This article appeared on The Federalist on January 22, 2015.Scott Lincicome is an international trade attorney, adjunct scholar at the Cato Institute and Visiting Lecturer at Duke University.
Lost in the never-ending debate about the KeystoneXL pipeline is great news for anyone who opposes cronyism and supports free markets and lower prices for essential goods like food and energy. Sen. John McCain has offered an amendment to repeal the Merchant Marine Act of 1920, also known as the Jones Act, which requires, among other things, that all goods shipped between U.S. ports be transported by American-built, owned, flagged, and crewed vessels.
By restricting the supply of qualified interstate ships and crews, this protectionist 94-year-old law has dramatically inflated the cost of shipping goods, particularly essentials like food and energy, between U.S. ports—costs ultimately born by U.S. consumers. Thus, the Jones Act is a subsidy American businesses and families pay to the powerful, well-connected U.S. shipping industry and a few related unions. For this reason alone, the law should die, but it turns out that the Jones Act also harms the very industry it’s designed to protect and, in the process, U.S. national security.