Gov’t reviews overseer of trade zone

The CNMI government is eyeing the establishment of a private sector-led administrative body to oversee the operations of a proposed free trade zone in the Northern Marianas, officials said yesterday.

A subcommittee under the Economic Recovery and Revitalization Task Force has agreed to set up the board in an effort to increase the participation of the local business community into the plan.

According to Rep. Karl T. Reyes, the Free Trade Zone Subcommittee will map out the composition of the proposed body which will be patterned after existing special business areas situated in other countries or states.

“We will make sure that majority on the board will be businessmen who will serve on a voluntary basis and will receive no compensation,” he told in an interview.

The panel discussed the proposal on Tuesday during their regular meeting. Reyes said they will soon thresh out the mechanism with the legal counsels from both the administration and legislature.

“Many of the members felt that they don’t want a lot of government interference in the free trade zone,” the representative said, reiterating his earlier position that the area will work out better with less bureaucratic control.

Reyes maintained the businessmen-led board will have to deal with various functions related to its operations, such as implementation of rules and regulations as well as selection of the type of industries to be included in the area.

It will also determine the size of the work force, including foreign manpower who will be employed in these businesses. “The number of workers will be addressed by the board, not the government,” he said.

But it will work closely with other government agencies, like the Department of Commerce and the Division of Public Lands, to coordinate actions necessary to perform the board’s functions.

“We still don’t know how it is going to work and how it will be done legally,” Reyes explained. “We are asking investors to come in, so we must be prepared to give them incentives.”

A proposed legislation is expected to be passed by next month to set in motion the first free trade zone on the island in what CNMI leaders hope will help infuse fresh investments to spur economic activities.

Under the plan, several incentives will be extended to potential investors similar to those given by other free trade zones in Hawaii and Florida, or in the Philippines and other South American countries.

Gov. Pedro P. Tenorio’s administration is rushing the drafting of the proposal in light of the deepening financial crisis besetting the island spawned by the prolonged economic recession in Asia, NMI’s main source of investments and tourism revenues.