Disapproval of FTZ bill disappoints Rota mayor

Rota Mayor Benjamin T. Manglona has expressed disappointment over the disapproval of a legislation that would establish a free trade zones in the CNMI saying it is the only hope to revive the island’s economy.

In a press statement, Mr. Manglona said the FTZs would put the Northern Marianas ahead of its neighbors in the region in an increasingly competitive market. “It opens the door to take advantage of our Jones Act exemption,” he said.

Gov. Pedro P. Tenorio has returned to the Legislature the FTZ legislation due to the administration-sponsored bill’s failure to address issues surrounding the use of public lands.

The governor was not in favor of the changes made by the 11th Legislature to the original draft, including a provision which places control of large tracts of land under the control of Tinian and Rota mayors.

The bill allows Tinian and Rota mayors to put the land to municipal use or be leased for commercial purposes without any meaningful restrictions or limitations.

Mr. Manglona stressed that Rota needs the FTZ as one way of easing the central government’s subsidy on the local government. The power given to the local officials to control large tracts of land is essential to build the economies of Rota and Tinian, he said.

The Rota mayor has urged the Legislature to pass the FTZ bill again. “Let’s get the FTZ in place and let practical experience tell us what we have to change,” he said.

With the FTZ law, Rota can offer jobs to its young people. He insisted that the land control elements for Rota and Tinian must remain in the FTZ bill.

“We almost lost a water bottling plant because we couldn’t produce public land quickly and at a fair price for the developer,” Mr. Manglona said.

The Economic Recovery and Revitalization Task Force has listed a number of incentives that would be given to investors who would wish to establish businesses in the CNMI’s free trade zones.

Among the non-cash incentives are duty-free privileges on imports and up to 100 percent corporate tax rebates depending on the training and investment benefit to the local residents.

CNMI is also exempted from the Jones Act or the US Merchant Marine Act of 1920 which restricts foreign carriers from transporting any cargo from the US to the island.

This prevents higher freight rates since American vessels cannot monopolize the transportation of all CNMI-bound cargo.