The British Petroleum oil slick will have costs that extend far beyond the Gulf of Mexico.
The size of growing oil spill is an estimated 4,000 square miles (over 10,000 square kilometers) and has already hit the shores of Louisiana and Mississippi. Oil and water sludge should arrive at Alabama and Florida shorelines by Monday. To the west, dead turtles have already washed ashore in Texas.
Oil contamination has already had a serious impact on local economies. Particularly hard hit are fishermen whose livelihoods depend principally on Gulf Coast seafood catches and who are still struggling to recover from Hurricane Katrina.
Gulf of Mexico Seafood Exports Endangered
Another devastating result from the BP oil spill is the potential loss of millions of dollars in U.S. seafood exports.
Last year, the 5 states most likely to suffer the immediate impact from the Gulf of Mexico oil slick exported US$11.6 million worth of fish and shellfish to its northern trading partner Canada.
Below are the latest import statistics from Industry Canada’s Trade Data Online for those 5 states during 2009:
- Florida ... US$5.6 million in exported seafood to Canada
- Louisiana … $4.2 million
- Alabama … $1.1 million
- Texas … $434,624
- Mississippi … $354,875.
These may seem like relatively modest amounts compared against international trade statistics for other commodities like oil. However, one must consider that Canada is only one out of 95 other countries that import Gulf Coast seafood products.
Gulf of Mexico Fish Exports to Canada
Florida alone shipped $1.6 million worth of fresh, chilled or frozen fish fillets and other fish meat to Canada last year. That was already a significant decline from the $6.8 million exported in 2005. Alabama was in second place with $907,681 in shipments followed by Mississippi with $275,279.
Florida was also the leader among Gulf States for exports of live fish to Canada, racking up $3 million in sales for 2009.
Gulf of Mexico Shellfish Exports to Canada
Louisiana was king of frozen shrimps and prawns in 2009, delivering over $4 million worth of those seafood products to Canadian importers. Texas was a distant second with $245,884.
For frozen crab exports, Florida was the big winner invoicing for $367 million worth of shipments.
Canadian Food Inspection Agency (CFIA)
The above figures show that seafood exports to Canada from the Gulf States are diversified. For example, Florida specializes in fish and crabs, while Louisiana is strongest in shrimps and prawns.
No matter.
The Canadian Food Inspection Agency (CFIA) is responsible for inspecting all plants, animals and food products imported into Canada. If the CFIA recommends, the Canada Border Services Agency (CBSA) can prohibit delivery of seafood that is suspected to be contaminated by the BP oil slick.
While the CFIA has not yet made a policy announcement, it may be a matter of time before it does. Other seafood importing countries around the world may also announce their own positions on contaminated Gulf of Mexico seafood.
Seafood Export Disaster Recovery Plan
Hopefully, President Obama will formulate a strategy to help mitigate the loss of millions of dollars in U.S. seafood export sales.
The Obama National Export Initiative to double export sales over the next five years may well include asking parties responsible for the oil spill to compensate for lost Gulf Coast seafood exports.
See also Top Louisiana Exports and Imports.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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