Trump faces decision on new Jones Act waiver for Puerto Rico

[nitpicker]

http://thehill.com/policy/transportation/354301-trump-faces-decision-on-new-jones-act-waiver-for-puerto-rico

Trump faces decision on new Jones Act waiver for Puerto Rico

By Melanie Zanona - 10/06/17 04:08 PM EDT

A 10-day shipping waiver President Trump granted to Puerto Rico that allows non-crewed U.S. ships to deliver aid to Puerto Rico expires on Saturday, setting up a new showdown between critics and supporters of the restrictions. The White House has shown no indication that it plans to extend the Jones Act waiver as Puerto Rico struggles to recover from Hurricane Maria. Officials on the ground, where Trump and Vice President Pence both visited this week, say the biggest challenge for relief efforts is getting supplies distributed around Puerto Rico once they arrive.

But the hurricane-ravaged island has become a battleground in the ongoing debate over the Jones Act, with both sides amplifying their arguments ahead of the waiver’s expiration date this weekend. “It should be used as an economic growth tool for Puerto Rico, and I’m asking for a temporary waiver, for one year,” Rep. Nydia Velázquez (D-N.Y.) told The Hill Thursday.

The Jones Act, which was created in 1920 to strengthen the commercial U.S. shipping industry after World War I, only allows American-built and -operated vessels to make cargo shipments between U.S. ports. But the obscure, century-old shipping law has come under a national spotlight this year following a string of hurricanes that have rocked the Gulf Coast and Caribbean.

It is not unusual for an administration to temporarily waive the Jones Act after natural disasters in order to help deliver gasoline and other critical supplies quickly and cheaply to devastated areas. The Trump administration issued a weeklong waiver for Texas and Florida after hurricanes Harvey and Irma, extending it for an additional week in September. But the White House did not initially lift the shipping restrictions for Puerto Rico after Hurricane Maria, sparking widespread public outcry and fueling accusations that Trump is treating the U.S. island territory differently than the states hit by hurricanes.

After cautioning that a waiver might not be needed for Puerto Rico, however, the administration issued a 10-day waiver for the island — eight days after Maria made landfall. The administration defended the delay, saying it did not receive a formal request from Puerto Rico’s governor for the waiver until the night before, though lawmakers in Congress had been pushing for an exemption all week. The waiver expires on Sunday. A spokesman for the Department of Homeland Security told The Hill that a formal request to extend the exemption has not been made, meaning it’s unlikely that Trump will extend it.
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[delisen]

1. Jones Act -Hawaii & Puerto Rico pay

for benefits to American shipping and labor, and income for ports, such as Miami.

If we have the Jones Act causing massively unfair costs to Hawaii and Puerto Rico for purchasing basic necessities, should not our federal government be paying the cost?

[mercuryblues]

2. what the jones act really does

It requires ships be built in the US, manned by US citizens or permanent residents and sail under the US flag.

It is vital to national security because during times of war, this act allows for US ships to bring supplies to our troops overseas. During the Gulf war over 70 ships supplied our troop. Over 90% of the cargo needed was brought by US ships. Without this law, we would not have any US ships in ready reserve to supply the US military. We would be forced to rely on other countries to supply our troops at premium shipping rates. How do you think that would work out?

During WW2 almost 10,000 mariners died and over 10,000 wounded on Liberty ships that supplied the US war effort. If it were not for them our war effort overseas would have been vastly different. If it were not for the Jones Act we would not have had these ships or the means to make them faster than German U boats were sinking them.

Foreign flagged ships can drop off goods in PR. 66% of their goods are brought in by foreign ships. 99% of their fuel is brought in by foreign flagged ships. They can even send exports out on these ships. Those ships just can't pick up exports and bring them to Miami or any other US port. A Chinese ship can go to LA and discharge cargo and pick up cargo. Then go to Hawaii and discharge cargo. They can not discharge the cargo they picked up in LA.

As for driving up the cost, that can not be calculated, according to the GAO. There are too many variables that are included in the end price.

But just for comparison on consumer costs

https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Puerto+Rico&country2=United+States

Here is the comparison for consumer costs of PR vs USVI, which is not subject to the jones act.

https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Puerto+Rico&country2=Us+Virgin+Islands

The Jones act also provides for sailors getting injured on the job. It closed all the loopholes in maritime law that employers used to deny coverage for injuries and death of sailors.

[DonViejo]

3. GOP senators want to permanently exempt Puerto Rico from Jones Act

Sens. John McCain (R-Ariz.) and Mike Lee (R-Utah) on Thursday announced they are introducing a measure that would permanently exempt Puerto Rico from a century-old shipping law that the island's governor said has hindered the delivery of emergency aid.

The Trump administration on Thursday temporarily waived the Merchant Marine Act of 1920 — often called the Jones Act — for Puerto Rico in an effort to facilitate relief efforts in the U.S. territory in the wake of Hurricane Maria.

But that waiver is only set to last 10 days, which McCain said is not sufficient to help Puerto Rico recover from a storm that has devastated its infrastructure and left most of its population without power.

The Jones Act requires that only U.S.-flagged ships be used to deliver cargo between U.S. ports. In a statement, McCain called the law "antiquated" and "protectionist," and argued that it has "crippled Puerto Rico’s economy."

http://thehill.com/policy/transportation/352917-gop-senators-introduce-measure-exempting-puerto-rico-from-jones-act

[former9thward]

4. I am not in favor of the Jones Act.

It does raise costs in Alaska, Hawaii and Puerto Rico though not to level its opponents say. But the Jones Act has had nothing to do with the PR relief situation. The media has reported that during the 10-day waiver period not one foreign ship took advantage of the waiver to land in PR. There are plenty of foreign ships landing in PR but they are coming from foreign ports so they are not affected by the Jones Act.