In late April, U.S. District Judge Garrett Penn in Washington, DC ruled that the Coast Guard had misinterpreted the Anti-Reflagging Act grandfather clause by permitting the grandfather clause to apply to vessels rather than owner. This permitted vessels once owned by American interests to slip into the hands of foreign owners.
The ruling could result in up to 50% of the current large fishing vessels being denied fishing rights within the 200 mile zone under the Magnuson Act passed some 16 years ago.
The economic after shock could be devastating to some companies. Needless-to-say, there have been loud cries from those effected. On the opposite side, American owners are praising the decision. Congressional pressure is being brought to bear on the Coast Guard by members from the Northwest to give the court decision the strictest of interpretations.
Undoubtedly, the decision will be appealed and the effect, even if not reversed, will be several years downstream.
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