A number of maritime laws collectively known as the “Jones Act” impose a variety of limits on foreign participation in the U.S. domestic maritime industry. Under these laws, the carriage of cargo or passengers between points in the United States is restricted to U.S. built and U.S. documented vessels owned and operated by U.S. citizens. Similar restrictions apply to dredging, salvage and other commercial marine activities in U.S. waters. In international shipping, there are limitations on foreign ownership of vessels eligible for documentation in the United States. In addition, several subsidies and other support measures are available to operators of U.S. vessels: cargo preference laws restrict the carriage of military cargo and limit the carriage of government non-military cargo, aid cargo and certain agricultural commodities to U.S. vessels. These and other restrictions coupled with defence related prohibitions of the Byrnes/Tollefson amendment limit Canadian participation in U.S. shipping activities.
Although Canada has sought to enhance access to the U.S. market in this sector through trade negotiations, the United States has refused to negotiate improvements and has protected these restrictions in both the North American Free Trade Agreement, NAFTA, and the World Trade Organization, WTO, agreements. In the NAFTA and the WTO, Canada protected our ability to utilize similar measures wtih respect to imports from the United States. In practical terms, imports of ships from the United States into Canada have not been significant due to production and competitive realities.
Canada will continue to use every appropriate opportunity to encourage the liberalization of these restrictive provisions. Although there have been renewed calls for reform, the cabotage and cargo preference restrictions continue to enjoy significant support in the United States, limiting the prospect of any major change in the short term.
*Question No. 99—