U.S. Rep. Rick Larsen (WA-02) commended the Federal Maritime Commission (FMC) for voting today to initiate a study on the diversion of U.S.-bound cargo through Canadian ports. Larsen led a letter with six other Washington state Members of Congress requesting that the FMC conduct an analysis of the impact the Harbor Maintenance Tax (HMT) and other U.S. government policies may be having on cargo diversion and to offer legislative and regulatory recommendations to address this concern.
A growing number of containerized U.S. imports from Asia are passing through west coast Canadian container ports (Vancouver and Prince Rupert) en route primarily to the U.S. Midwest through cross-border rail. This U.S.-bound cargo is diverted to Canadian ports instead of U.S. west coast ports like the Ports of Seattle and Tacoma and the Port of Everett largely because of the federal Harbor Maintenance Tax imposed on containers entering U.S. ports. Larsen has heard from Northwest ports that the HMT is increasingly becoming a significant competitiveness issue.
“Cargo diversion creates a trade imbalance and job loss. Our Northwest ports are losing business to Canada at a time when we need this trade and the jobs it will create more than ever. We need to understand why this is happening so Congress can take action to fix this disparity and create jobs,” said Larsen.
The FMC is an independent federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. Larsen is the lead Democrat on the Congressional subcommittee that oversees the FMC, the Coast Guard and Maritime Transportation Subcommittee. Today, the FMC announced that they will initiate an inquiry into disparities that drive U.S.-bound cargo to Canadian and Mexican ports and will seek public input. The results of the study could be available early next year.
