Cabotage Laws
Cabotage n.
[Fr. <caboter, to sail along the coast<cabo, cape/Sp<Lat caput, head]
1. Coastal navigation and trade
2. Trade in coastal waters or airspace or between two points within a country
3. The right to engage in cabotage, esp. as between domestic and foreign carriers
Webster's New Collegiate/New World/Ninth New Collegiate Dictionaries
Many countries have cabotage laws because they recognize that those laws are important in maintaining a vibrant shipbuilding and vessel operating industries, protecting a strong maritime support structure for naval defense, reducing the security risks posed by foreign vessels operating in domestic waters or simply to ensure that the benefits of domestic commerce flow to the local population. The past few years have seen a number of countries strengthening and enforcing cabotage laws. An important point is that cabotage laws only deal with domestic trade and are completely compatible with free trade approaches to international commerce.
In this country, cabotage laws go back to the birth of the nation. In 1789, the second law passed by the Continental Congress said that U.S. flag ships had to be built in the United States and have an American Master and imposed higher duties on foreign ships that called on U.S. ports. Almost overnight it helped the fledgling country establish a maritime industry. By 1817, with passage of the Navigation Acts, Congress altogether outlawed transportation of merchandise between U.S. points by foreign flag vessel. The law was further revised by the passage of the Jones Act in 1920.
Maritime cabotage laws don't just cover cargo that is moved on ships. Other aspects of the law cover the transportation of passengers, towing activities, dredging and port services in domestic waters.
