BY ANNELIA NIXON

TRIBUNE BUSINESS REPORTER

anixon@tribunemedia.net

A BAHAMIAN fisherman left a meeting with the Minister responsible for agriculture and fisheries feeling confident that the government will do all they can to reduce the US tariffs that has been placed on exports.

Chuck Pinder, a commercial fishing industry representative, said he left a recent meeting with Agriculture and Marine Resources Minister Jomo Campbell confident that the government was treating the tariff as a priority and would push for relief on behalf of fishermen.

“We had a meeting on the phone,” Mr Pinder said. “The minister was very obliging. He was very focused on seeing that they worked on these tariffs that The Bahamas is now being charged by the United States to see if they could get them back down to where they were.

“He promised me that on the fishermen’s behalf, this is just one of the top agendas that he is in the middle of seeing through, and they are working on this diligently to make this happen.”

Mr Pinder said the tariff should not be viewed simply as a cost to be absorbed by exporters, warning that the increased expense could ultimately affect what fishermen are paid for their catch.

“I walked away with Minister Campbell believing that he will very much so try his best to work on behalf of the commercial fishermen of The Bahamas to see that we fix this 12.5 percent tariff,” he said.

Commercial fishermen are warning that the full impact of the United States’ 12.5 percent tariff on Bahamian seafood exports could eventually be felt throughout the crawfish industry, despite some fishermen initially viewing the measure as a cost that would fall primarily on fish houses.

The warning comes as the government continues efforts to persuade the US to reduce the tariff to the 10 percent rate that applied to Bahamian exports before July 24, when the higher levy took effect.

He said some fishermen believe the tariff would have little direct effect on them because fish houses, rather than fishermen, handle the exports. However, Mr Pinder said that view overlooks the way costs move through the seafood supply chain.

“What they need to realise and remember is they can’t expect to get the same price if the buyer is having to pay this 12.5 percent,” he said. “And they also need to understand the buyers that buy these crawfish tails will look for a different market if the price from the Bahama tail is too big.”

The timing of the tariff is particularly important because The Bahamas’ crawfish industry operates across several international markets and seasonal demand cycles.

Mr Pinder said European buyers are typically an important market for Bahamian lobster tails between August and November, when demand increases ahead of the Christmas season.

“From August until November has been the Europeans buy our lobster tail because … they celebrate with lobster,” he said.

According to Mr Pinder, US demand becomes increasingly important after November, when American buyers return to the market and seek supplies for domestic sales as well as exports.

“That 12.5 percent tariff can mean a lot at the end of the day,” he said, comparing the potential impact to the way seemingly modest increases in duties can ultimately translate into much larger price increases for consumers.

The government has been seeking an exemption for Bahamian crawfish and stone crab exports while also attempting to negotiate a reduction in the overall tariff rate.

Minister Campbell recently said The Bahamas was seeking to return to the 10 percent rate that existed before July 24, noting that the country was among more than 60 nations engaged in broader discussions with the United States over the tariff measures.

Mr Campbell said Prime Minister Philip Davis, Economic Affairs Minister Jerome Fitzgerald and Foreign Affairs Minister Fred Mitchell have been involved in efforts to address the issue, while the government also plans to seek another meeting with US Ambassador Herschel Walker to present The Bahamas’ position.

For the fishing industry, however, the consequences of the tariff may not become clear immediately.

Keith Carroll, another industry representative, said buyers are unlikely to determine the full effect on their operations until they begin shipping under the new tariff.

“We wouldn’t feel effects from this until probably in the middle of September when the buyers start to ship, and they will know what it will cost them,” Mr Carroll said.

He said fish houses could ultimately choose different ways to deal with the additional cost, including absorbing some of the loss or passing some of it back to fishermen.

“Fish houses, sometimes they absorb the loss,” Mr Carroll said. “Sometimes they probably pass it on to the fishermen. But we wouldn’t know none of this until, like I say, until the end of the month or middle next month, middle of September.”

Mr Pinder said he remained optimistic following his discussion with Mr Campbell, saying the minister appeared committed to securing a resolution.

“I had a very good conversation with the minister this morning, and I am well pleased with his response to me on this matter,” he said. “And I do think that they will try their best to rectify the situation.”

With the crawfish season now underway, the industry will be closely watching both the government’s negotiations with the US and the response of international buyers as the higher tariff begins to filter through the export market.