Saving Seafood

FLORIDA: ‘It’s Going To Be A Rough Year’: Key Largo Fishermen Feel Effects Of Chinese Lobster Tariffs

August 22, 2018 — At 6 a.m. on a recent Thursday morning, Ernie Piton and his son dragged wooden lobster traps across their dock in Key Largo. They stabbed sharp wires through ripe, glossy fish heads, preparing for the grind of baiting and checking Florida spiny lobster traps. As the fishermen turned the key, rumbling their boat to life, they hoped for a good haul.

Lobster fishing is grueling work, with long hours spent reeling in nearly 300 lobster traps each day. But it’s been the family’s livelihood for 35 years.

Piton sells lobster and stone crab through his family-run operation, Risky Business II. His 21-year-old son, Travis, also depends on this lobster boat for his full-time job.

For the last decade, the Pitons have sold almost exclusively to the Chinese market. During three of those years, they’ve sold lobster through a third-party buyer that works out of Miami, Ocean Dragon Seafood. But since June, the Trump Administration’s trade war with China has threatened their livelihood and that of many Florida fishermen. That comes as many are still recovering from losses during the 2017 hurricane season.

Read the full story at WJCT

U.S., China Plot Road Map to Resolve Trade Dispute by November

August 20, 2018 — Chinese and U.S. negotiators are mapping out talks to try to end their trade standoff ahead of planned meetings between President Trump and Chinese leader Xi Jinping at multilateral summits in November, said officials in both nations.

The planning represents an effort on both sides to keep a deepening trade dispute—which already has involved tariffs on billions of dollars of goods and could target hundreds of billions of dollars more—from torpedoing the U.S.-China relationship and shaking global markets.

Scheduled midlevel talks in Washington next week, which both sides announced on Thursday, will pave the way for November. A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will meet with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22-23.

The negotiations are aimed at finding a way for both sides to address the trade disputes, the officials said, and could lead to more rounds of talks.

The talks represent a clear move by Beijing to get relations with Washington back on track that were cordial early in the Trump presidency and involved coordination to rein in North Korea. Those relations have soured, especially after Mr. Trump’s initial tariffs on Chinese imports, which he said were designed to punish Beijing for alleged intellectual-property violations and technology theft. The resulting tit-for-tat of trade threats and retaliation has hit China’s currency and stock markets.

Read the full story at The Wall Street Journal

Trade wars forcing Canadian seafood businesses to make tough decisions

August 17, 2018 — American-initiated tariffs are impacting Canadian seafood businesses in unexpected ways.

The growing trade war between the United States and its neighbor to the north began with a 25 percent surcharge on steel and aluminum initiated in May by the administration of U.S. President Donald Trump.

In reaction, Ottawa used the symbolism of Canada Day to launch CAD 16.6 billion (USD 12.6 billion, EUR 10.8 billion) in retaliatory tariffs strategically targeted to products like orange juice, yogurt, coffee, soya sauce, mayonnaise, and bourbon, which are produced in the home districts of key Republican allies of President Trump.

As a result of this, Galen G. Weston, CEO of Loblaw Companies, Canada’s largest food retailer, believes the trade war may result in higher prices for retail goods sold in Canada.

“We see a very strong possibility of an accelerating retail price inflation in the market,” Weston said at a recent press conference. On the upside, he added, “We don’t think it’s going to be meaningful [or] super significant, but it certainly will be higher than what it is today.”

Krishen Rangasamy, an economist with the National Bank of Canada, agreed the Canadian tariffs won’t have an overly significant impact on consumer prices. He thinks importers are unlikely to pass on higher prices and those that do will have minimal impact on the consumer price index, around 0.01 percent. However, Karl Littler, a representative of the Retail Council of Canada, suggested in the Financial Post that already-thin retail margins will mean prices have to rise, but not by the full 10 percent Canadian tariff of targeted goods.

Read the full story at Seafood Source

ASMI to comment on impact of proposed tariffs

August 17, 2018 — Board members of the Alaska Seafood Marketing Institute are keeping watch on the trade war between the U.S. and China and plan to submit formal comments in advance of the Sept. 6 deadline, says Jeremy Woodrow, ASMI’s communications director.

“We are going into this with the assumption that this is an opportunity to educate the U.S. trade representative on the importance of Alaska fisheries to the U.S. economy and Alaska workers,”

Woodrow said. “While we understand the reasons behind the proposal, the intended impact doesn’t achieve the goal. Instead of having consequences to Chinese consumers, this negatively impacts us consumers and products and U.S. fishermen and companies,” he said.

Woodrow said ASMI’s understanding at this time is that seafood products going from Alaska to China would be subject to these proposed tariffs only if consumed in the Chinese domestic market. If that seafood is being reprocessed to ship elsewhere, it would not be subject to tariff, but if it is being shipped back to the U.S., there is potential that it will be subject to the tariffs because of the proposal by Robert Lighthizer, the U.S. trade representative.

The proposed U.S. tariffs came under consideration in the wake of China’s decision to implement an additional 25 percent tariff for exported products destined for China’s domestic market. The proposed tariffs could impact the bottom line for Alaska companies that sell black cod, rockfish, flatfish and salmon roe into Chinese domestic markets.

Read the full story at The Cordoba Times

Will Trade Tariffs Cause The American Fish Industry To Flop?

August 16, 2018 — An estimated $900 million worth of American-caught or -farmed seafood — from fish sticks to cod fillets — may get a lot more expensive thanks to the U.S.’s current trade war with China.

How? Well, last month the Trump administration proposed a 10% duty on a wide range of imports from China, including many varieties of fish. Trade representatives will finalize the tariffs, which could increase to 25%, in September. While these tariffs are designed to punish China for unfair trade practices, when it comes to seafood, it’s the U.S. that may be on the hook.

Here’s a surprising fact: In many cases seafood labeled as “from China” is actually American. That $900 million of seafood I mentioned earlier? It’s seafood that is first caught or raised in the U.S., sent to China for processing, and then subsequently imported back into the U.S. by companies that sell it to American consumers.

Why would pink salmon or squid that’s caught in U.S. waters be labeled a product of China? Well, thanks to our confusing Country of Origin Labeling law (COOL for short), American products that undergo a “substantial transformation” abroad — such as calamari being breaded or pink salmon being filleted and canned — must then be labeled as coming from the country where they were processed. For example, in some cases a package of frozen “Alaskan Cod” fillets may say “product of China” on the back. The fish was caught in Alaska, but it was cleaned, filleted, and frozen in China. (If you’re interested in more, the USDA has a good blog post on the subject.)

Read the full story at Forbes

Maine lobster industry feels impact of China’s tariffs

August 16, 2018 — The ongoing trade war kicked off by U.S. President Donald Trump is beginning to hurt the lobster industry in Maine, U.S.A.

In response to a wide swath of tariffs on Chinese goods instituted by the U.S., China created a set of tariffs of its own that target U.S. seafood and have already hurt some members of the lobster industry who relied on shipping their product to China. Once a niche export market of just USD 4 million (EUR 3.5 million) in 2010, Maine exported USD 132 million (EUR 116.3 million) worth of the crustacean in 2017, according to the Maine International Trade Center.

Of that number, exports to China have been steadily increasing. Maine exported USD 42 million (EUR 37 million) worth of raw and frozen lobster to the country through June in 2017. This year, that number had more than doubled to USD 87 million (EUR 76.6 million) over the same period.

Those numbers have made China the second-largest export market, equal to the entire European Union. As the market grew, some exporters began to increasingly plan on shipping lobsters to China. The new tariffs, however, have made thrown those plans into disarray.

Stephanie Nadeau of The Lobster Co. in Arundel, Maine, has become the “poster child of Chinese tariffs,” she said.

Nadeau has been featured in a wide number of news reports, from the local Portland Press Herald to stories on CBS. Her company relied on Chinese exports, but now is struggling to find a way to make up the lost sales.

Read the full story at Seafood Source

US fishmeal producers left exposed by China’s 25% tariff blow

August 16, 2018 — US fishmeal producers — including the US’ largest fishmeal producer Omega Protein — are “certainly in some trouble” after China announced last week it would impose 25% tariffs on imports from the country, said a fishmeal industry analyst.

Jean-Francois Mittaine, an analyst with 30 years’ experience in the sector, told Undercurrent News Omega Protein and others in the sector will struggle to find new markets as Chinese importers turn to alternative sources. This will hit both the menhaden fisheries of the Gulf of Mexico and the pollock fishmeal industry of Alaska.

“For the Americans it is a problem,” said Mittaine. “I don’t see what they’re going to do with their fishmeal.”

Last Wednesday, China’s Ministry of Commerce said it would impose an additional tariff on imports of US fishmeal of 25% (HS code 23012010). The ingredient used in animal and fish feed was among 333 US goods worth $16 billion in annual trade targeted.

The Chinese counter-move will take effect immediately after the US imposes tariffs on the same amount of Chinese goods on Aug 23.

Read the full story at Undercurrent News

Alaska seafood industry braces for China tariff pain

August 15, 2018 — Alaska fishermen are used to coping with fickle weather and wild ocean waves. Now they face a new challenge: the United States’ trade war with China, which buys $1 billion in Alaskan fish annually, making it the state’s top seafood export market.

Beijing, in response to the Trump administration’s move to implement extra levies on Chinese goods, last month imposed a 25 percent tariff on Pacific Northwest seafood, including Alaskan fish, in a tit-for-tat that has engulfed the world’s two largest countries in a trade war.

The results could be “devastating” to Alaska’s seafood industry, the state’s biggest private-sector employer, said Frances Leach, executive director of United Fishermen of Alaska, the state’s largest commercial fishing trade group.

“This isn’t an easily replaced market,” she said. If the tariff war continues, she said, “What’s going to happen is China is just going to stop buying Alaska fish.”

For Alaska’s seafood industry, the timing could not be worse. The state has worked for years to attract the Chinese market, and just two months ago, Governor Bill Walker led a week-long trade mission to China in which the seafood industry was heavily represented.

Read the full story at Reuters

Alaska Seafood Marketing Institute prepares to protest Trump’s seafood tariffs

August 10, 2018 — The Alaska Seafood Marketing Institute will push back against a steep seafood tariff suggested by the Trump Administration.

In a board meeting Thursday morning, ASMI executive director Alexa Tonkovich said the organization is preparing a draft letter to the Office of the U.S. Trade Representative about the importance of Alaska seafood.

ASMI’s action comes as the USTR considers a proposal to levy a 10 percent tariff on $200 billion worth of Chinese imports. Since that proposal was announced in early July, the USTR has announced that the tariff could be increased to 25 percent.

Among the items on the tariff list is Alaska seafood sent to China for processing.

“We believe there is value in ASMI as an apolitical industry representative (speaking up),” Tonkovich said, and the board agreed to consider the draft.

“I know that other industry groups are kind of looking for ASMI to take the lead because of their connection with (the National Fisheries Institute) and their representation of the Alaska industry,” said board member Tom Enlow, who works for the seafood company Unisea.

“We better do it, definitely,” said board chairman Jack Schultheis of Kwik’ Pak Fisheries.

ASMI is the joint marketing arm for fisheries across Alaska and is funded by a small tax on catches as well as federal grants and state assistance. This year, the Alaska Legislature approved a budget of less than $21 million for the agency.

Read the full story at the Juneau Empire

Fishing industry gears up for a fight over China tariffs

August 10, 2018 — A national fishing industry group is using local workers to put human faces on the plight that the commercial fishing sector faces amid the trade fight with China.

The National Fisheries Institute just released a series of videos featuring New Englanders — a processing plant manager in Boston, a Quincy seafood shop owner, a supplier to Maine lobstermen — extolling the virtues of free trade. Institute spokesman Gavin Gibbons says the group started featuring people in the Northeast because of the balance of import and export work that happens here. You can’t treat fish like steel, he says. Commercial fishermen, for the most part, face strict federal quotas. There’s simply no way to ramp up domestic production if it becomes tough to import seafood.

Gibbons’ group fears imports will become much more challenging if the Trump administration follows through on plans to impose tariffs of up to 25 percent on seafood imports from China. An NFI lobbyist will testify before the International Trade Commission on Aug. 20 to argue against them. (NFI represents all corners of the industry: fishermen, retailers, wholesalers.)

The US has plunged headlong into a tit-for-tat fight. China has already imposed a 25 percent tariff on US seafood exports, much to the chagrin of the lobstermen who had found a burgeoning new foreign market in that country.

Read the full story at The Boston Globe