Courtesy / Maine Coast
Tom Adams, the founder, owner and CEO Maine Coast in York, which has lost 90% of its Chinese business due to the ongoing trade war with China.
June 7, 2019
‘Dear Mr. President — Why not lobster?’
By Staff
"Dear Mr. President — Why not lobster?" That’s the opening line of a letter Maine’s congressional delegation sent this morning to President Donald Trump urging him to provide financial assistance to lobster businesses hurt by the ongoing trade war with China, similar to the relief being provided to American farmers.
“You have recognized that the federal government should compensate innocent citizens who have been harmed by the trade dispute with China,” states the letter signed by U.S. Sens. Susan Collins and Angus King and U.S. Reps. Chellie Pingree and Jared Golden. “The $16 billion in agricultural aid that you have directed Secretary Purdue to provide farmers, however, will not assist the hardworking people of Maine’s lobster industry who — like agricultural farmers — rely on nature’s bounty to fuel their livelihood.”
In their letter, the delegation noted that prior to the Trump administration’s tariffs imposed on a variety of Chinese goods, China had become the second largest importer of Maine lobster. During 2017 — the last full year before the tariffs went into effect — Chinese customers purchased $128.5 million of lobsters from Maine; in the first half of 2018, U.S. lobster exports to China increased by 169%.
“American lobster dealers were encouraged by this positive trend and optimistic that China would continue to increase its American lobster imports,” they wrote. “Instead, calamity struck when the Chinese retaliated against tariffs that your administration placed on their goods. The latest data from the Maine International Trade Center show that lobster exports to China have plummeted 84% since China imposed its retaliatory tariff.”
The delegation cited Maine Coast, a York-based live lobster wholesale company, as a prime example of Maine lobster companies harmed by the trade war. Prior to the tariffs, Maine Coast relied on China for approximately 22% of its business. Since China imposed its retaliatory tariffs, Maine Coast lost 90% of its Chinese business.
“While the short-term impact is difficult to endure, Maine Coast and other lobster dealers are perhaps most concerned by the fact that their former Chinese customers have forged new business relationships with Canadian lobster dealers,” the delegation wrote. “When the lobster tariffs finally are lifted, Maine lobster dealers still will suffer a long-term, detrimental loss of business to their Canadian competitors.”
The delegation reminded President Trump that the lobster industry plays an integral role in the state’s economy, with 4,500 state-licensed lobstermen supporting Maine’s working waterfronts and the livelihoods of 10,000 additional Mainers. As a whole, the lobster industry has an economic impact of about $1.5 billion per year in Maine,” they wrote.
“We respectfully urge you to provide those segments of our lobster industry affected by these tariffs with relief similar to the aid that you are providing to our nation’s farmers,” the Maine Delegation continued. “Specifically, we request that you provide resources and aid intended to grow domestic demand for U.S. lobster and assist with the development of new export markets. Assistance to the lobster industry will help to lessen the blow of Chinese tariffs on a hallmark American industry that has done nothing to deserve the punishment that it is presently forced to bear.”
Ongoing efforts
Today’s letter marks the delegation’s latest effort to advocate for the lobster industry in trade negotiations. In February, the delegation called on U.S. Trade Representative Robert Lighthizer to make the lobster industry a priority in the ongoing trade negotiations with China. And in June 2018, the delegation hosted a meeting between top U.S. Trade Representative officials and members of the Maine Lobster Dealers’ Association to discuss the impact of federal trade policies on the state’s lobster industry.
Additionally, their letter noted that the trade war is only one of the challenges facing Maine’s lobster industry.
Other challenges include the National Oceanic and Atmospheric Administration’s proposed right whale protection efforts, which, as Mainebiz reported Thursday, will have a significant impact on Maine lobstermen. Among the possible changes being considered are reducing the number of traps allowed to each fisherman, connecting more traps to each other and using weak rope in the top of remaining vertical lines.
In May, the delegation wrote a letter urging NOAA leadership to ensure that the science they are relying on is sound and comprehensive, the risk reduction standards are equitable across U.S. and Canadian jurisdictions and asking that the industry is included and consulted throughout the decision-making process.
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