Here are severalreasons why the repeal of the Jones Act (Merchant Marine Act of 1920) would be beneficial:
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The Jones Act mandates that all goods transported between U.S. ports must be carried by U.S.-built, U.S.-owned, and U.S.-flagged ships, which significantly increases shipping costs. Studies, including those from the OECD, suggest that the repeal of the Jones Act could lead to economic gains for the U.S. economy, potentially in the range of $19 billion to $64 billion annually by increasing competition and reducing costs.
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For places like Puerto Rico, Hawaii, and Alaska, the Jones Act acts as an economic barrier, increasing the cost of goods due to the lack of competition in shipping routes. Repeal could lower these costs dramatically, making these areas more economically viable and integrated with the mainland U.S. It could turn these states and territories red or more red.
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Jones Act does not effectively protect or promote the U.S. shipbuilding industry as intended. Instead, it has led to a decline in the industry, with the number of Jones Act-compliant vessels significantly reduced over the years.
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The Act has been particularly detrimental during natural disasters. A permanent repeal could streamline emergency responses, ensuring faster delivery of critical supplies when time is of the essence.
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Repealing the Act could promote more sea-based shipping, which is generally more fuel-efficient for bulk cargo, potentially reducing carbon emissions.
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While the Jones Act was intended to bolster national security by ensuring a domestic infrastructure for military use. Realsitcally, today this small amount of aged and tiny vessels would not contribute to defense in any way.