Measuring the Effect of USCG Port Security Advisory Notices On Trade and Port Security Procedures

Abstract

Overview: The United States Coast Guard’s International Port Security (IPS) Program is the primary port security assessment office and was established in 2003 as part of the U.S. Maritime Transportation Security Act (MTSA) to reduce risks to U.S. ports and ships, and to the entire maritime transport system. Through the assessment of International Ship and Port Facility Security Code implementation and other measures in foreign ports, the International Port Security Program can determine whether or not there is a reasonable and acceptable level of port security at any given foreign port. This report is comprised of qualitative and quantitative research along with two case studies that compare and contrast two countries and/or ports that either succeeded or failed in complying with this program and received a Port Security Advisory (PSA). Hypothesis: Port Security Advisories (PSA) are issued when a port does not meet the International Port Security Program code. They are an instrument to build and sustain port security practices and improvements. PSAs can give standard regulations for those who use ports in compliance with a PSA as well as create maritime security protocols for other countries that do not have strong port standards. As for the economic impacts, there can be both positive and negative factors depending on the country and the situation. However, we hypothesize that overall, PSAs do not significantly influence a country’s volume of trade. Due to non-compliant countries in reporting, there is no discernable method for tracking or ensuring restrictions. Methodology: We will observe quantitative measures of trade to identify negative impacts associated with the issuance of PSAs. We will also look at quantitative data to identify positive impacts associated with PSAs. We will be using USCG’s HOMEPORT website to identify the PSAs and use COMTRADE to examine trade both before and after a PSA was issued. Trade will be compared to similar countries, those which have not received a PSA. Lastly, we will go over local and regional factors and determine what is currently working and what needs to be improved. Conclusions: Our conclusion is that as a system the PSA process is not necessary an influence on trade. There may be correlations between countries with PSAs issued and changes in trade but there are a myriad of other factors that can impact this making the current methodology less than definitive. There also may be certain countries and/or ports where the correlation appears stronger (See Case Study #1); but overall, our conclusion is that PSAs have a negligible impact on a country receiving them in influencing their volume of trade.