November 04, 2002
Monday - 10:40 pm

Saying unfair Chilean trading practices jeopardize Alaska salmon fishermen and fishing communities, Gov. Tony Knowles called on the federal government to hold the Chilean farmed salmon industry accountable for its practices. In a letter to the Federal Trade Representative, Knowles seeks provisions in a trade agreement with Chile that end the

"The result of the low prices and decline in market share of Alaska salmon is already clear in the reduced number of salmon fishing permits used in Alaska. The loss of these jobs often occurs in remote coastal communities where fishing is the only industry available."... Gov. Knowles

practice of dumping low-priced fish on the U.S. market, reduce that nation's overproduction of salmon, and develop and enforce effective labor and environmental regulations for the industry.

"The salmon fishing industry in Alaska and the communities that are dependent on it will likely be affected by any trade agreement that does not respond to Chile's over production and over capacity of farmed salmon," Knowles said in a letter to U.S. Trade Representative Robert Zoellick. "Salmon dumping as previously determined by the U.S. government should also be addressed. These unfair trading practices are made possible in part by environmental and labor standards that are not well enforced."

Chilean farmed salmon exports to the United States have rapidly increased in recent years. The state has linked the rise of these imports to the decline in salmon prices and profitability of the Alaska salmon industry. This expansion of trade has already had a tremendous negative impact on domestic salmon producers, including the Alaskans employed in the harvest of wild Pacific salmon.

The Alaska salmon industry is composed of over 10,000 small businesses spread among the numerous, remote communities of Alaska's lengthy coastline. Many of these are Native Alaska communities that have relied on fishing for generations. Coastal communities depend on fishing as a main source of employment and revenue. In some rural regions, salmon earnings make up over 70 percent of the economic base.

"What was once a lucrative industry in Alaska is now often unprofitable," Knowles said. "Prices for salmon have hit record lows in recent years. In many regions, the price per pound is just half of what it was only two years ago. The result of the low prices and decline in market share of Alaska salmon is already clear in the reduced number of salmon fishing permits used in Alaska. The loss of these jobs often occurs in remote coastal communities where fishing is the only industry available."

The unemployment rates in these communities are already far above the national rates: for instance 9.1 percent in Gulf of Alaska communities and 11.8 percent in Southwest Alaska, according to preliminary September 2002 Alaska Department of Labor and Workforce Development statistics. These official figures do not take into account discouraged workers and other factors that affect rural unemployment.

Knowles urged the U.S. Trade Representative to exercise his authority to ensure foreign trade rules that are fair to Alaska fishermen, noting international trade is one of the most important responsibilities of the federal government.

Knowles' letter documenting employment impacts to the Alaska fishing industry is the latest effort of the Knowles/Ulmer Administration to get federal trade officials to take strong steps against Chilean salmon exports. Over the past year, the state has actively pressed for measures in the US-Chile Free Trade Agreement and World Trade Organization agreements that protect the Alaska salmon industry and fishing communities. The governor and his staff have also been in contact with U.S. Commerce Secretary Evans in regard to his Department's investigation of Chilean dumping practices.

In addition to these trade-related measures, Knowles has called for country of origin labeling so consumers know where their seafood is produced, and a national organic label for Alaska seafood. The Knowles Administration helped secure $70 million in federal institutional purchases of Alaska salmon, and recently called for fundamental change in federal fisheries programs so that Alaska fishermen work on equal footing with other American food producers, such as farmers.

Source of News Release:

Office of the Governor
Web Site

 

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