Monday, January 27, 2020

The Jones Act: Protectionism in Action


Puerto Rico recently needed a shipment of liquid natural gas. Simple solution: Import it from nearby America, right?
Sorry, that would have been against U.S. law. The Puerto Rico shipment came from Siberia.
The less expensive solution was prevented by the Merchant Marine Act of 1920, usually known as the Jones Act. This requires that goods shipped between U.S. ports and territories must be carried on ships built in America, 75-percent owned and 75-percent crewed by Americans, and with the goods never sold to foreign citizens. The purpose: to protect American shipping. Hah! Lots of shipping to and from U.S. shores has been protected out of existence.
Ships built abroad cost far less than those that comply with the Jones Act. Repealing the law and using foreign-made ships would cut the cost and increase the volume of shipping to and from America, stimulating the economy.
The Seafarers International Union, representing U.S. merchant mariners sailing aboard U.S.-flagged vessels, supports the Jones Act with congressional campaign gifts. The union has 36,000 members. They’re the winners. The U.S. has 330 million citizens. They’re the losers.
The Jones Act has imposed significant costs on America. It’s time for the members of Congress to assign the nation a higher priority than their own campaign coffers. It’s time to give the Jones Act the deep six.