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Canada Trade pact will slow Canadian lobster sales to China, says expert

13:50  18 january  2020
13:50  18 january  2020 Source:   cbc.ca

Trump says China trade deal may be signed shortly after January 15

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BEIJING — President Trump and China say their new trade pact is just the beginning of a fresh relationship Even as China ’s exports to the United States have plunged, its sales elsewhere Wednesday’s pact “ will provide at least a truce in the trade war,” said He Weiwen, a prominent

American lobster exports to China cratered last year, dropping to less than million through November. The exports were worth more But Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said it remains to be seen just how much the new pact will benefit U.S

BAR HARBOR, MAINE - JULY 08: A cooked lobster is prepared at the Gateway Lunts Lobster Pound on July 08, 2019 in Bar Harbor, Maine. Maine’s lobsters are the most valuable commercial fishery in the state and the largest lobster fishery in the United States. Studies indicate that since 1982, temperatures in the Gulf of Maine have warmed about 2.3 degrees Fahrenheit, with the warmer water actually helping increase lobster populations. There is concern among scientists though that further higher in-shore water temperatures could push smaller lobsters farther offshore to deeper, cooler waters, or northward into the cooler Canadian waters which could disrupt the Maine lobster business over time. (Photo by Joe Raedle/Getty Images)© 2019 Getty Images BAR HARBOR, MAINE - JULY 08: A cooked lobster is prepared at the Gateway Lunts Lobster Pound on July 08, 2019 in Bar Harbor, Maine. Maine’s lobsters are the most valuable commercial fishery in the state and the largest lobster fishery in the United States. Studies indicate that since 1982, temperatures in the Gulf of Maine have warmed about 2.3 degrees Fahrenheit, with the warmer water actually helping increase lobster populations. There is concern among scientists though that further higher in-shore water temperatures could push smaller lobsters farther offshore to deeper, cooler waters, or northward into the cooler Canadian waters which could disrupt the Maine lobster business over time. (Photo by Joe Raedle/Getty Images)

Even though a new U.S.-China trade agreement does not eliminate heavy Chinese tariffs, the deal will result in a loss of Canadian seafood sales to China, according to international trade researcher Mohammad Rahaman of Saint Mary's University in Halifax.

China Used the Rest of the World to Cushion Itself From Trump’s Tariff Barrage

  China Used the Rest of the World to Cushion Itself From Trump’s Tariff Barrage China’s export juggernaut last year showed it can be nimble too, quickly diversifying into new markets to cushion the impact of Donald Trump’s tariff onslaught.That’s the key trend seen in China’s 2019 trade data published Tuesday, which show exports to the U.S. plunged 12.5% even as overall shipments rose 0.5%. The trade balance tells a similar story, with China’s surplus with the U.S. dropping 8.5% to almost $296 billion even as its overall surplus rose more than 20% to about $422 billion.© Bloomberg EU Surpasses U.S.

President Trump called the initial trade pact he signed with China a path “toward a future of fair and reciprocal trade .” To critics, it is the type of managed trade approach that the United States has long criticized, especially with regard to China and its control over its economy.

Trump signs China trade pact and boasts of 'the biggest deal ever seen'. “Ultimately, trade wars produce losers. The US has lost because of inevitably higher prices for consumers, whilst China has lost because overall the volume of its trade will fall.

Canadian live lobster exports to China, mostly from Nova Scotia, soared after China slapped retaliatory tariffs of 35 per cent on U.S. lobsters.

U.S. lobster exports tanked while Canadian sales jumped by 123 per cent, worth a record $384 million, during the 10 months of 2019.

The new trade deal does not lower those tariffs. But China has pledged to buy $32 billion worth of American agricultural products over the next two years, including lobster and other seafood products.

China's "pseudo-capitalism"

Rahaman says the Chinese government has the clout to compel its companies to switch back to lobster from the United States.

He calls it "pseudo-capitalism."

"They have private corporations who are heavily indebted to state-owned banks and, through that channel, China can actually direct trade and commerce," he said.

Trump could still slap tariffs on China after signing 'phase one' trade deal, expert warns

  Trump could still slap tariffs on China after signing 'phase one' trade deal, expert warns China would have to buy a "crazy amount" of U.S. goods and services to fulfill its commitments in the deal, said Deborah Elms, executive director of Asian Trade Centre.That's especially the case when the deal — expected to be signed in Washington on Wednesday — would involve Beijingincreasing its imports of U.S. goods and services by at least $200 billion over two years, said Deborah Elms, executive director at consultancy Asian Trade Centre.

American lobster exports to China cratered last year, dropping to less than million through November. The exports were worth more But Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said it remains to be seen just how much the new pact will benefit U.S

China is awash in Canadian lobsters as exports from the East Coast soar to fill the gap left by Beijing’s retaliatory tariffs against the U.S. China , a huge and growing customer for lobster , placed heavy tariffs on U.S. lobsters – and many other food products – in July 2018 amid rising trade hostilities between

"I understand there is a lot of skepticism on whether they will actually follow through on the promises they have made. But if they really want to do it they can deliver on this promise."

Rahaman added: "We're going to pay a price in terms of our seafood market access to the Chinese market."

'We can sell everything we catch'

Keith Colwell, Nova Scotia's minister of fisheries and aquaculture, said the province has nothing to fear. "Basically, it won't make any difference for us."

"We can sell everything we can catch. We sell top-quality products. We send it on time and their customers are very happy with it."

Global Affairs Canada said it continues to monitor the China-U.S. deal.

The amount of seafood China will buy from American fishermen, even at inflated prices, has not been spelled out.

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