Thursday, February 11, 1999

Hawaii's economy is limited by Jones Act

According to the federal Jones Act, foreign companies are prevented from handling any domestic shipping. It dictates that shipping between any two American ports be done by American-owned companies only.

Generally speaking, this is a sound way to protect American investments. Not only does it shield the market so that American shipping companies are not strangled to death by foreign ones, it keeps American goods from being handled by companies that do not meet our high safety standards.

However, this act prevents Hawai`i from taking advantage of its geographic position.

As it is now, foreign companies can travel the distance between their nations and either Honolulu or a port on the U.S. West Coast, but they cannot take cargo between two ports within the U.S.

The Jones Act should be mended to exclude this kind of inefficiency.

Such an amendment would not prevent American shipping from being handled solely by American companies, but it would allow our island state to again enjoy the economic benefits of our position in the Pacific.

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