Senator McCain Introduces Bill to Repeal Jones Act
Senator John McCain has introduced a bill that would repeal the Jones Act, which requires that all goods shipped between waterborne ports of the U.S. be carried by vessels built in the U.S. and owned and operated by Americans.
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McCain Says Jones Act Raises Shipping Costs, Prevents International Assistance
McCain states that the Jones Act only serves to raise shipping costs, thereby making U.S. farmers less competitive and increasing costs for American consumers.
Additionally, McCain states within a week of the Gulf Coast oil explosion, 13 countries, including several European nations, offered assistance from vessels and crews with experience in removing oil spill debris, however, due to the Jones Act, these vessels are not permitted in U.S. waters.
McCain Says Repeal Would Lower Shipping Costs, Boost Economy
McCain also cites a 1999 International Trade Commission economic study, which suggested that a repeal of the Jones Act would lower shipping costs by approximately 22 percent.
Also, McCain states that a 2002 economic study from the ITC found that repealing the Jones Act would have an annual positive welfare effect of $656 million on the overall U.S. economy, which are the most recent statistics available. McCain states that today, the impact a repeal of the Jones Act would be far more than a $656 million annual positive welfare impact -- maybe closer to $1 billion.
(Press release dated 06/25/10, with link to bill)