Summit: Make the CNMI Asia’s portal to US

Make the CNMI Asia’s portal to the U.S. market, create a centralized economic development committee, and enhance the flagship industries of tourism and garment. There were just some of the recommendations made by the Marianas Roundtable Economic Summit that was held last May 19 to 21 at the Dai-Ichi Hotel Saipan Beach.

In a report released yesterday by the Saipan Chamber of Commerce, Commonwealth leaders were urged to make a summary and make public the advantages created by the unique regulatory and political relationships the CNMI enjoys with Asia and the United States. The plan should also showcase the CNMI’s advantage as Asia’s portal to the U.S. market, the islands being America’s business base in Asia.

Another recommendation calls for the formation of a central economic development committee. To work under the auspices of the Chamber, the committee would coordinate economic development activities in the Commonwealth. It would also include the crafting of an economic development plan that would come up with a vision for the future of the CNMI.

A group of local organizations and businesses sponsored the Marianas Roundtable Economic Summit in May in response to the economic setbacks experienced in the CNMI. The economic summit brought together regional and local business leaders in a diverse industry array. Nearly 200 business people participated in the summit. Presentations and discussions throughout the economic summit produced recommendations to stimulate investment in the CNMI and demonstrate the way to an economic recovery. David Sablan, SCC Director and chairman of the Chamber’s Economic Development Committee, was chairman of the Marianas Roundtable Planning Committee.

Chamber executive director Christine Parke said that Sablan will lead Chamber efforts to implement and coordinate recommendations in the report.

“As we all know, revitalizing the CNMI economy will require commitment and focus on the part of everyone involved, both private business and the government sector. Many groups and committees have already taken steps to address the impact of reduced plane flights from Japan, for instance, and the loss of [World Trade Organization] protections. These efforts, and more, need to continue, and they need to be coordinated. I want to work with everyone involved, to assure that efforts do not duplicate or even work against each other,” said Sablan.

He stressed that the Commonwealth is at a critical period in its history, with the opportunity to step back, envision the future, and lay solid plans to get the islands to its desired goals.

“We cannot be seduced by ‘quick fixes’ that may leave us in a worse situation a few years from now. It is time to build a solid foundation for the prosperity of our islands. I hope [everyone will] join me in this work,” said Sablan.

The summary released yesterday contained the recommendations gleaned from the summit as well as from subsequent meetings and discussions. It is anticipated that implementation of these recommendations will help to re-invigorate the CNMI’s economy.

Other recommendations include:

* That the government convene a Telecom Trade Fair to showcase current telecommunications technologies that will create public awareness of available services, facilities, and equipment to meet increased demand and investment.

* The development of an English-language and business courses for students from China, Taiwan, Korea, and other Asian countries and make the CNMI an education hub in the Pacific.

* The development of amenities and basic infrastructure on Saipan in order to be more attractive to investors.

* The lobbying for a greater CNMI role in military training programs in the region, correct the Qualifying Certificate Program to assure that it is based on a rational plan and criteria that enhance investments opportunities in the CNMI, and creation of a favorable climate for Japanese and other retirement communities.

While the summit asked the government to look into developing other sectors, it also did not neglect the already established tourism and garment sectors.

First, it called for an endorsement of a congressional amendment to Headnote 3(a) of the Tariff Act to decrease the minimum allowable local content value for apparel-related products from the current 50 percent to 30 percent only. In this way, it would provide an advantage that the garment industry seeks in order to prevent its decline, the report said.

It also recommended that the CNMI enter into a garment manufacturing agreement with China, as the CNMI is China’s closest duty free zone to export to the United States.

For tourism, it recommended that the Commonwealth develop a strategic tourism plan for the CNMI to enhance the islands’ role as a world-class destination and as a member of a greater regional tourist economy.

It also wants government to pursue new tourist markets like the ones it has already established in the markets of Korea, Russia, Australia, and Taiwan as well as lure new airline carriers to establish routes to the CNMI.

In short, it wants the CNMI to make destination enhancement a top priority for the Marianas Visitors Authority and the community.

The report also said that there were economic setbacks over the past few years that have made the Commonwealth less attractive as an investment location.

“Two of the premier industries—garment manufacturing and tourism—are in severe decline,” said the report.

It also said that several investors are pulling out of the CNMI as many of them are exploring alternative, if not better economic development opportunities in the Pacific region.

A summary of the report can be accessed at the Chamber’s website, www.saipanchamber.com.