Joe Biden reaffirms his support for federal cabotage rules

Washington DC – President Joe Biden this afternoon signs an order further committing his government to purchase products manufactured under the US flag and reaffirms his defense of federal cabotage rules, from which Puerto Rico authorities have requested some sort of exemption.

According to the White House, with the executive order, the president “He will continue to be a strong supporter of the Jones Act and its mandate that only US-flagged ships carry cargo between US ports, in support of US manufacturing and US workers.”

With the signing of the National Defense Authorization Act of 2021, the Jones Act has also been affirmed as an opportunity to invest in US workers in building renewable energy offshore, in line with the president’s goals to advance our clean future. energy here in America. , ”Added the White House.

For the past four years, the Puerto Rico government has tried unsuccessfully to obtain a 10-year administrative exemption from federal cabotage regulations for the transportation of natural gas, at a time when it was promoting the conversion of power plants that use oil. on natural gas.

Although, according to Bloomberg at the time, then-President Donald Trump initially sympathized with the idea, then changed his position under pressure from Republican senators and White House advisers. The temporary exemption was never granted.

However, In Puerto Rico, broad political and economic sectors have agreed to demand at least one exemption for the island from the requirements of the cabotage laws.

The rules of cabotage require that the carriage of ocean freight between the United States and Puerto Rico is in ships owned, registered, and manned by the United States, which are the most expensive.

No legislation to repeal or change the cabotage rules – enshrined in the Jones Act of 1920 – claims in Congress, despite opposition from shipping employers and unions, backed by Republicans and Democrats, respectively.

The executive order to be signed by President Biden this afternoon proposes to increase the amount of content manufactured in the United States to qualify as a US product, under the “Buy American Products” law.

The decree encourages the creation of an internet page where companies can obtain information about contracts awarded to foreign suppliers.

Biden will also appoint an officer with the Office of Budget and Management (OMB) to work on the fulfillment of the order to increase purchases of U.S. products.

It also promotes connecting “startups with recruiting opportunities by demanding active use of sourcing by federal government agencies.”

The executive order orders federal government agencies to use the network created by the Manufacturing Extension Partnership, which spans all 50 states and Puerto Rico, to “connect with new national suppliers who can manufacture the products they need while they employ American workers. “