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Shipbuilding unions urge US lawmakers to pass SHIPS Act in order to secure funding

Five U.S. Unions are calling for lawmakers to pass legislation to help secure long-term financing to revive domestic shipbuilding. This effort is championed and supported by President Donald Trump, who has also boosted the new port fees on Chinese vessels.

On October 14, the United States will begin collecting fees from vessels linked to China that visit its seaports. The U.S. trade representative (USTR), which is yet to issue final rules, has recently stated that China's COSCO Shipping could be liable for $1.5 billion in port fees next year.

The bipartisan Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act (SHIPS for America Act) introduced in April would create the Maritime Security Trust, which would reinvest port fee proceeds to maritime infrastructure and security projects, such as shipyard rejuvenation.

In a letter sent to legislators on Tuesday, United Steelworkers International Brotherhood of Electrical Workers (IBEW) and three other unions urged them to "support the SHIPS for America Act" and schedule action.

U.S. The SHIPS Act is sponsored by Senators Todd Young from Indiana and Mark Kelly from Arizona. The bill has bipartisan support, which is rare in Washington. However, lawmakers have yet to take major action.

Michael Wessel, President of Wessel Group, stated that the U.S. has already established airport and highway trusts, which provide a reliable and steady source of funding for projects and maintenance.

Wessel, a USTR investigator who coordinated a USTR investigation requested by federations under Section 301 of 1974's Trade Act into China maritime activities, said that "Shipbuilders must have confidence in the capital."

The investigation found that China has unfair policies and practices in the maritime industry and it cleared the way for port fees to be implemented next month.

Wessel stated that the same union leaders who had pushed for an investigation by the USTR called on lawmakers to act on the SHIPS Act Tuesday. (Reporting from Lisa Baertlein, Los Angeles; Andrea Shalal, Washington DC; editing by Stephen Coates).

(source: Reuters)