Joe Biden reaffirms his support for federal cabotage standards

Washington dc – President Joe Biden signs an order this afternoon that further engages his government with the purchase of products manufactured under the American flag and reaffirms its defense of federal cabotage rules, which Puerto Rican authorities have sought some kind of exemption.

According to the White House, with the executive order, the president “He will remain a staunch supporter of the Jones Act and its mandate that only U.S.-flagged ships carry cargo between U.S. ports, which supports U.S. production and U.S. 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 U.S. workers as we build renewable energy on the high seas, in line with the goals of the president of building our clean energy future here in the United States, ”the White House added.

Over the past four years, the Puerto Rican government has tried unsuccessfully to secure a 10-year administrative exemption from federal cabotage regulations for natural gas transportation, at a time when it was beginning to push to convert power generation plants that use natural gas oils.

Although, as Bloomberg reported then, then-President Donald Trump initially sympathized with the idea, then shifted 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 cabotage laws.

Under cabotage regulations, shipping of cargo between the United States and Puerto Rico must be done on American-owned, registered, flag, and crewed ships, which are the most expensive.

No legislation aimed at repealing or amending cabotage rules – set out in the Jones Act of 1920 – is advancing in Congress, in the face of opposition from shipping employers and unions, which have the support of Republicans and Democrats, respectively.

The executive order to be signed this afternoon by President Biden proposes to increase the amount of content manufactured in the United States in order to be considered an American product, under the “Buy American Products” Act.

The decree encourages the creation of a website where companies can find out about the contracts awarded to foreign suppliers.

Biden will also appoint an official to the Office of Budget and Management (OMB) to work on implementing the order to increase procurement of U.S. products.

It also promotes connecting “new companies with recruitment opportunities by requiring the active use of supplier search by federal government agencies.”

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