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CBC
07-04-2025
- Business
- CBC
Amid protests, quota cuts, and tariff threats, panel set to rule on snow crab prices
Social Sharing Amid quota cuts, protests, a court challenge and the constant uncertainty of a mercurial U.S. president, parties for both sides of the lucrative Newfoundland and Labrador snow crab fishery have submitted their price recommendations. Now, they wait. In a social media post on Sunday, the Fish Food and Allied Workers union said the price setting panel hearing on snow crab began that morning. The union is asking the panel for a starting price of $4.97 per pound this season. In the same post, the union said the Association of Seafood Producers is asking the panel for a starting price of $4.50 per pound. "Everyone hears about $5, $6, even $7 crab, so nobody is terribly thrilled at the idea of $4.97, and even less thrilled at the idea of $4.50," said Ray Critch, a negotiator and policy manager for the FFAW. "But just to make sure that floor is there should there be a bit of softness in the market, we wanted to make sure it was a reasonable floor that the panel would be more likely to accept rather than what we think are the deflated — artificially deflated — prices from the ASP." No one from the ASP was available for an interview. The snow crab fishery is the province's most lucrative fishery — worth about $476 million in 2024 — and also one of its most fraught. Last year, a price dispute led to violent protests outside of Confederation Building in St. John's, and forced the province to delay the annual budget. Last month, the Department of Fisheries and Oceans increased the total allowable catch by nine per cent, but cut the quota in division 3K — down almost 25 per cent to 7,643 tonnes — and in subdivision 3Ps by about 16 per cent. In response, harvesters protested at the office of federal Fisheries Minister Joanne Thompson, and the St. John's Convention Centre, where Liberal Leader Mark Carney was campaigning. The DFO ultimately did not back away from the quota cuts. Meanwhile, the price setting panel is considering both offers against the backdrop of an ongoing Canada-U.S. trade war. Jeff Loder, the executive director of the ASP, has said they're proposing two prices, depending on whether or not the U.S. enacts tariffs. WATCH | FFAW negotiator talks about the unions tariff planning: FFAW snow crab submission includes tariff contingency plans 5 hours ago Duration 0:46 Panel hearings on snow crab prices are happening now. But this year, they're happening in the shadow of a trade war. Both the Fish, Food and Allied Workers union and the Association of Seafood Producers are taking tariff threats into account. Critch says the FFAW has "built in a direct tariff proposal" and that if there are tariffs then harvesters would agree to accept 30 per cent of any tariff that's out there. "The distributors, and more importantly the consumers, will likely also have to bear some of the burden of tariffs," he said. "Perhaps more importantly, we also included a clause that says if the bottom really does drop out of the economy and the season … that would automatically bring everybody back to the table to renegotiate." The panel should make a decision on price on Wednesday — the same day the ASP, the FFAW and the Newfoundland and Labrador government will be in court to hear a decision on whether the province's fisheries minister had the authority to change a key date for this year's fishery without consulting both the union and processors.


CBC
03-04-2025
- Business
- CBC
Seafood producers confident in court challenge against N.L. government, fisheries union
Justice Alexander MacDonald will make a decision next week The Association of Seafood Producers had its first day in court on Wednesday, challenging the Newfoundland and Labrador government and fisheries union over what it calls " political interference" during price setting negotiations ahead of the snow crab season. The court challenge was prompted when Fisheries Minister Gerry Byrne moved the price setting deadline to April 13, following a request from the Fish, Food and Allied Workers union. The ASP says Byrne acted contrary to the Fishing Industry Collective Bargaining Act and turned to the Supreme Court of Newfoundland and Labrador to quash the date change. "If the minister's decision is quashed, and we expect it to be because he broke the law, then we're in the situation where we don't have a minister's date," ASP executive director Jeff Loder told reporters outside of the court house on Wednesday. "The Supreme Court can't direct a panel date or can't direct, necessarily, a minister's date. So this is the chaos that's created when you have interference in a process." Wednesday's court appearance was focused on the Fishing Industry Collective Bargaining Act and whether or not the minister can change the date without input from both the FFAW and ASP. Justice Alexander MacDonald said he will have a decision next week. 'Wasted time' FFAW lawyer Ray Critch called the court challenge a waste of time, money and energy. He says the minister can move the date without input from both sides. "We think the legislation is fairly clear that he does have authority and more importantly, as a practical reality, the minister has to be able to adjust the date when there are emergency circumstances like a significant linchpin negotiator falling ill," he said. Snow crab is Newfoundland and Labrador's largest and most lucrative fishery, said Critch, and that price negotiations will continue. He says he's ready for a panel meeting on Sunday or Monday. If the decision for date setting is in the minister's hands, Critch said that will prevent one party from being able to "hijack" the process. Tariff troubles Another looming problem over the price setting negotiations has been U.S. President Donald Trump, his threats of tariffs and the ambiguity over what products could be impacted. Loder says there has to be a mechanism to deal with tariffs and the ASP was proposing two prices, depending on whether tariffs are enacted. Later on Wednesday, Trump revealed the countries he was targeting in his expanding trade war, which did not include Canada. There are also exceptions for importers who can prove the products they're bringing in from Canada are compliant with the U.S.-Canada-Mexico Agreement. "After today, ASP's position will change whether there are tariffs or not — how we deal with tariffs has to be into the collective agreement or I will not be signing it," said Loder ahead of Trump's announcement. Critch said one problem with the on-again-off-again tariff threats is the uncertainty of how the market will absolve the new costs. He said consumers, distributors, processors and FFAW members will likely bear some of those costs. "Our position is there has to be some accounting for tariffs and we're building that into our proposal as well. But how those tariffs play out, nobody knows yet," said Critch.


CBC
31-03-2025
- Politics
- CBC
ASP takes provincial government to court, alleging 'political interference' over pushing crab price deadline
The Association of Seafood Producers is accusing the Newfoundland and Labrador government of interfering in the price setting process for the annual snow crab harvest — and it's launching legal action against the province as well as the Fish, Food and Allied Workers union. The deadline for price setting was April 1, but last week Fisheries Minister Gerry Byrne shifted the date to April 13. According to documents filed at the Supreme Court of Newfoundland and Labrador, the ASP has turned to the courts to quash that order. "This matter is urgent. The fishery was to have started on April 1, 2025. The fisheries minister had improperly interfered with the operation of the panel as the purported date change in ultra vires," wrote lawyer Stephen Penney in the ASP's application. The ASP is alleging "political interference" by Byrne and says the minister acted contrary to the Fishing Industry Collective Bargaining Act. In the court application, the ASP says it, the FFAW and the price panel received a letter from Byrne informing them the new deadline would be April 1. The ASP says Byrne then pushed the date because the FFAW made the request as it was looking to replace its key negotiator. "The correspondence came as a shock to ASP. ASP had not been advised of any such issue relating to the FFAW's lead negotiator," wrote the ASP in court documents. The ASP is asking for Byrne's decision to be "quashed," in part because it says the decision to change the date "was an unreasonable exercise of statutory authority." It also alleges Byrne's decision was unfair, as the ASP wasn't informed of the FFAW's request before the decision came down and was not given time to respond. The ASP also said the FFAW had previously tried to get the panel postponed over the uncertainty around U.S. tariffs being implemented. The ASP wants the court to declare that Byrne can't alter the price setting deadline, as well as have him breakdown the reasoning for changing the date. The ASP is also looking for "the evidence and all exhibits filed, if any, and all things touching the proceeding as fully and entirely as they remain in their custody," and wants to be awarded the cost for the application and any other relief the court finds suitable. None of the allegations have been proven in court. Both Byrne and the FFAW turned down interview requests. Hurting the industry The ASP argued that changing the price setting deadline will have far-reaching and negative effects on Newfoundland and Labrador's fishing sector, including hurting market confidence and the province's ability to manage the sector. In a statement on Friday, executive director Jeff Loder alleged government interference was hurting the industry. "The industry cannot function when decisions are delayed and disrupted by politics and pressure," Loder wrote. "Families, harvesters, plant workers, and entire communities depend on this fishery. This is about more than prices — it's about stability, trust, and the rule of law."


CBC
25-03-2025
- Business
- CBC
N.L. seafood producers brace for impact of Chinese tariffs
China's 25 per cent tariff on Canadian seafood could have Newfoundland and Labrador producers fighting a trade war on two fronts. The new tariff came into effect March 20. China represents Canada's second largest seafood market after the U.S., which could also have Canadian seafood tariffs in place April 2. Paul Grant, executive vice-president of Beothic Fish Processors in Valleyfield, N.L. and former board chair of the Association of Seafood Producers, says producers are in a difficult situation even without more tariffs. The tariffs also come amid snow crab quota tensions, and as negotiations for the price of crab continue ahead of other fisheries. "It's very difficult to get people to come to grips with the reality," said Grant. "We can't simply pass this on to the customer. It's just not going to happen." Grant says the lobster and turbot fisheries could be affected as well. While the snow crab season is set to begin April 1, Dwan Street, president of the Food, Fisheries and Allied Workers' Union, says China isn't a major market for Newfoundland and Labrador crab — but it is for sea cucumber, which starts in May. Street says that gives them some time. "We're hopeful that the federal government can help negotiate with the Chinese and those tariffs will hopefully go away," said Street. "You're looking at hypothetical because by the time our fishery starts, it might just all be off the table." According to Statistics Canada, Newfoundland and Labrador exported over a billion dollars of seafood to China in 2024, representing around 20 per cent of the Canadian seafood industry. China's tariffs are in retaliation for levies Ottawa introduced in October on Chinese-made electric vehicles, steel and aluminum products. They include a 100 per cent tariff on rapeseed oil and peas, and a 25 per cent tariff on seafood and pork.


CBC
05-03-2025
- Business
- CBC
Trump's tariffs are fishing sector's biggest challenge since cod moratorium, minister says
Newfoundland and Labrador's fishing industry is preparing for life with heavy economic tariffs in place. Fisheries Minister Gerry Byrne is calling this moment the biggest challenge to the industry since the 1992 cod moratorium. "Never since the 1992 moratorium has such a challenge been put before us," Byrne told reporters on Tuesday. "While all sectors of the economy are affected by our ally's betrayal, none more so than our fishery." Ninety-six per cent of snow crab harvested in Newfoundland and Labrador in 2024 was shipped and sold to the United States. But Byrne says it's unlikely the U.S. market is avoided entirely, and it will likely come down to what markets are willing to pay. "I have absolutely no doubt that even with a 25 per cent tariff, we can indeed sell to the United States. Buyers will buy, consumers will consume, it's a question of the details," he said. "U.S. consumers love Newfoundland and Labrador's snow crab." On top of counter-tariffs put in place by the Canadian government, Byrne says Newfoundland and Labrador is also working to help harvesters and processors who could be affected. His department recently put forward nearly $6 million to help people explore market diversification efforts — and other support measures are in the works. Dwan Street, president of the Fish, Food and Allied Workers union, said the support will be key for the future, should tariffs continue long-term. "It's not going to be the saviour this year, but moving down the road, these are some of the things we're going to have to start investing in. Our province has got a key role in that," Street said. WATCH | N.L. fisheries minister talks about industry support amid trade war: 'U.S. consumers love Newfoundland and Labrador's snow crab' 7 hours ago Duration 3:57 Newfoundland and Labrador Fisheries Minister Gerry Byrne says people in the U.S. will still buy the province's snow crab — even with a 25 per cent tariff. The industry is reeling from the onset of punishing U.S. tariffs. But Byrne says N.L. will do what it can to support the fishery. Street says the situation brings a lot of uncertainty — especially in what appeared to be a recovering market following the post-COVID-19 pandemic years. Just weeks ahead of the proposed start of the snow crab season, Street said she's confident collective bargaining between the FFAW and Association of Seafood Producers will lead to a fishery with a fair price for all. "I certainly don't want our members on the harvesting side to think that this is definite doom and gloom and that it's going to mean a terrible price," she said. "It's going to take a lot of hard negotiating, a lot of hard questions and a lot of cooperation and collaboration across the table from both sides." Paul Grant, executive vice-president of Beothic Fish Processors and board chair of the ASP, is also confident a snow crab fishery can happen. The two sides will meet with a pricing panel on March 20. "I don't think the market price will be depressed to the point where we can't economically process or economically harvest," Grant said Tuesday. However, the tariffs will bring inevitable challenges. "It's the gift that keeps on giving. It's like not only do we have the 25 per cent tariff, but then all the costs associated with that and logistics of trying to find cold storage space," said Grant. "The economics of processing and marketing snow crab in particular, and other items, has changed dramatically with this tariff."