[Congressional Record Volume 163, Number 118 (Thursday, July 13, 2017)]
[Senate]
[Pages S4000-S4001]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 1561. A bill to repeal the Jones Act restrictions on coastwise 
trade, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.
  Mr. McCAIN. Mr. President, I come to the floor today to introduce the 
Open America's Waters Act of 2017. This bill would repeal the Merchant 
Marine Act of 1920, better known as the Jones Act, an archaic and 
burdensome law that hinders free trade, stifles the economy and 
ultimately hurts consumers, largely for the benefit of labor unions. If 
this legislation becomes law, U.S. shippers will no longer be required 
to patronize market inefficiency but rather, effectively leverage the 
global shipping market.
  As many of my colleagues know, the Jones Act is one of many of laws 
passed over time that addresses port-to-port coastal shipping, drafted 
in order to protect the U.S. domestic shipping industry. While the 
Jones Act may have had some rationale back in the 1920s when it was 
enacted, today it serves only to raise shipping costs, making U.S. 
farmers and businesses less competitive in the global marketplace and 
increasing costs for American consumers. This protectionist mentality 
directly contradicts the lessons our nation has learned about the many 
benefits of a free and open market. Repeatedly, it has been proven that 
trade liberalization has created

[[Page S4001]]

jobs, expanded economic growth and provided consumers with access to 
lower cost goods and services.
  The forced purchase of American vessels combined with the immense 
cost associated with U.S. shipbuilding has forced U.S. shippers to act 
against their best interests to the detriment of their businesses. 
While foreign-built coastal-sized ships typically cost between $25-30 
million, a U.S.-made ship of the same size can cost anywhere between 
$190-250 million. A repeal of the Jones Act, over time, would have 
broad impact. According to a 2002 U.S. International Trade Commission 
study, repealing the Jones Act would lower shipping costs by about 22 
percent. The Commission also found that repealing the Jones Act would 
have an annual positive effect of $656 million on the overall U.S. 
economy. Though this decade-and-a-half-old study provides some of the 
most recent statistics available, it is not hard to imagine the modern 
affect that maritime deregulation would contribute to this industry.
  Congress must take action to repeal laws that have outlived their 
usefulness and are no longer relevant to modern commerce. It is 
unacceptable that millions of dollars in the U.S. economy are lost 
every year to an antiquated policy, and unacceptable that this body is 
unable to disengage from special interests in order to participate in a 
productive debate on this issue. I encourage my colleagues to reflect 
on our responsibility as lawmakers and see the Jones Act for what it 
really is: an outdated and protectionist policy that only serves to 
harm the American economy and consumer.
  I encourage my colleagues to support this legislation.

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