Merchant Marine Act of 1920

The Merchant Marine Act of 1920 is a United States federal statute that provides for the promotion and maintenance of the American merchant marine. Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Merchant Marine Act is known as the Jones Act and deals with cabotage (coastwise trade). It requires that all goods transported by water between U.S. ports be carried on ships that have been constructed in the United States and that fly the U.S. flag, are owned by U.S. citizens, and are crewed by U.S. citizens and U.S. permanent residents. The act was introduced by Senator Wesley Jones. The law also defines certain seaman's rights. The Merchant Marine Act of 1920 has been revised a number of times; the most recent revision in 2006 included recodification in the U.S. Code. Many economists and other experts have argued for its repeal, while military and U.S. Department of Commerce officials have spoken in favor of the law on protectionist grounds. The Act reduces domestic trade via waterways (relative to other forms of trade) and increases consumer prices. The Jones Act is not to be confused with: the Death on the High Seas Act (another U.S. maritime law that does not apply to coastal and in-land navigable waters), or the Passenger Vessel Services Act of 1886 (which regulates passenger vessels, including cruise ships).