Saving Seafood

Maine’s lobster exports to China plunge 84 percent due to trade war

May 16, 2019 — The latest data from the Maine International Trade Center indicates that the state’s lobster exports to China plunged dramatically in the wake of retaliatory tariffs placed on a wide range of U.S. goods.

The tariffs, implemented in July 2018, had an immediate affect on the state’s lobster industry. Prior to the tariffs, Maine had been on track to have a record-setting year, with USD 87 million (EUR 77.8 million) worth of lobster exported through June 2018, over double the USD 42 million (EUR 37.5 million) shipped through the same period in 2017.

Soon after tariffs were implemented, however, Maine’s exports to China nearly disappeared completely, and according to the latest data from the MITC exports have plunged nearly 84 percent since the tariffs were implemented.

The latest talk on the trade front doesn’t point to any improvement in those numbers any time soon. U.S. President Donald Trump threatened and then implemented further tariff increases on 10 May. In response, China fired back with its own increased tariffs, including additional tariffs on a number of seafood products.

Despite the threat of escalation, for many lobster exporters, the damage has already been done. Whether the tariffs increase or not, most of the business had already dried up.

“Retaliatory tariffs, or a move upward to 25 percent, doesn’t really change anything for U.S. exporters to mainland China,” Sheila Adams, the vice president of sales and marketing for Maine Coast Lobster, told SeafoodSource.

Read the full story at Seafood Source

Alaska seafood industry making plans for China tariff impact

May 13, 2019 — Alaska’s seafood industry is exploring strategies to reduce damage from the Trump administration’s trade dispute with China, officials said.

The Alaska Seafood Marketing Institute plans to explore how Alaska can enter additional markets to expand the state’s seafood brand, The Kodiak Daily Mirror reported Thursday.

The U.S. plans to raise tariffs on $200 billion in Chinese imports from 10% to 25% Friday.

China is the largest export market and re-processor of Alaska seafood, with about $989 million worth of sales to China in 2017 alone. That is more than 50% of the state’s seafood products, the institute said.

The institute is looking at “both traditional and nontraditional markets” for seafood globally, Executive Director Jeremy Woodrow said.

Read the full story from the Associated Press at KTOO

China retaliates by upping tariffs, sending markets spiraling

May 13, 2019 — On Friday, 10 May, the United States formally implemented higher tariffs on USD 200 billion (EUR 178.6 billion) of Chinese goods – a move that had been announced by U.S. President Donald Trump on Sunday, 5 May.

On Monday, 13 May, China responded with its own announcement that it will raise tariffs on USD 60 billion (EUR 53.4 billion) of American goods from 10 percent to 20 or 25 percent.

The back-and-forth occurred after negotiations between the two countries appeared to have suffered a setback on 10 May after talks in Washington D.C. failed to produce an agreement on reducing the trade tensions.

Read the full story at Seafood Source

Rabobank: Global seafood trade now worth USD 153 billion

May 7, 2019 — Seafood is one of the world’s most important food commodities and the trade continues to grow in line with rising demand and supply, but the dynamics of that trade are likely to change in the coming years, according to a new seafood trade map and report compiled by Rabobank International.

With an estimated traded value of USD 153 billion (EUR 136.5 billion) in 2017, increasing by a compound annual growth rate (CAGR) of 4 percent in the five-year period 2012-2017, the global seafood trade has been led by value growth rather than increased volumes. As Rabobank’s “World Seafood Map 2019” finds, the largest trade flow in value terms is still from Norway to the E.U., mainly consisting of salmon and some whitefish. This is followed by trade flows of salmon and crustaceans from Canada, and flows of whitefish and crustaceans from China to the U.S. market.

Rabobank Analyst Behyhan de Jong, who compiled the map, told SeafoodSource that in 2013, the average price of salmon in Norway was NOK 40 (USD 4.60, EUR 4.11) per kilogram, but this had increased by 50 percent to a level of NOK 60 (USD 6.91, EUR 6.16) in 2018. Meanwhile, the supply growth of shrimp has led to decreased prices, however, increased exports, “particularly from India and Ecuador,” have driven an increased crustacean trade globally, added de Jong.

Underpinned by the importance of localized production and the rising global demand for products, Rabobank expects seafood to maintain its standing as one of the most traded food commodities. Processing and re-exports are also important contributors to the traded volumes.

Read the full story at Seafood Source

Trump announces tariff increases against Chinese goods

May 6, 2019 — U.S. President Donald Trump on Sunday, 5 May, escalated the trade war between the United States and China when he announced his intention to raise a 10 percent tariff on USD 200 billion (EUR 178.6 billion) of goods to 25 percent on Friday 10 May.

That hike will affect numerous types of seafood products already under the 10 percent tariff.

“The Tariffs paid to the USA have had little impact on product cost, mostly borne by China,” Trump tweeted Sunday afternoon. “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”

In addition, another USD 325 billion (EUR 290.3 billion) of goods that have previously escaped tariffs will also be hit by the 25 percent fee. That would cover the remaining products China, the largest importer to the U.S., ships to America.

The move from 10 to 25 percent was originally supposed to take place in January, but U.S. officials announced a postponement of the move in December as the countries with the world’s largest economies worked to resolve their trade disputes.

However, as it appeared both sides were close to reaching a deal in March, Trump announced the tariffs would remain “for a substantial period of time.”

Read the full story at Seafood Source

An international airplane feud could crimp one of Alaska’s most lucrative fisheries

May 3, 2019 — A new twist in a decade-long trade war over airplanes could crimp one of Alaska’s most lucrative fisheries: The European Union is threatening new import taxes on Alaska pollock.

The tariffs stem from a feud over government support for the American company Boeing and European company Airbus. Earlier this year, the World Trade Organization issued separate rulings that said both companies have received illegal subsidies.

In response, both the U.S. and EU last month proposed tariffs on billions of dollars worth of the other’s exports.

The potential effects underscore the global nature of the market for Alaska fish products, of which Europe and Asia are big consumers.

The proposed EU tariffs on pollock would hit the largest market for fillets of the Bering Sea whitefish. European processors turn blocks of frozen pollock into fish sticks and fish pies; more than $250 million in exports go to Europe each year, or a little less than 20% of the $1.4 billion value of the total annual pollock catch.

Read the full story at KTOO

Europe’s USD 20 billion tariff countermeasure proposal puts US seafood in the firing line

April 18, 2019 — A public consultation on a preliminary list of products from the United States on which the European Union may take countermeasures, in the context of the ongoing Boeing dispute at the World Trade Organisation (WTO), has been published by the European Commission (EC).

The proposed tariffs are in response to the long-running dispute over subsidies paid by the United States to airplane-maker Boeing and by Europe to Airbus.

A range of U.S. exports into the E.U. are covered by Brussels’ list – from aircrafts to chemicals and agri-foods. In total, these goods are estimated at around USD 20 billion (EUR 17.7 billion).

In terms of seafood, the many products currently listed for additional import duties if they are originating in the United States include frozen Atlantic, Danube, and Pacific salmon, frozen albacore and yellowfin tuna, frozen cod and Alaska pollock, frozen and live lobster, frozen coldwater shrimp, scallops, and squid.

In a statement, E.U. Trade Commissioner Cecilia Malmström said that European companies must be able to compete on fair and equal terms.

Read the full story at Seafood Source

Senator Collins Urges Senior Administration to Develop Gray Zone Fishing Agreement with Canada

April 9, 2019 — SEAFOOD NEWS — Senator Susan Collins of Maine, a senior member of the Appropriations Committee, took issues affecting Maine’s lobster industry to the Commerce Appropriations Subcommittee hearing this week – specifically the “Gray Zone” and the ongoing trade war with China.

The Gray Zone sits approximately 10 miles off the coast of Maine, around Machias Island. Canadian and Maine lobstermen both work in the area, but do not follow the same regulations, which has caused disputees. Maine Lobstermen mark the tails of egg-bearing females and return them to water in an effort to allow them to lay eggs and continue reproducing. Maine lobstermen also abide by size limits, and toss back oversized lobsters to keep the stock strong. Canada lobstermen do not have to follow the same conservation measures, so those notched and oversized lobsters are able to be caught by Canadian lobstermen just yards away.

“Each country manages their lobster and other fisheries in that area through separate and often conflicting regulations,” Senator Collins explained. “The implications of these regulatory discrepancies are very concerning and very unfair to Maine’s lobstermen.”

Dr. Neil Jacobs, Under Secretary of Commerce for Oceans and Atmosphere, committed to working with Senator Collins to “explore the possibility of developing a fisheries management agreement between the U.S. and Canada that would provide for cooperative management of the Gray Zone.”

Besides the issue with the Gray Zone, Senator Collins also spoke out on the ongoing trade war with China, urging the Senior Administration to make some progress with the dispute.

“The retaliatory tariff of 25% that China has levied on U.S. lobster has been very detrimental to the industry,” explained Senator Collins. “What is the status of the trade talks with China, and what hope can you provide to my lobster exporters who are struggling day in and day out, having lost that very lucrative market to our Canadian neighbors?”

While no guarantees were made, Gil Kaplan, Under Secretary of Commerce for International Trade said that they have been “making progress” and are “optimistic about an agreement.”

This story was originally published on SeafoodNews.com, a subscription site. It is reprinted with permission.

US proposes tariffs on European Union goods, seafood products considered

April 9, 2019 — The administration of U.S. President Donald Trump announced on Monday, 8 April, it will consider adding new tariffs on products from the European Union, and seafood imports are on the list for potential duties.

The action stems from a World Trade Organization ruling that stated E.U. illegally subsidized airplane-maker Airbus, creating an unfair trade advantage. As a result of that ruling, the U.S. is contemplating tariffs on USD 11 billion (EUR 9.76 billion) in goods from the 28 member nations in the union.

“The E.U. has taken advantage of the U.S. on trade for many years,” President Trump tweeted on Tuesday morning. “It will soon stop!”

The announcement from Office of the U.S. Trade Representative gives a list of nine products from four E.U. members. The products include helicopters, aircraft, fuselages, and associated parts originating from France, Germany, Spain, and Great Britain.

However, a second list of products the Trade Representative is considering includes products from all member nations. The products include salmon fillets, swordfish steaks, crabmeat, clams, scallops, and other seafood items.

Read the full story at Seafood Source

China bought lots of Florida lobster despite tariffs. Keys fishermen paid the price

April 5, 2019 — Chinese importers bought Florida spiny lobsters in what could be near-record numbers this season, despite a 25 percent tariff their government placed on U.S. seafood last July, according to the leading Florida Keys commercial fishermen’s trade group.

That’s great news considering the fear commercial anglers had about the potential impact of growing U.S.-China trade hostilities on one of South Florida’s largest industries.

“Going into the season, the big questions were: Will the Chinese buy? How much and at what price,” said Bill Kelly, executive director of the Florida Keys Commercial Fishermen’s Association. “The Chinese did buy, at near historic levels.”

Read the full story at the Miami Herald