Saving Seafood

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

Border Patrol Stops Canadian Fishermen in Disputed Waters Off Maine

July 9, 2018 — As tensions rise between the United States and Canada, there’s a new clash in the cool waters off the northeast tip of Maine, which are rich with lobster, scallops and cod.

For more than a decade, American and Canadian fishermen largely have had a friendly but competitive relationship in an oval-shaped region of the Bay of Fundy known as the gray zone. But this summer that camaraderie has been threatened, Canadian fishermen claim, as officers with the United States Border Patrol have started to wade into the area, pull up aside their vessels and ask about their citizenship.

“We don’t want this to be a great international incident, but it’s kind of curious,” said Laurence Cook, the chairman of the lobster committee at the Grand Manan Fishermen’s Association in New Brunswick. “They say it’s routine patrolling, but it is the first routine patrolling in 25 years.”

At least 10 Canadian fishing boats have been stopped by American immigration authorities within the past two weeks, Mr. Cook said, the latest escalation in a more than 300-year disagreement in the disputed waters off Machias Seal Island. Both countries claim the island, which is about 10 miles off Maine and home to two full-time residents (both Canadian), puffins, rocks and not much else, and say they have the right to patrol its boundaries.

Read the full story at the New York Times

U.S. law enforcement’s boat stops along maritime border rankle Canadian fishermen

July 6, 2018 — U.S. Border Patrol agents have ramped up their activities along Maine’s maritime border with Canada in an operation that has rankled Canadian fishermen, surprised Americans and alarmed civil liberties groups already concerned about the agency’s activities.

The agents are stopping vessels in a rich lobster fishing area known as the Gray Zone that is claimed by both the United States and Canada.

Twenty-one Canadian vessels and an unknown number of American boats have been questioned by Border Patrol since October 2017 with no immigration arrests, said Stephanie Malin, a Customs and Border Protection spokeswoman.

Maine fishermen report being stopped and asked for identification, and some boats have reportedly been boarded by Border Patrol agents. Canadian fishermen, meanwhile, say the stops are occurring in international waters and Border Patrol agents shouldn’t be boarding their vessels.

Read the full story at the Portland Press Herald

US border patrol boat strayed into Canadian waters chasing migrants: fishermen

July 5, 2018 — A US border patrol boat strayed into Canadian territorial waters while chasing “illegal immigrants” off the coast of Maine and Nova Scotia, Canadian fishermen said Wednesday.

Laurence Cook, chair of the Grand Manan Fishermen’s Association, said on Facebook that a US border patrol launch out of Maine attempted to stop a Canadian fishing vessel in Canadian waters.

Grand Manan is a Canadian island in the Gulf of Maine, right off the coast that hosts the border between the United States and Canada.

Cook said the incident took place on June 24 near Machias Seal Island, a tiny and rocky outcrop a dozen miles (kilometers) south of Grand Manan with rich lobster grounds, and whose sovereignty is disputed by Washington, although the Canadian Coast Guard maintains a lighthouse there.

According to Cook, the Canadian fishing captain, Nick Brown, informed the US vessel that “he was a Canadian vessel legally fishing in Canadian waters.”

“Typical American bullies,” said Cook, who said he was “not surprised to see the Americans trying to push people around.”

Ties between Canada and the United States have been strained since President Donald Trump slapped tariffs on Canadian steel and aluminum, citing US national security, with Trump calling Canadian Prime Minister Justin Trudeau “very dishonest” and “weak” after a spat at the G7 meeting in Quebec last month.

Read the full story from the Agence France-Presse at Yahoo.com

NOAA Fisheries Agency To Hold ‘TRAC’ Meeting with Foreign Officials

July 5, 2018 — Officials with the Northeast Fisheries Science Center are gearing up for their 20thannual ‘U.S-Canada Trans-boundary Resource Assessment Committee Meeting’ where scientists from each country will update the status of various Eastern Georges Bank fish species.

During the assessment, research survey and fishery catch data will be used to build a current picture of population sizes, numbers of young fish coming into the population, the amount of fish removed through harvests, and more.

U.S. scientists will also present some new work that evaluates how much variation there is in area swept by the trawl gear used in federal research surveys, and how this affects survey results for the TRAC species.

Read the full story at CapeCod.com

Chinese tariffs could harm US shark fishing sector

July 5, 2018 — The small US shark fishing industry, which sells fins and meat to China, could be shut out of that market due to increased tariffs, the New York Times reported.

The Chinese government is set to soon impose 25% tariffs on a wide range of US seafood exports in retaliation for tariffs imposed by the Donald Trump administration including on shark fins and canned and preserved fins.

These tariffs could shut out US shark harvesters out of their main market and drive Chinese buyers elsewhere.

“My sense is that’s going to decrease demand for sustainably fished U.S. shark fins, and increase demand from countries with less sustainable fisheries,” said Shaun Gehan, an attorney for Sustainable Shark Alliance, which represents shark fishermen and dealers. “It’ll just be a hardship for the small fish houses and the fishermen that participate in this fishery.”

Read the full story at Undercurrent News

US-China tariffs: What’s behind them, who stands to be hurt?

July 5, 2018 — President Donald Trump has boldly declared that trade wars are easy to win. He’s about to find out.

Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. And China will promptly strike back with tariffs on an equal amount of U.S. exports.

And just like that, a high-risk trade war between the world’s two biggest economies will begin — one that could quickly escalate.

“I see us running into a full collision course in a few days,” said Ashley Craig, a trade lawyer at Venable LLP. “It seems as if both sides are fairly dug in.”

Here’s a look at what’s happening this week and its likely impact.

WHAT IS THE U.S. DOING?

The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50 billion a year. It had originally proposed the tariffs in April, starting with 1,333 Chinese products. After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others.

Starting Friday, the U.S. will tax 818 Chinese products, worth $34 billion a year, from the original list. It won’t target the 284 additions, worth $16 billion, until it gathers further public comments.

Read the full story from the Associated Press at the Gloucester Daily Times

Canadian tariffs on US goods go into effect, but spare seafood industry

July 3, 2018 — Canada has placed tariffs valued at CAD 16.6 billion (USD 12.6 billion, EUR 10.8 billion) on American products as retaliation for a 25-percent tariff on steel and 10-percent tariff on aluminum the United States instituted earlier this year by U.S. President Donald Trump.

Canada’s tariffs took effect 1 July – Canada Day. While the new tariffs affect goods ranging from beer kegs to ball point pens, orange juice to candy to bourbon, they appear to have largely spared the seafood industry.

It’s an extraordinary situation for the two countries which traditionally tout their undefended border, close relationship, and are the world’s second-largest trading block.

More than USD 1.5 billion (EUR 1.3 billion) in goods and more than 300,000 people cross the U.S. Canada border every day. The value of trade crossing the Ambassador Bridge between Windsor, Ontario and Detroit, Michigan is equal to all of Japan’s exports to the U.S. Canada is a bigger market for U.S. goods than the 27 countries of the European Community. For example, 4,000 shipments of ingredients for Campbell’s Soup products cross from the US into Canada each day and 3,500 travel from Canada into the U.S.

Since introduction of the North American Free Trade Agreement in 1985, there has been a 350 percent rise in trade between the U.S. and Canada. Canada is one of the top five investor nations in the U.S. and is America’s primary energy source (oil, natural gas, and electricity), while Saudi Arabia is number three.

Read the full story at Seafood Source

China to slap tariffs on Alaska seafood, among other U.S. products

June 18, 2018 — The United States today released a list of Chinese goods worth $50 billion on which it will place 25 percent tariffs. Shortly afterward, China announced reciprocal tariffs on U.S. goods, including Alaska seafood.

Garett Evridge, an economist with the McDowell Group, who specializes in the seafood industry, explained that the tariff on seafood is likely to be far reaching.

“Our initial review of this is indicates that really all salmon species, pollock, ground fish, herring, really across the board for Alaska seafood products, in addition to lobster and other products used throughout the U.S., it looks like the announcement indicates that tariff would be 25 percent on product, including Alaska seafood products,” said Evridge.

Both U.S. and Chinese tariffs will reportedly take effect July 6. Evridge said it is too early to know what this will mean for the seafood market.

“There’s a whole other side of this with diplomacy and strategy on the side of China and the U.S. that we’re not really aware of. But in the event that this actually occurs, it will certainly be a challenge to the industry, and it will impact processors, communities, fishermen just because a 25 percent tariff means an increase in cost.”

One thing is clear, however. China plays a major role Alaska’s seafood industry, so the tariffs would affect a significant portion of the market.

Read the full story at KDLG

China threatens tariffs on US lobsters as business booms

June 18, 2018 — A set of retaliatory tariffs released by China on Friday includes a plan to tax American lobster exports, potentially jeopardizing one of the biggest markets for the premium seafood.

Chinese officials announced the planned lobster tariff along with hundreds of other tariffs amid the country’s escalating trade fight with the United States. China said it wants to place new duties on items such as farm products, autos and seafood starting on July 6.

The announcement could have major ramifications for the U.S. seafood industry and for the economy of the state of Maine, which is home to most of the country’s lobster fishery. China’s interest in U.S. lobster has grown exponentially in recent years, and selling to China has become a major focus of the lobster industry.

“Maine’s lobster industry is an irreplaceable piece of our state’s economy that supports thousands of jobs and entire coastal communities,” the state’s congressional delegation said in a statement. “Just two weeks ago, the Maine delegation heard directly from our state’s lobster industry about the economic hardship a trade war with China would cause them.”

The delegation — Republican Sen. Susan Collins, Independent Sen. Angus King; Democratic Rep. Chellie Pingree and Republican Rep. Bruce Poliquin — said they plan to outline their concerns to federal trade officials.

“Hopefully cooler heads can prevail and we can get a solution,” said Matt Jacobson, executive director of the Maine Lobster Marketing Collaborative. “It’s a year round customer in China. This isn’t good news at all.”

Read the full story at the Associated Press