Ottawa reverses fish tariff plan over concerns it could hit Canada’s seafood processing industry

Ottawa reverses fish tariff plan over concerns it could hit Canada’s seafood processing industry MARIE WOOLF MARK RENDELL ECONOMICS REPORTER BILL CURRY DEPUTY OTTAWA BUREAU CHIEF OTTAWA PUBLISHED 1 HOUR AGO Open this photo in gallery: Lobsters sit in crates at The Lobster Co in Kennebunk, Maine, on May 13. Huge volumes of seafood caught in coastal waters off Maine are processed in plants in New Brunswick. LAUREN OWENS LAMBERT/REUTERS COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Ottawa reversed its planned retaliatory tariffs targeting U.S. fish and seafood after warnings that the levies could damage Atlantic Canada‘s seafood industry, including the processing in New Brunswick of Maine lobsters. Canada announced late Wednesday that it is removing the items from a list of retaliatory tariffs that are due to kick in on Sept. 8. Both U.S. and Canadian politicians on the Atlantic seaboard welcomed the policy reversal. Canadian fishermen and restaurateurs, who saw the price of shrimp rise steeply in India after the announcement of the planned tariffs, also expressed relief at the government U-turn. Two federal government sources said the change was made after it became apparent that imposing tariffs on U.S. seafood could harm Atlantic Canada’s seasonal fishing and fish processing, which is closely integrated with the U.S. industry. Huge volumes of seafood caught in coastal waters off Maine are processed in plants in New Brunswick. In the fall, almost half of the Maine lobster catch goes to Canada for processing. The planned tariffs would have been applied to those lobsters. Four takeaways from Canada’s tariff counterpunch The Globe and Mail is not naming the sources, who were not authorized to speak publicly about the matter. In a statement, the Canadian Independent Fish Harvesters’ Federation thanked the government “for listening to the concerns of the industry.” “The seafood sector is fundamentally different from many other industries. Independent fish harvesters operate in a highly integrated, time-sensitive supply chain that crosses provincial and international borders,” it said. “Harvesters, buyers, processors, trucking companies, cold-storage facilities, wholesalers and retailers are interconnected. In many cases, the market for a Canadian landed product is dependent upon an established processing, distribution and customer network in the United…