[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Extensions of Remarks]
[Page E1494]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            JONES ACT REFORM

                                 ______
                                 

                            HON. NICK SMITH

                              of michigan

                    in the house of representatives

                         Friday, August 2, 1996

  Mr. SMITH of Michigan. Mr. Speaker, today thousands of agricultural 
producers across America cannot sell their products to their own U.S. 
neighbors because they cannot secure waterborne transportation. My own 
farmers in Michigan can't sell their grain to livestock producers 
desperately needing feed in the South because there is no means of 
coastal transportation. American farmers and industry are forced to 
purchase foreign goods, rather than those produced in the U.S. because 
there is no means of transportation within the coastal U.S. for 
American products.
  In all parts of the Nation, industry and farmers have watched 
business opportunities pass them by and go to foreign competitors 
because of lack of adequate transportation of U.S. goods to U.S. 
purchasers along our coastal waters. In effect the United States is 
subsidizing foreign farmers to the detriment of U.S. producers.
  This system is contrary to the free-market system and the buy-
American philosophy. That is why I am introducing reforms to our 
Federal maritime law, commonly known as the Jones Act to allow more 
free movement of agricultural commodities and other cargo within our 
domestic waters.
  Currently the 1920 Jones Act, borne out of national security 
concerns, requires the transport of goods within the United States be 
done on domestic carriers, with domestic crews, under domestic flags. 
My bill is designed to spur economic activity by increasing the means 
of transportation for agriculture and others goods within the United 
States and in turn boost the maritime industry which has suffered 
dramatically in the last 20 years.
  My bill that I am introducing today would bring competition to ocean 
transportation and level the playing field between domestic and foreign 
carriers by allowing cargo to be carried on foreign ships, while 
requiring only U.S.-manned crews in compliance with immigration laws, 
and adherence by foreign carriers to all tax and regulations currently 
imposed on U.S. ships.
  Reforming the Jones Act will strengthen the competitive position of 
American businesses and agricultural producers. Please lend your 
support to American industry by helping to promote trade and economic 
activity throughout the United States.

                          ____________________