Fisheries/Aquaculture
American Samoa's Endangered Species?
The Territory's Tuna Industry May Be On the Way Out
American Samoa Congressman Faleomavaega Eni is up in arms about proposed new legislation that would “devastate” the local economy. But the two American companies that operate tuna canneries in Pago Pago are split on the measure that proposes to give Ecuador the same duty-free access to U.S. markets. Faleomavaega believes the plan would undermine American Samoa’s competitive advantage in the U.S. market over Ecuador-canned tuna, where workers are paid far less than American Samoans.
Faleomavaega alerted American Samoa Gov. Tauese Sunia to the proposed legislation in September. He also urged local leaders to take note of the global changes in the tuna industry and prepare for the day when the tuna industry departs from American Samoa. “Simply put, the nature of the tuna industry is changing globally and American Samoa cannot rely indefinitely on the tuna industry as a means for economic stability and security in the territory,” he wrote to the Sunia and Fono (Territorial Legislature) leaders. “If we are successful in (opposing this legislation), it will only be a matter of years before similar legislation is introduced again,” he said.
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The two U.S. tuna companies are at odds over the proposal with StarKist Seafood, the parent company of StarKist Samoa in support, while Chicken of the Sea, the parent company of COS Samoa Packing, together with the third major U.S. tuna company Bumble Bee, opposes the measure.
The federal legislation would allow for the extension of North American Free Trade Agreement rates of duty for processed tuna imports under the Andean Trade Preference Act (ATPA). The ATPA was enacted in 1991 with the intention to increase jobs and expand export opportunities in both the U.S. and the Andean region. A key element of ATFA was to provide economic alternatives to drug-crop production. In August, K. Ward Rodgers, recently retired general manager of technical services for StarKist Seafood, told the U.S. Senate Subcommittee on International Trade that his company backs the bill. “Unfortunately, StarKist’s American Samoa facility is at full capacity with no ability to expand due to space constraints,” said Rodgers. An Ecuador plant that has been operating for 10 years has room for needed expansion. “With our American Samoa operations at capacity and with Ecuador offering excellent packing capacity and access to a high quality local fishery, Ecuador is a natural choice for expansion,” said Rodgers.
“I am disappointed in Mr. Rogers’ assessment of American Samoa,” Faleomavaega said. “StarKist knows that expansion is absolutely possible in American Samoa.”
Bumble Bee President Christopher Lischewski said Bumble Bee is the only American company with a financial investment in the Andean tuna industry (in Ecuador) and opposes the measure citing a number of reasons including the fact that it would result in the loss of jobs not only in the tuna industry but related industries. The proposal “penalizes the U.S. tuna industry for being American and does an injustice to the U.S. consumer,” he said, citing the non-compliance of Andean Pact nations with many U.S. environmental regulations, low labor costs, product dumping, and enforcement of trade barriers against U.S. tuna industry by imposing import duties on canned tuna.
Chicken of the Sea’s CEO, Dennis Mussell, joined Bumble Bee in criticizing the plan, saying that there is certainly going to be a significant curtailment of operations in American Samoa if the proposal passes. “It is difficult to quantify at this time, but we would estimate a 50 percent reduction in operations could be possible in the near term,” Mussell said.
If the current language of the bill is passed as written, Mussell warned Ecuadorian tuna exports will “cause significant harm to the U.S. tuna industry and have significant negative consequences on American Samoa.”
“This legislation holds serious implications for American Samoa and the tuna industry at large,” Faleomavaega said. “Ecuador has a wage rate of 69-cents per hour. Ecuador also has the capacity to produce enough canned tuna to flood the American market. If passed, this legislation would have a devastating effect on our local economy and would threaten the very existence of the U.S. tuna industry.
“If passed in its current form, by 2008, tuna processed in Ecuador would be given the same duty-free access to U.S. markets as tuna processed in American Samoa.”
The two canneries have been the backbone of American Samoa’s economy for four decades. The government during this time frame has continued to offer various tax incentive packages to keep them operating. Last year, StarKist Samoa announced plans to set up a processing plant in neighboring Samoa, where more than 2,000 people will be employed.
Photo: Fili Sagapolutele
