Defending American Property Abroad Act of 2026
Key claim: The Defending American Property Abroad Act of 2026 would let the President ban U.S. entry and operation of vessels that have called at ports, harbors, or marine terminals nationalized or expropriated from U.S. owners by Western Hemisphere free-trade-agreement countries until ownership is restored, compensation is paid, or the dispute is otherwise resolved.
Abstract
(HR7084 · 119th Congress) Defending American Property Abroad Act of 2026 This bill authorizes the President to prohibit the entry of a vessel into the United States if the vessel has transited any U.S. port, harbor, or marine terminal that has been nationalized or expropriated (e.g., seized) by a Western Hemisphere country that has a free trade agreement with the United States. Under the bill, the President may prohibit the entry and operation of a vessel if it has called at any port, harbor, or marine terminal that was owned, held, or controlled by a U.S. entity or individual, but has been nationalized or expropriated by the government of a country that is located in the Western Hemisphere and has a free trade agreement in effect with the United States. The prohibition ends when the President determines that (1) the applicable country has restored ownership of the property that had been nationalized or expropriated, (2) the applicable country has provided mutually acceptable compensation for the nationalized or expropriated property, (3) the conditions for the prohibition are no longer satisfied, or (4) the dispute has been otherwise resolved to the satisfaction of the President. The bill permits certain foreign vessels that are otherwise prohibited from entering the United States under this bill or current law to enter if the vessel is experiencing an emergency (involving the vessel or an individual on the vessel) and in certain instances where access to a covered facility was granted by a U.S. property owner. Latest action (2026-04-02): Received in the Senate.
Why this matters
This bill creates a new port-access sanction tool aimed at Western Hemisphere FTA partners (e.g., countries like Panama, Colombia, or the DR-CAFTA bloc) that nationalize U.S.-owned port infrastructure, extending trade-remedy leverage beyond tariffs into maritime access. For importers and shipping lines, it introduces vessel-level compliance risk based on prior port calls, which could reroute cargo and raise freight and consumer prices on affected lanes. It also signals a broader trend of using vessel-entry authorities as leverage in investment-protection disputes.