CNMI economy faces new threat in US Congress • Bill scrapping use of ‘Made in USA’ label gains 200th co-sponsor; could pass Congress this year

Washington D.C. – Legislation that would have a devastating impact on the economy of the CNMI received additional support this week from two members of Congress, bringing the total numboer of co-sponsors to 200.

Rep. Dennis Moore (D-KS) and Rep. Karen McCarthy (D-MO) backed a proposal that would deny the CNMI of the privilege to use “Made in the USA” label and impose tariff on US-bound goods from the islands.

Some observers now believe that H.R 222, authored by Rep. Bill Franks of New Jersey, may come to a full vote on the floor of the US House of Representatives before the end of the year.

The legislation combines the removal of the “Made in the USA” designation from goods produced in the CNMI with the imposition of a tariff on the islands’ imports to the US mainland and territories. The bill is considered unprecedented as no US territory has ever had its products become subject to a tariff just to gain entry into the United States in this way.

Combined with the removal of the “Made in the USA” designation, this legislation is perhaps the “most insulting and dangerous” bill targeting the islands to ever be considered in the US Congress, according to political observers.

CNMI House Speaker Ben R. Fitial said the bill “cuts right at the heart of our islands. It is a direct challenge to our status as full citizens of the United States. We must stop this bill.”

The latest co-sponsorship of Mr. Moore and Mr. McCarthy sounded alarm bells among high-ranking congressional aides who have long been supporters of the CNMI.

A top House leadership aide, who declined to be named, maintained that, “Whenever legislation reaches 200 co-sponsors in the House of Representatives, the odds of passage become very good. I am familiar with this particular bill, and I would definitely say that it poses a serious threat to the CNMI.”

While Republican congressional leaders oppose this bill and have resisted efforts to bring the legislation to a vote in the past, the addition of Mr. Moore and Mr. McCarthy make the leadership’s efforts susceptible to a creative legislative maneuver called a “discharge petition.”

This allows members of Congress to bring their bills immediately up for a vote, against the wishes of the leadership, once they have secured 213 co-sponsors.

When asked about the prospects of a discharge position situation occurring for this bill, the congressional aide said that scenario is “very possible and this is very unfortunate.”

For the past couple of years, Washington, D.C.-based law firm Preston Gates has succeeded in keeping additional Republican co-sponsors from joining this labor union-sponsored bill, but their efforts are believed to be at an end.

“Without a strong effort on Capitol Hill, the CNMI is in real trouble of losing major provisions of its Covenant,” the aide explained. “This will just be the first of a string of defeats.”

Without additional Republican co-sponsors, the legislation would have little chance of making it through the discharge process, enabling House leadership and Resources Committee Chair Don Young (R-AK) to control its fate.

Preston Gates has declined comment, but sources in the CNMI confirm that the law firm had been working without a contract or payment on behalf of the Commonwealth for quite some time, but that the firm had recently made a decision to pull back from this intensive activity.

During the five years Preston Gates has been at the helm of the lobbying campaign to advance the intent of the Covenant, particularly the CNMI’s local control of labor and immigration, although that firm has come under fire from legislative attacks driven by CNMI opponents such as Rep. George Miller (D-California) It is not certain how the CNMI will now fare in Congress should Preston Gates pull back.

“They have done a tremendous job beating back this and other attacks on the CNMI,” said the leadership aide, “but if they are not there actively educating Members and staff, it is hard to imagine that the CNMI has any chance against the powerful labor unions which have been attacking them for a number of years.”

Mr. Fitial in recent months has made the renewal of Preston Gates one of his priorities, but the allocation of funds needed to maintain a strong presence on Capitol Hill has been blocked by several legislators, including Senate Floor Leader Pete P. Reyes who has maintained that no further lobbying efforts are necessary in Washington due to the congressional elections in November.

When asked about Mr. Reyes’ approach, the leadership aide said that “I am not sure how anyone in a responsible position in the CNMI could actually say that. The threat to your islands is as clear as day. Before you commenced your intensive lobbying campaign five years ago, the Senate had passed by unanimous consent a bill to wipe you out.”

He added: “In the course of a few years, Preston Gates had built you a network of supporters on Capitol Hill, including in this office. The past few years have been very difficult, but you are still in control of your local destiny. If you remove your presence on Capitol Hill and leave the fight to the labor unions alone, things will most certainly change dramatically.”

The Franks bill will need an additional 18 co-sponsors in order to reach a total of 218, which is the number of co-sponsors necessary to use the discharge petition maneuver.
Since 218 votes is the same number of votes needed for a majority, a bill on discharge petition is virtually guaranteed to pass. It is widely believed that the House of Representatives will be in session or voting until early October, leaving more than enough time for supporters to bring an additional 18 co-sponsors on board.

“Unless the people of the CNMI wake up and wage the fight against this bill with everything they have, this bill could become law this year and the CNMI economy will face dire consequences,” said the aide.