Saving Seafood

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

 

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   

 

Many US lobster companies coping well with tariff impact

September 14, 2018 — As the trade war between the United States and China continues, with indications that it may escalate even further, most U.S.-based lobster companies have seen their exports to China fall dramatically.

Despite the decrease, many companies say the market for lobster is still strong enough to keep the impact to their companies at a minimum. Some companies that never invested heavily into Chinese exports said2018 has been a better-than-average year.

“I’ve been processing lobster since 1993,” John Norton, CEO of Cozy Harbor of Portland, Maine, U.S.A, which specializes in fresh and frozen lobster tails, told SeafoodSource. “I’ve never seen a market this strong for lobster tails, ever.”

That strong demand is largely offsetting the effects of the tariffs on most of the lobster industry. Boat prices for lobster, said Norton, have remained similar to those seen in 2017.

The frozen market in Maine, said Norton, typically consumes around 50 percent of the state’s catch, while exports to China only make up between five and 10 percent.

Norton said his company has largely avoided shipping products to mainland China over the years, as the market for frozen lobster tails and meat in the country isn’t as strong as it is elsewhere in the region.

Read the full story at Seafood Source

 

Trump calls for more tariffs in scale-up of trade war against China

September 10, 2018 — U.S. President Donald Trump threatened to extend U.S. tariffs to an additional USD 267 billion (EUR 230.1 billion) worth of Chinese goods in comments made on Friday, 7 September.

Trump said the new round of tariffs will “take place very soon, depending on what happens.” He added a new list of goods to be affected by the tariffs is ready to go and could be rolled out on short notice, according to the Wall Street Journal.

Trump’s administration previously announced tariffs on USD 200 billion (EUR 170 billion) of Chinese goods on 11 July. That was a follow-up on his levying of tariffs on USD 50 billion (EUR 29.3 billion) worth of Chinese goods in June, and China’s equivalent response later that month.

“If the United States insists on imposing another round of tariffs on Chinese products, China will definitely take countermeasures to safeguard its legitimate rights and interests,” Chinese Foreign Ministry spokesman Geng Shuang said following publication of Trump’s threat on 7 September.

Read the full story at Seafood Source

 

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

Dems seek tariff relief for fishing industry

August 1, 2018 — The Trump administration announced last week that it would provide up to $12 billion in emergency relief funding for farmers whose businesses are suffering from an escalating trade war.

Now a group of Democratic U.S. representatives is pressing for similar emergency relief for the fishing industry, which is expecting a significant financial hit from a series of increasing export tariffs imposed by China.

H.R. 6528, introduced last Wednesday by Rep. Seth Moulton (D-Mass.), would amend a provision in the Magnuson-Stevens Act that allows the federal government to provide funding to harvesters affected by natural or man-made disasters, such as hurricanes and oil spills. The bill would add cases of “unilateral tariffs imposed by other countries on any United States seafood” as events warranting emergency relief.

Read the full story at National Fisherman

 

US Chamber analysis shows helping all sectors hit by tariffs would cost $39 billion

July 31, 2018 — A new U.S. Chamber of Commerce analysis found that providing similar aid to all sectors affected by President Trump‘s tariffs would cost U.S. taxpayers $39 billion.

The Trump administration last week announced a $12 billion emergency aid package for the nation’s farmers who are taking a hard hit from retaliatory tariffs unloaded by China, Mexico, Canada and other trading partners because of the president’s imposition of tariffs.

The Chamber’s analysis shows that on top of the $12 billion that could be doled out to farmers as early as this fall, another $27.2 billion would be needed to help other sectors such as fishermen, cotton and fabric manufacturers and makers of steel and aluminum.

After Agriculture Secretary Sonny Perdue announced the agriculture aid last week, the Chamber decided to determine how much it would cost to provide a similar level of aid to each industry affected by the budding trade war.

Read the full story at The Hill

 

Five US House Democrats get behind tariff-relief bill for fishermen

July 30, 2018 — In the same week that President Donald Trump announced his plan to offer land farmers in the US $12 billion to help compensate for losses suffered as a result of his trade scuffles with China and other nations, a small group of Democrats in the House of Representatives have put forth a plan to help fishermen.

HR 6528, introduced Wednesday by Massachusetts representative Seth Moulton, would amend a provision contained in the Magnuson Stevens Act that allows for the government to make money available to harvesters in the case of a natural or man-made disaster. It would add language that clarifies that such funds can also be used in the case of “unilateral tariffs imposed by other countries on any United States seafood.”

Co-sponsors of the bill include representatives Chellie Pingree of Maine, Stephen Lynch and William Keating, both of Massachusetts, Jared Huffman of California, and Raul Grijalva of Arizona.

Pingree, an organic farmer, has been particularly vocal about the president’s tough trade stance, writing letters to the US Department of Agriculture (USDA) and US Trade Representative.

“Farmers haven’t been the only ones to suffer the consequences of the Trump administration’s sloppy trade actions,” she said in a statement issued this week.

Read the full story at Undercurrent News