VII. Cabotage Laws
Cabotage is defined as “trade transit of a vessel along the coast (coastal trading), from one port to another within the territorial limits of the nation ”. In other words, the Jones Act is a series of cabotage laws regulating commerce within the jurisdiction of the United States. Throughout the development of international commerce, cabotage laws have been a source of controversy. The Pro-cabotage movement claims that these laws are necessary in order to “protect domestic shipping market and the jobs associated the U.S. shipping industry from low cost foreign competition ”. In recent years, these defenses have come under attack by scholars who argue that cabotage laws are “killing the very industry they are supposed to protect …show more content…
However, while many nations engaging in maritime commerce enforce these laws, very few require the use of domestically built vessels. This presents a critical distinction from U.S. statute because it shows how restrictive these laws are in practice. Moreover, in a survey conducted by the U.S. Department of Transportation, Maritime Administration, results show that out of 56 selected countries, forty reported that they maintain cabotage provisions with respect to their domestic waterways, while seven reported that they restrict, but do not prohibit the use of foreign vessels in their markets. These findings allow us to categorize U.S. statute as unique from those practiced in other nations while allowing us to question the implications that this practice has on its …show more content…
Consequences : A look into Puerto Rico’s Economic Crisis
Ultimately, looking into the impact of cabotage laws on Puerto Rico’s economy will have significant applications in understanding its economic crisis as well as in viewing these factors as an ongoing legacy of mercantilism. The effects of the cabotage laws under the Jones Act have resulted in a recession with an economy that continues to contract.
“Since Puerto Rico’s economy began to contract in 2006, the economy has shrunk by more than 10 percent and employment on the island has fallen by 14 percent. Puerto Rico’s unemployment rate was 11.6 percent in August 2015, more than twice the national level ”.
Therefore, it is imperative to view these laws as a restriction of free trade between nations rather than as a protectionist approach to trade. Trade and commerce are viewed as the principal means of assuring national development. Since Puerto Rico’s commerce is limited to benefitting the American economy over the local economy, it is evident that the United States itself is violating a right that they claim to protect: that of free market. Puerto Rico’s economic crisis is the result of this infringement of free trade that the U.S. has forced upon the
Cabotage is defined as “trade transit of a vessel along the coast (coastal trading), from one port to another within the territorial limits of the nation ”. In other words, the Jones Act is a series of cabotage laws regulating commerce within the jurisdiction of the United States. Throughout the development of international commerce, cabotage laws have been a source of controversy. The Pro-cabotage movement claims that these laws are necessary in order to “protect domestic shipping market and the jobs associated the U.S. shipping industry from low cost foreign competition ”. In recent years, these defenses have come under attack by scholars who argue that cabotage laws are “killing the very industry they are supposed to protect …show more content…
However, while many nations engaging in maritime commerce enforce these laws, very few require the use of domestically built vessels. This presents a critical distinction from U.S. statute because it shows how restrictive these laws are in practice. Moreover, in a survey conducted by the U.S. Department of Transportation, Maritime Administration, results show that out of 56 selected countries, forty reported that they maintain cabotage provisions with respect to their domestic waterways, while seven reported that they restrict, but do not prohibit the use of foreign vessels in their markets. These findings allow us to categorize U.S. statute as unique from those practiced in other nations while allowing us to question the implications that this practice has on its …show more content…
Consequences : A look into Puerto Rico’s Economic Crisis
Ultimately, looking into the impact of cabotage laws on Puerto Rico’s economy will have significant applications in understanding its economic crisis as well as in viewing these factors as an ongoing legacy of mercantilism. The effects of the cabotage laws under the Jones Act have resulted in a recession with an economy that continues to contract.
“Since Puerto Rico’s economy began to contract in 2006, the economy has shrunk by more than 10 percent and employment on the island has fallen by 14 percent. Puerto Rico’s unemployment rate was 11.6 percent in August 2015, more than twice the national level ”.
Therefore, it is imperative to view these laws as a restriction of free trade between nations rather than as a protectionist approach to trade. Trade and commerce are viewed as the principal means of assuring national development. Since Puerto Rico’s commerce is limited to benefitting the American economy over the local economy, it is evident that the United States itself is violating a right that they claim to protect: that of free market. Puerto Rico’s economic crisis is the result of this infringement of free trade that the U.S. has forced upon the