Tuesday, March 22, 2022

Alaska Parallel Pacific Cod longliner season closes in PWS; opens in state waters Cordova Times - March 21, 2022 The Prince William Sound Area parallel Pacific cod season closed on March 15, coinciding with the federal closure of the Pacific cod less than 50 feet in length hook and line gear sector in federal Gulf of Alaska waters, the PWS parallel Pacific cod season remains open to vessels using gig gear. https://www.thecordovatimes.com/2022/03/21/parallel-pacific-cod-longliner-season-closes-in-pws-opens-in-state-waters/ Ranked by region: Hatcheries produced a third of Alaska’s salmon catch in 2021 National Fisherman by Laine Welch - March 21, 2022 Salmon returning home to Alaska hatcheries again accounted for nearly a third of the statewide catch for commercial fishermen with 64 million fish in 2021. It was the eighth largest hatchery homecoming since 1977. And at a payout of $142 million, the salmon produced 25 percent of the overall value at Alaska docks. https://www.nationalfisherman.com/alaska/ranked-by-region-hatcheries-produced-a-third-of-alaska-s-salmon-catch-in-2021 International A Look At Some of The Russian Import Bans, Tariffs and Sanctions By Country Urner Barry by Amanda Buckle - March 21, 2022 Russia’s invasion of Ukraine rages on. As of Monday, March 21, Ukraine is remaining strong. The latest news is that the country has refused Russia’s offer to open two safe corridors out of Mariupol in exchange for the city’s surrender. While countries have not sent troops to aid Ukraine, many are still taking action to put a damper on Russia’s efforts. The Group of Seven (G7), the inter-governmental political forum that’s comprised of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, released a joint statement earlier this month reinforcing their resolve to stand with the Ukrainian people and government “who heroically resist Russian President Vladimir Putin’s military aggression and war of choice against their sovereign nation.” Collectively the G7 have imposed restrictive measures to compromise Russia’s economy and financial system. For example, Russia’s banks have been isolated from the global finance system, and there have been sweeping export bans and controls to cut Russia off from advanced technologies. United States The United States has already banned Russian imports of gas and oil. Looking specifically at seafood, on March 11 the U.S. announced that Russian seafood imports would be banned beginning March 25. President Joe Biden released an Executive Order that explained the ban impacted Russian Federation origin “fish, seafood and preparations thereof.” The U.S. Department of the Treasury went into a little bit more detail by listing “articles defined at Harmonized Tariff Schedule of the United States (HTSUS) subheadings.” Included is 0301.11.00 to 0301.99.03; 0302.11.00 to 0302.99.00; 0303.11.00 to 0303.99.00; 0304.31.00 to 0304.99.91; 0305.20.20 to 0305.79.00; 0306.11.00 to 0306.99.01; 0307.11.00 to 0307.99.03; 0308.11.00 to 0308.90.01; 0309.10.05 to 0309.90.90; 1603.00.10; 1603.00.90; 1604.11.20 to 1604.32.40; 1605.10.05 to 1605.69.00; 0508.00.0000; 2301.20.0010; 2310.20.0090; 1504.10.20 to 1504.20.60; and 2106.90.9998. Canada Canada’s sanctions are currently targeting individuals and entities. On March 6 the Canadian government announced that Russian ships would be prohibited from docking in Canada or passing through Canada. The country has not specifically placed a ban on Russian seafood, but some companies have already vowed to end all transactions regarding Russian product France Like Canada, France is targeting individuals close to Putin. The country has already seized a couple of vessels, including a yacht linked to a Russian oligarch. Finance Minister Bruno Le Maire recently said that they haven’t ruled out banning Russian oil and gas imports. Germany For the time being Germany is holding off on banning imports of Russian gas and oil. “Europe has deliberately exempted energy supplies from Russia from sanctions," German Chancellor Olaf Scholz said in a statement. "At the moment, Europe's supply of energy for heat generation, mobility, power supply and industry cannot be secured in any other way. It is therefore of essential importance for the provision of public services and the daily lives of our citizens." Italy Italian police have already seized villas and yachts from high profile Russians who were placed on sanctions lists. Japan Japan announced financial sanctions against Russia shortly after the country invaded Ukraine. Secretary of State Anthony J. Blinken said that Japan’s announcement demonstrated the “unity and resolve of the United States, Japan, and other G7 partners to stop Russia’s aggression in Ukraine.” “These actions will deny selected Russian banks access to the global SWIFT financial messaging system, impose restrictions on the Bank of Russia, and sanction key Russian leaders, including President Putin,” said Blinken. “The strong and decisive steps of Prime Minister Kishida and the Government of Japan, together with those of other allies and partners, will impose massive costs on Russia and thwart its ability to wage its war of choice on Ukraine.” Last week Japan Prime Minister Fumio Kishida said that they would be revoking the “most favored nation” trade status of Russia. If this passes Russian seafood imports, which roughly account for 9% of Japan’s total imports from Russia, could potentially be banned. But even without a ban in place, seafood prices are reportedly soaring. Sanctions have limited access to Russian airspace, which means that there is an obstacle in the way of importing seafood from Norway. United Kingdom The United Kingdom also denied Russia access to “most favored nation” tariffs for luxury exports. Whitefish from Russia is now facing an additional 35% tariff, on top of existing rates. A former UK fisheries boss says that the 35% tariff is not enough, and is calling for companies to put a halt to imports of Russian cod and haddock. This story will be updated as more information is released. https://www.seafoodnews.com/Story/1221517/A-Look-At-Some-of-The-Russian-Import-Bans-Tariffs-and-Sanctions-By-Country Japan PM Announces Withdrawal of Russia from Most Favored Nation Treatment, Raise Duties on Seafood SeafoodNews.com by Tom Asakawa - March 21, 2022 Fourteen countries and regions, including Japan, the United States, and Europe, which are members of the World Trade Organization (WTO), issued a joint statement by March 15 to take every action, including the withdrawal of the "most favored nation" trade incentive for Russia, which continues to invade Ukraine. The Japanese government has also decided to suspend "most favored nation treatment." If the preferential tariff rate is eliminated, the import cost of crab, which has an exceptionally high unit price, will rise significantly. Trading companies that import Russian crabs and sea urchins are also considering an embargo on Russian marine products in Japan and are wondering what to do in the future, reported Minato Shimbun. The most favored nation treatment is one of the basic principles of the WTO, with the rule that the most favorable treatment is applied to all member countries. If Russia is excluded from tariff incentives, import duties on live and frozen crabs from Russia will go up from 4% to 6%, salmon and trout from 3.5% to 5%, and cold-water shrimp from 1% to 4%. The largest supplier of live sea urchins is Russia, but live sea urchins remain tax-free even if preferential treatment is excluded. King crab import cost will rise 200 yen/kg ($1.67/kg) According to a trading company that handles Russian crabs, raising tariffs from 4% to 6% will add about 100 yen/kg ($.83/kg) for snow crabs and about 200 yen/kg ($1.67/kg) for king crabs based on the current exchange rate (1 dollar = 118 yen). The impact of the 2% increase is significant because the unit price is high." As of the morning of March 16, the government had not announced the specific details of the sanctions. If a grace period for exemption from preferential treatment is provided, trading companies pointed out, "Japanese importers will rush to move the Russian products from the cold storages in Busan, Korea to Japan, which raises the question that it may exceed the Japanese cold storage capacity. According to the Ministry of Finance trade statistics, the proportion of crabs imported by Japan last year from Russia was 45% for frozen snow crab and 92% for frozen king crab, illustrating heavy dependence on Russia. A trading company that handles Russian crabs grieves, "If Japan commits to an embargo, we have no alternative resource." About sockeye salmon, a trading company said, "Currently, transactions are calm, and the impact will occur from June when fishing begins. The impact is unclear at this point." If prices are 8.3-8.4 dollars, the increase in tariffs will increase the cost by about 15 to 16 yen/kg ($.12-.13/kg)." The trading company heard from the Russian side said, "I heard that Russians will catch the fish this year as usual." "Because North America will not import, and if Russia has a good catch, the price may drop." However, another trading company wonders, "While Russia will not be able to export, will they have sufficient products to export in June, regardless of Japan's response?" Sea urchins cannot be brought in from the Barents Sea Most of the live sea urchins imported by Japan are from Russia, and as of March 16, there are still live sea urchins from the four Northern Territory islands to Hokkaido. Even if the most favored nation treatment is abolished for live sea urchins, the tariff rate will not change at 0%, so trading companies that handle sea urchins say that the sanctions will not affect Japan. Still, there is a possibility that Japan will embargo Russian marine products in the future. "It would be a big blow if the embargo is enforced. He said that half of the industry is in the mood to give up," he said. Some of the imported sea urchins from the Barents Sea of Russia are exported from Murmansk, routing through the ports of the European Union (EU), but they cannot enter the ports of the EU and cannot be brought into Japan. The Ministry of Agriculture, Forestry, and Fisheries said, "It is up to the G7 countries to decide what kind of tariffs should be applied to what items in response to removing Russia from the most favored nation treatment. The Ministry is considering what specific measures to take at this stage." It is challenging for the U.S. to bring in crabs within the deadline. U.S. prospects for embargo on Russian fishery products Due to the decision to ban Russian marine products in the United States, the delivery of Russian crabs stored in Busan, South Korea, to the United States will be unlikely by the deadline. Crabs from the Russian Far East, which have a tremendous impact on the United States and Japan, are stored in Busan. According to a trading company, it takes a month to bring it from Busan into the United States, and even if it is brought in, it will not be in time for the import grace date of the 25th of this month. Hence, negotiations are underway to extend the grace date in the United States. The U.S. presidential decree announced on March 11 set a grace period for imports up to March 25 for contracts and agreements signed in writing by March 11. New contracts after March 11 are not allowed. There is a possibility that products processed in China will also be subject to the embargo. If Japan implements the same marine product embargo as the United States, the loophole will be closed for processed Russian products from China. Russian fishing ban in the worst-case scenario A trading company that handles Russian frozen crabs is pessimistic about the situation, considering Japan is likely to follow the United States and embargo on Russian marine products. "If Japan embargoes and China joins sanctions, in the worst case, Russia may halt fishing," he said. "The handling of Canadian snow crab will increase in the future," considering switching from Russia to other production areas. Another trading company that handles Russian frozen crabs predicted that "Japan will also implement the import ban and be in line with the United States," and said, "I would like to proceed with information gathering diligently. We have to diversify and increase the production areas and fish species." Opilio snow crab from the Bering Sea of the United States is expected to have a catch quota of 88% lower than the previous year. Only a few hundred tons of the uncooked frozen crab will likely enter Japan. If it is difficult to import from Russia, demands for crabs from Canada and Norway will increase, and there is a possibility that prices will rise significantly. The king crab season was closed in Bristol Bay last year, and it is unlikely that a large quantity can be expected this year. On the other hand, a trading company dealing with Russian shrimp said, "The Japanese situation is different from the United States. The impact on the Japanese industry is tremendously large, so I think Japan will not take the import ban. If it is embargoed, a lot of compensation will be needed." It seems necessary to pay close attention to the contents of the sanctions announced by the Japanese government in the future. https://www.seafoodnews.com/Story/1221488/Japan-PM-Announces-Withdrawal-of-Russia-from-Most-Favored-Nation-Treatment-Raise-Duties-on-Seafood In Memoriam Alaska Rep. Don Young dies at 88 Remembering Don Young, Alaska's sole US House representative and longest-serving Congress member who died Friday. Alaska News Source by Megan Pacer - March 18, 2022 ANCHORAGE, Alaska (KTUU) - Republican Congressman Don Young, Alaska’s lone representative in the U.S. House, has died. He was 88 years old. Young died on Friday “while traveling home to Alaska” his office said via email. https://www.alaskasnewssource.com/2022/03/19/alaska-rep-don-young-dies-88/ Veteran Alaska journalist Jay Barrett dies at 60 KDLL by Sabine Poux - March 21, 2022 Veteran Alaska journalist and KBBI news director Laurence Jay Barrett died Thursday, March 17, at his home in Homer. He was 60. https://www.alaskapublic.org/2022/03/21/veteran-alaska-journalist-jay-barrett-dies-at-60/ Pacific Seafood Processors Association 1900 W Emerson Place Suite 205, Seattle, WA 98119 Phone: 206.281.1667 E-mail: admin@pspafish.net; Website: www.pspafish.net Our office days/hours are Monday-Friday 8:00 A.M. - 5:00 P.M. In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. *Inclusion of a news article, report, or other document in this email does not imply PSPA support or endorsement of the information or opinion expressed in the document.