Saving Seafood

What You Need To Know: USMCA Enters Into Force TODAY, Wednesday, July 1

July 1, 2020 — The following was released by The White House:

TODAY, Wednesday, July 1, the United States-Mexico-Canada Agreement (USMCA) enters into force.The USMCA delivers on President Trump’s promise to replace the outdated North American Free Trade Agreement (NAFTA) with a 21st century trade deal that marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America. The Agreement contains significant improvements and modernized approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor, and numerous other sectors. These enhancements will deliver more jobs, provide stronger labor protections, and expand market access, creating new opportunities for American workers, farmers, and ranchers. On June 29, 2020, President Trump signed a Proclamation to take certain actions under USMCA Implementation Act. You can find the full proclamation here. You can also find additional details on the U.S. Customs & Border Protection work to implement USMCA here.

With today’s entry into force, the USMCA will help address longstanding trade imbalances. Key provisions include:

  • More North American Auto Content: Under USMCA’s rules vehicles must be built with at least 75 percent of parts made in North America in order to qualify for zero tariffs, up from 62.5 percent under NAFTA. Also, 40 to 45 percent of an auto will have to be made by workers earning at least $16 an hour. Recent USTR analysis estimates that these rules will incentivize billions in new U.S. automotive investment and in new purchases of U.S.-made auto parts, and support tens of thousands of additional jobs in the U.S. automotive sector. Read the analysis here.
  • Increased Agricultural Market Access: The USMCA provides the U.S. with greater access to Canada’s dairy, poultry, and egg markets. Combined with other agricultural provisions in the agreement, the independent International Trade Commission estimates that, as a result of USMCA, U.S. agricultural exports to Canada and the rest of the world would increase by $2.2 billion.
  • Small and Medium Sized Businesses: The USMCA contains the first chapter of any trade agreement dedicated to Small and Medium Enterprises. The chapter will enforce new intellectual property provisions, bolster innovation, and support small businesses engaging in digital trade. Additionally, USMCA removes burdensome regulations, reduces duplicative red tape, and lowers costs that will help the 30 million U.S. small businesses that employ half the private-sector workforce and create two-thirds of all new jobs, to better compete globally.
  • Enhanced Labor and Environmental Rights: The USMCA makes a number of significant upgrades to NAFTA’s environmental and labor provisions, incorporates them into the core of the agreement, and makes them fully enforceable, which will help level the playing field for U.S. workers and businesses.
  • Addresses Non-Market Practice and Unfair Subsidies: The agreement includes countless rules that directly address the pernicious and growing challenge of unfair subsidies and non-market practices that have the potential to disadvantage U.S. workers and businesses. These include new and enforceable provisions covering state-owned enterprises, currency manipulation, anticorruption, and combatting duty evasion.
  • Increased Intellectual Property Protections: USMCA dramatically enhances intellectual property protections. It contains a modernized, high-standard IP chapter that provides strong and effective protection and enforcement of IP rights critical to driving innovation, creating economic growth, and supporting American jobs.
  • Strongest Provisions on Digital Trade: The USMCA includes a first-of-its-kind chapter on digital trade that – among other things – ensures data can be transferred across borders and cracks down on data localization measures used to restrict where data can be stored and processed.

More on USMCA: Canada and Mexico are our first and third largest exports markets for United States food and agricultural products, making up 28 percent of total food and agricultural exports in 2017.  These exports support more than 325,000 American jobs. In November 2018, President Trump signed the United States-Mexico-Canada Agreement (USMCA) delivering on his promise to renegotiate the North American Free Trade Agreement (NAFTA) and protect American farmers, ranchers, businesses, and workers. The USMCA is a 21st century, high-standard agreement that modernizes the 25-year-old NAFTA and supports mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America. can find the Agreement’s Text here, pertinent Fact Sheets here, and Support from External Stakeholders here and here.

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

Revised NAFTA agreement between US and Mexico may leave Canada behind

August 28, 2018 — The United States and Mexico have come to a preliminary agreement to revise the North America Free Trade Agreement (NAFTA),

The agreement, which does not yet include Canada, is expected to be finalized within days, according to U.S. President Donald Trump. It includes modest changes to the trade accord, which was put in place in 1994 as a means to lower tariffs and other trade barriers between the three countries.

“We’re very excited about this agreement,” U.S. Trade Representative Robert Lighthizer said in an interview with CNBC. “We think it is going to lead to more trade, not less trade.”

Changes to the accord include modifications to regulations affecting the automobile, energy, and telecommunications industries, as well as a tightening of intellectual property protections. The agreement, which extends NAFTA for 16 years, also includes a sunset clause that requires the U.S., Mexico, and Canada to ratify the deal every six years.

However, an agreement that does not involve Canada is likely to face a legal challenge, according to The New York Times.

“[NAFTA] is a trilateral agreement. It requires legislation and a change to NAFTA requires legislation,” said U.S. Senator Patrick J. Toomey [R-Pennsylvania]. “I’ve told them any change has to go through Congress. There is not necessarily complete agreement about that.”

Trump will also likely face opposition from Congress, which only granted his administration authority to renegotiate NAFTA as a trilateral deal.

Read the full story at Seafood Source

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

Canadian tariffs on US goods go into effect, but spare seafood industry

July 3, 2018 — Canada has placed tariffs valued at CAD 16.6 billion (USD 12.6 billion, EUR 10.8 billion) on American products as retaliation for a 25-percent tariff on steel and 10-percent tariff on aluminum the United States instituted earlier this year by U.S. President Donald Trump.

Canada’s tariffs took effect 1 July – Canada Day. While the new tariffs affect goods ranging from beer kegs to ball point pens, orange juice to candy to bourbon, they appear to have largely spared the seafood industry.

It’s an extraordinary situation for the two countries which traditionally tout their undefended border, close relationship, and are the world’s second-largest trading block.

More than USD 1.5 billion (EUR 1.3 billion) in goods and more than 300,000 people cross the U.S. Canada border every day. The value of trade crossing the Ambassador Bridge between Windsor, Ontario and Detroit, Michigan is equal to all of Japan’s exports to the U.S. Canada is a bigger market for U.S. goods than the 27 countries of the European Community. For example, 4,000 shipments of ingredients for Campbell’s Soup products cross from the US into Canada each day and 3,500 travel from Canada into the U.S.

Since introduction of the North American Free Trade Agreement in 1985, there has been a 350 percent rise in trade between the U.S. and Canada. Canada is one of the top five investor nations in the U.S. and is America’s primary energy source (oil, natural gas, and electricity), while Saudi Arabia is number three.

Read the full story at Seafood Source