Attention Economy


Sunday, April 3, 2016

Jones Act and Trade Protectionism

What Does the Rhine Have That the Mississippi Doesn't? Passengers

Jones Act and Puerto Rico’s economic woes
“Another federal policy that has disproportionately harmed Puerto Rico is the Jones Act, which requires, in part, that all shipping between U.S. ports be performed by a specific, and tiny, fleet of U.S.-flagged ships. The Government Accountability Office reported in 2013 that just 17 vessels belonging to four companies connect Puerto Rico’s 3.5 million inhabitants to the mainland U.S. All but four of those vessels were more than 31 years old. With government prohibiting free-market competition among shippers, these four firms can charge higher prices for freight to and from the island. The result: higher consumer prices for islanders. The shipping restriction also puts Puerto Rican products at a cost disadvantage in mainland markets.”