In a recent development, Senator Dan Sullivan of Alaska has proposed a waiver to the Passenger Vessel Services Act (PVSA) that would permit cruise ships departing from the United States on Alaskan itineraries to forgo mandatory port calls in Canada. The PVSA mandates that foreign-flagged vessels, which constitute the majority of cruise ships, include a stop at a non-U.S. port during their voyages. This requirement is the reason why Alaskan cruises departing from Seattle typically schedule calls in Victoria (British Columbia).
Senator Sullivan indicated that such a waiver could potentially result in significant economic losses for Canada, amounting to billions in tourism revenue. He suggested that if legislative measures prove insufficient, an executive order from the President might be pursued to implement the waiver.
This proposal emerges amidst escalating trade tensions between the USA and Canada. The U.S. administration has imposed a 25% tariff on numerous Canadian goods, prompting Canadian officials to consider retaliatory measures, including tolls on commercial trucks traveling through Canada to Alaska from the contiguous United States.
In response to these developments, British Columbia's cruise ports are closely monitoring the situation. Port authorities have expressed concerns regarding the potential economic impact of such a waiver, given the significant role that cruise tourism plays in the region's economy.
It is noteworthy that during the COVID crisis in 2021, Congress enacted a temporary exemption allowing cruise ships to bypass Canadian ports due to stringent health regulations. However, subsequent attempts to extend this exemption have not been successful.
The proposed waiver has elicited varied reactions from stakeholders on both sides of the border, reflecting the complex interplay between legislative frameworks, international trade relations, and the cruise industry's operational dynamics.