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Senate OKs bill to mandate FTZs in Northern Islands
The Senate has a passed a bill that tasks government agencies to expeditiously establish free trade zones in the Northern Islands.
Senate Bill 19-29, SD1 states that “no action” has been taken on establishing free trade zones in the Northern Islands despite a previous law that established this provision. This inaction has “continued to delay economic growth for the Northern Islands,” the bill states.
The bill tasks the departments of Public Works, Public Lands, and Lands and Natural Resources, along with the Bureau of Environmental and Coastal Quality and the Commonwealth Ports Authority to “work expeditiously” with the Northern Islands mayor to identify these free trade zones.
A free trade zone is a designated area that eliminates traditional trade barriers, such as tariffs, and minimizes bureaucratic regulations, and is generally near a port of entry, and encompass economic benefits like the deferral or elimination of customs duties, exemption from certain taxes, and inverted tariff relief, according to the U.S. Small Business Administration.
S.B. 19-29 tasks DPL to designate 30 hectares of public land on Rota, 30 hectares of public land on Tinian, and 30 hectares on any island in the Northern Islands for these free trade zones.
In the event that DPL does not designate land within these islands within 180 days after the bill is made law, then the respective mayor may petition the Legislature to make the public land designation through a House or Senate bill.
“The resettlement of the residents of the Northern Islands was…hampered due to the lack of economic resources or any economic activity as a result of inaction.
“The Northern Islands contain many resources available for free trade zones activities that in turn may benefit the Northern Islands in bringing about economic growth,” the bill states.
