Saving Seafood

Temporary truce reached in US-China trade war

December 3, 2018 — Meeting at the G20 Summit on Saturday, 1 December in Buenos Aires, Argentina, Chinese President Xi Jinping and U.S. President Donald Trump agreed to a détente in their trade war.

In an announcement after the meeting, the White House said Trump had agreed to postpone his plan to ramp up existing 10 percent tariffs on USD 200 billion (EUR 170 billion) of Chinese goods to a 25 percent rate on 1 January, 2019. That move is contingent upon China and the United States coming to terms on a broad collection of disagreements – including intellectual property protection and forced technology transfer and a widening trade deficit – that set the trade war in motion in January 2018.

“This was an amazing and productive meeting with unlimited possibilities for both the United States and China,” Trump said in a statement.

Read the full story at Seafood Source

We’ll take your lobsters, eh? Canadian imports from US soar

November 30, 2018 — Trade hostility from across the ocean was supposed to take a snip out of the U.S. lobster business, but the industry is getting a lifeline from its northern neighbor.

Heavy demand from Canada is buoying American lobster as both countries head into the busy holiday export season, according to federal statistics and members of the industry. It’s a positive sign for U.S. seafood dealers and fishermen, even as the industry struggles with Chinese tariffs.

China emerged as a major consumer of American lobster earlier this decade, but the country slapped heavy tariffs on exports in July amid its trade kerfuffle with President Donald Trump’s administration. Lobster exports slowed to a crawl.

Industry watchers forecast the move as a potential calamity for U.S. seafood, but Canada has boosted the value of its lobster imports from America by more than a third so far this year, up to more than $180 million through September.

Canada has its own lobster fishing industry, which harvests the same species as U.S. fishermen, and the country sells lobsters domestically as well as to Europe and Asia. The country’s importing so many from the U.S. this year because it needs enough supply to send to China, said members of the lobster industry on both sides of the border.

“They go there to go to China, to avoid the tariffs,” said Spiros Tourkakis, executive vice president of East Coast Seafood, a dealer in Topsfield, Massachusetts.

Read the full story from the Associated Press at The Seattle Times

Ongoing China-U.S. Trade War Likely to Bring Changes to Global Seafood Industry

November 20, 2018 — SEAFOOD NEWS — Chinese seafood exports to America have grown this year, despite the trade war. However, the trade war with the U.S. could have global impacts, writer Amy Zhong reports from China.

Chinese seafood exports to the U.S. were US $3.22 billion during 2017, while the exports have risen by 5.75 percent to reach US $2.161 billion within the first eight months of this year compared with the same period last year. But things are starting to shift. The U.S. used to be the largest market for Chinese tilapia, but not any more.

Against this backdrop, a seafood processing seminar was hosted in Dalian in October and participants gathered to talk about issues like global seafood trading and brand building.

China’s entry into the World Trade Organization in 2001 created great opportunities for its aquatic processing industry but it has begun to shift attention to the domestic market with the recession of foreign markets, trade conflicts and increasingly great domestic demand. Thus, the Dalian seminar was of great importance in areas such as opportunities and threats the aquatic industry encounters in domestic and foreign markets.

The country used to rely on foreign buyers in its seafood sales from 1981 to 2005, Cui He, the president for China Aquatic Products Processing and Marketing Alliance, was quoted as saying in a recent FishFirst article. Its export ballooned from 2005 to 2013, while its imports also grew between 2013 and 2017. The country’s seafood trading volume exceeded 10 million tons in 2017, which makes it a market larger than any other in the world, according to the story. That means an increasing number of aquatic suppliers have placed more importance on this market with great potential thanks to its steady export opportunities and rapid import increase. Countries like Norway, Canada and Australia have said in the past that China is the main target in their seafood promotions.

Japan, the U.S. and Europe are the three main buyers of China’s seafood, according to the country’s statistics, while other important buyers include South Korea and the Association of Southeast Asian Nations (ASEAN). Japan ranks first among all of China’s seafood buyers while the U.S. also is significant, buying a lot of China’s white shrimp and tilapia.

Although there seems to be no drastic change to the global seafood market at present, China has played a role of great importance in the processing industry. The trade war does take a toll on some export-oriented seafood companies in Dalian and Qingdao, but it also pushes them to upgrade their systems. In short, more seafood trading stimulates the development of China’s seafood processing sector.

China’s statistics have shown a reduction in China’s reliance on U.S. seafood buyers since 2014. The U.S. anti-dumping policies on shrimp and catfish have influenced China’s processors since the mid-2000s. Lately, the two countries have become competitors in sourcing such seafood as Ecuador’s white shrimp after 2014, with Ecuador selling more white shrimp to China recently. China also has purchased more basa from Vietnam than the U.S. as well.

Recently, the U.S. has removed cod, pink salmon and pollock from its import list that are subject to higher tariffs. Cod has been delivered to China for further processing before being re-exported to Europe, the article said. At the same time, tariffs are having less effect on China’s seafood purchases from the U.S. than its sales to the U.S. Tilapia sales have hurt the most: The U.S. was once the largest buyer, but due to the trade war, it is now looking to other countries for substitutes.

SeafoodNews reporter Amy Zhong also writes that Chinese trade journals say that the U.S.-China trade war could also change the global seafood industry. Seafood businesses worldwide are uncertain whether China can maintain its status as the seafood processing center, since some companies have been forced to relocate to other regions, like Africa. However, China has begun developing business in more countries included in its One Belt, One Road initiative, which in turn has encouraged China to upgrade its seafood industry.

Wang Zhanlu, the director for WTO Division of Agricultural Trade Promotion Center, was quoted as saying countries usually control the agricultural trade more strictly with higher tariffs, but China is comparatively open and is second only to the U.S. in terms of its agricultural imports. In 2017, seafood ranks first in the country’s agricultural exports and accounts for 27 percent of the country’s agricultural export total. Meanwhile, seafood imports account for about 17 percent of its imports.

Zhong writes that according to seafood trade expert Leng Chuanhui, Japan consumes about 8.4 million tons of seafood every year, while it produces around 4.7 million tons on its own. Most of Japan’s seafood are wild harvests, while some are raised in fresh- or saltwater aquaculture. The country buys about 3.7 million tons of seafood from other countries, while its main export markets are Hong Kong and the Chinese mainland, while 14.2 percent of its seafood import is from China.

Professor Qin from Guangdong Ocean University was quoted as saying that oysters have also become more popular in China. Global production was only 5.32 million tons worldwide in 2017, while the trading volume was about 70,000 tons. But China’s production rose by 4.7 percent in 2017 compared with that of 2016 to reach 4.87 million tons. Its oyster market value grew by 25 percent to reach 25.4 billion yuan (~$3.7 billion USD) that year. Most of the Fujian, Guangdong and Shandong oysters are currently destined for barbecues, but likely will be more finely processed in the future.

This story originally appeared on Seafood News, it is republished here with permission.

 

Even Lobsters Can’t Escape Trump’s Trade War

November 7, 2018 — In his cargo shorts and T-shirt, Mark Barlow looked anything but an international trade warrior. Yet a few weeks ago, when he slid open the door to his low-slung warehouse in a scrappy industrial lot to reveal concrete tanks filled with 375,000 gallons of 40-degree water and a fortune in live Maine lobsters, he might as well have been leading a battlefield tour.

Since the 1990s, Barlow has built his company, Island Seafood, into a $50 million-a-year business by shipping live lobsters around the world. He exported one out of every five to China until recently. A lobster plucked from a trap in Maine’s frigid waters—home to North America’s richest fishery—could surface on a dinner plate in Beijing two days later. The first months of 2018 were the best start in Island Seafood’s history, says Barlow, who this year expected to ship a million pounds of lobster to Shanghai, Guangzhou, and other Chinese cities, where he’s built relationships for a decade. Then, as Barlow, a 57-year-old bear of a man who speaks like someone who’s spent years negotiating on the docks, puts it: “The orangutan in Washington woke up from a nap and decided to put tariffs on China,” and “the Chinese stopped buying immediately.”

If you want to understand the modern global economy, the implications of climate change, and the unintended consequences of President Trump’s trade wars, then you ought to “consider the lobster.” The writer David Foster Wallace’s 2004 essay of that name riffed on the history (“Up until sometime in the 1800s … lobster was literally low-class food, eaten only by the poor and institutionalized”) and morality (“It’s not just that lobsters get boiled alive, it’s that you do it yourself”) of our love affair with Homarus americanus. To consider the lobster now, almost 15 years later, is to study crustacean economics just as U.S.-China trade tensions reach a roiling boil.

As Trump has rewritten America’s economic relationships, some of the country’s most prized exports—Kentucky bourbon, Harley-Davidson motorcycles, Midwestern soybeans—have become retaliatory targets for China and the European Union. For its part, Beijing began imposing a 25 percent tariff on a long list of imports from the U.S., including live lobsters, on July 6. “The second this happened, I said to my sales team, ‘China’s dead,’ ” Barlow says. Correspondence with his Chinese customers confirmed his hunch. “I don’t think there is [a] way to import U.S. lobster,” one buyer texted.

Read the full story at Bloomberg Businessweek

National Fisherman: Tax to Grind

November 2, 2018 — Everyone is talking tariffs. First it was anticipation, and now we’re in reality check, keeping an eye on the long-term consequences.

My first instinct with the tariffs was to gather information and watch what happens. There’s no denying our federal government is in fickle hands. The tariffs could have been canceled as easily and swiftly as they were declared. So wait and see seemed the best course of action.

Of course, I’m not a fisherman, processor or retailer. Wait and see is a luxury for me. And now it’s also a luxury for the purveyors of many itemized seafood products that have been granted dispensation from the tariffs.

As the deadline inched closer this summer, fisheries with decent lobbying power began to appeal to U.S. Trade Representative Robert Lighthizer to get a pass for their product — meaning the United States would not add a tariff to those products being sold into Chinese markets (most of which are already taxed as exports). In the case of U.S. seafood products being processed in China and reimported to the U.S. market, the government also granted a waiver on Chinese import taxes for some products.

The result was good for many stakeholders — they got the pass they need to stay competitive. But fisheries that don’t have access to Capitol Hill are left out there alone to bear the brunt of the tariffs on their own. They are now the guinea pigs for the whole industry.

Read the full editorial at National Fisherman

 

ALASKA: Alaska gubernatorial hopefuls Dunleavy, Begich square off in fish survey

November 1, 2018 — If Republican candidate Mike Dunleavy wins his bid to become the next governor of Alaska on Tuesday, look for an all-out effort by the state to expand its seafood export markets but not a direct challenge of president Donald Trump’s tough trade policies.

“A governor of one state clearly doesn’t set trade policy for the nation,” he said in one of several responses to a survey on commercial fishing organized by the Kodiak Chamber of Commerce.

Democratic candidate Mark Begich, meanwhile, would bring together a bipartisan group of governors from other states to pressure the federal government into changing course.

“As governor, I won’t sit on the sidelines when national policies hurt Alaska, like Trump’s trade war with China,” he said.

Read the full story at Undercurrent News

Alaska seafood leaders talk tariffs, competition from Russia and Canada

October 31, 2018 — Mark Begich, Alaska’s Democratic gubernatorial candidate, made a cameo at the Alaska Seafood Marketing Institute’s All Hands on Deck meeting in Anchorage this week.

“If you want to be successful, you’ve got to put money behind it and market the product,” Begich said in support of the ASMI mission during opening remarks on Monday, Oct. 29.

Despite the too-close-to-call governor’s race, tariffs are the leading topic at the meeting this week.

Alaska’s seafood industry enjoyed a record export total in 2017 of more than 1 billion pounds of seafood with expectations that the trend would continue. However, the complex matrix of Alaska seafood’s global markets and international processing was further complicated by the implementation of several new layers of export and import tariffs on varying products.

Alaska’s proximity to China has long allowed a significant portion of the head and gut fleets’ harvest to be exported to China for final processing and reimportation to the domestic market.

Read the full story at National Fisherman

 

Higher U.S./China tariffs could be ‘game changer,’ fishing industry fears

October 24, 2018 — It’s been a month since the Trump administration activated 10 percent tariffs on another $200 billion in Chinese imports and that move has already affected the fishing industry from scallopers to lobstermen, especially Eastern Fisheries located along the New Bedford waterfront.

With the tariffs set to increase to 25 percent at the start of 2019, that could cause catastrophic effects throughout large fishing corporations, economists and companies told The Standard-Times.

“That’s a game changer,” Executive Vice President of Eastern Fisheries Joseph Furtado said. “I think we all feel that the 10 percent is more of a paper cut than it is anything else at this point. And we can work through it.

″…We don’t think the 10 percent is the end of the world, but the 25 percent, that is certainly a dynamic game changer and there’s a lot of variability in how that could all reposition itself.”

Generally, tariffs range from 5 percent to 8 percent, UMass Dartmouth economy professor Randy Hall said.

“There are very few industries that can absorb a 25 percent increase of cost,” Hall said.

Eastern Fisheries operates the largest scallop fleet in the industry and has facilities in the U.S., China, Europe and Japan.

Due to its size and international scale, it’s likely to be the only New Bedford company that’s affected by the tariffs, according to economists and Eastern Fisheries.

Prior to Sept. 24, Eastern would use its facilities in China to process a portion of its overall catch. It would then import the catch to other countries but also back into the United States without a tariff or tax.

Read the full story at the New Bedford Standard-Times

ALASKA: Bristol Bay king crab fishery set to open with a record-low quota

October 16, 2018 — Bering Sea commercial crabbing starts this week, with the smallest quota for Bristol Bay red king crab in more than 30 years at 4.3 million pounds, a 35 percent decrease from last year’s 6.6 million pounds.

The last time there was such a low number was in 1985, at 4.1 million pounds, according to Alaska Department of Fish and Game biologist Ethan Nichols in Unalaska.

Nichols expects fewer boats fishing this year, with fishermen combining quotas onto one boat that otherwise would have been fished by two vessels.

At least there is a red king crab season, despite earlier fears of a complete cancellation, according to Unalaska Mayor Frank Kelty.

“We wish it was more, but we’re happy there’s a king crab season,” said Jake Jacobsen, executive director of the Seattle-based Intercooperative Exchange, which negotiates prices for the crab fishing fleet.

The season will open Monday with red king crab, followed by snow crab toward the end of the year.

On a brighter note, the snow crab quota of 27.6 million pounds is up 45 percent from last year’s 19 million, according to Fish and Game.

And there will be a Tanner crab fishery in the western district, which wouldn’t have happened two years ago.

Read the full story at the Anchorage Daily News

Key Alaska seafood products dropped from list of Chinese tariffs

October 9, 2018 — Some of Alaska’s seafood industry has escaped the Trump administration’s trade war with China for now. The industry is happy the administration dropped some mainstay seafood products from a list of tariffs it imposed last week.

The Trump administration levied billions of dollars worth of tariffs on the world’s second largest economy on Sept. 24. The tariffs start at 10 percent and will ratchet up to 25 percent by 2019. The Trump administration’s original list of levies included seafood products that Alaska processors export to China for reprocessing.

“A portion of that actually comes back to the U.S.,” Garrett Everidge, a fisheries economist at the McDowell Group, said. “These would be products such as salmon products, Pacific cod products and other seafood products that the state produces.”

But Pacific cod and salmon have been dropped from the list.

“As of right now, those categories have been excluded from the import tariffs. Pollock products have also been excluded,” Everidge explained.

That’s good news. Even when those tariffs were just a proposal, they were slowing down Alaska processors’ sales in China, the main buyer of Alaska seafood.

That’s because Chinese fish buyers were taking a wait-and-see approach as the Trump administration worked to finalize its list of tariffs. 

“Compared to a few months ago when there was a bit more uncertainty and just less information, we now have a better understanding of those products that are actually going to be on the list,” Everidge added. “That represents an improvement for both the buyers and sellers.”

Alaska Seafood Marketing Institute Executive Director Alexa Tonkovich agrees the final list is an improvement.

Read the full story at Alaska Public Media