Saving Seafood

Joint Statement of the United States and the European Union on a Tariff Agreement

August 21, 2020 — The following was released by the Office of the United States Trade Representative:

United States Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan today announced agreement on a package of tariff reductions that will increase market access for hundreds of millions of dollars in U.S. and EU exports.  These tariff reductions are the first U.S.-EU negotiated reductions in duties in more than two decades.

Under the agreement, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products.  U.S. exports of these products to the EU were over $111 million in 2017.  The EU will eliminate these tariffs on a Most Favored Nation (MFN) basis, retroactive to begin August 1, 2020.  The EU tariffs will be eliminated for a period of five years and the European Commission will promptly initiate procedures aimed at making the tariff changes permanent.  The United States will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts.  The U.S. tariff reductions will also be made on an MFN basis and retroactive to begin August 1, 2020.

“As part of improving EU-US relations, this mutually beneficial agreement will bring positive results to the economies of both the United States and the European Union.  We intend for this package of tariff reductions to mark just the beginning of a process that will lead to additional agreements that create more free, fair, and reciprocal transatlantic trade,” said Ambassador Lighthizer and Commissioner Hogan.

Timeline on Negotiations:

In 2019, at the direction of President Donald J. Trump, the United States completed formal procedures necessary to launch negotiations on a trade agreement, as did the European Commission.

In September 2018, as required by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, Ambassador Lighthizer consulted with members of Congress on the Trump Administration’s interest in launching trade negotiations with the EU.  On October 16, 2018, the Office of the United States Trade Representative officially notified Congress that President Trump intended to launch trade negotiations with the EU.  On January 11, 2019, following consultations with Congress and public comment period from U.S. stakeholders, the Trump Administration issued formal U.S. negotiating objectives for the EU.

The agreement being announced today arose out of continuing engagement with the EU on these issues.

EU drops tariffs on US lobster

August 21, 2020 — The European Union will immediately eliminate its tariffs on imports of U.S. live and frozen lobster products, according to an announcement from the United States Trade Representative’s office.

An agreement struck between U.S. Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan on Friday, 21 August will result in the E.U. eliminating the lobster tariffs on a Most-Favored Nation basis, retroactive to 1 August, 2020. In return, the United States will reduce by 50 percent its tariffs on a variety of products including prepared meals, glassware, propellant powders, cigarette lighters, and other products collectively valued at around USD 160 million (EUR 135.7 million). The U.S. tariff reductions will also be made on a Most-Favored Nation basis and are retroactive to 1 August.

Read the full story at Seafood Source

Maine delegation steps up pressure on Trump administration to release lobster industry aid

August 20, 2020 — Maine’s congressional delegation wrote a letter to a federal agency on Wednesday asking it to act immediately on aid recommended by President Donald Trump for the lobster industry, which has been struggling under the effects of tariffs and the coronavirus pandemic.

The group asked U.S. Secretary of Agriculture Sonny Perdue to act before Monday’s deadline. In his June 24 memo, which came three weeks after he visited fisheries experts in Maine, the president urged Perdue to consider taking appropriate action “to provide assistance to fisherman and producers in the U.S. lobster industry that continue to be harmed by China’s retaliatory tariffs.”

Since then, the administration has been largely silent about any firm actions it might take. Rep. Chellie Pingree, a Democrat from Maine’s 1st District, in early July inserted language into a 2021 spending bill that would require the USDA to act swiftly on the aid.

Read the full story at the Bangor Daily News

LARRY BARKER: Lobstering restrictions will hurt much more than Maine’s fishermen

August 11, 2020 — Maine’s lobster industry is threatened by “a perfect storm” as it faces a crippling lack of demand because of both the pandemic and the China trade war, and a cascade of impacts from the development of government-mandated restrictions seeking to protect the endangered right whale. All Mainers should be aware of how political pressure to reverse the decline of right whales is affecting our fishermen, bringing with it disastrous ripple effects that will affect tens of thousands of livelihoods across our treasured state. Despite Maine’s stellar track record in protecting right whales, this battleground recently resulted in the loss of a sustainability certification, which means loss of even more markets for Maine lobster.

The Maine lobster industry is the backbone of our coastal communities from Portland to Eastport. Machias Savings Bank has been one of Maine’s leading sources of financing for this industry for decades and we understand that as the industry ebbs and flows, so do the economies of Maine’s coastal communities.

Since the 1990s, Maine lobstermen have demonstrated an ongoing commitment to the protection of whales by making significant changes to how they fish, consistently adhering to whale-protection standards, participating in discussions of best practices to ensure whale safety and being actively involved in the development of new materials and techniques that are safer for whales. According to data collected by the National Marine Fisheries Service, no right whale deaths or serious injuries have ever been documented in Maine lobster gear. I have many good friends who are lobster fishermen. My son is a lobster fisherman. I have asked many of them about this issue and not only have they never had a right whale tangled in their gear, they have never seen a right whale while tending their gear in Maine!

Read the full opinion piece at the Portland Press Herald

USTR extends tariff exclusions for some seafood products, others will face tariffs again

August 10, 2020 — The United States Trade Representative has released a list of products shipped from China that will receive an extension of tariff exclusions, with several seafood items on the list.

The exclusion extensions apply to several seafood products shipped from China, and allows those products to continue avoiding a 25 percent tariff. The product exclusions will continue to retroactively apply as of 24 September, 2018, and were set to expire on 7 August before the extension which came on the last day before those products would be back under the tariff program.

Read the full story at Seafood Source

Seafood could be casualty in escalating US trade spat with EU

July 31, 2020 — US companies importing seafood into the United States from the European Union (EU) or United Kingdom may have to contend with an up to 100-percent tariff increase as part of a decades-long US World Trade Organization (WTO) dispute over subsidies given to Netherlands-based Airbus.

On July 26 the US Trade Representative (USTR) accepted its final comments for a proposal that $3.1 billion (€2.6 billion) worth of products, including seafood, be slapped with tariffs of up to 100 percent. The United Kingdom is also included as part of that list.

The USTR is set to make a decision on the tariffs in August.

The seafood products, which have been considered for previous tariff action but have avoided US tariffs so far, are from Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain Sweden and the United Kingdom.

Read the full story at IntraFish

Proposed US tariffs on EU seafood products nearing end of consultation period

July 28, 2020 — A bevy of seafood products from the European Union could be the target of new tariffs by the United States, stemming from a dispute over European subsidies for Airbus.

Starting in October, several mainly premium goods from the E.U. – such as Scotch whisky, cashmere, cheeses, and others – have carried a 25 percent tariff, with salmon and other seafood products barely avoiding a tariff in the trade spat. The tariffs stem from U.S. criticisms of what it calls over-subsidization of Airbus by European governments, with the World Trade Organization (WTO) allowing the U.S. to take USD 7.5 billion (EUR 6.3 billion) in retaliatory tariffs, BBC news reported.

Read the full story at Seafood Source

Rubio Leads Colleagues in Urging Secretary Perdue to Include Florida Fishermen in Administration’s Lobster Relief Program

July 23, 2020 — The following was released by The Office of Senator Marco Rubio (R-FL):

U.S. Senator Marco Rubio (R-FL) led members of the Florida congressional delegation in urging U.S. Department of Agriculture Secretary Sonny Perdue to include Florida’s commercial fishermen in the lobster relief program announced by President Trump on June 24, 2020. The program addresses harm to the United States lobster industry caused by steep tariffs imposed by the Chinese government. More information can be found here.

“This belligerent economic behavior by the Chinese government has the potential to significantly reduce the market share of Florida’s spiny lobster in the Asian marketplace, and could have a ripple affect across our state’s economy,” the lawmakers wrote. “We are concerned about the long-term future of Florida’s spiny lobster fishery and the ability of our fishermen to earn a living.”

Rubio was joined by Senator Rick Scott (R-FL) and Representatives Stephanie Murphy (D-FL), Donna Shalala (D-FL), Brian Mast (R-FL), Daniel Webster (R-FL), Francis Rooney (R-FL), Mario Diaz-Balart (R-FL), Neal Dunn (R-FL), Alcee L. Hastings (D-FL), Debbie Mucarsel-Powell (D-FL), Debbie Wasserman Schultz (D-FL), Bill Posey (R-FL), Darren Soto (D-FL), Ross Spano (R-FL), and Al Lawson, Jr. (D-FL).

The full text of the letter is below.

Dear Secretary Perdue:

We write to request the inclusion of Florida commercial fishermen in the lobster relief program announced by President Trump on June 24, 2020, in response to the difficulties facing the United States lobster industry due to tariff action by the Chinese government.

Florida’s vibrant lobster fishery has suffered harm by the tariffs imposed by the Chinese government. Spiny lobster is the state’s second largest commercial fishery with an average annual catch of seven million pounds and a total value of more than $45 million. Spiny lobster is renowned for its quality and freshness and is immensely popular in China during holidays and other special events. An estimated 80 percent of all spiny lobster harvested in Florida is exported to China and other Asian ports as a live product. Tariffs placed on spiny lobster by the Chinese government have greatly increased the price of Florida’s spiny lobster exports. Meanwhile, the Chinese government is reducing or eliminating tariffs on competing products from other countries and have begun importing greater numbers of spiny lobster from Australia, Brazil, and the Caribbean.

This belligerent economic behavior by the Chinese government has the potential to significantly reduce the market share of Florida’s spiny lobster in the Asian marketplace, and could have a ripple affect across our state’s economy. We are concerned about the long-term future of Florida’s spiny lobster fishery and the ability of our fishermen to earn a living.

Florida’s fishermen have been harmed by the tariffs imposed on lobster from the United States. As such, we respectfully request their inclusion in the relief program.

Thank you for your attention to this matter.

Senators Markey and Warren, and Reps. Moulton and Keating Call for Mass. Lobster Industry to be Included in Lobster Tariff Assistance

July 1, 2020 — The following was released by The Office of Senator Ed Markey (D-Mass.):

Senators Edward J. Markey (D-Mass.) and Elizabeth Warren (D-Mass.), and Representatives Seth Moulton (MA-06), and William R. Keating (MA-09) wrote to the Trump administration urging it to fairly include the Massachusetts lobster industry in any discussions or distribution of trade relief assistance provided to the lobster industry and seafood producers in response to China’s retaliatory tariffs. The Trump administration issued a memorandum on June 25, 2020 that instructed Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer to assess the need for assistance and the impact by the retaliatory tariffs on Maine and other affected states. Massachusetts has the second-largest lobster industry of any state, and since the tariffs were imposed in 2018, national lobster sales to China have fallen by 66 percent – from approximately $138 million in 2018 to $47 million in 2019.  In addition to the impacts of China’s retaliatory tariffs, the lobster industry has been suffering from the impacts of the Canadian-European Union (EU) Comprehensive Economic and Trade Agreement, which provides tariff-free access for Canadian lobster products sold in the EU, and the coronavirus pandemic, which has shuttered restaurants and eliminated a primary source of domestic consumption.

“These challenges create a direct need for assistance to this industry, and we urge you to include Massachusetts lobstermen in your efforts to assess how and whether that aid will be distributed,” write the lawmakers in their letter. “This relief could help many small business owners withstand the ongoing economic crisis and preserve a key part of New England’s cultural identity.”
 
A copy of the letter can be found HERE. 
 
The Massachusetts lawmakers, led by Senator Markey, have championed the swift, equitable, and transparent allocation of financial aid to fishery participants during the coronavirus pandemic and secured a $20 million U.S. Department of Agriculture procurement of Atlantic seafood in May.  Senators Markey and Warren, and Alaska Senators Lisa Murkowski and Dan Sullivan successfully called on Senate leadership to include support for the fishing industry in coronavirus economic relief packages, of which Massachusetts received $28 million. On June 6, Senators Markey and Warren wrote to Senate leadership and asked for an additional $500 million in fisheries assistance in order to make the fishing and seafood industries in Massachusetts whole from the effects of the pandemic.

Lobster prices falling in New England, and they might fall further

June 29, 2020 — Lobster prices are falling in New England as the industry deals with the effects of the coronavirus pandemic, and they could drop even more later this summer, industry officials said.

The American lobster fishing industry, based mostly in Maine, has had to cope with a supply chain that has been disrupted by the pandemic. Wholesale prices were lower than previous years this spring, and consumers started to see lower prices at markets earlier in June.

Members of the industry said prices could likely fall more in July. America’s lobster catch typically picks up in the summer, when lobsters shed their shells and reach legal trapping size. This year, fishers will likely bring lobsters to the docks in a time when restaurants are slowed or shuttered and seafood processors aren’t taking nearly as many of the crustaceans, industry members said.

That could translate to lower prices to consumers, who are already paying less than $6 per pound for lobsters in some Maine markets. Prices around $8 or $9 per pound are typical of this month in Maine.

“The state needs to do something to curb supply, because there is no demand,” said David Cousens, a lobster fisher and former president of the Maine Lobstermen’s Association. “Otherwise we’re going to have a disaster.”

Read the full story from the Associated Press at the Sun Journal