Palacios drums up interest for NMI at biz summit

Gov. Arnold I. Palacios speaks at an event hosted by India’s Ambassador to the United States Taranjit Singh Sandhu (not in photo) for Indian companies that are currently investing in or planning to invest in the United States. Also in photo is U.S. Ambassador to India Eric Garcetti, second from right, and Guam Gov. Lou F. Leon Guerrero, third from right. North Carolina Gov. Roy Cooper and other officials also spoke at the event. (OFFICE OF THE GOVERNOR)

The CNMI’s exemption from the Jones Act was a major selling point yesterday in Gov. Arnold I. Palacios sales pitch at the four-day 2023 SelectUSA Investment Summit in Washington, D.C., where he tried to drum up interest in the CNMI as an investment destination among potential investors.

In his remarks during one of the sessions in the Investment Summit organized by the U.S. Department of Commerce, Palacios said the CNMI’s exemption has several potential benefits for foreign companies looking to do business on the islands.

Jones Act is a federal law that requires all goods transported via water between two U.S. ports to be carried on U.S.-flagged ships that are built, owned, and operated by U.S. citizens.

In the case of the CNMI, foreign companies can use non-U.S. flagged vessels to transport goods to and from the CNMI, Palacios said.

“This can result in lower shipping costs, which can make it more economically viable for foreign companies to do business and strategically situate the CNMI as a conduit to the U.S. mainland market in their supply chain management,” he said.

Palacios said the CNMI’s exemption from the Jones Act also gives companies greater flexibility in terms of shipping routes, schedules, and carriers, which can contribute even further to lower overall costs. He said foreign retailers, for example, can import clothing, electronics, or other consumer goods from Asia and transport them directly to the CNMI without using a U.S.-flagged vessel. The governor said this can lower transportation costs, a savings that can be passed on to customers in the form of reduced prices.

Aside from the Jones Act exemption, the CNMI’s tax structure also presents a favorable business environment for investors, Palacios said.

He noted that the CNMI’s location also offers one of the most important competitive advantages that many other U.S. states and territories do not offer: that is, the Marianas is in close proximity—and a few short flight hours—to major Asian markets, including Japan, Korea, Taiwan, and the Philippines.

“We currently have direct flights between the CNMI and Guam, Japan, and Korea, and we are working to grow this list,” Palacios said.

The governor said the Northern Marianas is also exempt from national caps on H category visas for temporary, seasonal, and skilled nonimmigrant workers.

He said employers may also access labor through the Commonwealth-Only Transitional Worker Program authorized by the federal government through 2029 to permit foreign workers who are ineligible for other nonimmigrant worker categories.

Palacios said investment opportunities span across the Marianas, encompassing sectors such as telecommunications, broadband, renewable energy, tourism, healthcare, education, aquaculture, agriculture, food sciences, and nutraceuticals.

“We offer a safe, beautiful, strategically located, and business-friendly environment, and hospitality like no other,” he said.

The investment summit saw all five governors from insular areas attending in person the SelectUSA Summit, which was held at the Gaylord National Resort and Convention Center in National Harbor, Maryland.

The summit is a high-profile event dedicated to promoting foreign direct investment in the U.S. and U.S. territories, including the CNMI.