Saving Seafood

Maine delegation asks for help easing tariff impact on lobster industry

July 15, 2019 — Maine’s Congressional delegation is urging the U.S. Department of Agriculture to include funding for Maine’s lobster industry as USDA finalizes its aid package for agricultural producers affected by China’s retaliatory tariffs.

U.S. Sens. Angus King, I-Maine, and Susan Collins, R-Maine, and Reps. Chellie Pingree, D-Maine 1st District, and Jared Golden, D-Maine 2nd District, have signed a letter that reiterates an earlier request of relief for Maine’s lobster industry amid the ongoing trade war with China, according to a news release.

“Retaliatory tariffs have caused a very significant export market for Maine lobster — China — to all but disappear,” the letter says.

The delegation requested “significant” funds for Maine’s lobster industry through USDA’s Agricultural Trade Promotion Program.

“ATP funding will help to develop new export markets for Maine lobster, decreasing the blow of Chinese tariffs on an iconic American industry,” the letter said.

In June, the delegation sent a letter to President Donald Trump urging him to provide financial assistance to lobster businesses hurt by the ongoing trade war with China, similar to the relief being provided to American farmers.

The delegation noted that prior to the Trump administration’s tariffs imposed on a variety of Chinese goods, China had become the second largest importer of Maine lobster.

Read the full story at MaineBiz

Gloucester Lobster Industry Feeling The Pinch From China Trade War

July 11, 2019 — In Massachusetts, lobster is about as local a food as you can hope to find. These days, it’s also likely to be on the menu in Beijing and Shanghai. China has become a major lobster importer.

But one year into the U.S. trade war with China, U.S. lobster sales to China are down, and coastal communities — including Gloucester — are feeling the pinch.

Vince Mortillaro, who runs a lobster wholesale company in Gloucester, has worked over the last decade to capitalize on the demand for lobster from China, developing systems that enable him to ship fresh lobster from Gloucester to China in 36 hours and spending $3 million to build a new dock and warehouse to hold extra product.

The payoff was enormous: a 30 to 40 percent jump in business.

Then the trade war began, and lobster, like soybeans and steel, was caught in the cross hairs. In response to U.S. tariff increases on Chinese goods in July 2018, China raised tariffs on U.S. imports — including lobster. It now costs Chinese companies an extra 25 percent to buy lobsters from the U.S.

“We’re down over $6 million in sales,” said Mortillaro. “Over a million dollars a month.”

But China is still importing plenty of lobster — now, from Mortillaro’s competitors in Canada. In the wake of raising U.S. lobster tariffs, China lowered tariffs on Canadian lobsters to 7 percent.

Read the full story at WGBH

Lobster dealers feel pinch in tariff trade wars

July 3, 2019 — A year ago this month, China imposed a sweeping array of retaliatory tariffs that effectively closed off the massive Chinese consumer market to U.S. seafood dealers — particularly lobster exporters such as Mortillaro Lobster of Gloucester.

Consider: Mortillaro estimates that during the first six months of 2019, the 25% Chinese tariffs have cost it more than a half-million pounds of lobster sales to China, valued at about $6 million.

“The impact has been huge,” Vince Mortillaro, one of the owners of the Gloucester seafood dealer, said Tuesday afternoon. “We’ve had to lay people off. We’re not losing a barrel-full right now, but we’re not really making any money, either. And it’s tough to come to work when the company’s not really making any money.”

And it’s not just China.

Mortillaro and other lobster exporters also have been stung by deep cuts in lobster sales to the European Union — primarily because of an exclusive trade deal between Canada and the EU that frees Canadian lobster exporters from any tariffs while imposing an 8% tariff on shipments from the U.S.

“We used to sell more to the EU than to China,” Mortillaro said. “Now we’ve got the double-whammy. We can’t sell to the 28 EU countries and we can’t sell to China.”

Read the full story at the Gloucester Daily Times

Moulton, Ferrante: Trade war hurting lobstermen

July 1, 2019 — The U.S. trade war with China has turned into a war of another kind, as representatives at the state and federal levels are taking aim at tariffs that have rocked several sectors of the New England seafood industry.

In Washington, U.S. Rep. Seth Moulton, a Democratic candidate for president, filed legislation to expand disaster relief to fisheries — such as the New England lobster industry — harmed by retaliatory tariffs that have choked off lucrative trade with China.

The bill calls for amending the Magnuson-Stevens Fishery Conservation and Management Act “to require NOAA to evaluate the impacts of duties imposed on American seafood” and to ultimately allow the federal Department of Commerce to consider the impact of trade wars on the fishing industry as a means of providing disaster relief.

A similar measure was filed in the U.S. Senate by Sen. Ron Wyden, the senior senator from Oregon.

“The president’s lack of strategy and the uncertainty in our local economy is the perfect storm for local fishermen who are already doing more with less,” Moulton said in a statement. “Until the president ends his misguided trade war, Congress should step up and provide some relief.”

In Boston, state Rep. Ann-Margaret Ferrante of Gloucester pushed for a hearing in Gloucester by a joint committee of the Massachusetts Legislature on the Trump administration’s trade policies with China “and its effects on the Massachusetts lobster industry and corresponding ports.”

Read the full story at the Gloucester Daily Times

US congressmen propose expanding fishermen disaster relief to include tariffs

July 1, 2019 — A pair of Democratic lawmakers announced on Wednesday, 26 June, that they have filed legislation to amend the Magnuson-Stevens Act to enable the federal government to expand the scope of fishery disasters to include trade wars.

In a joint release, Oregon U.S. Senator Ron Wyden and Massachusetts U.S. Representative Seth Moulton said their bills would require the Department of Commerce to consider the economic impact the Trump Administration’s embargoes, and the retaliatory ones implemented by nations like China.

According to NOAA Fisheries website, there have been 87 fishery disasters either approved or awaiting approval since 1985.

Moulton said the ongoing trade war is taking money away from hard working fishermen and making families’ grocery bills more expensive.

“The president’s lack of strategy and the uncertainty in our local economy is the perfect storm for local fishermen who are already doing more with less,” he said. “Until the president ends his misguided trade war, Congress should step up and provide some relief.”

A number of industries have been affected by the tariffs, Wyden said, including American fisheries.

Read the full story at Seafood Source

Sen. Wyden introduces bill to expand disaster relief to fisheries harmed by tariffs

June 27, 2019 — U.S. Sen. Ron Wyden, (D-Ore.), and U.S. Rep. Seth Moulton, (D-Mass.), recently introduced legislation to expand disaster relief to fisheries harmed by tariffs.

Currently, the National Oceanic and Atmospheric Association (NOAA) guidelines used to identify the causes of fishery disasters does not explicitly include tariffs. Wyden’s bill would amend the Magnuson-Stevens Fishery Act to require NOAA to evaluate the impacts of duties imposed on American seafood, ensuring the Department of Commerce receives a complete overview of factors affecting a fishery in all fishery disaster declaration designations.

“American businesses are being hit hard by retaliatory tariffs from Trump’s ill-conceived trade agenda,” Wyden said. “Fisheries unfortunately are no exception. West Coast seafood is sought after internationally, and Oregonians earning a living in fisheries should be able to command top dollar on the global market, rather than be ensnared in the cross-fire of Trump’s escalating trade war.”

In March of this year, Wyden and Sen. Jeff Merkley, (D-Ore.), secured $2.1 million in federal disaster recovery aid for coastal fisheries in Oregon. Multiple years of drought in California, parasites within the Klamath River Basin and poor ocean conditions led to low returns of the Oregon Klamath River Fall Chinook Salmon Fishery in 2016 and 2017.

Read the full story at The News Guard

Alaska Congress members ask to tap relief funds for seafood

June 20, 2019 — Alaska’s congressional delegation said the state’s fishermen and seafood processors should be included in a federal trade war relief package, a report said.

Lawmakers asked the Trump administration to give its seafood industry access to $15 billion earmarked for farmers, The Anchorage Daily News reported Wednesday.

“Unjustified retaliatory” tariffs are eroding Alaska seafood’s market share in China, U.S. Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young said in a June 11 letter.

“New market growth has stopped and Alaska seafood consumption has dropped,” the legislators wrote to Perdue.

China’s 25% tariff on Alaska salmon, pollock, cod and other fish implemented in July boosts the overall tariff to 32% on some fish species, they said.

Read the full story from the Associated Press at the San Francisco Chronicle

China Is Cutting Tariffs—For Everyone Else

June 19, 2019 — Lobster is Maine’s top export. Like many Americans with something to sell, Maine’s trappers benefited from positive turns in China’s economic development. The movement of tens of millions of people out of poverty and into the middle class increased demand for a source of protein—and a Chinese New Year delicacy—that Maine could happily provide.

Yet in the wake of President Donald Trump’s trade war, American lobster sales to China have decreased by 70 percent. China’s 25 percent retaliatory tariff on American lobster was only the start. Beijing has actively helped Chinese grocers and restaurants by also reducing the costs of their finding new, non-American suppliers. It has cut the Chinese tariff on lobster bought from Canada, Maine’s fierce rival in the lobster business. As a result, Canada has seen its lobster exports to China nearly double. Maine may never recover its previously dominant position in this export market.

This story is not singular. Trump started the trade war by levying new taxes on $250 billion worth of Chinese exports. China retaliated both by increasing the duties Americans face and by decreasing the tariffs that confront everyone else: It has cut tariffs on thousands of products from the rest of the world’s fisheries, farmers, and firms.

Read the full story at The Atlantic

Season of uncertainty: Alaska braces for seafood tariffs

June 14, 2019 — Fisheries are always fraught with uncertainties, but there is an added element this year: trade tariffs on Alaska’s largest export: seafood. “The industry is accustomed to dealing with uncertainty about harvest levels, prices and currency rates. The trade disputes just add another layer to that,” said Garrett Evridge, an economist with the McDowell Group.

Tariffs of up to 25 percent on U.S. seafood products going to China went into effect last July and more are being threatened now by the Trump administration. China is Alaska’s biggest seafood buyer purchasing 54 percent of Alaska seafood exports in 2017 valued at $1.3 billion.

“It’s important to remember that a tariff is simply a tax and it increases the prices of our products,” Evridge explained. “As Alaskans we are sensitive to any increase in the price of our seafood because we are competing on a global stage. And right now we have tariffs imposed on seafood from the Chinese side and the U.S. side.”

In terms of Alaska salmon, the new taxes could hit buyers of pinks and chums especially hard. Managers expect huge runs of both this summer and much of the pack will be processed into various products in China and then returned to the United States.

“There is uncertainty as to whether or not those products will be tariffed and the Trump administration has indicated they want to tariff all products from China,” Evridge said.

For salmon, in a typical year Alaska contributes 30 to 50 percent of the world’s wild harvest. But when you include farmed salmon, Evridge said, Alaska’s contribution is closer to 15 percent of the global salmon supply.

The Alaska Dept. of Fish and Game is predicting a total catch of 213.2 million salmon this year, more than 80 percent higher than in 2018.

Read the full story at National Fisherman

Feature: The Entanglement Tango

June 14, 2019 — Despite an ongoing federal trade war with China imposing tariffs on seafood exports and a looming bait crisis as herring quota were slashed in the Atlantic, Maine’s lobster fleet still managed to haul in crustacean cash. The fleet landed 120 million pounds of lobster worth $484 million in 2018, the fishery’s third-highest annual value ever.

Coming off a profitable year, lobstermen might normally be energized gearing up for the peak summer and fall — but the latest news in the industry’s labored relationship with the Atlantic’s endangered right whale population had them focused on the future of their livelihood instead of the upcoming summer.

In April, NOAA informed the industry that in order to reduce mortality and serious injury to right whales, the U.S. fishing industry would need to reduce risks to whales by 60 to 80 percent throughout New England.

To reach those goals, fishing stakeholders on the federal Atlantic Large Whale Take Reduction Team agreed to attempt a drastic measure: significantly reducing the number of vertical lines used by the region’s lobstermen. In Maine, where thousands of small-scale lobstermen catch the majority of the U.S. lobster haul, that means reducing vertical lines in the water by at least 50 percent.

Read the full story at National Fisherman