The Jones Act: An Unfair Burden on Puerto Rico’s Economy

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The Jones Act, officially known as the Merchant Marine Act of 1920, is a century-old maritime law designed to protect the U.S. shipping industry. It mandates that goods transported between U.S. ports must be carried on ships that are U.S.-built, -owned, and -operated by American crews. While its intentions may have been rooted in bolstering domestic maritime interests, its effects on the economy of Puerto Rico have been devastating, exacerbating the island’s financial struggles and inflating costs for consumers.

As Puerto Rico grapples with economic crises, high unemployment, and population decline, it is time to repeal the Jones Act and allow the island to engage in international trade with the same freedom afforded to U.S. states.

The Jones Act’s Economic Impact on Puerto Rico

The Jones Act imposes unique challenges for Puerto Rico, which relies heavily on imported goods due to its limited industrial base. Here’s how the law affects the island:

1. Higher Shipping Costs

Studies consistently show that the Jones Act dramatically increases shipping costs. A 2019 report from Puerto Rico’s Economic Development and Commerce Department found that transporting goods from the U.S. mainland to Puerto Rico is 2–3 times more expensive than shipping the same goods internationally to nearby islands like Jamaica or the Dominican Republic. These inflated costs are passed directly to Puerto Rican consumers, who already face higher living expenses than many mainland residents.

2. Economic Isolation

Puerto Rico’s status as a U.S. territory subjects it to the Jones Act but denies it the economic flexibility of a sovereign nation. Unlike other Caribbean nations, Puerto Rico cannot directly engage in international trade with foreign-flagged ships. Instead, goods must be routed through the United States on compliant vessels, further inflating costs and delaying deliveries.

3. Hurricane Recovery and Supply Chain Issues

The Jones Act’s restrictions have also hindered disaster recovery efforts. After Hurricane Maria in 2017, emergency supplies faced delays and higher costs due to the requirement for Jones Act-compliant ships. Though the law was temporarily waived, the process highlighted its inefficiency and the needless bureaucratic hurdles it creates.

4. Undermining Competitiveness

By restricting competition to U.S.-flagged ships, the Jones Act effectively shields a small segment of the shipping industry from global market forces, leading to inefficiencies and inflated prices. For Puerto Rico, this means its exports are less competitive, and businesses are less able to thrive in the global market.

The Case for Repeal

Critics of repealing the Jones Act argue that the law protects national security and supports U.S. maritime jobs. However, these arguments do not hold up to scrutiny.

• National Security Concerns

While the Jones Act aims to ensure a robust domestic shipping industry, it has done little to secure a reliable fleet. The number of U.S.-flagged vessels has plummeted from over 2,000 in the 1950s to fewer than 100 today. Repealing the law would not compromise security; instead, it would encourage competition and modernize the shipping sector.

• Impact on Jobs

The jobs protected by the Jones Act are negligible compared to the broader economic harm it causes. For Puerto Rico, the law suppresses job creation in industries like manufacturing, agriculture, and tourism by inflating costs and limiting access to markets.

Puerto Rico Deserves Economic Equality

Allowing Puerto Rico to engage in international trade without the constraints of the Jones Act would transform its economy. By repealing the law, Puerto Rico could:

• Lower shipping costs and reduce consumer prices.

• Attract foreign investment and trade partnerships.

• Boost export-driven industries and create new jobs.

In essence, repealing the Jones Act would allow Puerto Rico to compete on equal footing with U.S. states and other nations.

Conclusion

The Jones Act has long outlived its usefulness, and its impact on Puerto Rico is a glaring example of the law’s failures. At a time when the island is fighting to rebuild its economy and retain its population, it is unconscionable to continue enforcing a law that hinders growth and stifles opportunity. Puerto Rico deserves the freedom to chart its own economic course, just as any U.S. state can. Repealing the Jones Act is not just a matter of economic justice—it is a moral imperative. Congress must act now to lift this burden and unlock Puerto Rico’s potential.