Saving Seafood

USDA tweaks farm assistance program to fund fishermen hurt by U.S.-China trade war

September 14, 2020 — The U.S. Department of Agriculture says it’s setting aside more than half a billion dollars for fishermen hurt by tariffs associated with the U.S.-China trade war. Some Alaskans are applauding the move, but others worry the program leaves some out.

Jeremy Leighton is a dive fisherman based in Ketchikan. That means that as often as he can, he spends his days on the cold, murky seafloor looking for sea cucumbers and geoduck clams.

He was among the first Alaskans to see the impacts of the COVID-19 pandemic — most of Alaska’s geoduck clam harvest is sold to consumers in China. When China locked down as the coronavirus spread, demand for the husky bivalves collapsed and managers closed the market.

Leighton and other fishermen were already facing a tough market — they were already looking at a 25% tariff on seafood exported to China.

“So the last year prices dropped since […] the tariffs were put on,” Leighton said.

But it’s not just geoduck fishermen. Frances Leach heads up United Fishermen of Alaska, a fishing industry group.

Read the full story at Alaska Public Media

USDA to pay $530 million to fishermen hit by trade wars

September 11, 2020 — The U.S. Department of Agriculture will provide $530 million in relief payments for fishermen taking a hit from retaliatory foreign trade tariffs during 2019, using economic modeling to calculate how much trade wars have cost the industry.

“The Seafood Trade Relief Program ensures fishermen and other U.S. producers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe,” USDA Secretary Sonny Perdue said in announcing the program.

Promised by Trump after a June 5 roundtable meeting with Maine fishermen, the STRP comes out of a June 24 presidential memorandum directing the same tariff relief for marine fisheries as for farming.

USDA experts use economic modeling to calculate how much tariffs reduced the value of each species, and how much per pound fishermen should be reimbursed.

For example, lobster exports were hit hard by China and European Union tariffs, and the economic modeling USDA uses to calculate ranks them in the top payment rates, $0.50 per pound. The Northwest geoduck fishery took a hit of $0.76 per pound, according to the modeling.

Read the full story at National Fisherman

LARRY BARKER: Lobstering restrictions will hurt much more than Maine’s fishermen

August 11, 2020 — Maine’s lobster industry is threatened by “a perfect storm” as it faces a crippling lack of demand because of both the pandemic and the China trade war, and a cascade of impacts from the development of government-mandated restrictions seeking to protect the endangered right whale. All Mainers should be aware of how political pressure to reverse the decline of right whales is affecting our fishermen, bringing with it disastrous ripple effects that will affect tens of thousands of livelihoods across our treasured state. Despite Maine’s stellar track record in protecting right whales, this battleground recently resulted in the loss of a sustainability certification, which means loss of even more markets for Maine lobster.

The Maine lobster industry is the backbone of our coastal communities from Portland to Eastport. Machias Savings Bank has been one of Maine’s leading sources of financing for this industry for decades and we understand that as the industry ebbs and flows, so do the economies of Maine’s coastal communities.

Since the 1990s, Maine lobstermen have demonstrated an ongoing commitment to the protection of whales by making significant changes to how they fish, consistently adhering to whale-protection standards, participating in discussions of best practices to ensure whale safety and being actively involved in the development of new materials and techniques that are safer for whales. According to data collected by the National Marine Fisheries Service, no right whale deaths or serious injuries have ever been documented in Maine lobster gear. I have many good friends who are lobster fishermen. My son is a lobster fisherman. I have asked many of them about this issue and not only have they never had a right whale tangled in their gear, they have never seen a right whale while tending their gear in Maine!

Read the full opinion piece at the Portland Press Herald

China unlikely to consider lowering of lobster tariffs, despite Trump’s threat

June 11, 2020 — On Friday, 5 June, at a meeting with commercial lobstermen from the U.S. state of Maine, U.S. President Donald Trump threatened to impose new tariffs on imported Chinese and European Union goods if they did not eliminate their tariffs on U.S. lobsters.

At the meeting, Trump appointed U.S. Office of Trade and Manufacturing Policy Director Peter Navarro the task of identifying additional Chinese and European products to hit with tariffs as a means of pressuring Beijing to eliminate all tariffs on American lobsters.

Read the full story at Seafood Source

Trump mulling pause in trade wars to ease economic stress

March 30, 2020 — U.S. President Donald Trump is considering a proposal that would allow companies to defer their payments on imported goods subject to tariffs for 90 days, as a means to ease the financial strain hitting the American economy as a result of the coronavirus crisis.

Though Trump has denied he is considering the proposal, Bloomberg reported on 25 March his administration has debated the deferment program with U.S. Customs and Border Protection and other government agencies. White House Economic Advisor Larry Kudlow in particular has advocated for the move to allow the deferral of tariff payments, Bloomberg reported.

Read the full story at Seafood Source

Tariffs on Chinese goods to remain in place, Trump says

March 20, 2020 — U.S. President Donald Trump will not suspend hundreds of billions of dollars’ worth of tariffs his administration has imposed on Chinese goods, despite calls from U.S. business associations to do so to alleviate economic hardship brought on by the coronavirus outbreak.

On Wednesday, 18 March, more than 160 business belonging to the group Americans for Free Trade wrote a letter to Trump asking for the suspension of tariffs on Chinese-made goods, claiming that doing so would give the U.S. economy a USD 75 billion (EUR 70.3 billion) boost, equivalent to 0.4 percent of U.S. gross domestic product.

Read the full story at Seafood Source

JOHN SACKTON: How coronavirus could impact North American seafood

February 20, 2020 — A lot of people in the seafood industry are thinking about coronavirus (COVID-19). The major impact has been on shipping, tourism, and travel, all of which are vital to the North American seafood industry.

The question is whether this is a short-term event like a hurricane or political strike that impacts one area of our supply chain, or if this is a year-long global pandemic, leading to big changes in behavior in our markets.

Clearly we don’t know yet, despite people like the CEO of Mowi saying it is a short term event. However, we can already see some supply and demand disruptions, and we can prepare for others. After thinking about this for the last couple of weeks, here are some preliminary ideas.

Some products disrupted more than others initially

Most seafood products have not suddenly changed in price over the past few weeks. If you look at Urner Barry’s dashboard, the majority of items remain green, showing rising or steady prices.

Read the full opinion piece at Undercurrent News

Russia-Alaska seafood trade remains a one-way street benefiting Russia

February 19, 2020 — Lost in the headlines about the hits to seafood sales from the Trump administration’s trade war with China is another international barrier that’s been going on far longer.

In August 2014, Russia placed an embargo on all U.S. food products to retaliate for sanctions the U.S and other Western countries imposed over the invasion of Ukraine. The ban included Alaska seafood, which at the time accounted for more than $61 million in annual sales to Russia, primarily pink salmon roe.

But here’s the bigger hurt: For the nearly six years that the embargo has been in place, no corresponding limits have ever been imposed on Russian seafood coming into the U.S.

At first, Alaska seafood companies and the state’s congressional delegation made some “tit for tat” noise about imposing a ban on Russian seafood. But in fact, the value of Russian imports has grown nearly 70% since 2014 — and it all comes into the U.S. almost entirely duty-free.

Read the full story at the Anchorage Daily News

Crab, sole, plaice among nine seafood items receiving exemptions from US tariffs

February 4, 2020 — Nine seafood items have received special exclusions from tariffs placed by the United States on goods imported from China.

The items – which must be individually frozen or frozen in blocks to qualify, depending on the harmonized tariff system (HTS) classification code – include Alaskan sole, Alaskan plaice, flounder, sole, slipper lobster, king crab, snow crab, Dungeness crab, and meat from crabs other than king, snow, Dungeness, and swimming crab.

Read the full story at Seafood Source

Lack of haddock means US importers can’t capitalize on removal from China tariff list

January 23, 2020 — Haddock has been cut from the US list of products from China subject to 25% tariffs, but there is little fish available to capitalize on this opening.

Haddock and flatfish were removed in the ‘list three’ tariffs on Dec. 17 last year, around a month before the “phase one” agreement between the US and China that effectively paused the trade war at the current levels. The bulk of seafood from China still has 25% tariffs on it into the US. China has 35% tariffs on US seafood but has committed to buying $200 billion worth of additional US products, goods and services over the next two years, reducing the US’ bilateral trade deficit in goods, which hit $420bn in 2018.

There was a “concerted effort” from the National Fisheries Institute (NFI) and industry to get haddock excluded, Todd Clark, of importer Endeavor Seafood, told Undercurrent News at the NFI’s 2020 Global Seafood Market Conference (GSMC).

Read the full story at Undercurrent News