Nova Scotia to lift licensing moratorium for buyers and processors in seafood sector

Nova Scotia is lifting two long-standing moratoriums on new buyer and processor licences for seafood as it looks to grow the multibillion-dollar sector, the provincial government announced Tuesday.

Beginning Aug. 1, the province is ending the moratorium on groundfish that was imposed in 1994, and a moratorium from 2018 on licences for all other seafood, Fisheries Minister Kent Smith said.

Opening the seafood sector to new entrants will help drive the province's economy as processors look to diversify their markets, as the Chinese government in March imposed 25 per cent tariffs on Canadian seafood products in retaliation for duties on electric vehicles.

Most industry members, as well as the Mi'kmaw First Nations, are on board with the move to lift the moratoriums, he added.

"Lifting the moratorium aligns with provincial priorities to grow Nova Scotia's resource economies and to assess and remove outright bans and other barriers to businesses," Smith said. "With the implementation of Chinese tariffs and the recent threat of U.S. tariffs and other global uncertainties, we need to explore new opportunities using a fair and modern approach."

The province will begin accepting applications for buyer and processor licences for most species on Aug. 1, and for buyer licences for lobster and buyer and processor licences for snow crab starting Jan. 2, 2026.

The province currently has a total of 329 buyer and processor licence holders for all species of seafood.

"Let me be clear, this is not a free-for-all," the minister said. "There are and will continue to be strict conditions that each licence holder must adhere to and the application process will require a comprehensive business plan."

Smith said all applicants must be registered to do business in Nova Scotia through the province's registry of joint stock companies.

'Hard things are hard'

The lifting of the moratoriums is the result of a seven-year policy and regulation review of the industry by the provincial Department of Fisheries and Aquaculture. Smith was asked by reporters why the review took so long.

"Hard things are hard, we wanted to take the time to make sure we got it right," he said, adding that there were industry concerns as late as two years ago over lifting the moratoriums.

The government's announcement on Tuesday was welcomed by Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, which represents 135 shore-based processors and shippers.

"Really, at this point, it is the best path that we can identify to go forward," said Vascotto. "We are cautiously optimistic realizing that there are still a lot of details that are yet to be sorted out."

Whether there's room for more players in the industry will depend on the sector's ability to grow its markets. There is some motivation to find new buyers, Vascotto said, because of China's 25 per cent tariffs on seafood, adding that the Chinese market had been worth about $600 million to Nova Scotia companies.

"What this will allow us to do is make custom products that are designed for other worldwide markets," said Vascotto. "It will help us develop our footprint in the European Union and a bigger footprint in the Pacific Rim."

Fish and seafood products were Nova Scotia's largest export commodity in 2024, totalling $2.4 billion and accounting for 36 per cent of exports. About 50 per cent of the industry is located in the southwestern part of the province, with the sector supporting about 20,000 jobs.