BC Can Breathe a Sigh of Relief: Passenger Vessel Services Act 'Reform' Bills Face Uphill Battle

Senator Mike Lee of Utah considers the PVSA an outdated, protectionist law that harms American jobs and tourism. He says that the perverse incentives created by the PVSA mean Canada controls northwestern American cruise seasons. During the pandemic, Canada closed its ports to foreign ships, and Lee says that cruises cannot sail without this required foreign stop, adding that this move could crush the Washington and Alaska tourism economy. The passing of these new bills will be an uphill battle because any previous attempts to chip away at US cabotage have failed against strong opposition from US labor, and for defense security reasons. While the cruise industry has sought to avoid the issue as much as possible, the US ports have long been advocates of easing restrictions on foreign-flag vessels. The law has been restrictive on the growth of a number of US ports such as San Francisco; Portland, Oregon; Norfolk, Virginia; and Philadelphia.

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