CNMI ally vows to remain albeit lifting of trade quota

Dismissing speculations of its departure from the Commonwealth immediately after US garment quotas are lifted in 2004, a major CNMI-based corporation disclosed plans to continue business operations in the Northern Marianas.

Tan Holdings Corporation President Willie Tan last night reaffirmed his company’s commitment to stay in the Western Pacific even after the new World Trade Agreement takes effect in 2004.

Mr. Tan also said the $200-million conglomerate may also expand into tourism and other industries throughout Micronesia, depending on the business climate.

“I know there are questions circulating in the community about whether we plan to stick around. The answer is yes.” Mr. Tan said.

THC’s plan to invest more millions to its already hefty capital outlay in the region bodes well for the economies of territories and island states scattered throughout the Western Pacific.

The region, due to its proximity to Asia and its dependence on the Japanese market, was hit hard by the Asian economic contagion in 1997. Its effects are still noticeable until today. In the CNMI, for instance, only three new foreign companies were given business licenses last year.

Mr. Tan’s promise of additional investment was made during a dinner function held to congratulate delegates to the first annual THC conference at the Hyatt Regency Hotel in downtown Garapan.

Speaking to over 100 people packed inside Gilligan’s, Mr. Tan also urged the Commonwealth to come up with a solid plan to restore investor confidence in the Northern Marianas.

The THC president also argued the Commonwealth should fight for the brilliant economic package that was given to the CNMI in the form of the Covenant.

“The freedom to make local decisions about immigration, minimum wage, and other trade privileges has enabled us to build the most self-sufficient free market economy of all American territories,” Mr. Tan said.

Mr. Tan also extolled the importance of adopting an open market philosophy and the integration of information technology in business. He cautioned that if business fails to link to these two rising trends, it may just fold up and become extinct.

THC employs a total of 3,548 people drawing a salary of $29 million in the CNMI alone. It also poured in over $26 million in taxes to the Commonwealth coffers as well as paid $21 million in exchange for products and services of other businesses in the island.

In addition, THC also set up a foundation that gave away more than $1.5 million to help community projects throughout the region.

The WTO agreement that will be implemented in 2004 eliminates tariff quotas in signatory countries. This means, the CNMI and other US territories would lose their built-in advantage to export products such as garment to the US, tariff and quota free.

Local and regional luminaries which counted CNMI Governor Pedro P. Tenorio, Department of Public Safety Chief Charles Ingram, MVA Chair Dave Sablan, newly installed associate justice to the superior court David A. Wiseman and Continental Micronesia President Bill Meehan graced the thanksgiving dinner.