OECD Study Shows Jones Act Repeal Would Boost U.S. Economy
(Arlington, VA) – According to a new study from the Organization for Economic Cooperation and Development (OECD), repeal of the Jones Act would produce economic gains for the U.S. of up to $64 billion. This reform would introduce competition that would force a reduction in the cost of U.S.-built ships, potentially leading to an increase in demand of 70 percent – expanding the size of the shipbuilding sector from $841 million to $1.43 billion. The Jones Act mandates that all cargo shipped between U.S. ports be transported on ships built in the U.S. and bearing the U.S. flag, as well as owned and crewed by Americans. By eliminating foreign competition, the law significantly increases the cost of shipping between American ports.
Daniel Garza, President of The LIBRE Initiative, released the following statement:
“First signed into law nearly a century ago, the Jones Act raises costs for every American consumer – particularly those in areas that are relatively isolated and which depend heavily on shipborne commerce. It also hurts the competitiveness of exports, undermining job growth. This study by the OECD shows that not only will repealing this outdated law boost our economy, it will even increase the competitiveness and economic output of the shipbuilding sector – the very industry the law is supposed to be helping.
“It’s far past time for Congress to repeal this outdated law. Doing so will help American consumers and producers. What are we waiting for?”