No Shortage of Options for Reforming the Jones Act

ConclusionThese proposals are just a sampling of the many possible reforms that could be undertaken to reduce the Jones Act ’s burden and make it better reflect 21st-century maritime realities. There is plentiful room for creative thinking and one can readily imagine even more possibilities, such as Jones Act exemptions linked to certain environmental goals (for example, exempting the offshore wind industry or the tran sportation of machinery and equipment designed to assist Puerto Rico’stransition to renewable energy) or reciprocal market access by U.S. trading partners (who have longindicatedtheirdesire for Jones Act restrictions to be placed on the table as part of free trade agreement negotiations).A realistic path to reform will also have to include some kind ofcompensation for U.S. maritime interests that will be reluctant in the extreme to surrender their captive markets (in the case of a permanent exemption for Puerto Rico and/or other non-contiguous parts of the United States) or face new competition from vessel operators with access to vastly less expensive foreign-built ships (should the U.S.-built requirement be repealed).Similarly, reforms could and should be accompanied by innovative approaches to ensure that U.S. national security needs are met —something the Jones Act hasmanifestlyfailed to achieve. Such possibilities include an expandedMaritime Security Program and Tanker Security Program to meet sealift requirements as well as the establishment of aMer...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs