October 25, 2019 — If tuna canner StarKist & Co departs American Samoa for a location with cheaper labor costs as the company has previously warned, the impact on the US territory’s economy would be substantial.
The damages could reduce the gross domestic product of the 55,000-resident territory by some $200 million, according to a report from the territory’s Department of Commerce.
The report, presented at a recent meeting of the Western Pacific Fisheries Management Council, indicates that a closure of StarKist’s cannery, the island’s largest employer, would result in the loss of 4,000 direct and indirect jobs, one-fourth of its labor force.
The cannery is responsible for 80% of American Samoa’s exports and 24% of its imports. It “effectively” subsidizes the territory’s shipping costs by 40% and its fuel imports by around 30%, the report states.