Saving Seafood

Who Has The Edge In The Lobster Trade War?

September 27, 2018 — There are few New England scenes as iconic as the ol’ lobster shack. Local crustaceans being served up fresh and delicious in whole or in roll form. Well, it turns out that “just-off-the boat” experience has pretty broad appeal … like as far away as China.

“There’s always been a demand for it, but they wanted the live lobster,” said Arthur Sawyer, a Gloucester lobster fisherman and President of the Massachusetts Lobstermen’s Association. “Live lobster — ya know — it’s like a 36 hour thing to get to China.”

A decade ago, the Chinese market for U.S. live lobster was essentially nonexistent. But a few years back, shippers finally worked out how to reliably get fresh live lobster to China. It was a game changer. Last year, the country imported nearly $150 million worth.

“There’s a whole lot of exporters that have gotten into the lobster business strictly because of China,” said Sawyer.

But live lobster got swept up in the trade war this July, when Beijing slapped a 25 percent tariff on U.S. imports. And just three months in, it’s already having an impact here. Vince Mortillaro, a local wholesaler, said China has stopped buying from him completely, and he’s has had to lay off three employees.

“They’re affecting me a lot,” he said of the tariffs. “We’re losing like 40,000 pounds of sales a week.”

For now, the pinch wholesalers are feeling has yet to trickle down to lobster fishermen on the boats, who sell to the wholesalers, or the lobster-craving public. As for why? Well, it’s complicated. Live lobster exports are an important part of the equation. But a sizable chunk of New England total haul each year gets sold off to be processed.

Read the full story at WGBH

China still buying spiny lobsters from US, driving up price to harvesters

September 26, 2018 — The price being paid to spiny lobster harvesters in the US’ Florida Keys is slowly increasing despite the 25% tariffs that took effect in China — their biggest market — in early July, The Key West Citizen reports.

Harvesters were getting $5 a pound in August but have been receiving as much as $9/lb in recent weeks, according to the newspaper.

The article quotes lobster fisherman Gary Nichols as saying the trade war with China is a big issue for spiny lobster harvesters, as 90% of their catch goes to Asia.

Read the full story at Undercurrent News

 

China tariffs hit Alaska Amendment 80 fleet in midst of $285m recap effort

September 25, 2018 — US president Donald Trump’s 10% tariffs that went into effect Monday for nearly 6,000 Chinese goods are bad news for all of the US harvesters of seafood sent to China for processing, but they come at a particularly unfortunate time for the five companies with flatfish-catching vessels in Alaska’s Amendment 80 fleet.

Those harvesters have spent more than a combined $285 million over the past six years to replace or significantly improve their 19 ships, according to Chris Woodley, executive director of the Groundfish Forum, the trade group that represents them.

Woodley told Undercurrent News on Friday that he doesn’t know how the tariffs will immediately impact his members or if any of the additional cost might make them want to hit pause on their recent recapitalization effort.

“As far as specific business arrangements with individual companies, each A80 [Amendment 80] company has got its own supply chain and its own buyers,” he said. “It’s not a monolithic block. So, all we know right now is that the fish products harvested by the A80 fleet are on the list to have tariffs imposed, and that’s where we are.”

Read the full story at Undercurrent News

BOB JONES: USTR Announced Additional Duties on Chinese Seafood Imports

September 25, 2018 — The following was released by the Southeastern Fisheries Association:

Where will the seafood industry end up after the tariff war is concluded?

“Last night, at the direction of President Trump, the United States Trade Representative (USTR) announced that a 10 percent additional tariff would be imposed on a massive amount of Chinese imports, including imports of aquacultured seafood products effective on Monday, September 24th. The USTR additionally announced that these tariffs would increase to 25 percent on January 1, 2019.”

US fishermen can’t provide more fish to the domestic market because NOAA and the Councils have taken most of the seafood away from the non-boaters.

For instance, we can only harvest under our quotas 18,000,000 pounds of fish from Virginia through the Keys while the anglers have been gifted with 40,000,000 pounds.

In the Gulf of Mexico it seems when the red snapper needs 6,000,000 more pounds, nothing is based on science or process but rather by a stroke of the pen, the Secretary of Commerce can issue a ‘temporary rule re-opening the private angling component of the red snapper fishery in the exclusive economic zone (EEZ) for the 2017 season on select weekend and holiday dates through Labor Day , September 4, 2017.’ (Page 1 of Motion for Summary Judgement between two environmental groups and Wilbur Ross as Secretary of Commerce-Case 1:17-cv01408-ABJ)Basically Commerce could not be punished because their temporary rule expired before the case got to the judge so everything was moot. The recreational fishing industry’s powerful vendors won again. Not Rule of Law.

It is good that qualified members of the domestic shrimp industry are compensated from tariffs received from foreign countries. It is bad that the domestic seafood industry as a whole was supposed to have a dynamic seafood program in place from the tariffs collected under the Saltonstall-Kennedy legislation but somehow, most of these tariffs are used for salaries and upkeep on NOAA facilities instead of going to where they should go.

Senators Kerry and Snowe tried to fix this in 2012 and it needs to be tried again. Tax money the anglers bring in from foreign tackle go to their issues. NOAA needs to do what the original act demands.

“The Saltonstall-Kennedy (S-K) Act directs 30% of the duties on imported fish products to a grant program for research and development projects to benefit the U.S. fishing industry. It is estimated that for 2010, the total duties collected on the imports of fishery products was $376.6 million. The S-K Act directs 30% of that total to be transferred to the Secretary of Commerce. In 2010, that equaled $113 million. Of that $113 million, $104.6 million went to NOAA’s operations budget, and only $8.4 million was used by NOAA for grants for fisheries research and development projects. We believe that we should follow the original intent of Senators Leverett Saltonstall and John F. Kennedy and restore this funding to help the fishermen and communities for whom it was originally intended.”
https://californiawetfish.org/fishingnews/tag/saltonstall-kennedy-act/

Ample S-K funds for honest stock assessments and for treating the “providers of seafood for non boaters i.e. commercial fishermen” as an important and vital sector of the society. We have been oppressed by NOAA policies for too long.

Tariffs could harm NW fishing industry in markets on both sides of the Pacific

September 24, 2018 — First, it was Washington wheat farmers and apple growers. Then it was regional wineries. And now, Pacific Northwest seafood companies are getting sucked into the escalating trade war between the Trump administration and China.

The fleet that fishes in the North Pacific, much of it based in Puget Sound, was first caught up in the fight in July, when China imposed sweeping sanctions on many U.S. imports, including virtually all seafood. The immediate risk was clear: China’s tariffs threatened to block access to what many believe will become the world’s largest consumer market for seafood products.

But now there’s a new risk: a Trump administration trade policy that was meant to punish the Chinese, but which could end up making American seafood more expensive for American consumers — a bizarre outcome that could expose the Northwest’s seafood industry to trade-war damage both at home and abroad.

That risk became clear on Monday, when Robert Lighthizer, the United States Trade Representative, released a list of some 5,700 imported Chinese food products that will be hit by heavy new tariffs. Among them, roughly $2.7 billion in imported Chinese seafood items—everything from salmon and flounder to sole and snow crab.

Read the full story at The Seattle Times

Bumble Bee: Trump’s tuna tariffs ‘devastating’ for firm

September 21, 2018 — US tuna canning company Bumble Bee Foods warned the US Trade Representative (USTR) in a letter that the now-confirmed tariffs against imports of Chinese tuna would be “devastating” for the firm.

The tariffs — which will come into play on Sept. 24 at 10%, and then go to 25% on Jan. 1, 2019 — will hit US imports of yellowfin, skipjack, and albacore tuna loins, all of which are required by Bumble Bee’s Santa Fe Springs, California factory, wrote CEO Jan Tharp.

The tariffs, which were initially proposed by USTR on July 10, will hike the cost of raw materials, which in turn will “certainly lead to higher prices for US consumers”, Bumble Bee’s leader said.

“We are very concerned with the proposed tariff on tuna loins and the impact that these tariffs will have on our supply chain, global competitiveness, and US operations,” Tharp said. “The proposed tariff on tuna loins will have a devastating effect on Bumble Bee given that our business model is to import tuna loins for further processing and canning in the US by American workers.”

Read the full story at Undercurrent News

 

Alaska pollock industry: Trump’s China tariff exceptions help the Russians

September 20, 2018 — If president Donald Trump was hoping to get a pat on the back from the Alaskan pollock industry for keeping its re-processed fillets off the list of seafood products to receive additional tariffs when imported from China, he will be sadly disappointed.

Rather, thanks to some apparent confusion over the harmonized tariff codes, the administration’s exemptions appear to help the Russian pollock industry more, advises James Gilmore, the director of public affairs for the At-Sea Processors Association (APA), one of the loudest voices for Alaska pollock producers, in an email to Undercurrent News.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on US seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition—Russian pollock processed in China—enjoys tariff-free access to our domestic market.”

Gilmore’s comments follow closely those made by Fedor Kirsanov, the CEO of Russian Fishery Company, one of the country’s largest pollock quota holders, who told Undercurrent the trade war is helping to boost his prices.

Read the full story at Undercurrent News

China retaliates against US tariffs; seafood largely unaffected

September 19, 2018 — China has retaliated against US tariffs, but seafood will be largely unaffected by its counter-measures.

On Sept. 18, China announced it would levy new tariffs of up to 10% on imports of US goods worth $60 billion. The measures came in retaliation to US tariffs of 10% on $200bn worth of Chinese goods, confirmed by president Donald Trump’s administration the same day.

Both sets of tariffs will come into effect on Sept. 24.

China said the counter-measures were to “defend the legitimate rights and interests of the Chinese economy caused by the violation of international obligations by the US”. Prior to the announcement in a more solemn statement it said the US measures were “regretful”.

Among the 5,000-plus US products to be hit are smoked Pacific salmon and a type of fishmeal (see below). No other fisheries or seafood products are affected.

Read the full story at Undercurrent News   

 

Pollock’s dodge of US tariff could leave market open to Russia

September 18, 2018 — Another round of tariffs on Chinese goods approved by U.S. President Donald Trump on Monday may have inadvertently left the market open to Russian-sourced pollock processed in China.

The tariffs, initially proposed in July, will go into effect on 24 September and affect an additional 5,745 products from China. While initially tariffs on frozen cod and pollock were planned, lobbying efforts by industry leaders successfully kept those items off the final list.

However according to Jim Gilmore, director of public affairs for the At-sea Processors Association (APA),  the wording of the exemption for Alaska pollock may leave the U.S. market open to Russia-origin pollock that is processed in China and shipped to the U.S.

The issue, said Gilmore, is the use of the term “Alaska pollock.”

“We believe this is an anachronism of a misleading geographical indicator remaining in use.  That is, the term ‘Alaska pollock’ is used to define Russian-origin pollock as well as U.S.-origin Alaska pollock,” he said. “If we are reading the situation correctly that the [a]dministration is not distinguishing between U.S. and Russian origin pollock in excluding two HTS Code lines from tariffs, then Alaska pollock producers continue to be disadvantaged in this trade war with China.”

The specific issue, said Gilmore, has to do with two HTS Codes: 0304.75.10 and 0304.94.10. Under the decision on 17 September, the door could be open for pollock of Russian origin and processed in China to enter the U.S. duty-free using those codes.

“If our interpretation is correct, Alaska pollock producers face stiff tariffs in China and Russia’s ban on U.S. seafood imports, including Alaska pollock, remains in effect,” Gilmore said. “Meanwhile, our principal international competition – Russian pollock processed in China – enjoys tariff-free access to our domestic market.”

Read the full story at Seafood Source

Trump Sets Tariffs On $200 Billion In Imports From China

September 19, 2018 — President Trump announced Monday that he is ordering 10 percent tariffs on $200 billion worth of imports from China.

Trump also threatened to add tariffs on about $267 billion of additional imports if China retaliates against U.S. farmers or other industries.

It’s the latest round of an escalating trade dispute between the two countries.

The tariffs follow duties on $50 billion in goods imposed earlier this year. The latest levies are set to go into effect Sept. 24 and remain at 10 percent until the end of the year. If China doesn’t make concessions, the new tariffs will then jump to 25 percent, a senior administration official said.

The new tariffs will apply to hundreds of items — ranging from seafood to handbags to toilet paper — that were on a list released July 10. But, the official said, they will exclude some consumer electronics such as smartwatches and Bluetooth devices as well as health and safety products such as high chairs, bicycle helmets, child car seats and playpens.

The U.S. has complained that Beijing forces American companies doing business in China to transfer technology and intellectual property.

“These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy,” Trump said in a White House statement. Trump urged Chinese leaders to “take swift action to end their country’s unfair trade practices.”

Read the full story at NPR