Reports that the Government of Spain has denied access to certain U.S.-flagged vessels raise serious concerns. Section 19 of the Merchant Marine Act, 1920, 46 U.S.C. § 42101, authorizes the Commission to identify and offset unfavorable shipping conditions in U.S. foreign trade that result from the laws or regulations of a foreign government. If confirmed, Spain’s actions could constitute a violation of the law, and could result in substantial offsetting fines on Spanish-flag vessels, limitations on cargo carried between Spain and the United States, and other remedial actions within the Commission’s discretion.
Disruptions to international trade systems not only threaten global shipping networks, but also compromise the consumer markets they support. As a member of the international maritime community, Spain is obligated to adhere to international maritime norms. I support the investigation the Commission has initiated into these allegations and will carefully consider all relevant evidence we are presented.
Spain’s uniliteral restrictions on U.S.-flagged vessels could raise questions about the core principles of non-discriminatory practices. If a Section 19 violation were established, these actions could strain the strong bilateral ties that underpin a robust $70 billion annual trade relationship between our countries. Moreover, these actions could threaten the operational integrity of the critical supply chains that sustain the $5 trillion U.S. maritime industry.
I fully support investigating this matter to determine the full scope of the impacts on U.S. carriers, shippers, and broader economic interests. Spain must uphold the traditions and commitments of port states to allow vessels to call and trade to flow. The United States and Spain enjoy close ties and good relations, but the alleged actions of turning away U.S.-flagged vessels are inconsistent with how friendly nations treat each other. Further, if true, they jeopardize the trust that is essential to mutual economic growth and supply chain security.
Louis E. Sola is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.