Canadian lobster exporters feel sputter outcome of U.S.-China trade war

The United States-China trade fight is formulating choppy seas for Canada’s lobster exporters.

It has led to a transfer of Maine lobster — now labelled out of China — in other Asian markets and Europe, said Jack Liu, boss of North American operations for Zoneco, a vast Chinese seafood association with a Nova Scotia operation.

Dumping is when a nation or company exports a product in a foreign marketplace during a cost that is reduce than a cost in a exporter’s domestic market.

“All of a remarkable they mislaid a Chinese marketplace due to a 25 per cent tariff and what are they going to do? They are going to dump those volume of lobster into other tools of a universe market. We have seen that,” said Liu.

He cites Hong Kong, Malaysia and Taiwan as Asian markets where lobster from a U.S. is now offered during slightest $1 US cheaper, putting vigour on sales of Canadian lobster.

“I trust Canadian lobster, as we speak, is rather losing marketplace share in those Asian markets due to a reduce cost from a U.S.”

Capital Seafoods, located in Eastern Passage, N.S., has increasing a lobster-hold ability with a assistance of a repayable $400,000 loan from a Atlantic Canada Opportunities Agency. (CBC)

On a upside, he pronounced a direct for Canadian lobster in China has left adult in a brief term, though he does not acquire it.

“Tariffs have never been a good thing. Any arrange of tariffs are going to crush and interrupt a markets and we’ve already seen that,” he said, referring to a transfer underway.

Liu had hoped the U.S.-China brawl would be short-lived, though he now fears it competence final longer.

Still a doubt has not slowed Zoneco’s desirous enlargement skeleton in Nova Scotia.

In 2014, it became a initial Chinese association to enter a Nova Scotia lobster attention when it bought adult a Capital Seafoods lobster bruise in Eastern Passage outward Halifax.

New apparatus will remove lobster beef from shell

On Friday, a association announced it skeleton to add 50,000 pounds of live lobster-holding ability in Eastern Passage, helped by a $400,000 repayable grant from a Atlantic Canada Opportunities Agency.

“It’s partial of a long-term strategy, a long-term plan,” said Liu.

After construction is finished in Mar 2019, Liu said Capital will pierce on to an even bigger expansion, installing processing apparatus able of stealing a lobster wholly from a shell.

Capital Seafood said it has spent $7 million in Nova Scotia given a arrival.

Several other Chinese companies have also given set adult operations in a province.

Read some-more stories from CBC Nova Scotia

Article source: https://www.cbc.ca/news/canada/nova-scotia/canadian-lobster-exporters-united-states-china-trade-war-tariffs-1.4815467?cmp=rss