Trade associations oppose bill vs. NMI

The National Retail Association as well as three other trade associations in the United States have backed efforts by the CNMI government to oppose legislation seeking to strip the islands of its trade privileges, according to House Floor Leader Oscar M. Babauta.

These business groups have lobbied the U.S. Congress against enacting S. 922 and HR 1621 which would subject products made in the Commonwealth to import duties and quotas.

Local officials have said the move would undermine the islands’ economy as it would deny the CNMI of the privilege to use “Made in USA” label and impose tariff on U.S.-bound goods from the islands. The measures have slowly inched to drawing majority support in Congress, particularly in the Senate.

Mr. Babauta hailed the move initiated by these trade associations, saying the CNMI is not alone in thwarting these attempts to amend the Covenant.

“With the recent development in the U.S. Senate, I am humble by the gesture that these various associations recognize the CNMI’s effort in defending and protecting the interest of our Covenant and the people of the Commonwealth,” he said in a statement Friday.

The trade groups wrote a letter to Congress expressing their strong objection to the pending legislation, citing their legal and moral implication as well as impact on the islands’ economy.

“There is simply no legal, economic or moral basis for concluding that the U.S. should treat products differently when they are produced in [rather] than in California, New York or North Carolina,” Mr. Babauta quoted the letter as saying.

They likewise argued that duties and quotas would stifle the CNMI’s garment industry which is the largest source of livelihood for the island residents, according to the letter.

“By effectively destroying the CNMI’s manufacturing sector, this legislation would undermine the CNMI’s economy, potentially making the CNMI more dependent on the federal government,” they pointed out.

Under Headnote 3(a) of the Covenant, products manufactured here can freely enter the U.S. without quotas and tariffs that are imposed on goods made in foreign countries.

Island leaders have maintained such trade provision is necessary for the Commonwealth’s survival and for its efforts to expand the economy beyond garment manufacturing and tourism.

“This official position being presented by these associations to Congress is an astonishing move,” Mr. Babauta explained. “The CNMI and its people should embrace and be thankful that now we had learned, that we are not alone in this battle.”

Proponents of a federal takeover agenda, including the trade measures, have accused the island government of failing to curb the number of nonresident workers here and to stem labor abuses.

To counter mounting criticisms against the CNMI, the Tenorio administration has recently hired the lobbying services of Preston Gates which has successfully blocked previous federal takeover attempts by Congress.