The Japan External Trade Organization, or JETRO, struggles to build a new supply chain for Japanese scallops in the United States that involves processing in Mexico, people familiar with the matter said Sunday.
Steep tariffs imposed by U.S. President Donald Trump left prospects for the project uncertain, apparently making businesses reluctant to invest in it.
The United States previously imported Japanese scallops after processing in China, which was their main export destination.
But Beijing imposed a ban on imports of Japanese fisheries products in August 2023, when Japan's crippled Fukushima No. 1 nuclear power plant started releasing into the ocean treated water containing small amounts of tritium.
In 2023, Japan's scallop exports dropped 24% from the previous year to ¥68.9 billion.
JETRO then planned to build an alternative supply chain using Ensenada, northwestern Mexico, as a new location for scallop processing. In March 2024, officials from 14 Japanese companies, including processors in Hokkaido and Miyagi Prefecture, visited there.
The new supply chain in which scallops are processed in Ensenada and exported to the West Coast was set to be established in 2024.
But the project has faced a headwind since Trump's return to the White House earlier this year. The U.S. president has imposed high tariffs on imports from Mexico over illegal migrants from the country. In addition, poor catches of scallops amid the global warming have added to the uncertainty.
In June this year, China announced it would lift its ban on Japanese fishery products. While this was good news for Japanese fishermen, relying on China as an export destination may be a risk, amid fears of a deterioration in Japan-China relations.
"Processing in Mexico is a still option," a JETRO official said.
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