A trade deal that is to be signed between the European Union and the Canadian government could be a lump of coal to the American lobster exporters as we approach Christmas. This is major blow because America lobster and seafood exporters experience a lot of business during this Christmas period. Moreover, a lobster species that is commonly found on the shores of the North American continent is prevalent in the European markets around the Christmas holiday. However, the European Union and Canada have negotiated and finalized a deal that will see Canadian exporters of the lobsters do their business without tariffs throughout the 28 nation of the EU. This agreement poses an economic advantage to Canadian lobster exporters who are the only other traders of this species apart from the United States in North America.
Members of an England based US lobster industry exporters alluded that the lobster exports from the United States have been pretty constant during this trading year. However, the US exporters have expressed their fears saying that the future of the trade is uncertain. Spence Fuller, a Cozy harbor lobster buyer, said that there is going to be increased pressure dealing with lobster orders during this festive season and 2018 is set to be more uncertain. The new rules of commerce cleared their final obstacle in May of 2017.
The trading rules are referred to as Canada-European Union Comprehensive economic and trade Agreement implementation Act popularly known as CETA. The tariff charges on seafood exports have had a median of 11% with the most significant importer of seafood in the globe being the European Union. The EU imports an annual average of $300 million worth of lobsters from the Canadian and American markets.
The export rules are going to be implemented at a time when lobster exports from the United States to some destinations in the European Union have somewhat reduced in the recent past. For instance, American exports to France decreased from to $27 million in 2016 down from an annual average of $42 million a decade earlier. Lobster exports to Spain from the US dived to $42.6 million from $51.6 in one decade.
Lobsters business has also experienced a downward trend in Italy and other economic powers in Europe. Measured in the Canadian dollar, exports to the European Union from Canada saw a growth from $88 million to $192 million in the period between 2013 and 2016. This was according to a statistics report carried out by the federal government of Canada.