Pursuit of 3(a) amendment continues

In a move to protect CNMI government revenue and jobs derived from its two-decade-old apparel industry, Fitial administration officials are scrambling to find a lame-duck Congress willing to pass a prior introduced amendment of General Note 3(a), alongside numerous other trade measures this year.

Recent discussion and correspondence by CNMI officials is aimed at including the language amending General Note 3(a) included in S. 1954 (“The Insular Possessions Act of 2005”) onto either a U.S. Senate version of the Miscellaneous Tariff Bill, or an announced House-introduced omnibus trade act.

Both retiring House Ways and Means chair Bill Thomas and incoming chair Charles Rangel have indicated a strong desire to pass legislation giving preference to Haiti, and extending other free trade agreements, to be brought before the lame-duck Congress in early December.

Acting Gov. Timothy Villagomez contacted numerous Senate and House leaders asking for their support in finding a way to preserve what remains of a once-vibrant CNMI apparel industry.

According to special assistant for trade relations Richard A. Pierce, there’s still time to work through domestic textile opposition and get the bill attached to work targeted for completion this year by both outgoing and incoming members of Congress.

“There was expected domestic textile opposition to our bill, just like many other pieces of legislation offered to press further upon what remains of the domestic industry,” Pierce said. “We believe we have worked through the opposition by discussing it with those misunderstood as affected, and by making changes to the actual language of the bill that made it easier to accept by those interests which object as a matter of rule.”

No longer is there mention of a decrease in the value-added requirement. There simply is language indicating country-of-origin rules as the prerequisite for duty-free entry into the United States. Also, there’s a cap on production at 2001 levels, consistent with other trade measures before Congress now.

“There doesn’t seem to be anyone who doesn’t acknowledge the compelling story we’ve conveyed in Washington, D.C. about the current state of our local economy. We are particularly appreciative of certain key persons in Washington that have gone the extra mile in helping us with this work. Three of those officials are Mr. Allen Stayman, senior aide to Sen. Jeff Bingaman; Mr. David Cohen, deputy assistant secretary of the Interior for Insular Affairs; and Madeleine Z. Bordallo, member of Congress from Guam,” Pierce added.

Commenting on possible U.S. congressional action on CNMI wage and immigration matters, Pierce said: “All things considered, when it comes to what appears to be momentum gathering to address long-standing issues with an insular area that blossomed via local authority on wage rates and immigration, which now is in an economic free fall as a result of factors outside its control, we certainly hope the new leaders of the 110th Congress do what they can to help preserve our economy while finding solutions to issues they’ve identified as needing address.” (PR)