GOVERNOR Arnold I. Palacios has officially informed President Joe Biden that the CNMI is initiating consultations with the U.S. as provided by Section 902 of the Covenant.
Palacios wants the 902 talks to focus on the following issues:
1) Direct financial assistance under Section 702 of the Covenant.
2) Tourism and transportation infrastructure.
3) Access to skilled labor.
Section 902 of the Covenant allows the CNMI and the U.S. to designate special representatives to meet and consider in good faith issues affecting the relationship between the two governments.
In his letter to Biden dated April 26, the governor noted that Section 702 was the primary vehicle for achieving the U.S. commitment to help the CNMI reach a higher standard of living. He said Section 702 once provided nearly $28 million annually in direct financial assistance for economic development.
Unfortunately, the governor said, U.S. Public Law 104-134 redistributed funds intended for the Commonwealth to other insular jurisdictions.
He said “fully restoring [Section] 702 funds to the CNMI and adjusting for inflation would go a long way towards shoring up public services and providing relief to economically distressed citizens and small businesses today.”
The governor said the CNMI urgently seeks direct and expanded financial assistance from the U.S. government, and flexibility to apply those funds to capital improvements, government operations and economic relief programs.
As for tourism and transportation infrastructure, Palacios said that on the frontlines of the Indo-Pacific, “economic vitality and national security are inseparable.” Early on in his administration, he said, he announced that the CNMI would pivot away from “overreliance” on tourism and investment from China to more sustainable markets in allied democratic jurisdictions like Japan, Korea and Taiwan.
“We need the support of our federal partners to accomplish this pivot. Our efforts to revitalize our economy and especially our tourism industry in the post-Covid era, however, are hampered by inadequate infrastructure at our airports and seaports, and limited air and freight service to and from the island. The CNMI seeks the assistance of the United States government in upgrading our transportation infrastructure, securing new and expanded air service options, and relaxing cabotage restrictions to facilitate air service competition,” the governor said.
In addition, Palacios said the CNMI is facing “an acute shortage of skilled workers in construction and other key sectors imperiling timely completion of critical infrastructure projects.”
He said many of these projects are funded by federal programs in defense, disaster recovery and economic resiliency.
According to Palacios, “slow processing times affecting the CNMI-Only Transitional Worker visa program and inflexible restrictions in the H visa program exacerbate the CNMI’s already-challenging workforce issues and curtail the islands’ ability to access the pool of skilled workers available in the region.”
Meanwhile, he said the CNMI’s exclusion from Wagner-Peyser programs and limited resources to support a robust apprenticeship program “impair our ability to develop our skilled workforce locally.”
Palacios is seeking U.S. support in “affording greater flexibility and efficiency in visa processing for skilled labor in the CNMI, and parity in access to the full spectrum of workforce development and training programs available to other communities across the nation.”
Proud and grateful
The governor at the same time said the people of the CNMI are proud Americans. “We support the position and interests of our nation in the Indo-Pacific region and we appreciate the partnership of the U.S. government in our shared endeavors,” he said, adding that he looks forward to the appointment of the president’s special representative so that the 902 consultation process can begin.
“My administration is ready to work with you and our special representative in furtherance of our mutual goal to improve the lives of the people of the Northern Marianas, consistent with our Covenant,” Palacios said.
