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Ala. congressman proposes to exempt Puerto Rico from Jones Act

The Jones Act requires waterborne cargo between two points in the United States to be transported on vessels that are American built, owned and crewed.

   Rep. Gary Palmer, R-Ala., has proposed a measure to exempt Puerto Rico from
the Jones Act – which requires waterborne cargo between two points in the
United States to be transported on vessels that are American built, owned and
crewed.
   A vote on the amendment is expected this afternoon before the House Rules Committee.

   Palmer claimed “Relief from the Jones Act would allow the cost of living in Puerto
Rico to decline, allowing residents to stretch their wages further than
before. If Congress wants to help Puerto Rico we must
provide them with opportunities to better their economy and lower their
cost of living, not bail them out without any forward thinking
solutions.”
   The American Maritime Partnership (AMP), an association that represents Jones Act carriers, said Palmer’s proposal would undermine a law that is “critical to U.S. national, homeland and economic security, and ensures reliable shipment of vital goods between Puerto Rico and the U.S. mainland.”
   “The Jones Act is not a cause for the island’s financial woes. While other industries have fled the island, the domestic maritime industry has made significant capital investments to service the economy and support thousands of family-wage jobs for Puerto Ricans,” AMP Chairman Tom Allegretti said in a statement. “Weakening the Jones Act would harm, not help, the Puerto Rican people and the Commonwealth’s economy. In fact, a vote against the Jones Act is a vote to outsource American jobs, undermine national security, and degrade homeland security.”
   AMP also said “Sponsorship of the amendment by Rep. Palmer is surprising given that Jones Act shipping and shipbuilding is a major industry in Alabama, a ‘top ten’ shipyard state, with 12,800 jobs, according to a study by the U.S. Maritime Administration. Shipbuilding provides $953 million in economic impact in Alabama each year with shipyard jobs paying well above national average wages.”

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.