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W W W. M A I N E B I Z . B I Z 11 S E P T E M B E R 7 , 2 0 2 0 With the nation's largest network of dentists, get the right partner in dental benefits to make sure healthy smiles are the face of your healthy business. NortheastDeltaDental.com LET SMILES DO THE TALKING FOR YOUR BUSINESS WITH SMILE POWER! NEDD_1_2 PAGE_ MAINEBIZ_man.indd 1 8/19/19 8:05 AM Lobster industry gets needed victory with repeal of EU tariff B y L a u r i e S c h r e i b e r M aine's lobstering industry got a boost when the European Union announced it will end tariffs on imports of U.S. lobster, retroactive to Aug. 1. U.S. exports of lobster to the EU were over $111 million in 2017, so the tariffs had taken a bite out of the Maine lobster industry. Roughly 80% of American lobster is harvested in Maine. The state's lobster catch was worth $485 million in 2019. "The elimination of the EU tariff on U.S. lobster prod- ucts is a significant achievement for our industry," said Annie Tselikis, director of the Maine Lobster Dealers' Association. "The EU was historically an essential mar- ket for Maine lobster, but we have been facing challenges in that mar- ket since 2017 due to preferential treatment of Canadian lobsters. This move levels the playing field for Maine lobster companies and will ben- efit the entire industry." Unlike Canadians, American exporters faced tariffs of 8% for live lobster and up to 30% for frozen lobster products to sell into the confederation of over two dozen European countries. In a Facebook post, Tselikis noted the associa- tion had worked on eliminating the tariff since it was imposed nearly three years ago. "Hard work pays off," she wrote. "The removal of the tariffs on U.S. lobsters exported to the EU is a big damned deal." Live and frozen lobster Under a new agreement negotiated by U.S. Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products. The EU will eliminate the tariffs on a Most Favored Nation basis, retroactive to begin Aug. 1. The tariffs will be eliminated for a period of five years and the European Commission was expected to promptly initiate proce- dures aimed at making the tariff changes permanent. In exchange, the U.S. agreed to reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 mil- lion, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts. The U.S. tariff reductions will also be made on an Most Favored Nation basis and retroactive to begin Aug. 1. Meanwhile, the lobster industry contiues to be caught in the ongoing trade war with China. Live lobster exports to China dropped by 64% in the first month after the country imposed its own retaliatory tariffs. In 2018, President Donald Trump placed a 25% tariff on up to $50 billion worth of Chinese goods. In turn, China imposed a 25% tariff on a host of imported U.S. products, including lobsters. Previously, China had been the second-largest importer of Maine lobster. In 2017 — the last full year before the tariffs went into effect — Chinese customers purchased $128.5 million of lobsters from Maine. P O L I T I C S & C O. Roughly 80% of American lobster is harvested in Maine. The state's lobster catch was worth $485 million in 2019. P H O T O / L A U R I E S C H R E I B E R Coastal communities rely on the lobstering industry, which could get a boost from the elimination of the European Union's tariff.

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