Puerto Rico: The Island with the Market
Iglesias, Cesar Andreu
The following article is a discussion of one of the ways the Puerto Rican economy has been totally dependent on the U.S., economic system. It is also a projection of ho-r tho new market...
...The lowering of tariff rates that will come as a consequence of the Geneva talks will affect the production of certain articles produced in Puerto Rico...
...The announced general lowering of tariff barriers, to which the U.S...
...They are lowered or eliminated irhen it suits the general good...
...According to information published on the 16 of July 1964, he explained to journalists the significance of this set of talks and the possible repercussions that it would have on the Puerto Rican economy...
...Tis is what has been called "free trade", one of the pillars on wtiich economic progress rests, according to the defenders of the Free Associated State...
...The privilege of selling Puerto Rican products in the Amierican market is paid with the privilege that the U.S...
...Colonies, however, are kept from undertaking such measures...
...The U.S...
...Barriers are raised to avoid foreign competition against certain products when it serves the national interest...
...Carlos J. Last...
...A governmental study published exclusively in E1 Imparcial in a series in February 1964 augered already that the proposed tariff reductions, besides affecting a series of indsutries would harn agricultural production...
...1 .ith reference to the declarations, the statement reads in part: "Alluding to the specific case of the island, I feel that the country is in a contradictory situation...
...which is highly industrialized...
...To this is owed the survival, even today, of certain sectors of production, that without the tariff preolction would disappear before foreign competion, Sinlarly, the uncertain fate of -iryn Puerto rPiqan factories today...
...These barriers permitted "e/ t'o protect the development of its national industries against foreign competition...
...On his return from Geneva, Dr...
...has of selling its products in the Puerto Rican market...
...And the economic danger that this represents for our country was recognized sortie 20 years ago by the Tariff Commission when they said in their report: "! any of the goods that Puerto Rico has obtained in the U.S...
...reprinted from a Imparcial (ihay 29 and June 1) by Cesar Andreu-Iglesias The reduction of tariffs signed by the United States, "The General Agreelent on Tariffs and rade, " destroys the most frequently used argument against Puerto Rican Independence...
...synthetic fabrics, 42%s...
...Thus, industrial production as well as agriculture will be adversely affected by the GATT...
...delegation, gave a press conference...
...And ill there still be Puerto Ricans who renounce their sovereignty, an indispensible condition to c oendin . Puerto Rican interests in and outside the country...
...The above cited report states: "The relations of free trade which have existed for 45 years between the United States and Puerto Rico have forientred insular production for the continental market and have discouraged production for other markets, including for the Island itself...
...is knoi t:oighout its history as a nation of high tariffs...
...July, 1967 -8i A C L i S L S T i E R July, 1967 -- 9 All countries in the process of devcloilent lnasn-.iuJate hle:ir tariff duties in harlcai irith the diverse branches of production...
...And Puerto Rico, hich constitutes an economic entity in itself, is forced by its colonial condition to function w-ithin the orbit of the U.S...
...imports, the prices haven't exceeded the rorld levels in a quantity e qual to the total of the duty front the United States...
...The most important point (of the report) is, itihout oubt, the one trhich states "the benefits of operating inside the American tariff system whose virtue is the trade between the island and the United States...
...As for the leading products, the document said: A reduction of ,8.00 per quintal in the price of imported tobacco will facilitate the displacement of tobacco produced in Puerto Rico by the production in other competitive zones...The reduction of tariffs could also stimulate the shipping of pineapple from places outside of the U.S...
...machinery and electrical equilient 13%5...
...The distinguished economist put his finger on the key...
...Of eour se iuerto Rico rather produces in great quanti/t./!a;#9Ay...
...The absence of barriers is reciprocal, except that the United States isn't obliged to buy everything consumed in Puerto Rico...
...is cdu to inadequate tariff protection...
...Almost all the Puerto Rican exports are destined for the United States and have consisted totally of articles h-fliose prices have been maintained above world prices by virtue of the American tariff...
...tobacco 27...It is easy to understand thalt if they reduce drastically these import taxes Puerto Rico will be affected, as rlany foreign countries will be able to compete with much lower prices...
...Put the fact is that iPuerto Rico must buy from the U,S...
...The report, "The Economy of Puerto Rico with Particular Reference to the Econormic Implications for Independence" (Trashington Larch 1946) enumerates the economic benefits that Puerto Rico receives by its association with the United States...
...clothing 27...
...have been purchased at prices no higher than those that would have prevailed if Puerto Rico had been able to import the same or similar goods fromn whatever source...
...optical instruments 21...
...and in the majority of the U.S...
...practically all that it consumes...
...as it is a country in the process of developing inside the system of the U.S...
...They cannot all be enumlerated with certainty, but it is possible to get a general idea if the followirhg is taken into account: the plastics products (foreign) not pay a tariff 235% above their price to be sold in the U.S.: leather products-hiidbags and suitcases, 22%5...
...The study mentioned pineapple, tobacco, dried fruits, vegetables and mleat...
...It is also a projection of ho-r tho new market conditions in the Uited States mlay effect the island...
...is now internationally obligated, is only an example of these grave contradictions...
...who had observed there for some days in the Kennedy Round Talks as a member of the U.S...
...Certainly the uerto Rican economy is locked in this rave contradiction, which is reflected in many ways: agricultural crisis, linium-wages, worker-rianagement relations etc...
Vol. 1 • July 1967 • No. 5
