Remember NAFTA? It Might Keep Atlantic Salmon Farms In Puget Sound

Cooke Aquaculture's ruined Atlantic salmon farm off Cypress Island on Aug. 28. CREDIT: WASHINGTON DNR
Cooke Aquaculture's ruined Atlantic salmon farm off Cypress Island on Aug. 28. CREDIT: WASHINGTON DNR

The Canadian owner of an Atlantic salmon farm that collapsed last summer near Anacortes vows to use the North American Free Trade Agreement to save its fish farms in Puget Sound. New Brunswick, Canada-based Cooke Aquaculture says it will pursue mandatory arbitration under NAFTA if the Washington legislature tries to phase out Atlantic salmon farming.

Both chambers in Olympia have passed bills that would phase out farming of Atlantic salmon in Washington waters. If legislators reconcile the bills’ differences, Gov. Jay Inslee is expected to sign the phase-out of Atlantic salmon farming into law.

Company vice president Joel Richardson said Cooke has been willing to compromise, even offering to raise only female fishes in order to prevent escaped Atlantic salmon from spawning and taking over wild salmon streams.

“The Senate and the House is really leaving us with very few options to continue our operations here,” he said Monday night.

Richardson said the company will seek to recover the $76 million it has invested in its fish farms in Washington, as well as costs and lost profits.

“They’re taking that investment away unjustly, and that deserves compensation, and there’s a very real possibility that could be arbitrated under NAFTA,” Richardson said.

Washington state officials estimate that 250,000 Atlantic salmon escaped Cooke’s farm near Anacortes after it collapsed in August. The company says 160,000 of the farm’s 305,000 salmon escaped.

The previous, American owners of Cooke’s eight Washington fish farms also had major structural failures and salmon escapes in the late 1990s, according to the Washington Department of Fish and Wildlife:

  • 1996: 107,000 fish swim free after an anchor line fails on a salmon farm
  • 1997: 369,000 fish escape while a salmon farm is towed away from a toxic algae bloom
  • 1999: 115,000 fish break loose from a net-pen during a strong tidal current

“Those American companies that owned the same facilities that we owned had escapes actually larger than ours, and the state did nothing about it,” Richardson said. “Nor did they introduce a ban to eliminate the industry.”

Cooke, now the only commercial producer of farmed salmon in the United States, purchased Seattle-based Icicle Seafoods and its eight Washington state salmon farms in 2016. The Canadian aquaculture giant  owns Atlantic salmon farms on three continents.

Under NAFTA, governments in Canada, Mexico and the United States have to treat foreign investors as favorably (or as favourably, of course, in Canada) as they do domestic investors. Foreign investors, like Cooke in Washington state, can seek damages from governments in private, binding arbitration.

If Cooke were to successfully use NAFTA arbitration to block or be compensated for a state law, it would be a first: the United States has yet to lose such an arbitration case under NAFTA or other trade agreements.

Washington Department of Natural Resources spokesperson Carlo Davis declined to comment Monday night.

Washington Sen. Kevin Ranker of Orcas Island, who sponsored legislation to ban Atlantic salmon farms from state waters, could not be reached for comment Monday night. Nor could representatives of Puget Sound-area tribes, which strongly oppose Atlantic salmon farms.

Cooke announced its possible NAFTA strategy at 5:01 p.m. Monday, on the U.S. Presidents Day holiday, possibly echoing Washington state officials’ announcement of violations at Cooke’s Bainbridge Island salmon farm on Oct. 9: Canadian Thanksgiving.

Copyright 2018 KUOW

Related Stories:

File photo of a posted rental eviction notice. Washington Gov. Jay Inslee has put a revamped eviction moratorium, with some exceptions, in place until Sept. 30. The current ban was set to expire on June 30, 2021. CREDIT: Flickr/Rental Realities/ CC By 2.0

Governor Issues Newly Revamped Washington Eviction Moratorium Until September 30

Renters who are behind on their rent in Washington will get a few more months of protection from eviction. On Thursday, Gov. Jay Inslee announced a new eviction moratorium that will run through September 30. The current moratorium expires June 30 — the same day the state is set to fully reopen. Continue Reading Governor Issues Newly Revamped Washington Eviction Moratorium Until September 30

Read More »
Gov. Jay Inslee signed into law a suite of police accountability bills Tuesday, May 18, 2021 at a bill signing ceremony in Tacoma. CREDIT: Kari Plog/KNKX

Flanked By Families, Washington Governor Signs A Dozen Police Reform Bills Into Law

Calling it a “moral mandate,” Gov. Jay Inslee on Tuesday signed into law a dozen bills that backers hope will improve policing in Washington, reduce the use of deadly force and ensure that when deadly encounters do occur the investigations are thorough and independent. Continue Reading Flanked By Families, Washington Governor Signs A Dozen Police Reform Bills Into Law

Read More »