Begin its own review of the vessel procurement process for both the Defense and Homeland Security Departments, according to the EO.
WASHINGTON -U.S. President Donald Trump signed an executive order aimed at reviving U.S. shipbuilding and reducing China’s grip on the global shipping industry, vowing to boost funding for the effort in coming years.
Maritime Action Plan” (MAP)
 He order tasking the heads of the defense, commerce, labor, transportation and homeland security departments with developing a “Maritime Action Plan” (MAP) that will invest in the shipbuilding industrial base and disentangle the government’s clumsy procurement processes
Republican and Democratic together
As long as Republican and Democratic U.S. lawmakers for years have warned about China’s growing dominance on the seas and diminishing U.S. naval readiness
Regulations have hindered private sector investment in the shipbuilding sector.
It is noteworthy that “Up until now, government procurement processes and over-regulation have hindered private industry’s ability to build vessels on time and on-budget — this order reverses that trend,” according to a fact sheet from the White House. “It instructs the Secretary of Defense to assess options, including the Defense Production Act Title III authorities, to invest in and expand the Maritime Industrial Base.”
The data showed
The order said recent data showed the United States built less than 1% of commercial ships globally, while China built about half, an increase from just 5% in 1999, according to the Center for Strategic and International Studies.It also calls for incentives to encourage private investment in construction of commercial components, and improvements to shipyards, repair facilities and dry docks.
Security of arctic waterways
The executive order mandates that the
MAP include a strategy to ensure “security and leadership of
arctic waterways to address the growing presence of foreign nations in the region and the need for the United States to reestablish itself in the area.”
U.S. port docking fees
On the other hand the order directs the U.S. Trade Representative to move ahead with a proposal that included levying million-dollar U.S. port docking fees on any ship that is part of a fleet that includes Chinese-built or Chinese-flagged vessels. Allies will be pushed to act similarly.
USTR‘s recommended port fees had sparked sharp criticism from commodities exporters, trade groups and U.S. ship operators, who warned of supply chain disruptions, job losses in port cities and inflation. The order must be finalized by an April 17 deadline.according to Reuters
Proposal for Tariff on Chinese-ship manufactured cranes
The order also requires USTR to consider proposing tariffs on ship-to-shore cranes manufactured, assembled, or made using components of Chinese origin, or manufactured anywhere in the world by a company owned, controlled, or substantially influenced by a Chinese citizen, as well as tariffs on other cargo handling equipment.
The vessel procurement process
The Department of Government Efficiency is directed to begin its own review of the vessel procurement process for both the Defense and Homeland Security Departments, according to the EO.
Turning to China, the EO orders the US Trade Representative to make recommendations regarding China’s “anticompetitive actions within the shipbuilding industry.”
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“The U.S. government will work with our allies and partners to align trade policies to disrupt China’s non-market practices in the international supply chain and logistics sectors,” according to the fact sheet. “The order establishes a Maritime Security Trust Fund to provide consistent funding for maritime programs in addition to a shipbuilding financial incentives program to boost private investment in U.S. shipbuilding.”
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Trump, speaking in the Oval Office, said the United States would be spending “a lot of money on shipbuilding” to restore American capacity in the sector.”We’re way, way, way behind,” he told reporters. “We used to build a ship a day, and now we don’t do a ship a year, practically, and we have the capacity to do it.”
Trump’s order called for creation of a Maritime Security Trust Fund to provide reliable funding for programs aimed at shoring up U.S. maritime capacity, including consideration of potential new or existing tariff revenue, fines, fees, or tax revenue.
The U.S. shipbuilding industry, which peaked in the 1970s, has struggled due to high costs and a complex regulatory structure, which has enabled rivals including China to grow rapidly.
