Saving Seafood

In the face of harsh tariffs, the Maine lobster industry fights to save the export business, and innovate to find new U.S. Markets

November 15, 2019 — Lobster from Stonington, Maine’s biggest lobster harbor, used to travel around the world. Now, because of issues with tariffs in both Europe and China, much of the catch stays closer to home. So far, fishermen haven’t felt the loss of export business in their paychecks, but many know that Maine’s signature seafood needs the most comprehensive market possible to make the most money.

Longtime fisherman Mike Billings watched the dock crew unload his day’s catch, and said exports are needed.

“My grandfather, I fished with him when I was a kid, and he said if we could just get the lobsters out to the rest of the world, not just this country, we could get a decent price for them. “

Maine has had an export market for many years, but that business started growing significantly as lobster dealers were able to open up the market to China. According to figures from the Maine International Trade Center, exports of live lobster to China grew from 26 million pounds in 2014 to a high of 56 million in 2017. Dealers like Hugh Reynolds of Greenhead Lobster say the business was heading for more growth, primarily the live lobster market. 

Read the full story at News Center Maine

Despite trade war, US seafood companies still see positives in China

October 31, 2019 — Since the start of the trade war between the United States and China over a year ago, certain sectors of the seafood industry have seen sharp drops of trade between the two countries.

The United States and China have taken turns ramping up tariffs on each other’s products, starting at 10 percent tariff rates and escalating to 25 percent duties on most products, including seafood, traded between the two countries.

Read the full story at Seafood Source

All Hands: Alaska determined to overcome tariff troubles

October 9, 2019 — The theme coming out of Alaska seafood’s annual meeting is — no surprise — tariffs.

The Alaska Seafood Marketing Institute opened its All Hands On Deck meeting today in Anchorage with annual updates from its program directors, followed by public meetings for species committees and the Responsible Fisheries Management program.

International Program Director Hannah Lindoff opened her update with a slide detailing the current state of U.S./China tariffs.

“This is the most up to date information,” said Lindoff. “But if anyone is on Twitter and something changes, please let me know.”

Although most products in Alaska’s portfolio are exempted from U.S. tariffs on Chinese exports — salmon, pollock and Pacific cod — competition in the global marketplace makes tariffs disadvantageous for any fisheries affected by additional duties.

For example, Alaska contributes 10 to 15 percent of the global supply of red king crab. Russia supplies about 70 percent. Alaska’s red king crab quota is down 12 percent for 2020. Golden king crab and snow crab quotas are up 13 and 23 percent, but the tanner/opilio fishery is shut down for the year.

Read the full story at National Fisherman

US to hit EU with USD 7.5 billion in tariffs; mussels, clams among seafood products affected

October 3, 2019 — The United States will impose tariffs valued at USD 7.5 billion (EUR 6.8 billion) against the European Union in what it says is a response to E.U. subsidies to aerospace firm Airbus that broke World Trade Organization rules.

The WTO approved the tariffs on 2 October, and the Office of the U.S. Trade Representative has said they will come into force as early as 18 October. They include 10 percent tariffs on Airbus parts and 25 percent duties on other goods, including some food products. A majority of the products on the list are luxury food products such as cheese, olives, and wine. In the category of seafood, prepared or preserved mussels, clams, cockles, razor claims, and molluscs all will be hit with 25 percent tariffs, according to a list released by the USTR.

Read the full story at Seafood Source

MASSACHUSETTS: Congressional delegation urges feds to find new lobster markets

September 19, 2019 — As the United States trade war with China continues to take its toll on Massachusetts lobstermen, members of the state’s Congressional delegation, including U.S. Sen. Elizabeth Warren, are urging the Trump administration to find new markets for American lobster exports.

Sens. Warren and Ed Markey and Congressmen Joseph Kennedy III, William Keating, Stephen Lynch and Seth Moulton wrote a letter to U.S. Trade Representative Robert Lighthizer on Monday imploring him assist the local lobster industry.

The lawmakers said that China’s 25 percent tariffs on imported American lobsters has had a “material impact” on the state’s lobster industry, already forcing at least two businesses to close and leaving 250 people out of work.

Read the full story at the Gloucester Daily Times

Lobster industry pinched by tariffs

September 18, 2019 — The trade war with China is putting the squeeze on the state’s lobster industry, and the damage is seeping into other sectors of the seafood economy, lawmakers were told Tuesday.

China has imposed 35% tariffs on U.S. lobsters — and many other food products — over the past year amid rising trade hostilities with the United States.

As a result, U.S. lobster exports to China have fallen off a cliff, dropping by 80% since its retaliatory tariffs went into effect.

The pain is being felt in Massachusetts, the nation’s second-largest market, where lobster sales to China plummeted 62% in the past year, according to state export officials.

“Canada is experiencing a boom in lobster sales as Chinese buyers find alternative markets,” Mark Sullivan, executive director of the state Office of International Trade and Investment, told members of Legislature’s Committee on Export Development on Tuesday. “Cargo planes are coming into Halifax, Nova Scotia, and New Brunswick to handle this bump in growth.”

Read the full story at the Gloucester Daily Times

MA Lawmakers Press U.S. Trade Representative for Real Solutions for Massachusetts Lobstermen Impacted by Trade Tariffs

September 17, 2019 — The following was released by The Office of Senator Elizabeth Warren (D-MA):

United States Senators Elizabeth Warren (D-MA) and Edward J. Markey (D-MA), along with Representatives Stephen F. Lynch (D-MA-08), William Keating (D-MA-09), Seth Moulton (D-MA-06) and Joseph P. Kennedy III (D-MA-04), yesterday sent a letter to U.S. Trade Representative (USTR) Robert Lighthizer urging him to explore new markets for American lobster exports to address the impact of China’s 25 percent tariffs on imported American lobsters. The lawmakers’ letter comes ahead of a Joint Committee on Export Development oversight hearing in the Massachusetts State House to assess the impact of Chinese tariffs on the Commonwealth’s lobster industry.

U.S. lobster exports to China are down more than 80 percent since June 2018, which is reflected in the losses reported by local Massachusetts lobster companies. At least two businesses in the state have been forced to cease operations, leaving more than 250 employees out of work, and the U.S. lobster industry more vulnerable to long-term decline and competition from Canada.

“While Massachusetts state legislators are exploring solutions for economic relief at the state level, it is imperative that there be federal resolve to assist the Massachusetts lobstermen whose livelihoods heavily relied on exports to China,” the lawmakers wrote in their letter.

In June 2018, in response to concerns from local elected officials, Senator Warren sent a letter to Ambassador Lighthizer urging him to explore ways to open new markets for American lobster exports. In response to her letter, Ambassador Lighthizer acknowledged her concerns and indicated that trade agreements with countries in Africa and South East Asia and the U.S. Department of Commerce’s Foreign Commercial Service could help mitigate the loss of the Chinese market.

In their letter to Ambassador Lighthizer, the lawmakers highlighted the harmful impact of the Trump Administration’s trade war on the Massachusetts lobster industry and reiterated calls for the USTR to explore new export markets for American lobstermen.

“We urge you to work with the Massachusetts lobster industry to provide specific solutions and resources to end the dire losses to the Massachusetts economy,” the lawmakers continued. 

The lawmakers requested a response to their letter by September 30, 2019.

China to exempt US fishmeal, shrimp broodstock from tariffs

September 12, 2019 — China will exempt US fishmeal and shrimp broodstock from tariffs in its first batch of exemptions since the trade war began.

Starting from Sept. 17, for one year, China will waive additional tariffs on imports of the two fisheries products, along with tariffs on 14 other US goods, China’s State Council announced on Tuesday.

The exemptions come as trade negotiations between the two economic powers restart this month.

According to Chinese customs figures, in 2017, China imported 102,731 metric tons of US fishmeal, worth $160m. This made the US China’s third-largest supplier of the ingredient, after Peru and Vietnam.

Read the full story at Undercurrent News

Trump escalates US-China trade war with tariff increases

August 26, 2019 — Soon after China moved on 23 August to raise tariffs on USD 75 billion (EUR 67.4 billion) of U.S. goods, U.S. President Donald Trump retaliated with another increase to tariffs on Chinese goods.

China’s escalation of its tariffs on U.S. goods hit the seafood industry once again, increasing the tariffs on salmon, lobster, pollock, cod, squid, crab to 35 percent, exempting raw material for processing and re-export. The previous tariffs already had a significant impact on some sectors of the seafood industry – lobster exports from Maine to China plunged 84 percent after the tariffs took effect.

Read the full story at Seafood Source

Trump says US “better off without” China after latest tariff escalation

August 25, 2019 — China moved on Friday, 23 August to raise tariffs on USD 75 billion (EUR 67.3 billion) in American goods, in response to a move made at the beginning of the month by U.S. President Donald Trump to raise tariffs on Chinese goods.

China’s new tariffs – ranging between 5 and 10 percent – will affect goods ranging from soybeans to crude oil to automobiles, and also include additional tariffs for seafood. They will go into effect between September and December, mirroring the dates set by Trump in his revised timeline for implementing the latest round of U.S. tariffs on Chinese goods. Most U.S. seafood exported to China will will be subject to an additional 10 percent tariff on 1 September, raising Chinese tariffs on U.S. seafood as high as 35 percent.

Read the full story at Seafood Source