Sen John McCain is currently pressing for the repeal of the "Jones Act".
US Shippers are responding bitterly because they have invested millions into domestic shipbuilding and staffing based on this nearly 100 year old law. McCain says the law is outdated and causes domestic sea trade to be significantly uncompetitive.
The Merchant Marine Act of 1920 (P.L. 66-261), also known as the Jones Act, is a United States federal statute that provides for the promotion and maintenance of the American merchant marine.[1] Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried on U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.[2] The Act was introduced by Senator Wesley Jones.
http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 (http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920)
After speaking with some people in the shipping industry, they said they would have to write off millions in capital investments in domestically made ships and lay off thousands of domestic shipping workers. They said they would have gladly gotten these ships built in Taiwan or staff with Singaporean seamen if the law permitted, but have complied because it kept the domestic shipping industry alive.
Impacts?
Jax to Puerto Rico would be impacted. Any sea faring shipping between Hawaii and Alaska as well.
We still have a few shipyards still in operation. I assume jobs could be lost at North Florida Shipyards and BAE as well.
(http://photos.metrojacksonville.com/Landscapes/Fort-Caroline-National/i-6xKDbHp/0/L/P1610671-L.jpg)
BAE Systems
Buying American should be a choice, not the law. It 's a shame if it has a local impact but protectionism is paid for by consumers to benefit a small number of Americans. This is one of the few things I agree with McCain on. You can tell he's not running for president anymore.
Quote from: urbanlibertarian on January 26, 2015, 09:38:58 AM
Buying American should be a choice, not the law. It 's a shame if it has a local impact but protectionism is paid for by consumers to benefit a small number of Americans. This is one of the few things I agree with McCain on. You can tell he's not running for president anymore.
I dont think the Jones Act was strictly designed as a jobs law. There was an issue with legal governance regarding cabotage and what court of law it was governed by. Foreign flagged ships using merchant sailors from other jurisdictions hauling goods for American firms was causing legal issues in the 1920's when civil codes were violated.
While McCain highlights the uncompetitive expenses involved, I havent heard if the foundational legal issues that brought the law have been resolved.
There were also national defense implications behind the Jones Act. The government wanted to make sure that we had ship building capacity in this country in the case of another world war. They were right too. Can you imagine what WWII would have been like if much of our ship building capacity had been in other countries.
We won WWII with Liberty ships and radar.
Shipping goods between US entities is not much different than normal interstate commerce except it passes by sea instead of rail or highway.
So while NAFTA allows a truck or rail car from Mexico or Canada to traverse the US to make its delivery without a transload. We dont allow Mexican or Canadian licensed trucks to originate and deliver in the US.
So basically the Jones Act does not permit a Panamanian flagged ship make a pickup in New York for delivery in Florida. Since it is technically interstate commerce, the US would want to maintain its legal authority and regulation over it.
I think I heard the impetus for McCain repealing the Jones Act is the Keystone pipeline...