This. Making rules and taxes for ships registered under your flag has no effect other than to have ships registered under other flags. Regulating ships in ope

This. Making rules and taxes for ships registered under your flag has no effect other than to have ships registered under other flags. Regulating ships in open waters is difficult. If US environmental rules became too much of a hassle companies would ship to Mexico and into the US by rail, or the cargo would be transferred in nearby ports to ships that complied with regulations.