ICS critical of U.S. maritime policy

The International Chamber of Shipping complained protectionist policies could limit access to U.S. oil and gas exports.

   The International Chamber of Shipping complained Monday about a “potentially protectionist approach being taken by the U.S. with respect to the future transport of energy exports.”
   “U.S. energy exports by sea are predicted to expand massively as a consequence of the shale revolution,” ICS said in a statement. “International ship operators, represented by ICS, are particularly anxious that a regime currently being developed to promote the carriage of Liquefied Natural Gas (LNG) exports on U.S. flag ships may set an undesirable precedent should the U.S. decide to lift the current ban on crude oil exports.
   “In December 2014, President Obama signed some little noticed legislation requiring the U.S. Secretary of Transportation to implement a program to promote the use of U.S. flag ships. This is expected to prioritize the processing of licenses for new deep water LNG export facilities from those exporters that indicate they plan to use U.S. flag gas carriers, rather than ships operated by foreign shipping companies.
   “ICS believes that this approach is not in the spirit of the free trade commitments that the U.S. has already accepted with respect to maritime services at the World Trade Organization (WTO).”
   The chamber said the policy has implications bilaterally, for example, with respect to the Trans-Atlantic Trade and Investment Partnership (TTIP) and claims the European Commission, which represents the EU in trade negotiations, and governments of other countries with large LNG tanker fleets, such as Japan and Norway, are also concerned.
   “Any protectionist approach towards shipping being pursued by the U.S. might also be emulated by other energy exporters, such as Russia, Iran and Saudi Arabia. This could seriously undermine the framework of open market access and free trade principles in shipping that has facilitated the efficient transport of energy worldwide since the 1980s,” said ICS.