Page 18: of Maritime Reporter Magazine (May 2016)

LEGAL BEAT (Of? cial portrait http://www.cruz.senate.gov) (Of? cial portrait http://www.governor.ohio.gov) (Of? cial Portrait http://www.sanders.senate.gov)

Cruz Sanders Kasich

Senator Bernie Sanders supports President Obama’s

Senator Ted Cruz’ free-market oriented policies may John Kasich is the only candidate who has consis- policy and views diplomacy and engagement as the con? ict with the legislative intent of the Jones Act. tently supported free trade, although he has made best means to achieve a nuclear-free Iran. protecting American jobs a priority.

KRG policy on the South China Sea issue, and Greek and Turkish companies are thus degisir” (problems do not leave, they

The status of the Kurdistan Regional it is dif? cult to predict the stance that the not likely to see any change in the ways change). Taking prophylactic actions

Government (KRG) within Iraq or as a next U.S. administration will take on this they can serve the U.S. market. based on the “nature” and positions of separate entity could impact Greek and issue. the candidates can ensure that any “prob-

Turkish maritime interests. The example Support for Free Trade Agreements lems” created by the next administration of the M/T United Kalavryta crystallizes Free trade has the potential to increase remain only surmountable challenges.

Trade this reality. The M/T United Kalavryta the movement of goods and services is a Greek managed ship that loaded one Jones Act worldwide, which could mean an in- million barrels of KRG-origin oil from In the United States, there is a saying crease in shipping demand. However, the port of Ceyhan in Turkey. The oil that the only things certain in life are free trade has been a dif? cult sell in aboard the United Kalavryta sat off the death and taxes. It may be prudent to this election cycle. Most of the lead- coast of Houston, Texas, and was subject add the Jones Act to this list. Although ing candidates have opposed free trade to litigation between Iraq and the KRG. the president has some power to enforce agreements such as the TPP and TTIP,

While none of the candidates have di- and make changes to the implementation and even disparaged longstanding agree- rectly addressed the status of the KRG, of the Jones Act, the power to modify or ments like NAFTA. Even Secretary almost all the candidates have expressed repeal the Jones Act lies solely with the Clinton, who was involved in the nego- support for the KRG’s peshmerga forces. U.S. Congress, which is unlikely to exer- tiations of free trade agreements, has ad-

Hillary Clinton and Donald Trump have cise this power. opted a more negative tone on free trade. even argued arming the peshmerga di- Secretary Clinton has publicly ex- John Kasich is the only candidate who rectly instead of through the central gov- pressed support for the Jones Act and has consistently supported free trade, al- ernment in Baghdad. This may signal has the endorsement of the Seafarers though he has made protecting American

STEFANOS N. ROULAKIS that the two leading candidates see the International Union, which supports the jobs a priority.

KRG as an entity distinct from Iraq. Jones Act. Additionally, the leading can- These positions do not bode well for didates hold policy positions in line with an increase of trade under the next ad-

South China Sea the Jones Act, particularly in terms of ministration. More concerning for the

The Author

The South China Sea’s disputed mari- supporting American jobs. global maritime industry, it may signal a

Stefanos Roulakis is ? uent in Greek time claims have caused international Senator Ted Cruz may be an excep- future decrease in demand in one of the and Turkish, and is an attorney in Blank tension in an area where more than half tion as his free-market oriented policies world’s largest consumers of imported

Rome LLP’s maritime group. He was a of the world’s international trade tran- may con? ict with the legislative intent of goods.

Fulbright scholar at Bogazici Universitesi sits. Escalation of these disagreements the Jones Act. Two think tanks that are in Turkey where he also worked at the escalate may hamper the free movement ideologically similar to Senator Cruz, Conclusion

Ecumenical Patriarchate.

of goods by sea and impact the bottom the Heritage Foundation and the Cato The past decade has been fraught with line of many maritime companies, par- Institute, have called for the repeal of peril for the maritime industry, both in

Roulakis would like to thank Blank ticularly those with a global reach like in the Jones Act. However, even if Senator terms of business cycles and government

Rome Associate Kierstan Carlson and those Turkey and Greece. With the ex- Cruz were to ascend to the presidency, oversight. As another proverb reminds

Erik Lowe for their assistance with this ception of Secretary Clinton, none of the it remains impossible to conceive that us, using language common to both sides article.

candidates have formulated a coherent Congress would repeal the Jones Act. of the Aegean, “dert (?t??t?) gitmez, 18 Maritime Reporter & Engineering News • MAY 2016

MR #5 (18-25).indd 18 5/2/2016 12:20:44 PM