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Lesser gov’t role eyed in trade zone
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Posted on Dec 28 1998
Lawmakers will buckle down to work by early next year to consider a crucial legislation that will set up the first free trade zone in the Northern Marianas in a bid to stir the sagging local economy and lure foreign investments into the commonwealth.
A legislator also assured foreign businessmen that the plan will involve less government control while offering them incentives, to keep their operations privately-run.
Rep. Karl T. Reyes, chair of the House Ways and Means Committee and member of the Free Trade Zone Subcommittee, said they will support a proposed bill being drawn up by the administration to forge ahead with the FTZ plan.
“The legislature will look into what benefits most the investors to attract them to come in,” he told in an interview. “But we would like to see that the free trade zone is run by less government people and more businessmen.”
Under the proposal, incentives will be extended to potential investors, including a residency status similar to the so-called Green Card, as well as several provisions to set into motion the future business area on the island.
The subcommittee tasked to map out the plan is considering several models that were used to create FTZs in other countries and states such as Hawaii and Florida, the Philippines and Latin America.
According to Reyes, laws that provided the establishment of these successful business areas will be considered for review so that they can pattern the proposed legislation from the existing models.
“This is rather urgent so we want to make sure that the model we want to follow fits our needs that we can come up with the proposal quickly,” the representative said, adding that information campaign will start soon once the legislation is in place.
The Northern Marianas is reeling from its worst economic crisis in years spawned by the year-long financial turmoil in Asia, its main source of tourists and investors.
With the substantial decline in tourism, the financially-troubled government is pinning its hopes on the free trade zone to boost the island economy, while dealing with the impending departure of the garment industry when trade barriers are removed under the World Trade Organization in 2003.
