And another important bill to update an important trade enforcement law is drawing more support, too.
The legislative effort to spark a resurgence in the domestic commercial shipbuilding industry is picking up steam.
A little more than four months after it was introduced, the SHIPS for America Act now has 94 cosponsors in the U.S. House of Representatives. This important, bipartisan legislation is the latest step taken to bolster the greatly diminished commercial shipbuilding industry in this country, which has consolidated offshore.
It wasn’t always like this. Decades ago, U.S. shipyards employed 180,000 people and built over 70 large oceangoing ships annually. Now, there are 70,000 fewer jobs, dozens of major shipyards and 20,500 suppliers have closed, and annual production of vessels like tankers and cargo ships has dropped to single digits — less than 1% of global output.
China now commands the global shipbuilding industry, producing hundreds of vessels each year and handling about two-thirds of future worldwide orders. And we’re growing dependent on Chinese shipbuilding and maritime infrastructure, like dry docks and cranes. The U.S. Navy believes China’s shipbuilding capacity is 232 times greater than our own, thanks to heavy subsidies and a raft of unfair trade practices.
Having robust shipbuilding capacity for all types of vessels is how a country maintains a navy and stays prepared to scale production in a time of conflict. But we’ll never get it back unless China’s grip on shipbuilding is loosened. It’s why a group of U.S. labor unions petitioned the federal government to investigate China’s hold on the industry, and why the Trump administration subsequently proposed remedies like docking fees for every big Chinese-built ship that visits a U.S. port. Those fees are set to kick in later this year and will serve to disincentivize shippers from sourcing large oceangoing vessels from China.
And that’s where the SHIPS for America Act comes in. It would direct those port fees on Chinese vessels into shipyards, workers, and other maritime infrastructure so we can begin rebuilding this industry here at home.
You can read more about this legislation here. And, better yet, you can ask your federal lawmakers to support it. Click here to send them a letter.
That’s not the only legislation we’re keeping an eye on. We’re also closely watching the bipartisan Leveling the Playing Field Act (LTPFA) 2.0, which was introduced in February. LTPFA 2.0 would serve as a major improvement to a trade enforcement law passed a decade ago. This update would establish the concept of “successive investigations,” making it easier for petitioners to bring new trade cases when repeat offenders move production to another country to circumvent U.S. trade remedies.
LTPFA 2.0 now has 74 cosponsors in the House of Representatives, but it needs more. Tell your lawmaker to support this important upgrade to U.S. trade enforcement law.