Senator McCain Seeks to Amend the Jones Act

On January 13, 2015, Senator John McCain of Arizona filed a proposed amendment to draft legislation that would authorize the Keystone XL pipeline. Sen. McCain’s proposal would amend the Jones Act – the related laws that restrict U.S. domestic commerce to U.S.-built, U.S.-citizen owned, and U.S.-flag vessels.

Although announced as a “repeal the Jones Act” amendment, the McCain proposal actually would only have the effect of repealing the U.S.-built requirement together with ancillary law changes (such as repealing the requirement that U.S.-built vessels rebuilt abroad lose their Jones Act privileges). The requirement that U.S. domestic commerce be transported in U.S.-registered vessels employing U.S. mariners and owned and operated (absent an exception) by qualified U.S. citizen companies would remain even if the McCain amendment was adopted by the Senate, accepted by the U.S. House of Representatives, and signed into law by President Obama.

View the proposed amendment.

View a recent TradeWinds article which quotes Mr. Papavizas on the same topic.