Puerto Rico Trade Agreements

Puerto Rico`s pharmaceutical exports to all non-official destinations can be compared to the approximately $15 billion Puerto Rico exports to destinations other than the 50 states, according to U.S. data. Or summarize the relevant categories in the (extremely detailed) U.S. data on trade with Puerto Rico. Using U.S. pharmaceutical export data from Puerto Rico to the world and not Puerto Rico`s export data, the New York Times inadvertently underestimated Puerto Rico`s importance in pharmaceutical manufacturing. Puerto Rico is relatively resource-poor, which has led to an economic dependence on the United States. Imports include chemicals, machinery, food, textiles and fuels, most of which come from the continental United States. Puerto Rico`s ideal location, however, allows the island to benefit greatly from trade and commerce through its many port cities.

The island is located on many routes between America and paths from Europe to the Panama Canal. Puerto Rico is part of the North American Common Market (NAFTA); the free trade agreement between the Dominican Republic and Central America; The trade agreement (ATPA) signed with andean countries; Asia-Pacific Economic Cooperation Agreements (APEC); The Caribbean Basin Initiative (CBI); Economic Commission for Latin America and the Caribbean (ECLAC); and has observer status in the Caribbean Common Market (CARICOM). In the absence of medicines, Puerto Rico does have a significant trade deficit for products. And this merchandise deficit, in turn, roughly corresponds to Puerto Rico`s tourism surplus and the (significant) net transfer Puerto Rico receives from the federal government. The third section focuses on the prospects for greater trade integration between the Caricom economies and Puerto Rico. Based on a calculation of trade compatibility indices on a country-by-country basis, the paper analyzes four aspects that are basic determinants of any integration process. This is the status of the Commonwealth ofPuerto Rico; The size of the market and the composition of the production; The trading system and the degree of competitiveness of the economies concerned. Competitiveness is determined on the basis of selective indicators such as operating costs, transport costs and the real exchange rate. The final considerations are in the conclusion.

But the pharmaceutical industry still has a large enough presence to push Puerto Rico`s fairly extraordinary balance-of-payments figures in bulk (this in turn uses Puerto Rican data, which counts trade with fifty countries as foreign trade). CARICOM`s economies revised the Treaty of Chaguaramas and laid the groundwork for the creation of the internal market and the economy (CSME, 1991); As part of its general policy direction, Puerto Rico has attempted to deepen its relations with the Caribbean region. A first step in this direction is an analysis of trade flows with CARICOMCaribbean economies. This document contains such an analysis. It is divided into three sections. But many political and economic leaders believe the trade deal will prove a long-term boon for Puerto Rico`s economy by creating new jobs and raising living standards beyond the current per capita income of $6,000 a year. Their optimism rests on confidence in a well-trained, stable and largely bilingual workforce that could help Puerto Rico grow as a regional base for U.S. and foreign companies, especially those that manufacture high-tech products that want to export to Latin American countries.

Puerto Rico`s commercial data are based on the NAICS nomenclature, which treats drugs as a subcategory of organic chemicals.