 
  WORLD TRADE  
ORGANIZATION  WT/GC/W/524 
4 February 2004 
 (04-0190) 
General Council Original:   English 
  
 
NOTIFICATION PURSUANT TO PARAGRAPH 3(C) OF THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
 
Response by the United States to Japan's  Questions Posed Concerning Jones Act
 
 
 
 The following communication, dated 13 January 2 004, is being circulated at the request of the 
Delegation of the United States.  
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Question 1(a):  
 The annual report (WT/L/512) submitted by the US this January failed to isolate the relevant 
vessels covered by the exemption provided for in GATT 1994 paragraph 3(a), as the statistical data 
provided in the same annual report apparently incl ude the data on many vessels which are owned by 
governmental bodies and thus might not be for commer cial use.  Japan would like to know the reason 
for this inclusion, and to have statistical data  suitably defined for the purpose of this review. 
 
US Response:   
  We agree with Japan that the inclusion of data on government-owned vessels might not be 
relevant to a review of the exem ption under paragraph 3.  The United States has prepared the current 
US annual submission deleting this data.   For the sake of comparison, the United States is providing the information on 
government-owned vessels in a separate report.  There were 31 vessels delivered during the period 
1998-2002, and orders were received for 13 vessels duri ng the same period.  (See tables attached in 
Annex 1.)  
Question 1(b): 
  There are some inconsistencies between the statis tics on orders and the st atistics on deliveries.  
Seventeen ordered vessels appearing with the deliv ery date of 1998-2000 on page 46-47 of the annual 
report (WT/L/512) submitted by the US this January are missing from their corresponding delivery list.  Japan would like to know the reason for this discrepancy.  On this point, Japan would like to 
request the US to add sufficient annotative inform ation to the statistics that would clarify these 
inconsistencies.  
US Response: 
 
 Inconsistencies between the statistics on vessel orders and vessel deliveries can be the result 
of several factors.  For instance, a vessel order may be cancelled, and therefore the vessel is never 
delivered.  Or, the data source upon which th e United States draws, namely the Lloyd’s WT/GC/W/524 
Page 2  
 
 Register/Fairplay, may retain a vessel on its records as "on order," but the vessel may be neither 
delivered nor cancelled by its scheduled delivery date.  In such a case the order year and the delivery 
year may then be changed in the Register.  The United States plans to note these problems on our annual submissions in the future.  
 Question 2:  
 Japan requests the US to provide the followi ng data, which Japan had already requested in 
1999 and 2000 but has never received.  These data are not included in the annual report (WT/L/512) submitted by the US this January. 
 
Question 2(a): 
 
 The number of shipbuilders in the US owned or controlled by foreign capital. 
 US Response:   
 The United States is not aware of any publicly available data on the amount of foreign 
participation in ownership of US shipyards.  Own ership in US commercial shipyards is, however, 
freely open to foreign investment.  Question 2(b):  
 
 The number of shipbuilders in the US building the relevant vessels covered by the exemption 
provided for in GATT 1994 paragraph 3.  US Response:    
 Currently, there are 298 shipyards and five a dditional yards that are government-owned.  The 
data on US vessel order and delivery submitted to the WTO annually lists the shipyard where each 
vessel is built.  Question 2(c):  
 The number of employees and annual amount of  sales of those shipbuilders of (b) above. 
 
US Response:   
  According to the US Bureau of Labor Statisti cs, there were 94,700 workers employed in all 
US shipyards as of August 2003, of which 76,100 were production workers. The five government-owned shipyards employed 12,757 produc tion workers (total employees are not reported) 
as of 2002.  Annual sales data is not available and is considered proprietary by many of companies.  
 Question 2(d):  
 The share of the shipbuilders of (b) above, their employees and annual amount of sales 
(referred to in (c) above) among the total shipbuild ers in the US, their employees and annual amount 
of sales. 
 
US Response:   
 
 Unfortunately, due to non-availability of a nnual sales data, this information cannot be 
determined.  WT/GC/W/524 
 Page 3 
 
 
  
Question 3:   
 
 In response to Japan’s questions in 1999 and 2000, the US stated that there had been 
proposals in Congress to change US cabotage laws (als o referred to collectively as the "Jones Act").  
Japan would like to learn of the development thereafter.  It also requests elaboration on possible 
specific effects of the proposed am endments on foreign enterprises.  
 
US Response:   
  Those bills were not enacted into law. 
   
 WT/GC/W/524 
Page 4 ANNEX 1 
  
ORDERS 1998 THRU 2002 
GROSS TONS 100 AND ABOVE 
   
VESSEL 
IDENTIFICATION VESSEL NAME ORDER DATE BUILDER SHIPTYPE GROSS 
REGISTERED 
TONNES COMPANY 
9117040 USNS DAHL 1998 NATIONAL STEEL  S.DIEGO NAVAL/NAVAL AUXILIARY 72718 UNITED STATES (GOVT.) 
9116838 SEAY 1998 AVONDALE AVONDALE NAVAL/NAVAL AUXILIARY 61300 UNITED STATES (GOVT.) 
9116826 FISHER 1998 AVONDALE AVONDALE NAVAL/NAVAL AUXILIARY 61300 UNITED STATES (GOVT.) 
9207077 T-AGS 65 1998 HALTER MOSS POINT RESE ARCH 4260 UNITED STATES (GOVT.) 
9067867 SHAMAL (PC-13) 1998 BOLLINGER NAVAL/NAVAL AUXILIARY 400 UNITED STATES (GOVT.) 
9117272 BRUCE C. HEEZEN 1998 HALTER MOSS POIN T RESEARCH 4260 UNITED STATES (GOVT.) 
9193575 BRITTIN 1998 AVONDALE AVONDALE NAVAL/NAVAL AUXILIARY 61300 UNITED STATES (GOVT.) 
 ASPEN 1999 MARINETTE MARINE COPR BUOY TENDER 1300 US COASTGUARD 
9224386 MITCHELL TIDE 1999 BREAUX BROTHERS CREWBOAT 309 US INTERESTS 
 SYCAMORE 1999 MARINETT MARINE CO PR BUOY TENDER 1300 US COASTGUARD 
 MOSS POINT MAR 61943 1999 MOSS POINT MA R. OCEANOGRAPHIC VESSEL 4260 US NAVY MSC 
9259147 ASPEN 2001 MARINETTE Buoy/Lighthouse Vessel 1930 UNITED STATES (GOVT.) 
9207077 MARY SEARS (T-AGS 65) 2001 HALTER MOSS POIN T Research Vessel 4260 UNITED STATES (GOVT.) 
   
                           13  
 
SOURCE : LLOYD'S FAIRPLAY.  
  WT/GC/W/524
 Page 5 
 NON-FISHING DELIVERIES 
 GROSS TONS 100 AND ABOVE 
    
LLOYD'S 
REGISTRY 
NO. VESSEL TYPE VESSEL NAME OWNER GROSS 
REGISTERED 
TONNES BUILDER YARD 
NO. HORSEPOWER YEAR 
9229037 RESEARCH VESSEL KILO MOANA UNITED STATES (GOVT.)          1,500 ATLANTIC MARINE JACKSO 244 5004 2002 
9085297 RORO CARGO BOB HOPE UNITED STATES ( GOVT.)        61,300 AVONDALE 2373 47925 1998 
9112727 RORO CARGO WATSON UNITED STATES (GOVT.)        61,300 NATIONAL STEEL 451 47072 1998 
9117038 RORO CARGO SISLER UNITED STATES (GOVT .)        61,300 NATIONAL STEEL 452 47072 1998 
9155559 BUOY TENDER KUKUI UNITED STATES (GOVT.)          1,300 MARINETTE MARINE 203 2280 1998 
9155561 BOUY TENDER ELM UNITED STATES (GOVT.)            903 MARINETTE MARINE 204 4707 1998 
9155602 BUOY TENDER ABBIE BURGESS UNITED STATES (GOVT.)            903 MARINETTE MARINE 553 750 1998 
9155614 BUOY TENDER MARCUS HANNA UNITED ST ATES (GOVT.)            903 MARINETTE MARINE 554 750 1998 
9177234 BOUY TENDER JAMES RANKIN UNITED STATES (GOVT.)            903 MARINETTE MARINE 555 1456 1998 
9177246 BUOY TENDER JOSHUA APPLEBY UNITED STATES (GOVT.)            903 MARINETTE MARINE 556 1383 1998 
9116826 RORO CARGO (LOGISTICS) FISHER UNITED STATES (GOVT.)        69,365 AVONDALE AVONDALE 2374 47925 1999 
9155573 BUOY TENDER WALNUT UNITED STATES (GOVT.)          1,928 MARINETTE MARINE 205 2280 1999 
9177258 BUOY TENDER FRANK DREW UNITED STATES (GOVT.)            903 MARINETTE MARINE 557 750 1999 
9177260 BUOY TENDER ANTONY PETIT UNITED STATES (GOVT.)            903 MARINETTE MARINE 558 750 1999 
9177272 BUOY TENDER BARBARA MABRITY UNITED STATES (GOVT.)            903 MARINETTE MARINE 559 1412 1999 
9177284 BUOY TENDER WILLIAM TATE UNITED STATES (GOVT.)            903 MARINETTE MARINE 560 750 1999 
9177296 BUOY TENDER HARRY CLAIBORNE UNITED STATES (GOVT.)            903 MARINETTE MARINE 561 750 1999 
9116838 NAVAL/NAVAL AUXILIARY SEAY UNITED STATES (GOVT.)        69,365 AVONDALE AVONDALE 2375 47925 2000 
9117272 RESEARCH VESSEL BRUCE C. HEEZEN  UNITED STATES (GOVT.)          4,201 HALTER MOSS POINT 1707 9738 2000 
9145449 NAVAL/NAVAL AUXILIARY RED CLOUD UNITED STATES (GOVT.)        72,737 NATIONAL STEEL S.DIEGO 454 47072 2000 
9177313 BUOY/LIGHTHOUSE 
VESSEL HENRY BLAKE UNITED STATES (GOVT.)            903 MARINETTE MARINE 563 1456 2000 
9177325 BUOY/LIGHTHOUSE 
VESSEL GEORGE COBB UNITED STATES (GOVT.)            903 MARINETTE MARINE 564 1412 2000 
9231664 NAVAL/NAVAL AUXILIARY CHARLTON UNITED STATES (GOVT.)        72,718 NATIONAL STEEL S.DIEGO 455 47072 2000 
9147320 NAVAL/NAVAL AUXILIARY MENDONCA UNITED STATES (GOVT.)        69,365 AVONDALE AVONDALE 2376 47925 2001 
9178355 NAVAL/NAVAL AUXILIARY PILILAAU UNITED STATES (GOVT.)        69,365 AVONDALE AVONDALE 2377 47925 2001 
9232230 NAVAL/NAVAL AUXILIARY WATKINS (AKR-315) UNITED STATES (GOVT.)        72,737 NASSCO 2001 
9232242 NAVAL/NAVAL AUXILIARY POMEROY UNITED STATES (GOVT.)        72,737 NASSCO 2001 
9249647 RESEARCH VESSEL IMPECCABLE UNITED STATES (GOVT .)           5,484 HALTER LOCKPORT 1488 2001 
9252888 OFFSHORE SUPPLY SHIP C-PACER UNITED MARINE 
HOLDINGS          2,295 NORTH AMERICAN 210 3089 2001  
 WT/GC/W/524 
Page 6     
LLOYD'S 
REGISTRY 
NO. VESSEL TYPE VESSEL NAME OWNER GROSS 
REGISTERED 
TONNES BUILDER YARD 
NO. HORSEPOWER YEAR 
9257838 BUOY/LIGHTHOUSE 
VESSEL SPAR UNITED STATES (GOVT.)          1,930 MARINETTE 206 4560 2001 
9258208 BUOY/LIGHTHOUSE 
VESSEL MAPLE UNITED STATES (GOVT.)          1,930 MARINETTE 207 4560 2001 
    
               31  
 
SOURCE :  LLOYD'S FAIRPLAY. 
 
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