Saving Seafood

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

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

In China, Salmon is Salmon, Even if It’s Trout

August 17, 2018 — For years, fish sellers in China have labeled something other than salmon as salmon, according to a local media report that outraged sushi lovers across the country.

Now, Chinese fish authorities have responded: That’s perfectly O.K. with them.

Chinese regulators said this week that rainbow trout can be sold as salmon, according to new standards set by a government-affiliated fish association and 13 commercial fisheries. To justify the change in definition, officials cited biology: Salmon and rainbow trout belong to the same fishy family. They also required sellers to note the exact type of fish elsewhere on the label.

Still, the fuzzy definition touched a nerve in a country with a long history of food labeling issues and a vast population of increasingly sophisticated consumers. Thousands took to the internet to blast regulators for lowering food standards instead of fixing the issue. Some declared they would never eat salmon again.

Even patrons at a sushi restaurant said that they could no longer trust salmon enough to eat it raw.

Read the full story at The New York 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

Rainbow trout can now officially be labeled as salmon in China

August 14, 2018 — Rainbow trout can be labeled and sold as salmon, according to new rules issued by a government-run fishery organization and 13 Chinese fishery companies.

The ruling is intended to resolve complaints that China-produced rainbow trout is being mislabled as salmon, amid concerns that eating rainbow trout raw would lead to parasite infection.

The ruling says salmon is the umbrella name of salmonidae fish, and rainbow trout also belongs to this category, the China Aquatic Products Processing and Marketing Alliance (CAPPMA) said on their website.

The CAPPMA, a social organization under the Ministry of Agriculture, along with 13 fishery companies, issued the controversial standard.

The sale of salmon has been increasing in China in recent years, but a lack of standards has raised the concern of many Chinese consumers.

In May, some media reports claimed that a lot of what is sold as salmon in China is in fact rainbow trout, produced in Northwest China’s Qinghai Province.

Later many netizens began to claim rainbow trout from the Qinghai-Tibetan Plateau is being mislabeled as salmon, and is infested with worms and painted to resemble salmon.

Read the full story at the Global Times

MSC teams up with Walmart in China

August 14, 2018 — An effort to court major retailers in China appears to be paying off for the Marine Stewardship Council, which teamed with Walmart and the China Chain Store and Franchising Association (CCFA) for the launch of a “Sustainable Seafood Week” in a Sam’s Club store in Shenzhen the week of 13 August.

Chinese retailers want to make the upstream portion of the supply chain more sustainable, according to Pei Liang, secretary general of the CCFN. He pointed to the MSC label as a “standard” by which Chinese retailers can measure their sustainability efforts.

“We want environmental protection from suppliers to consumers,” Shi Jia Qi, Walmart China’s vice president of government relations, told SeafoodSource. Shi said Walmart will seek to increase the number of MSC-labeled goods stocked in Sam’s Club stores in China.

Read the full story at Seafood Source

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