Industry

Translation by Hans Perl Matanzo

Once Puerto Rico becomes an independent country, not only will it be able to sustain, but also to improve its industrial potential. This will be largely due to the capacity we will gain to broaden our sources of capital and foreign markets, while promoting the development of our local industry. Under the dispositions applied by the United States Internal Revenue Code and international treaties which the U.S. signs with other nations, U.S. companies get similar tax-exemption benefits as those formerly offered under Section 936 (which was recently eliminated). Such information has been divulged by the consulting firms Peat Marwick and Price Watherhouse, and studies performed by the U.S. Congressional Budget Office (CBO).

Moreover, under independence, Puerto Rico would be more efficient in acquiring foreign investment through treaties similar to those which Germany, France, Great Britain, Canada and Japan have agreed with other developing nations such as Puerto Rico. Such treaties usually provide tax exemptions similar to those which were offered under Section 936 of the U.S. International Revenue Code. Since Puerto Rico is not an independent country, it has not been able to sign any treaty of such nature, and it has not been able to take advantage of the economic development opportunities which other countries would offer.

Independence would also revitalize Puerto Rico's local manufacture, agriculture and service industries. By assuming jurisdiction over our own management of Puerto Rico's international commerce, Puerto Rico will be able to strengthen our national industries, as all independent countries do. In addition, by promoting the economic integration of industries that operate in Puerto Rico, prices will go down as products formerly purchased in the foreign market, will be obtained from local industries.

The cost of transporting goods in and out of Puerto Rico would also be reduced. As part of the U.S. Shipping Act which applies in Puerto Rico, our country is forced to use the U.S. Merchant Marine, which is the most expensive merchant marine in the world. Under independence we will be able to use less expensive shipping companies for the transportation of semi-elaborated and finished products. This would considerably reduce the expense of shipping and improve the capacity of our industry to compete in the United States market, while also transforming our country into a center for regional distribution of goods.

Finally, through international treaties Puerto Rico will gain access to other markets, since our national enterprises are currently constrained as a result of being treated as U.S. companies by other countries.