Saving Seafood

JOHN SACKTON: How coronavirus could impact North American seafood

February 20, 2020 — A lot of people in the seafood industry are thinking about coronavirus (COVID-19). The major impact has been on shipping, tourism, and travel, all of which are vital to the North American seafood industry.

The question is whether this is a short-term event like a hurricane or political strike that impacts one area of our supply chain, or if this is a year-long global pandemic, leading to big changes in behavior in our markets.

Clearly we don’t know yet, despite people like the CEO of Mowi saying it is a short term event. However, we can already see some supply and demand disruptions, and we can prepare for others. After thinking about this for the last couple of weeks, here are some preliminary ideas.

Some products disrupted more than others initially

Most seafood products have not suddenly changed in price over the past few weeks. If you look at Urner Barry’s dashboard, the majority of items remain green, showing rising or steady prices.

Read the full opinion piece at Undercurrent News

Russia-Alaska seafood trade remains a one-way street benefiting Russia

February 19, 2020 — Lost in the headlines about the hits to seafood sales from the Trump administration’s trade war with China is another international barrier that’s been going on far longer.

In August 2014, Russia placed an embargo on all U.S. food products to retaliate for sanctions the U.S and other Western countries imposed over the invasion of Ukraine. The ban included Alaska seafood, which at the time accounted for more than $61 million in annual sales to Russia, primarily pink salmon roe.

But here’s the bigger hurt: For the nearly six years that the embargo has been in place, no corresponding limits have ever been imposed on Russian seafood coming into the U.S.

At first, Alaska seafood companies and the state’s congressional delegation made some “tit for tat” noise about imposing a ban on Russian seafood. But in fact, the value of Russian imports has grown nearly 70% since 2014 — and it all comes into the U.S. almost entirely duty-free.

Read the full story at the Anchorage Daily News

Crab, sole, plaice among nine seafood items receiving exemptions from US tariffs

February 4, 2020 — Nine seafood items have received special exclusions from tariffs placed by the United States on goods imported from China.

The items – which must be individually frozen or frozen in blocks to qualify, depending on the harmonized tariff system (HTS) classification code – include Alaskan sole, Alaskan plaice, flounder, sole, slipper lobster, king crab, snow crab, Dungeness crab, and meat from crabs other than king, snow, Dungeness, and swimming crab.

Read the full story at Seafood Source

Lack of haddock means US importers can’t capitalize on removal from China tariff list

January 23, 2020 — Haddock has been cut from the US list of products from China subject to 25% tariffs, but there is little fish available to capitalize on this opening.

Haddock and flatfish were removed in the ‘list three’ tariffs on Dec. 17 last year, around a month before the “phase one” agreement between the US and China that effectively paused the trade war at the current levels. The bulk of seafood from China still has 25% tariffs on it into the US. China has 35% tariffs on US seafood but has committed to buying $200 billion worth of additional US products, goods and services over the next two years, reducing the US’ bilateral trade deficit in goods, which hit $420bn in 2018.

There was a “concerted effort” from the National Fisheries Institute (NFI) and industry to get haddock excluded, Todd Clark, of importer Endeavor Seafood, told Undercurrent News at the NFI’s 2020 Global Seafood Market Conference (GSMC).

Read the full story at Undercurrent News

Seafood industry awaits details before celebrating ‘phase one’ US-China deal

January 17, 2020 — The US and China may have reached the interim trade agreement that loosely promises to commit China to purchasing more US seafood products, but the seafood industry is keeping its party hats and noisemakers in the drawer.

In a ceremony held Wednesday at the White House, US president Donald Trump and China vice premier Liu He signed the so-called “phase one” trade deal that has been described as hitting the pause button on a two-year trade war that has devastated the US agriculture and seafood industries.

The deal, which is expected to take effect in mid-February and spelled out in an 86-page document, commits China to buying $200 billion worth of additional US products, goods and services over the next two years, reducing the US’ bilateral trade deficit in goods, which hit $420 billion in 2018. It removes planned US tariffs on Chinese cellphones, toys and laptops, as well as halving the existing tariffs on approximately $120bn worth of Chinese goods, the Financial Times recounts.

Read the full story at Undercurrent News

“Phase One” US-China trade deal signed at White House

January 15, 2020 — The so-called “Phase One” trade deal, which cancels current and proposed U.S. tariffs on Chinese goods in exchange for structural economic reforms in China, was formally by U.S. President Donald Trump and Chinese Vice Premier Liu He on Wednesday, 15 January at the White House in Washington D.C.

The deal, which includes specific provisions pertaining to seafood, will go into effect in 30 days.

Read the full story at Seafood Source

Facing new threats, lobstermen take hard line against right whale protections

January 3, 2020 — Their catch this year has plummeted, while their exports to China have been gutted by the trade war. The government has imposed strict quotas on their primary bait. And they’re facing serious lawsuits that could affect how they fish.

Now, the region’s lobstermen are facing a new, imminent threat, one that could drastically change how they’ve operated for generations: regulations to protect North Atlantic right whales.

With a population that has dwindled by 20 percent over the past decade to about 400, the critically endangered species is at risk of extinction, largely because of hundreds of thousands of buoy lines that extend from the surface to the seafloor in the Gulf of Maine.

As a result, federal regulators are considering rules that could cut as many as half those lines, the leading cause of right whale deaths.

But lobstermen here say such limits could devastate an industry that contributes an estimated $1.5 billion to the state’s economy, and their opposition has been building for months, with the support of their state’s leaders.

Read the full story at The Boston Globe

Little-noticed document from US-China ‘phase one’ trade deal hints of positives for US seafood

December 19, 2019 — Language contained in a short, somewhat vague document included as part of the so-called “phase one” US-China trade agreement announced Friday — but not widely publicized — hints at some positive developments coming soon for US seafood harvesters, processors, wholesalers and exporters, Undercurrent News has learned.

But the seafood industry will likely have to wait another month for the details.

Under the heading of “expanding trade”, the US Trade Representative (USTR)’s two-page fact sheet, handed out to stakeholders, says China has committed to exceeding its 2017 purchase of US goods and services by no less than $200 billion, including “manufactured goods, food, agricultural and seafood products,” among other things.

It further adds that the increase should “continue on this same trajectory for several years after 2021 and should contribute significantly to the rebalancing of the US-China trade relationship.”

Read the full story at Undercurrent News

United States and China reach agreement to deescalate trade war

December 13, 2019 — The United States and China announced an agreement in which China will make structural reforms to its trading policies and strengthen its intellectual property protections in exchange for a reduction of current and proposed U.S. tariffs.

The U.S. will cancel its plan to implement another round of tariff increases later this month, and will reduce its 15 percent tariffs to 7.5 percent on USD 120 billion (EUR 107.9 billion) worth of Chinese goods. It will leave in place 25 percent tariffs on an additional USD 250 billion (EUR 224.8 billion) of Chinese imports, however, according to the Office of the U.S. Trade Representative (USTR). The USTR did not identify which goods would see reduced tariffs.

Read the full story at Seafood Source