Thursday, August 22, 2019

Bureau of Economic Analysis to include Puerto Rico data

By on June 11, 2019

(Courtesy)

Officials seek authorization to transfer international cargo in island airports

SAN JUAN — While in Washington, D.C., Puerto Rico Gov. Ricardo Rosselló signed an agreement Tuesday with the U.S. Bureau of Economic Analysis (BEA) to be able to include Puerto Rico accounts in national economic statistics.

The governor also announced that his administration requested authorization from the U.S. Department of Transportation to transfer international cargo in Puerto Rico.

“These efforts are important for the island’s economic development,” the governor said in a statement. “The U.S. Bureau of Economic Analysis will now be the entity in charge of preparing the gross domestic product (GDP) reports, which include the 50 states and other U.S. territories. We hope that, through this agreement, Puerto Rico will take part in the national economy.”

Rosselló, who was accompanied by BEA Director Brian Moyer and Invest Puerto Rico Chief Executive Officer Rodrick Miller, stressed that one of the benefits of the agreement is that more and better data will be collected on Puerto Rico’s economic behavior and its response to fiscal and economic development policies, including the effects of disaster recovery programs.

“The U.S. Bureau of Economic Analysis will improve Puerto Rico’s competitiveness as an investment jurisdiction providing greater confidence to investors,” said Puerto Rico’s Economic Development secretary, Manuel Laboy.

The Rosselló administration is also making efforts—through the Economic Development & Commerce Department (DDEC by its Spanish acronym) and spearheaded by Resident Commissioner Jenniffer González—to be able to transfer international cargo at Puerto Rico airports.

Authorization to do so would result in the creation of jobs, greater fuel sales, attract new airlines and boost secondary markets, officials said. 

The permit was requested for all existing international airports including Aguadilla, Carolina and Ponce.

“There are a lot of airplanes that fly over our airspace, but due to existing restrictions, these don’t use the island as a stop,” Laboy said, adding that Puerto Rico has “a strategic geographic position to benefit from the flights coming not only from Latin America, but also from Africa and its regions.”

The Economic Development chief further noted that “the government needs to develop new economic sectors that don’t depend as much on incentives and economic assistance and, through the authorization to transfer domestic and international cargo, we have a great opportunity.”

Regarding the BEA agreement, Congresswoman González said Washington lawmakers “have been working tirelessly on this issue through H.R. 1405, known as the Puerto Rico Data Collection Equality Act, a measure that will help to adequately address the needs of the 3.2 million American citizens living in the island by simply requiring federal statistics agencies to treat us equally, a problem that should have been taken care of long ago.”

González added that she reintroduced the Puerto Rico Air Cargo Industry Empowerment Act on April 25, saying the Stevens Amendment has been positive for the Anchorage community in Alaska, which Laboy also used as an example of the potential gains for Puerto Rico if air cabotage restrictions were eliminated. Some 20,000 jobs were created in the Alaska airport and related activities.

Northwest Airlines Cargo President Jim Friedel said that a new foreign flight a day generates approximately 90 additional jobs in Alaska. 

According to a study carried out by Puerto Rico-based think tank Estudios Técnicos, a lifting of cabotage restrictions could result, conservatively, in some 10 new flights to the island a day, creating up to 900 new jobs and a payroll increase of about $30 million.

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