StarKist appreciates passage of Am Samoa Economic Development Credit
Pago Pago, AMERICAN SAMOA — Pittsburgh-based StarKist Co., owner of StarKist Samoa cannery, has expressed appreciation to the US Congress as well as American Samoa leaders for moving forward the legislative process and final approval of the American Samoa Economic Development Credit. It however notes that a “permanent extension” of the credit is needed “to reduce uncertainty and remain competitive.”
The extension of the ASEDC, also known as 30(A), from 2018 through the end of 2020 in the extenders package was included in provision of the federal appropriations bill, signed into law last Friday by US President Donald Trump.
In a statement over the weekend, StarKist thanked Congress for inclusion of this extension into federal legislation, which provides a modest federal tax incentive for manufacturers operating in American Samoa, leveling the playing field for companies, including StarKist.
The company points out that the ASEDC “is a good policy that offsets the financial benefits, like cheap labor and subsidized operations, that our competition receives from countries like China and Thailand.”
“While StarKist appreciates the short-term extension, a permanent extension of the American Samoa economic development credit is necessary to reduce uncertainty in the operation and to remain competitive compared to our subsidized competition,” the statement says.
“We remain committed to working” with Congresswoman Aumua Amata and other members of Congress, Gov. Lolo Matalasi Moliga “and the people of American Samoa to ensure we establish a competitive and viable economic environment in the territory,” the company said.
“We appreciate the support and efforts to ensure this important extension was included in the final legislation passed by Congress this year.”
(See Samoa News Dec. 19th edition for reactions from the governor and Congresswoman to this legislation, before it was given final Congressional approval and signed by Trump).