Defending American Property Abroad Act of 2026
Cargo ships that visit certain foreign ports would be blocked from entering U.S. ports if those facilities were seized from American owners without fair compensation. The restriction applies to ports in Western Hemisphere nations that hold free trade agreements with the U.S., though it exempts ships facing emergencies or those authorized by the American property owner. It also does not apply while an expropriation dispute is undergoing active trade arbitration. The President must lift the ban once the foreign government returns the property, pays full compensation, or reaches an acceptable settlement.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- U.S. owners of expropriated foreign port propertiesGain legal leverage to recover seized property or obtain full compensation from foreign governments, and receive the right to authorize specific vessels to use their expropriated facilities without facing U.S. port bans (Sec. 2(1)(C) and Sec. 2(2)(D)).
Who it burdens
- Commercial vessel operatorsAre barred from entering U.S. ports or navigating U.S. waters if their vessels call at designated foreign ports, harbors, or terminals that were nationalized or seized from U.S. owners, unless they receive permission from the affected U.S. owner or face an emergency (Sec. 2(1)(C) and Sec. 2(2)(D)).
Who opposes it
- Operators of nationalized foreign ports and terminalsHave their commercial operations targeted by U.S. law, which bans vessels that dock at their facilities from subsequently entering U.S. ports or waters unless the property dispute is resolved (Sec. 2(2)(D)).
The provisions, in plain language.
Bar vessels from entering U.S. ports or operating in U.S. waters if they have used a port, harbor, or marine terminal in a Western Hemisphere free-trade partner country that was nationalized or seized from a U.S. owner and designated by the President.
Authorize the President to designate a foreign port, harbor, or marine terminal if a Western Hemisphere free-trade partner government expropriates or nationalizes the facility or its access land from a U.S. owner, unless the dispute is in active trade arbitration.
Require the President to remove the designation if the foreign government restores ownership to the U.S. person, pays full and effective compensation, or otherwise resolves the dispute.
Exempt vessels from the U.S. port ban if they are experiencing an emergency or if the affected U.S. property owner authorized them to use the foreign port or terminal facilities.