McCain Pushes Jones Act Exemption for Puerto Rico Again
U.S. Senators John McCain (R-AZ) and Mike Lee (R-UT) this week introduced legislation that would permanently exempt Puerto Rico from the Merchant Marine Act of 1920, or the Jones Act, to aid recovery efforts in the wake of Hurricane Maria and encourage long-term economic growth. The Trump administration's 10-day Jones Act waiver for Puerto Rico, despite the presence of more than enough U.S. flag tonnage to handle any and all relief sealift needs, gave McCain the opening he needed to reintroduce legislation that he has, on many prior occasions, brought to the Senate. The Jones Act requires that all goods shipped between waterborne ports of the United States be carried by vessels built in the United States and owned and operated by Americans.
Keeping up with the Jones (Act)
The continued existence of the Merchant Marine Act of 1920 carries with it substantial economic and financial benefits. Its repeal could be catastrophic. The three-legged stool commonly referred to as the Jones Act is officially known as the Merchant Marine Act of 1920. For the purposes of national defense and growth of domestic commerce, it most simply calls for the waterborne transport of cargo and/or passengers between U.S. ports to be limited to U.S. flagged vessels. Its continued existence carries with it substantial economic and financial benefits. Its repeal could be catastrophic.
Senator McCain Introduces Bill to Repeal Jones Act
On June 25, Senator John McCain announced that he introduced the “Open America’s Water Act,” to repeal the Jones Act. “Today I am pleased to introduce legislation that would fully repeal the Jones Act, a 1920s law that hinders free trade and favors labor unions over consumers. Specifically, the Jones Act requires that all goods shipped between waterborne ports of the United States be carried by vessels built in the United States and owned and operated by Americans. This restriction only serves to raise shipping costs, thereby making U.S. farmers less competitive and increasing costs for American consumers. “This was highlighted by a 1999 U.S. International Trade Commission economic study, which suggested that a repeal of the Jones Act would lower shipping costs by approximately 22 percent.
