ThinkTankWeekly

Puerto Rico's Surging Propane Imports Reveal the Jones Act's Hidden Cost

CATO | 2026-07-21 | energy

Topics: China, Indo-Pacific, Trade, United States

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English Summary

The article argues that the Jones Act imposes significant economic costs on Puerto Rico by artificially restricting its access to cost-effective mainland US propane supplies, forcing reliance on expensive foreign imports. Key evidence comes from a temporary waiver period, during which demand immediately and massively shifted from distant global suppliers to domestic American sources, proving the substantial commercial advantage of mainland supply. This rapid market shift demonstrates that the Act imposes real economic burdens without sustaining any viable American shipping industry in this trade. Policy analysts recommend Congress reform or repeal the restriction, as the current law delivers protectionist costs without generating its intended industrial benefit.

中文摘要

本文指出,《瓊斯法案》(Jones Act)透過人為限制波多黎各(Puerto Rico)獲取具成本效益的本土美國丙烷供應,對其造成了巨大的經濟負擔,迫使其依賴昂貴的進口外國能源。關鍵證據來自於一段臨時豁免期:在此期間,需求立即且大規模地從遙遠的全球供應商轉向國內美洲來源,證明了本土供應所具備的巨大商業優勢。這種快速的市場轉變顯示,《法案》實質上造成了經濟負擔,卻未能維護任何可行的美國航運產業鏈。政策分析師建議國會修訂或廢除此項限制,因為現行法律僅帶來保護主義成本,而無法產生其預期的工業效益。

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