American Samoa Tuna Canning Industry: History and Impact

The tuna canning industry has defined American Samoa's formal economy for nearly a century, representing at peak operation the dominant source of private-sector employment and export revenue for the territory. This page covers the structural history of the industry, the operational model that sustained it, the economic dislocations triggered by plant closures, and the policy considerations that determine the sector's viability. Researchers, policymakers, and economic analysts tracking the key dimensions and scopes of American Samoa territory will find the tuna canning sector central to any substantive account of territorial economic development.

Definition and Scope

American Samoa's tuna canning industry refers to the commercial processing, canning, and export of tuna — primarily skipjack (Katsuwonus pelamis) and yellowfin (Thunnus albacares) — within the territory of American Samoa, located approximately 2,600 miles southwest of Hawaii in the South Pacific. The industry operates under a distinct regulatory and trade framework, separate from the continental United States, that has historically made Pago Pago Harbor a preferred site for large-scale cannery operations.

Two canneries defined the sector for most of the 20th century and into the 21st: StarKist, originally operated under H.J. Heinz Company ownership and later acquired by Dongwon Industries of South Korea, and Chicken of the Sea, formerly operated by Thai Union Group. At maximum capacity, these two facilities employed approximately 5,000 workers — representing a substantial share of the territory's total formal labor force given a population that American Samoa population and demographics data places at roughly 55,000 residents.

The canneries operate within a federal trade preference known as the "tuna tariff exemption," codified under U.S. tariff schedules, which allows canned tuna produced in American Samoa to enter the continental U.S. market duty-free. This exemption has been the structural foundation of the industry's competitive viability.

How It Works

The operational model centers on five sequential stages:

  1. Fleet sourcing — Foreign-flagged purse seine vessels, primarily from South Korea, Taiwan, and the Philippines, deliver raw tuna catch to Pago Pago Harbor. American Samoa is not required to use U.S.-flagged vessels under the Jones Act, a distinct exemption that lowers freight costs significantly compared to mainland U.S. ports.
  2. Receiving and cold storage — Raw tuna is offloaded, weighed, and stored in refrigerated warehouses adjacent to the cannery floor.
  3. Pre-cooking and cleaning — Fish are cooked in large industrial retorts, then cleaned, loined, and separated from skin and bone by cannery line workers — a labor-intensive process.
  4. Filling and sealing — Cleaned tuna loins are packed into cans with added water, broth, or oil; cans are sealed and labeled.
  5. Retort sterilization and export — Sealed cans undergo pressure sterilization, pass quality control, and are palletized for container export to the continental United States, which receives the majority of output.

The labor cost structure has historically relied on minimum wage rates in American Samoa that differ from the federal minimum wage applicable in the 50 states. The American Samoa minimum wage has been subject to incremental increases phased by the U.S. Department of Labor, and wage policy debates have repeatedly cited the risk of plant closures as a constraint on increases (U.S. Department of Labor, Wage and Hour Division).

Common Scenarios

Plant closure and workforce displacement. Chicken of the Sea closed its Pago Pago cannery in 2009, eliminating approximately 2,000 jobs in a single event. This contraction reduced the territory's private-sector employment base by a measurable fraction and accelerated out-migration to Hawaii and the continental United States.

Tariff policy changes. Any modification to the U.S. tariff schedule that removes or reduces the duty-free exemption on American Samoa–produced canned tuna would alter the cost calculus for remaining operators. Competing producers in Thailand, Indonesia, and Ecuador operate under different tariff exposure depending on U.S. trade agreements in force at a given time.

Wage adjustment cycles. Congressional legislation periodically adjusts the phased minimum wage schedule for American Samoa. The Government Accountability Office has conducted assessments of the economic impact of wage increases on the cannery sector, findings accessible through GAO reports on American Samoa.

Vessel supply constraints. Reductions in South Pacific tuna stocks, or changes in fishing access agreements between Pacific Island nations and distant-water fishing fleets, directly affect raw material supply to Pago Pago canneries.

Decision Boundaries

The continued operation of StarKist's Pago Pago facility — the sole remaining large cannery as of recent years — hinges on the intersection of four variables:

Variable Pro-Continuation Condition Risk Condition
Federal tariff treatment Duty-free exemption maintained Tariff elimination or reduction
Wage regulation Phased increases with economic review Rapid mandatory increases
Tuna supply access Stable Pacific fleet agreements Stock depletion or access fees
Corporate ownership strategy Commitment to Pago Pago operations Relocation to lower-cost jurisdiction

The territorial government's fiscal position is materially affected by cannery employment levels because payroll taxes and excise fees on fish exports constitute a component of locally generated revenue. The American Samoa Government Authority reference resource covers the territorial government's administrative and fiscal structure, providing the regulatory and budgetary context within which cannery policy decisions are made.

For a full account of the territory's economic structure beyond the cannery sector, the American Samoa economy overview provides sector-level breakdowns including federal transfers, fisheries, and tourism.

The American Samoa territory reference index serves as the primary navigation point for territorial data across all subject areas covered in this network.

References

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