Honorable Kenneth D.
McClintock
Secretary of State of Puerto
Rico
Welcoming Remarks
Domestic Trade Roundtable
Summit 2012
Puerto Rican Chamber of
Commerce of Florida
Ponce, Puerto Rico
March 29, 2012
First, I would like to thank
Elizabeth Cuevas-Neunder, Founder and CEO of the Puerto Rican Chamber of
Commerce of Florida for having invited me to appear before you this evening. I
am honored by the invitation and quite pleased to see among you so many friends…
Congratulations are also in
order to Elizabeth who has done such a great job in developing the Chamber into
an important tool for opening and developing trade between Florida and Puerto
Rico.
Judging from the
approximately 850,000 Puerto Ricans living in Florida one could say that the
island is colonizing the American peninsula… and who could be surprised if,
after all, Florida and the United States was discovered by a Puerto Rican…
I guess that chapter was not
included in your history book… But I am speaking, of course, of Juan Ponce De
León who, while being Governor of Puerto Rico, set out from the Island an
expedition in search for the Fountain of Youth.
To those of you who are looking at
me in disbelief, you are right… Ponce De León was born in Spain, just as I was
born in London. But… should place of birth disqualify Ponce De León or
McClintock as a Puerto Rican? Of course not! He was, after all, the first
Governor of Puerto Rico as I am its 22nd Secretary of State…
Not convinced? Think of
California… Of the 38 governors of California, 29 were born in other states and
two were born in Europe… Who would say that Arnold Schwarzenegger is not a
“real citizen” of “Cahl-ifoh-nia”?
There you have it… a historical
tidbit that you may not have known about Florida and that you can proudly pass
to your friends and business partners when you return home.
When I address business and
professional organizations that visit the Island, I usually extoll on the many
attributes that make Puerto Rico such a great place to invest and do
business... in sum, on why Puerto Rico Does it Better. But I was to do that
with you, I would be preaching to the choir.
One of the key reasons why the
Puerto Rico consumer market is so attractive to Florida businesses is that
Puerto Rico is the only U.S. territory which is included in the customs area of
the United States together with the 50 States of the Union and the District of
Columbia.
There is, however, a barrier to the
free flow of trade between Puerto Rico and the rest of the United States which
hurts both Florida and Puerto Rico. And that is the requirement of filing
Electronic Export Information (EEI) —previously known as the Shipper’s Export
Declaration— for shipments between the States and Puerto Rico which is
contained in the Foreign Trade Statistics Regulations (FTSR) and administered
by the U.S. Census Bureau.
Inasmuch as commerce between
Puerto Rico and the States is interstate rather than foreign commerce, it is
unwarranted to impose a requirement that is designed to enable the Census
Bureau to compile foreign trade statistics and various federal agencies to
enforce laws relating to exporting. Moreover, continuing to impose the EEI
requirement would make Puerto Rico’s participation in the U.S. Customs area and
the application of the Constitution’s Commerce Clause to Puerto Rico virtually
meaningless.
Among the key purposes of
the Commerce Clause is to promote an American common market system and thereby
foster economic growth. However, requiring EEI filings is tantamount to placing
a boundary that separates Puerto Rico from the rest of the nation to the
detriment of the Islands’ economic well-being.
Complying with that
requirement not only adds a cost that increases the price of many goods, but
also imposes an unnecessary burden on interstate commerce that restricts the
flow of trade within the U.S.
The EEI barrier also impedes
some businesses —particularly, shipping companies— from affording Puerto Rico
shipping rates that are comparable to those offered for other U.S.
destinations.
Moreover, consumers in
Puerto Rico should be entitled to receive from the businesses that benefit from
the American common market —including the protection provided by the Commerce
Clause against discrimination by States— the same treatment as consumers in the
States and D.C.
By means of your participation in
the election of the President and your representation in the House and the
Senate, as residents of Florida you have the means to influence federal
policy-making in ways that are not available to the American citizens of Puerto
Rico.
My plea to you this evening is that
you exert that influence so that the U.S. Commerce Department takes the
necessary steps to amend the Foreign Trade Statistics Regulations so that EEI
is no longer required for goods shipped between the States and Puerto Rico.
Trade is not a zero-sum game… It is
a win-win relationship were both parties to a transaction benefit. And by doing
away with the EEI requirement for shipments to the Island, both Florida and
Puerto Rico will benefit.
Thank you very much.