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FTZ proposal now heads to Teno for approval
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Posted on Dec 29 1999
After more than nine months of legislative process, the free trade zone proposal is now ready for signing into law by Gov. Pedro P. Tenorio who is banking on the plan to boost foreign investments on the island and stir the local economy.
The House of Representatives unanimously voted in favor of the minor amendment made by the Senate to the bill — the last process before it heads to the governor for final seal of approval.
House Speaker Diego T. Benavente, who introduced the administration-backed legislation last March, appealed to the chamber to accept the changes in order to immediately carry out the creation of special economic zones on Rota, Tinian and Saipan.
While the substantive provisions of the House Bill 11-389 remain, Sen. Joaquin G. Adriano amended it to clear questions on public lands on Rota and Tinian that are being eyed as sites for the plan.
But Senate Vice President Thomas P. Villagomez vowed to pursue major changes to the bill once it becomes a law after his concerns regarding the length of the tax break period and employment opportunities for locals were not addressed.
He was off-island when senators voted on the bill two weeks ago. He urged the upper house last October to defer voting pending further review.
Proponents of the plan say these free trade areas will attract new businesses, create jobs for local people, stir industrial and commercial activities on the island as well as help diversify its economic base beyond tourism and garment manufacturing.
They also cite other potential benefits, such as training opportunities for locals by highly-skilled workers who will be hired by businesses within the zone.
In a bid to woo outside investors, it will offer up to 100 percent tax abatement for a period of not more than 20 years, subject to several conditions, such as hiring of locals.
The free trade zone is envisioned as the centerpiece of the Tenorio administration which has suffered for the last two years on the heels of economic crisis in Asia, its primary source of investments and main tourism market.
