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Is trade war pushing seafood processing out of China?

August 3, 2018 —The current Sino-U.S. trade war, which has seen tariffs imposed on most seafood products from China (but not on re-exported processed product), is causing many seafood processing companies in China to reassess whether or not to move their operations out of China. This is the first of a two-part series looking into the issue.

Many seafood processing companies are now assessing whether to move to another Asian location where wages and costs are lower. Even before the trade war heated up between the United States and China, it was a well-known fact that the cost of doing business in China has been rising steadily for years. Today, the average Chinese worker’s wages are twice those in Vietnam.

There are plenty of takers for anyone moving processing activity out of China, starting with what Asia-focused advisors have begun to refer to as the new “Big 5” of Asian manufacturing competiveness. As listed in the Deloitte 2016 Global Manufacturing Competitiveness Index, the Big 5 are: Indonesia, Malaysia, Thailand, India, and Vietnam.

All of those countries have committed to reforms that have improved their rankings, such as creating a national credit scoring system that allows for quick due-diligence checks on would-be local partners, and regulatory reforms that make it easier to wind up companies in those countries. Also, there’s been movement on better utilities connections in several ASEAN countries, including Indonesia. Vietnam has created a one-stop shop for business licenses and tax remittances while Malaysia has put much of the process online. And India and Thailand have worked hard to streamline their export and import licensing systems.

Read the full story at Seafood Source

Nations Will Start Talks to Protect Fish of the High Seas

August 2, 2017 — UNITED NATIONS — More than half of the world’s oceans belong to no one, which often makes their riches ripe for plunder.

Now, countries around the world have taken the first step to protect the precious resources of the high seas. In late July, after two years of talks, diplomats at the United Nations recommended starting treaty negotiations to create marine protected areas in waters beyond national jurisdiction — and in turn, begin the high-stakes diplomatic jostling over how much to protect and how to enforce rules.

“The high seas are the biggest reserve of biodiversity on the planet,” Peter Thomson, the ambassador of Fiji and current president of the United Nations General Assembly, said in an interview after the negotiations. “We can’t continue in an ungoverned way if we are concerned about protecting biodiversity and protecting marine life.”

Without a new international system to regulate all human activity on the high seas, those international waters remain “a pirate zone,” Mr. Thomson said.

Lofty ambitions, though, are likely to collide with hard-knuckled diplomatic bargaining. Some countries resist the creation of a new governing body to regulate the high seas, arguing that existing regional organizations and rules are sufficient. The commercial interests are powerful. Russian and Norwegian vessels go to the high seas for krill fishing; Japanese and Chinese vessels go there for tuna. India and China are exploring the seabed in international waters for valuable minerals. Many countries are loath to adopt new rules that would constrain them.

Read the full story at the New York Times

Indian Shrimp Imports to US Up 20 Million Pounds from 2016; Accounts for 25% of Q1 Volume

May 5, 2017, Seafoodnews.com — The volume of Indian shrimp imported into the US market in the first quarter of the year exceeded 2016 levels by about 20 million pounds. Indian shrimp now represents more than a quarter of all imported volumes in the US market this year. According to shrimp import date from the US Department of Commerce, March imports increased 2.3 percent increase for the month. Overall imports are now down only 0.8 percent. Meanwhile, Indonesian imports were up for the month and for the year. Thailand and Vietnam imports are down sharply for the month while other supplying countries are mixed. Argentine imports remain up. Ecuador’s March imports were for the month but remain generally lower because of higher shipments to Asian and European markets. Ecuador is optimistic that it will sell more than 50 percent of its white shrimp production to Asia.

A former Louisiana official, an Alaskan fishery manager, and a Sea Grant program director are reportedly in the running to head the National Marine Fisheries Service. Robert Barham, Chris Oliver, and LaDon Swann are the three candidates that US Commerce Secretary Wilbur Ross is expected to select from. It’s unclear when Ross — or the White House — will make that decision. Chris Olver has received overwhelming support from fishing associations in Alaska and across the country. Most recently a group of seven fishing groups from the Gulf of Mexico sent a letter to Ross in support of Oliver’s nomination.

In other news, the number of seafood items refused entry to the US market by the FDA fell in April, which dragged overall rejections for the year. Similar to last month, shrimp and filth remain the top species and reasons for refusals. However, shrimp rejections are about the same through the first four months of 2017 compared to last year. Filth is still the top violation but accounts for 40 percent of this year’s refusals versus the 60 percent share of rejections filth was responsible for in 2016.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

NISHAN DEGNARAIN & MICHAEL POSNER: Time to crack down on seafood industry’s worst abuses

May 24, 2016 — Over the last year, a series of Pulitzer Prize-winning news stories have revealed human trafficking, forced labor, and other abuses in the seafood industry. The complexity of global seafood supply chains and significant gaps in regulation have made it very difficult to track, much less remedy, these abuses.

Recently, the U.S. government has begun to expand its efforts to monitor and better regulate the seafood industry, recognizing the links between environmental sustainability and food safety. But these efforts have paid too little attention to addressing labor abuses. The solution to these labor problems will require increased regulation, improved corporate sourcing practices, and greater transparency, all predicated on a sharing of responsibility between industry, governments and other stakeholders.

According to the World Bank an estimated 2.5 billion people worldwide depend on fish for nutrition. Demand for seafood will continue to rise in the future, as population growth, increasing income, and the rising middle class in developing countries like China and India drive demand.

Read the full opinion piece at CNBC

Tricked While on Land, Abused or Killed at Sea

November 9, 2015 — LINABUAN SUR, Philippines — When Eril Andrade left this small village, he was healthy and hoping to earn enough on a fishing boat on the high seas to replace his mother’s leaky roof. Seven months later, his body was sent home in a wooden coffin: jet black from having been kept in a fish freezer aboard a ship for more than a month, missing an eye and his pancreas, and covered in cuts and bruises, which an autopsy report concluded had been inflicted before death. “Sick and resting,” said a note taped to his body. Handwritten in Chinese by the ship’s captain, it stated only that Mr. Andrade, 31, had fallen ill in his sleep.

Mr. Andrade, who died in February 2011, and nearly a dozen other men in his village had been recruited by an illegal “manning agency,” tricked with false promises of double the actual wages and then sent to an apartment in Singapore, where they were locked up for weeks, according to interviews and affidavits taken by local prosecutors. While they waited to be deployed to Taiwanese tuna ships, several said, a gatekeeper demanded sex from them for assignments at sea.

Once aboard, the men endured 20 hour workdays and brutal beatings, only to return home unpaid and deeply in debt from thousands of dollars in upfront costs, prosecutors say. Thousands of maritime employment agencies around the world provide a vital service, supplying crew members for ships, from small trawlers to giant container carriers, and handling everything from paychecks to plane tickets.

While many companies operate responsibly, over all the industry, which has drawn little attention, is poorly regulated. The few rules on the books do not even apply to fishing ships, where the worst abuses tend to happen, and enforcement is lax. Illegal agencies operate with even greater impunity, sending men to ships notorious for poor safety and labor records; instructing them to travel on tourist or transit visas, which exempt them from the protections of many labor and antitrafficking laws; and disavowing them if they are denied pay, injured, killed, abandoned or arrested at sea.

“It’s lies and cheating on land, then beatings and death at sea, then shame and debt when these men get home,” said Shelley Thio, a board member of Transient Workers Count Too, a migrant workers’ advocacy group in Singapore. “And the manning agencies are what make it all possible.

Step Up Marine Enterprise, the Singapore based company that recruited Mr. Andrade and the other villagers, has a well documented record of trouble, according to an examination of court records, police reports and case files in Singapore and the Philippines. In episodes dating back two decades, the company has been tied to trafficking, severe physical abuse, neglect, deceptive recruitment and failure to pay hundreds of seafarers in India, Indonesia, Mauritius, the Philippines and Tanzania.

Still, its owners have largely escaped accountability. Last year, for example, prosecutors opened the biggest trafficking case in Cambodian history, involving more than 1,000 fishermen, but had no jurisdiction to charge Step Up for recruiting them. In 2001, the Supreme Court of the Philippines harshly reprimanded Step Up and a partner company in Manila for systematically duping men, knowingly sending them to abusive employers and cheating them, but Step Up’s owners faced no penalties.

Read the full story at The New York Times

New Delhi: Congress leader KV Thomas urges Centre to give free ration to fishermen hit by ban

June 23, 2015 — NEW DELHI: Senior Congress leader KV Thomas today urged the Centre to provide free ration to fishermen affected by the ban imposed on fishing by mechanised boats for the months of June and July.

Ban on fishing by mechanised boats is imposed between June 15 and July 31 by state like Kerala in the territorial waterways and a total ban on fishing is imposed for one month from June 1 by the Centre in the Exclusive Economic Zone, he told newspersons at a press conference here.

Read the full story at The Economic Times