Saving Seafood

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

Trump directs aid to Maine lobster industry crushed by tariffs

June 26, 2020 — President Trump ordered the Department of Agriculture to offer a lifeline to the struggling Maine lobster industry that has been hit hard by his trade policies with China.

Trump’s trade war with China devastated farmers in the Midwest, but it also evaporated Maine’s chief export market as escalating tariffs led China to place a 35 percent markup on lobster.

The late Wednesday order from Trump all but directs the Agriculture Department to extend a $30 billion farm bailout program to Maine’s commercial fishers. The program previously sent cash to corn, soybean, pig and other farmers, primarily in the Midwest, who Trump has courted in his reelection effort.

The move follows years of lobbying by Maine’s congressional delegation, which cited “severe financial difficulties due to unfair retaliatory tariffs” in a joint statement expressing support for the government aid.

“Better late than never,” Sen. Angus King (I-Maine) tweeted.

“We made it clear last year in a letter comparing our lobster industry to the farmers in the Midwest seeing relief in this tariff fallout. The first line was ‘Why not lobsters?’” King added in a statement to The Hill, noting that lobsters were one of the first items hit with Chinese tariffs.

Read the full story at The Hill

President Trump tweets about Maine lobster, orders financial help for industry

June 25, 2020 — President Donald Trump is directing his administration to explore options to financially help the Maine lobster industry.

According to the Presidential Memo, the Secretary of Agriculture is to “consider including the United States lobster industry and other segments of the United States seafood industry in any future assistance provided to mitigate the effects of China’s retaliatory trade practices.”

The directive is similar to trade offsets to help Midwestern farmers hurt by trade policies, which have added up to approximately $25 billion.

President Trump said retaliatory Chinese tariffs have hit the Maine lobster industry particularly hard.

Read the full story at WGME

Trump signs executive order to support US lobster industry

June 25, 2020 — U.S. President Donald Trump has signed a new order intended to help the country’s lobster industry, stemming from a 5 June press conference in Maine.

The new order will task the United States Trade Representative (USTR) with keeping close track of the progress made by China under the most recent, “Phase One” of a trade deal signed by President Trump. That deal was beneficial for the U.S. lobster sector, which experienced a massive downturn in exports to China in the wake of retaliatory tariffs that the country implemented in July, 2018.

Read the full story at Seafood Source

White House Signs New Memorandum on Trade Relief for Lobster Fishery

June 25, 2020 — The following was released by the White House:

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1.  Policy.  On May 22, 2018, the United States Trade Representative (Trade Representative) concluded an investigation under section 301 of the Trade Act of 1974, as amended (19 U.S.C. 2411), finding that China had engaged in multiple unreasonable and discriminatory trade practices that had harmed American intellectual property rights, innovation, and technology development.  In response to China’s unfair and unreasonable conduct, the United States imposed tariffs on several categories of Chinese products.

Rather than reform its practices, China responded to the Trade Representative’s findings with unjust retaliatory tariffs designed strategically to inflict financial harm on America’s farmers, fishermen, and workers in other industries.

My Administration has forcefully addressed China’s unfair assault on American producers.  Among other measures, I directed the Secretary of Agriculture to deliver a comprehensive trade aid package to American farmers.  He did so, providing more than 14 billion dollars in direct payments to American farmers under the authority of the Commodity Credit Corporation (CCC) Charter Act.

China’s retaliatory assault on the American lobster industry was particularly aggressive.  On July 6, 2018, China imposed retaliatory 25 percent tariffs on American lobster.  On September 1, 2019, China raised those retaliatory tariffs to 35 percent.  On February 14, 2020, China reduced its punitive lobster tariffs to 30 percent.  When those retaliatory tariffs are added to China’s prevailing Most Favored Nation tariffs of 5 percent and 7 percent, depending on the species of lobster, American lobsters currently face tariffs of either 35 percent or 37 percent.

On January 15, 2020, I signed the landmark Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic of China (“Phase One Agreement”).  The Phase One Agreement requires important structural reforms from China related to issues such as intellectual property theft, forced technology transfer, and exchange rate manipulation.  As part of the Phase One Agreement, China made binding commitments to purchase large quantities of United States manufactured goods, agricultural products, and services.  Seafood, including lobsters, is one of the agricultural products China agreed to purchase.  To help fulfill this purchase commitment, China has made available exclusions from its retaliatory tariffs for imports of United States lobster.

At this time, it remains unclear to what extent China’s exclusions from its retaliatory tariffs will result in increased exports of United States lobster.  Such exports are particularly important because exports to the European Union, another large market for United States lobster, appear to have been significantly and negatively affected by the recent implementation of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.

The lobster industry is a crown jewel of America’s seafood industry.  From 2015 to 2018, American lobster was the most valuable single seafood species harvested in the United States, with Maine accounting for approximately 80 percent of that value each year.  It is, therefore, the policy of my Administration to mitigate the effects of unfair retaliatory trade practices on this important industry.

Sec. 2.  Protecting the United States Lobster Industry.  (a)  The Secretary of Agriculture shall, within 60 days of the date of this memorandum, consider taking appropriate action, to the extent permitted by applicable law, to provide assistance to fishermen and producers in the United States lobster industry that continue to be harmed by China’s retaliatory tariffs.

(b)  The Secretary of Agriculture shall also consider including, to the extent permitted by applicable law, the United States lobster industry and other segments of the United States seafood industry in any future assistance provided to mitigate the effects of China’s retaliatory trade practices.

Sec. 3.  Reciprocal Tariffs.  (a)  The Trade Representative shall, beginning August 15, 2020, submit a monthly report to the President detailing:

(i)   China’s progress in meeting its purchase commitments under the Phase One Agreement with respect to United States seafood; and

(ii)  the value of monthly Maine and other United States lobster exports to China, beginning with China’s imports for June 2020.

(b)  In the event that the Trade Representative determines that China is not meeting its purchase commitments under the Phase One Agreement with respect to seafood, the Trade Representative shall consider, to the extent permitted by law, taking all appropriate action to impose reciprocal retaliatory tariffs on seafood exports from China.

Sec. 4.  Addressing Negative Effects of the CETA between Canada and the European Union on the United States Lobster Industry.  Pursuant to section 1332(g) of title 19, United States Code, and section 5-301 of Executive Order 12661 of December 27, 1988 (Implementing the Omnibus Trade and Competitiveness Act of 1988 and Related International Trade Matters), the Trade Representative shall request that the United States International Trade Commission (USITC) provide a report that details any negative effects of the CETA on the United States lobster industry.  The Trade Representative shall submit such report to the President.  The Trade Representative, in consultation with the Secretary of Agriculture and Secretary of Commerce, shall recommend appropriate actions that may be taken to minimize or eliminate any negative effects identified in the USITC report.

Sec. 5.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Fact checking Trump’s claims about the Maine lobster industry

June 25, 2020 — In another tweet rife with falsehoods, President Trump on Wednesday alleged that his predecessor, Barack Obama, “destroyed the lobster and fishing industry in Maine.”

He added: “Now it’s back, bigger and better than anyone ever thought possible. Enjoy your ‘lobstering’ and fishing! Make lots of money!”

The truth is that in 2016, the last year of Obama’s presidency, Maine had a record lobster catch. Not that Obama had anything to do with it, but during his eight years in office, Maine’s lobster catch nearly doubled in landings and value.

The catch rose from less than 70 million pounds in 2008 to more than 132 million pounds in 2016, which remains the record. In the same period, the value of the catch surged from $245 million to a record $540 million.

Read the full story at The Boston Globe

White House pledges support for lobster industry

June 24, 2020 — President Donald Trump today signed an executive order to support the lobster industry, following conversations that started with the roundtable discussion in Maine on June 5.

“It’s a promise made, promise delivered,” said John Horstman, director of media affairs and special assistant to the president.

Though details are still developing, the executive order is expected to give the lobster industry the same assistance farmers received as a result of the retaliatory tariffs coming from China.

Read the full story at National Fisherman

MAINE: Green Plate Special: Eat more lobster — this is the kind of ask we really like

June 22, 2020 — Maine’s iconic lobster industry has taken its share of lumps in the past year. Stricter 2019 quotas on the herring catch drove bait prices up. A cold 2019 spring meant the bugs molted later than usual, delaying when lobstermen could bring popular soft-shell lobsters (sometimes sold as “new-shell”) to market. On Sept. 1, China raised tariffs on live, American-caught lobster by 10 percent. And throughout the winter, scientists, environmentalists and the courts demanded the lobster fishery change to better protect endangered right whales  (the population hovers at just 400). The overall lobster haul dipped by 16% between 2018 and 2019, although harvesters were buoyed to some extent by higher than normal prices.

Yarmouth resident Rebecca Spear — wife, daughter-in-law and mother of lobster fishermen — explains that when the COVID-19 crisis first hit Maine in March, she didn’t immediately panic over how the pandemic might affect the 2020 income of the lobstermen and boys in her life (her 10-year-old son, Jack, holds a student lobster and crab license). “That’s always the slow season for us,” Spear said.

But as restaurant service in Maine and across the country remains truncated leading into prime lobster-eating season, she is worried now. Selling direct to customers was a good springtime stopgap solution. Spear is grateful that Maine eaters have sought out more locally sourced food as the national food supply has struggled in response to the pandemic. She urges Mainers to continue to buy lobster early and often this summer to help keep the fleet afloat. Here’s my suggestion: buy a few extra, cook them all for dinner, and serve the leftovers with eggs for breakfast.

Read the full story at the Portland Press Herald

China unlikely to consider lowering of lobster tariffs, despite Trump’s threat

June 11, 2020 — On Friday, 5 June, at a meeting with commercial lobstermen from the U.S. state of Maine, U.S. President Donald Trump threatened to impose new tariffs on imported Chinese and European Union goods if they did not eliminate their tariffs on U.S. lobsters.

At the meeting, Trump appointed U.S. Office of Trade and Manufacturing Policy Director Peter Navarro the task of identifying additional Chinese and European products to hit with tariffs as a means of pressuring Beijing to eliminate all tariffs on American lobsters.

Read the full story at Seafood Source