If You Want to Get into the Jones Act Game, You've Got to Embrace Uncle Sam

Winston & Strawn partner Charlie Papavizas, who serves as chair of the firm's maritime and admiralty practice, authored the TradeWinds article “If you want to get into the Jones Act game, you’ve got to embrace Uncle Sam,” published November 21, 2014.

European shipowners may want to grab a slice of the U.S. shipping market via international trade negotiations—but do they know that means embracing Uncle Sam and especially U.S. government taxation? Mr. Papavizas explains that the set of laws known as the Jones Act is not the only law governing U.S. domestic trade.

Foreign owners are dreaming if they believe that repeal or modification of the Jones Act will permit them to operate in U.S. waters competing with U.S. citizens paying U.S. taxes and not have to bear those very same tax burdens. If the U.S. government were to do otherwise, U.S. taxpaying citizens would be at a disadvantage.

Mr. Papavizas warns that foreign owners may not like the result even if they succeed in poking holes in the Jones Act.