The Law Strangling Puerto Rico
- 7 years ago
The Law Strangling Puerto Rico
Thanks to the law, the price of goods from the United States mainland is at least double
that in neighboring islands, including the United States Virgin Islands, which are not covered by the Jones Act.
A 2012 report by two University of Puerto Rico economists found
that the Jones Act caused a $17 billion loss to the island’s economy from 1990 through 2010.
The foreign vessel has one other option: It can reroute to Jacksonville, Fla., where all the goods will be transferred to an
American vessel, then shipped to Puerto Rico where — again — all the rerouting costs are passed through to the consumer.
Three American territories are exempt from the Jones Act, including the United States Virgin Islands.
Thanks to the law, the price of goods from the United States mainland is at least double
that in neighboring islands, including the United States Virgin Islands, which are not covered by the Jones Act.
A 2012 report by two University of Puerto Rico economists found
that the Jones Act caused a $17 billion loss to the island’s economy from 1990 through 2010.
The foreign vessel has one other option: It can reroute to Jacksonville, Fla., where all the goods will be transferred to an
American vessel, then shipped to Puerto Rico where — again — all the rerouting costs are passed through to the consumer.
Three American territories are exempt from the Jones Act, including the United States Virgin Islands.