export

Nelson Sergerie, LJI Journalist

States President-elect Donald Trump’s plan to impose customs tariffs on Canadian products in January raises concerns for GÎMXPORT. 

Trump announced his intention to sign an executive order imposing a 25% tariff on all imports from Canada immediately after taking office. 

“When we initially talked about the 10% that was imposed, we are trying to be more competitive, to innovate, to increase our production capacity to reduce costs and we can also rely on the exchange rate that can compensate but going from 10% to 25% can really have an impact, considering that 80% of seafood products are sent to the United States,” explains the director, Gino Cyr, who believes that it is now important to look at market diversification. 

GÎMXPORT participates in various trade fairs to try to create contacts. 

For example, during the pandemic, crab processing companies reoriented their exports. “Our companies had set aside certain niche markets like Japan to sell the crab caught as quickly as possible because we were afraid with the (right) whales and the health measures of not transforming the supply. Today, knowing that with the 25% tariffs, consumers will decide to shift their purchases to other products; If we ensure that we are not able to get the products to the United States, we will have to make diversification efforts,” mentions Mr. Cyr. Markets were developed during crises, but once they were over, it was a sort of “return to normal”. 

“What is important is to maintain our international relations and the markets in place so that our eggs are not all in one basket,” he recalls. 

The 2008 crisis led the organization to look for new markets for lobster in Europe and Asia. 

“The goal was to take the supply and distribute it to other markets. This helped increase the price by focusing on the characterization of the product. The process lasted three years. Following that, there was no renewal. In 2016, the government chose to no longer support this type of initiative, unlike the Maritime provinces, which are continuing their efforts,” illustrates Mr. Cyr. 

“What I find deplorable today: if we want to develop new markets, we’ll start practically from scratch,” he laments. 

The manager had the opportunity to speak with economic experts in recent days to try to understand the potential impacts of these customs duties. 

“What is suggested is to diversify markets and invest in modernizing equipment to increase the level of production,” summarizes Mr. Cyr. 

“25% overnight. It’s the (American) consumer who will end up paying,” says the director.