Turn to American Allies for Shipbuilding Help

"The starting point for the kind of U.S. maritime renewal called for by Rep. Mike Waltz and Sen. Mark Kelly ("China's Sea Power Leaves U.S. Adrift," op-ed, May 23) must be addressing the Jones Act. 

This protectionist law restricts domestic waterborne transportation to vessels built and registered in the U.S.

Theoretically meant to assure a capable fleet and robust maritime industrial base, the Jones Act has instead helped produce a shipbuilding industry whose output trails the likes of Singapore and Croatia, and a fleet of aging ships reliant on Chinese state-owned shipyards for their considerable maintenance needs. 

Shielding shipyards from foreign competition and forcing Americans to pay vastly inflated prices for vessels hasn't proved conducive to either a large, modern fleet or competitive shipbuilding.

To bring a measure of sanity to this law, vessels constructed in allied shipyards should be exempted from the Jones Act's U.S.-built requirement. Access to less costly vessels would promote the U.S. merchant fleet's expansion and modernization and generate more repair and maintenance opportunities for U.S. shipyards.

Vague calls for action and tepid proposals that leave sacred cows such as the Jones Act untouched will not suffice. An urgent course correction is needed.

Colin Grabow

Cato Institute

Washington

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The recreation of a competitive commercial shipbuilding sector within the U.S., as the authors suggest, would be a decadeslong undertaking in the face of a far more immediate threat from China. A more practical and expedited remedy might already be at hand if the U.S. were to contract significant shipbuilding, maintenance and repair needs with its regional allies who already maintain a robust commercial industry.

 Korea and Japan have the industrial maritime base and the capacity to participate in an expedited effort to maximize, strengthen and maintain America's most urgent shipbuilding and maintenance requirements.

Lt. Cmdr. Tom C. James, USN (Ret.)" [1]

The same thing that happened to American ships, is happening with green economy in the West that is heavily subsidized by the governments and then shielded by high import duties to protect those subsidies from going to waste. Subsidies drive green capital out of Germany and other allies, and that capital goes to die in America for lack of global competition in an environment of high import tariffs.

1.Turn to American Allies for Shipbuilding Help. Wall Street Journal, Eastern edition; New York, N.Y.. 30 May 2024: A.14.