JETRO struggles to expand scallop supply chain in U.S.
Steep tariffs imposed by U.S. President Donald Trump left prospects for the project uncertain, apparently making businesses reluctant to invest in it.
The United States previously imported Japanese scallops after processing in China, which was their main export destination.
But Beijing imposed a ban on imports of Japanese fisheries products in August 2023, when Japan's crippled Fukushima No. 1 nuclear power plant started releasing into the ocean treated water containing small amounts of tritium.
In 2023, Japan's scallop exports dropped 24% from the previous year to ¥68.9 billion.
JETRO then planned to build an alternative supply chain using Ensenada, northwestern Mexico, as a new location for scallop processing. In March 2024, officials from 14 Japanese companies, including processors in Hokkaido and Miyagi Prefecture, visited there.
The new supply chain in which scallops are processed in Ensenada and exported to the West Coast was set to be established in 2024.
But the project has faced a headwind since Trump's return to the White House earlier this year. The U.S. president has imposed high tariffs on imports from Mexico over illegal migrants from the country. In addition, poor catches of scallops amid the global warming have added to the uncertainty.
In June this year, China announced it would lift its ban on Japanese fishery products. While this was good news for Japanese fishermen, relying on China as an export destination may be a risk, amid fears of a deterioration in Japan-China relations.
"Processing in Mexico is a still option," a JETRO official said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Mainichi
5 hours ago
- The Mainichi
Japan firms' FY 2025 net profit to fall on US tariffs, 1st drop in 6 yrs
TOKYO (Kyodo) -- Total net profit for major Japanese companies listed on the Tokyo Stock Exchange is expected to fall 7.8 percent in the current business year, the first drop in six years, as higher tariffs imposed by U.S. President Donald Trump weigh on manufacturers, a tally by a securities firm showed Monday. The net profit in the companies' earnings estimate for the year ending in March totaled 44.94 trillion yen ($305 billion), according to SMBC Nikko Securities Inc. Companies in the transportation equipment sector are expecting to be hit especially hard by the levies, with their net profit projected to tumble 33.6 percent from the previous year to 5.01 trillion yen. SMBC Nikko used earnings reports released as of Friday by 1,143 companies, or 99.7 percent of those listed on the top-tier Prime Market whose fiscal year ends in March. But it barred 46 firms that did not disclose a forecast for its analysis. Among the firms, combined net profit for the April-June period fell 11.7 percent to 12.74 trillion yen. Japan and the United States last month agreed on auto and so-called reciprocal tariffs of 15 percent. Trump said on Friday that he will set a new tariff rate for steel and semiconductors in the upcoming weeks.
NHK
6 hours ago
- NHK
Japan, Germany FMs agree on need for G7 unity over early Ukraine ceasefire
The foreign ministers of Japan and Germany have agreed on the importance of unity among the Group of Seven nations to realize an early ceasefire and lasting peace in Ukraine. Iwaya Takeshi met with his German counterpart, Johann Wadephul, for about 40 minutes on Monday for the first Japan-Germany Foreign Ministerial Strategic Dialogue. The German Foreign Minister is visiting Tokyo for the first time since he took office. At the start, Iwaya noted that the need for cooperation and collaboration between their countries is increasing. He expressed readiness to engage in constructive talks not only on the situation in Ukraine, the Indo-Pacific region, but also on ways to deepen bilateral cooperation including economic security. In response, Wadephul said Japan is a special partner in Asia, and in this time of crises and conflicts, this exceptional bilateral relationship plays a significant role. The two also agreed on the importance of unity within the G7 bloc to realize an early and complete ceasefire, as well as a just and lasting peace in Ukraine. The consensus comes against the backdrop of talks between the presidents of the US and Russia, as well as the scheduled meeting between the presidents of the US and Ukraine in Washington on Monday, local time. To realize a free and open international order, the top diplomats also agreed to hold another Foreign and Defense Ministers meeting, or a 2 plus 2 meeting, at an early date. They also agreed to strengthen dialogue in the cyber domain to further materialize bilateral cooperation in security fields.
Japan Times
6 hours ago
- Japan Times
Ten ways to force Putin back to the bargaining table
Vladimir Putin came to Alaska and got the red carpet treatment, complete with a fighter jet flyover and a warm presidential handshake. The state was an ironic location for a summit given Russia's continuing seller's remorse over having sold it to America in the mid-19th century. While expectations were low for a full ceasefire, most observers were hoping for at least a path to negotiations. But as he has for months now, Putin simply continued to play rope-a-dope like a boxer in the ring, ducking both a ceasefire or even a demonstrated willingness to negotiate. A subdued President Donald Trump canceled a planned luncheon to discuss broader economic and security issues with Russia, uncharacteristically refused to take questions and flew back to DC to ponder his next steps. Clearly, it's going to take "severe measures,' to use Trump's own words, to get Moscow not just to sit at the bargaining table but stay for dinner. But what measures need to be up for discussion to convince the maximalist Putin to reduce his demands? Is there a specific checklist?
