’s Summertime – And New England’s Seafood Shacks Are Now Open

July 16, 2018 — We may be biased, but there is no better destination for summer road trips than the New England coast. The scenery is gorgeous and the seafood is at its prime, so locals and tourists alike pack in cars in search of the quintessential summer shack experience! Take note that reservations and fancy pants aren’t required for this journey, just a little bit of patience (for the inevitable traffic) and a passion for getting your hands on some of the best seafood around.

Below is by no means a comprehensive list, just a little something to get your mouth watering, and your seafood road trips started! So pack up the car – those lobster rolls are waiting for you.

Chauncey Creek Lobster Pier, located in Kittery, will enliven your senses. From the moment you step out of your car and smell the salty air, to when you finally set in to devouring your seafood platter, you feel as if you caught your food yourself and are eating it on a boat floating down the eponymous creek.

The picnic tables -on a deck located directly on Chauncey Creek- offer a variety of seating, from completely covered to full sunshine. And it’s a BYOB establishment, so you’ll often see people tables with coolers full of food and drinks they’ve brought to enjoy in addition to their heaping plates of steamers and lobster.

Read the full story at WGBH

Fishing groups divided over proposed update to fisheries management law

July 13, 2018 — Fishing groups are divided over what a proposed update to the nation’s marine fishery management law would mean for Maine.

Some groups worried the Magnuson-Stevens Act reauthorization approved Wednesday by the U.S. House of Representatives would hurt efforts to rebuild Maine’s cod, haddock and scallop fisheries, while others say giving regional councils flexibility to decide what kinds of science they will use to guide their decisions could help rebounding fisheries and fishermen.

Lobster dealers will be happy with at least one part of this reauthorization bill – an amendment submitted by Rep. Bruce Poliquin, R-2nd District, and Rep. Chellie Pingree, D-1st District, that would help pave the way for lower federal inspection fees, and wait times, on lobster sales to Europe, which despite China’s growing demand still accounted for 31 percent of U.S. lobster shipments abroad in 2017.

This would give lobster dealers a break at a difficult time for the industry, which is facing new trade barriers in Europe. European nations can buy lobster for less from Canada because of a new trade deal and a weak Canadian dollar. Chinese buyers are also turning to Canadian lobster to avoid steep new Chinese import tariffs on U.S. lobster levied as part of the U.S.-China trade war.

Read the full story at the Portland Press Herald

China’s tariffs will hit farm states hard, spare service-heavy states

July 11, 2018 — Whether it’s Iowa soybeans or Alaskan salmon, don’t expect the tariffs China is imposing on the U.S. to fall equally. Some states are at more risk than others.

Farm and seafood-producing states are going to be hit hardest by China’s new tariffs on U.S. goods, according to an analysis by Paul Armstrong-Taylor, resident professor of international economics at the Hopkins-Nanjing Center at Nanjing University in China. States where cars and SUVs are made and shipped to China are on the hook, as well.

The Chinese government imposed $34 billion in new duties on goods exported from the U.S. last week in retaliation for the Trump administration’s round of tariffs aimed at driving better deals on trade. Economists have warned the trade war could risk jobs, industry profits and lead to higher prices for consumers.

“Agricultural states, I think, are being hit the hardest,” said Rodney Ludema, a Georgetown University professor and former senior international economist in the White House Council of Economic Advisers under President Barack Obama. The tariffs spare states “that are heavily service-dependent, like New York.”

In terms of value, some 38 percent of products on the tariff list are agricultural, including soybeans, sorghum, tobacco and meat, said Chad Bown, a senior fellow at the Peterson Institute for International Economics. That’s bad news for farm-belt states, primarily in the Midwest.

Read the full story at USA Today

FLORIDA: China Trade War Hits Keys Lobster Fishermen

July 9, 2018 — On a commercial fishing dock outside of Marathon, a television sat atop a makeshift table allowing a small crew of workers to watch the latest World Cup soccer match while repairing lobster traps and painting buoys.

With lobster season a few weeks away, thousands of traps were waiting to be loaded on boats and dropped in the waters up and down the Florida Keys.

“Gooooooal!,” the play-by-play announcer suddenly blared in Spanish, as Sweden scored the second of three goals on Mexico. The largely Mexican crew stared at the television in disbelief.

Boat captain Gary Nichols wasn’t paying much attention to the game. He was trying to cope with another world event – the growing U.S. trade war with China.

“It’s starting to get a little scary,” said Nichols, a commercial fisherman in the Keys for more than 30 years.

On Friday, the United States imposed $34 billion in tariffs on a variety of Chinese products, including computers, dishwashers and medical devices.

In return, China immediately fired back with $34 billion in tariffs on U.S. goods, such as pork, poultry, soybeans, and corn. And tucked into the list of 545 products getting slapped with a 25 percent tariff by China were Florida lobsters.

“I was really praying that wasn’t going to occur,” Nichols said. “And at this moment I don’t know what is going to happen, we’re all just in limbo.”

Read the full story at CBS Miami

WALL STREET JOURNAL: Trump Boils Maine Lobstermen

July 9, 2018 — Donald Trump has upended global trade relationships, promising that temporary disruption will end in better terms for American businesses. Tell that to the Maine lobster industry that his policies are putting at a major disadvantage in Europe and China.

These should be halcyon days in lobstertown. Maine harvests more lobster than any other U.S. state or Canadian province. Last year it landed nearly 111 million pounds—its fourth-largest annual haul—which it sold for $450 million. The lobster industry accounts for 2% of Maine’s economy.

And China represents a hungry new market. The post-molt lobsters Maine harvests from July through November have softer shells than Canadian lobsters, so they’re lower quality. But they also sell for several dollars less a pound. In the price-sensitive Chinese market, that has given the U.S. industry a competitive advantage over its Canadian counterparts. In 2017 the U.S. exported more than $137 million in lobsters to China, up from $52 million in 2015.

Yet Mr. Trump’s unilateral tariffs are about to erode the price advantage of American lobsters. After the U.S. announced on June 15 plans to impose a 25% tariff on $50 billion in Chinese goods, Beijing retaliated with a new 25% tariff on American seafood, farm products and autos, effective July 6. That’s on top of the 10% to 15% tariffs China already imposes on U.S. and Canadian lobster.

Read the full opinion piece at the Wall Street Journal 

What they’re saying: Local industries react to Trump’s trade war

July 9, 2018 — Local agricultural industries caught in the crossfire of President Trump’s trade disputes with some of the country’s biggest trading partners are increasingly worried that they will suffer from retaliatory tariffs on American goods.

Why it matters: From Florida to Wisconsin to Washington state, Trump risks threatening the very industries he pledged to protect on the campaign trail — and his tariffs could mean a brutal blow for the economy in states that he won in 2016.

What they’re saying:

In the Florida Keys, commercial fishermen are worried about the retaliatory tariffs China slapped Friday on 545 U.S. products, which target Florida lobster:

“At this moment I don’t know what is going to happen, we’re all just in limbo. We’ve been very fortunate over the last several years with the Chinese market.” — Gary Nichols, a lobster fisherman who voted for Trump, told CBS Miami.

Washington’s seed industry could face issues, too. Dave Armstrong, the CEO of Sakata Seed Company, told the Skagit Valley Herald that the company’s top customers are in Asia, Europe, Canada, and Mexico — and a prolonged trade war could cause the company to consider moving its operations elsewhere.

“It’s a global hub of seed movement. The actions being taken and threatened would absolutely add complexity and barriers to our ability to move seed in and out of the U.S.” — Dave Armstrong, the CEO of Sakata Seed Company

Read the full story at Axios

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