Even though Congressman Smith's bill would apply all U.S. laws to foreign ships engaging in domestic cargo movement, something not easily done even if the government increases its funding for the Coast Guard and other Federal agencies, the playing field would remain tilted too heavily against existing U.S.-Flag carriers for them to compete. Simply put, this legislation imperils the nearly 125,000 jobs the Jones Act currently supports nationwide. The same general principles are applied to other modes of transportation in the United States. While the other modes of transportation can operate foreign-built equipment, these units must comply with U.S. standards. For this reason, the U.S. Congress has ordered the United States Coast Guard to increase its inspections of foreign-flag vessels calling on U.S. ports.
Most maritime nations have an equivalent to the Jones Act.
The Canadian-flag vessels operating on the Lakes are governed by similar rules. The Canadian ships that were built overseas were allowed to enter the coastwise trades only after payment of a sizable tariff.