The Lobster Trade Agreement: What It Means for the Lobster Industry
In August 2020, the United States and European Union reached a new trade agreement that included a significant portion dedicated to the lobster industry. The agreement will eliminate tariffs on live and frozen lobster for a period of five years, providing a boost to the industry and strengthening trade relations between the two economic powers.
The lobster industry, which sees a significant amount of trade between the US and Europe, has been hit hard by the COVID-19 pandemic. With restaurants and hotels closed or operating at reduced capacity, demand for lobster has decreased substantially. The elimination of tariffs on lobster will provide a much-needed boost to the industry, allowing it to compete more effectively in the global market.
The trade agreement is a significant win for the US lobster industry, which has been struggling in recent years. In addition to the pandemic, the industry has been impacted by the ongoing trade war with China, which has imposed retaliatory tariffs on US lobster exports. The elimination of tariffs in the EU will provide a new market for US lobster, helping to offset the loss of sales to China.
The agreement is also a strong signal of the importance of free and fair trade between the US and Europe. The US lobster industry is a critical part of the economy in Maine and other states, and the elimination of tariffs will help to protect jobs and support economic growth in these regions. The agreement will also strengthen the overall trade relationship between the US and Europe, providing a framework for future cooperation and collaboration.
The lobster trade agreement is an example of the positive impact that trade agreements can have on specific industries and local economies. By eliminating tariffs and opening up new markets, these agreements can provide a boost to businesses and support economic growth. As the US and Europe continue to work together to promote trade and investment, we can expect to see more agreements like this one that benefit both sides and strengthen our shared economic interests.