WPEC steps up campaign vs. lifting of duty free privilege

The Western Pacific Economic Council, comprised of the Hotel Association of the Northern Mariana Islands, the Saipan Chamber of Commerce, the CNMI Contractor’s Association and the Saipan Garment Manufacturers Association, reported on the recent “Made in USA Label Defense Act of 1999” legislation during a press conference held in Washington D.C.

The press conference was held recently on the House side on the Grassy Triangle, where US Representatives Bob Franks and John Dingle, and US Senators Spencer Abraham and John Hollings presented speeches supporting their introduction of a legislation which would eliminate the “Made in the USA” label on apparel manufactured in the
CNMI, as well as eliminate the exemption of duty on goods produced in the CNMI.

Union labor had erected a large U.S. flag about 10 feet wide and eight feet high on a frame. This was carried around behind the podium for use as a backdrop. There were about 30 union men carrying professionally printed signs decrying the ” Saipan Scam. ”

WPEC Chairman Ron D. Sablan referred to reports from WPEC’s public affairs firm in Washington D.C., while talking about it’s impact on the CNMI. “This legislation blindly and recklessly undercuts our ability to maintain our already reeling economy, while it dangerously attacks the fiber of the Covenant by amendments which border on discrimination.”

“WPEC was formed to protect the spirit and intent behind the Covenant’s creation, and our friends in Washington report someone is about to carelessly end the good work the original negotiators had worked so hard to politically unionize,” Sablan.

“Fortunately with the help of our public affairs firm others have joined to argue against this intrusion into our economic sustenance. The Americans for Tax Reform, the Council with Citizens Against Government Waste, the Traditional Values Coalition, and the National Center for Public Policy Research supported the WPEC’s stance that this legislation does not only discriminate against a member of the America family but also makes CNMI dependent on the United States,” he said.

WPEC executive director Richard A. Pierce said, “Although the legislation’s findings suggest that apparel is the designated target for the new labeling and duty deletion, the House Resolution doesn’t seem to differentiate and could apply to anything manufactured in the CNMI.”

Pierce added, ” Our industry, which is the immediate target, found Representative Frank’s answer to a reporter’s question quite alarming. The reporter asked ‘what if the CNMI produced goods by US companies with US workers, wouldn’t your legislation still tax them thus placing an extra tariff on US goods a draconian measure ?”

“I can only surmise that when a US company does manufacture goods here in the CNMI other than apparel they’ll be doing so without the duty benefit they would normally expect. If so, then these authors are violating the terms and conditions of an existing arrangement. If not, then as soon as the CNMI’s apparel industry is dead then it’ll all be OK ?” Pierce said.