Puerto Rico's Cabotage Law Continues to Suffocate the Island Nation

Puerto Rico's status as a modern day colony continues to hamper the little Caribbean island as the U.S. government refuses to modify their laws affecting trade. The Cabotage Law were developed for the Merchant Marine Act of the 1920's otherwise known as the Jones Act. The mandate states that the United States owned ports can only receive trade from other ports in the country. In essence, this law would be meant to protect the United States from invasions. But, as with many good acts, The Jones Act had some unforeseen consequences. These consequences were mostly hampering the economic growth of Puerto Rico.

The Island of Puerto Rico is forbidden from doing trade with foreign ports, as a consequence, there is the distinct lack of competition which usually leads to lower prices. This means that Puerto Rico doesn't have the financial leverage that is offered to many of the coastal states. As a whole Puerto Rico has zero negotiation ground for getting better deals, and without any space to maneuver the island is being left to sink. This is an additional weight to consider during the current economic crisis that is afflicting the island.

Puerto Rico is currently over $70bn dollars in debt. A situation that continues to exacerbate as the Financial Control Board fails to offer any solutions which would maintain the citizens of the island content. In 2012 the Federal Reserve Bank of New York concluded that the Cabotage Laws were hindering the growth of the island nation in a report titled "REPORT ON THE COMPETITIVENESS of PUERTO RICO’S ECONOMY". This was promptly shut down in March of 2013 by the Government Accountability Office, which proposed that the previously supposed “costs” of the Jones Act were unverifiable.

But, here is the problem that lies within the assessment made by the GOA. Puerto Rico can't move forward by itself. If Puerto Rico needs to open its doors to foreign trade and operate as a merchant hub for the United States. It's simply not going to magically repay all of its debt without a drastic change in the way the port operates. Especially since Puerto Rico is nearly in the middle of the Atlantic. This particular location let's Puerto Rico become a center of commerce for trade in the United States, and currently it's not living up to its full potential.

Puerto Rico is being suffocated by their masters, and even though I'm aware that part of the situation the Island is experiencing is their fault, we must strive to do our best to ensure that they can move past this. This is not simply an United States issue, for this is a global situation. More countries are going the way of Greece, and Puerto Rico is simply another victim of this modern form of enslavement. An enslavement which forces their people to sacrifice all of their assets to appease the debts raked in by their government. But, this should not be the case...

A government's job is to protect their people, but by restricting growth, and maintaining their status in a permanent form of dependency, they're killing any opportunities for change. Starting with the Cabotage Laws, and another sleuth of restriction based on their status as a colony, change has to happen in Puerto Rico. Yet, the people of Puerto Rico are still hopeful...
That is because Puerto Rico can still be saved, this summer; the Puerto Rican government will host an election to finally determine the fate of the island. There are two choices available for Puerto Rico. Either they become a state and become part the United States of America, or they become an independent nation. Previously there were three choices on the ballot, to remain in the status-quo, become a state, or become an independent nation. But, such is not the case now, and for the first time in the history of the island, they will be forced to make a decision which will forever alter their destiny

Sources:
https://www.newyorkfed.org/medialibrary/media/regional/PuertoRico/report.pdf
http://www.ifes.org/sites/default/files/con00154.pdf