cargo preference

A law that requires a certain portion of goods or commodities financed by the U.S. Government to be shipped on U.S. flag ships. The law has traditionally applied to P.L. 480 and other concessional financing or donations programs. The Cargo Preference Act (P.L. 83-664) requires that whenever the federal government pays for equipment, material, or commodities shipped to other countries, a minimum percentage of the gross tonnage shipped by sea must go by U.S. flag vessels. Cargo preference requirements have been an issue in U.S. international food aid and export subsidy programs.

Authorization Path: 1.2.1.2.12.0