Yes / This paper explores the multidimensional effects of an external non-tariff measure (NTM) on maritime transportation between the United States (US) and Puerto Rico (PR) trades. In particular, this research addresses the vulnerability level of PR’s agrifood sector in relation to sustainability as a Small Island Developing State (SIDS) highly influenced by a larger economy. Due to the high potential of climate changes in the Caribbean, this study reviewed the effects of a maritime cabotage policy on a SIDS agribusinesses’ logistic. Could a NTM affect the supply chain capabilities and the food security of a SIDS? What challenges and opportunities does the US Cabotage policy present for PR’s agricultural sector’s competitiveness? Based on mixing empirical analysis in an exploratory convergent design, the research categorizes the cabotage policy in relation to the effects on PR’s agrifood supply chain, its port infrastructure, and its native agribusinesses’ competitiveness. Results show the maritime cabotage itself is a constraint. However, the interactions with others NTMs, indirectly related to the cabotage but inherent to the political status and business relationship between PR and the US, add other limits. In addition, it revealed that internal factors have an impact on the efficiency and competitiveness of PR’s agro-industrial sector.

Small islands developing states (SIDS) sustainability is a United Nations’ aim. Their markets are often influenced by external policies imposed by larger economies. Could an anti-competitive measure affect the food vulnerability of a SIDS? This research examines the effects of an external non-tariff measure (NTM) on Puerto Rico’s (PR) agribusinesses. It explores the effects of a maritime cabotage regulation (US Jones Act) on the affordability and accessibility of produce and grains. PR imports 100% of their needs of grain and over 85% of fresh produce. PR’s food imports are generally from the US and the trade service is restricted to the use of the US maritime transportation. As a result, the supply chain of these two sectors although different, are limited by the US Act that may impact the cost of food, its availability, firms’ efficiency and other structures of production. Using a mixed convergent design, PR’s agrifood supply chains were explored and analysed in relation to the maritime cabotage regulation. Oligopolistic structures and collusion between maritime transporters and local agribusinesses importers limit the access to data, but other internal factors also have a role. Fieldwork shows that while the cabotage regulation itself is a constraint, interaction with others NTM and the current political framework between US and PR are relevant. Factors such as lack of efficiency, poor innovation and a self-limitation of the agribusinesses firms were found. The novelty of this research is the use of mixed methods to evaluate the effects of cabotage on the agrifood supply chain.

Small islands developing states (SIDS) sustainability is a United Nations’ aim. Their markets are often influenced by external policies imposed by larger economies. Could an anti-competitive measure affect the food vulnerability of a SIDS? This research examines the effects of an external non-tariff measure (NTM) on Puerto Rico’s (PR) agribusinesses. It explores the effects of a maritime cabotage regulation (US Jones Act) on the affordability and accessibility of produce and grains. PR imports 100% of their needs of grain and over 85% of fresh produce. PR’s food imports are generally from the US and the trade service is restricted to the use of the US maritime transportation. As a result, the supply chain of these two sectors although different, are limited by the US Act that may impact the cost of food, its availability, firms’ efficiency and other structures of production. Using a mixed convergent design, PR’s agrifood supply chains were explored and analysed in relation to the maritime cabotage regulation. Oligopolistic structures and collusion between maritime transporters and local agribusinesses importers limit the access to data, but other internal factors also have a role. Fieldwork shows that while the cabotage regulation itself is a constraint, interaction with others NTM and the current political framework between US and PR are relevant. Factors such as lack of efficiency, poor innovation and a self-limitation of the agribusinesses firms were found. The novelty of this research is the use of mixed methods to evaluate the effects of cabotage on the agrifood supply chain.