Aii Latest Report Highlights Jones Act Policy as Outdated19 Jan 2016, Posted in Analysis, Blog Posts
Aii released a new report today, “The Jones Act: Protectionism v Global Trade,” calling the Jones Act outdated and inconsistent especially as the United States is entering new global markets and removing longstanding barriers to trade.
The Jones Act, also known as the Merchant Marine Act of 1920, was implemented nearly a century ago to protect the U.S. shipping industry from foreign competition and boost national security during wartime. To this day, the Act requires vessels traveling between two U.S. ports be U.S. built, owned, flagged, and operated by a crew of 75 percent American citizens.
In regards to the report, Aii’s Executive Director, Shane Skelton says, “In an increasingly competitive global economy, the rationale for protectionist policies like the Jones Act becomes weaker each day. Any policy that increases the price of moving goods, and at times favors exports at the expense of intra-state trade, should be carefully scrutinized.”