Lawmakers Seek to Ease Export Controls on Foreign Firms Investing in US Shipbuilding
A bill aimed at revitalizing the American maritime sector includes a provision that would require the Commerce and State Departments to study ways to reduce export controls and International Traffic in Arms Regulations on foreign-owned companies that wish to invest in the U.S. shipbuilding industry.
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The study proposal is intended to address concerns that foreign maritime companies, such as European, Japanese and South Korean firms, sometimes have problems getting construction and repair contracts for U.S. shipyard infrastructure because existing export controls bar their access to certain vessels and equipment on those vessels.
The provision is included in the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, which Sens. Mark Kelly, D-Ariz., and Todd Young, R-Ind., reintroduced April 30.
The bill also includes several provisions dealing with the Federal Maritime Commission, including one that would require the FMC to write an annual report on the competitiveness of U.S. vessels in foreign commerce. Another provision is designed to enhance the FMC’s authority to prevent foreign countries and foreign flag operators from committing unfair trade practices for cargo and cruise vessels.
The legislation was referred to the Senate Commerce and Finance committees. Reps. John Garamendi, D-Calif., and Trent Kelly, R-Miss., plan to offer the House companion.