FMC Commish Pushes for PR as an Offshoring, Distribution Hub

A Statement from Carl W. Bentzel, Commissioner with the U.S. Federal Maritime Commission.

Events of recent years have made many who are interested in trade, transportation, and supply chain issues question the model of relying predominantly on manufacturers based in one nation located far from the United States.  Identifying manufacturing capacity closer to our shores has become a priority for leaders in government and industry.

Puerto Rico is a location that with the proper incentives and support could be a vital manufacturing and distribution hub serving the mainland United States.  I have written to both President Biden and President-elect Trump urging each to consider taking legislative or administrative action to encourage investment in the island’s manufacturing and logistics sectors.

After traveling to Puerto Rico earlier this year to speak at an event, I was impressed by the many advantages the territory offers.  A subsequent conversation in Washington with Resident Commissioner Jenniffer González-Colón further convinced me that Puerto Rico represents a strongly viable alternative to the People’s Republic of China or Mexico as a center for manufacturing and logistics activities serving the Mainland.
Puerto Rico’s proximity to the mainland reduces the distance goods must travel and allows for quicker responses to disruptions.  Further, encouraging manufacturing in Puerto Rico would reduce, America’s vulnerabilities to relying heavily on Chinese manufacturers.  Puerto Rico’s status as a territory of the United States means there is a common legal and regulatory framework.  Relatedly, Puerto Rico is within existing jurisdiction of U.S. Customs and Border Protection, an important distinction from Mexico.  

Puerto Rico presents a compelling alternative to all non-U.S. options for the nearshoring of manufacturing.  Supporting the development of manufacturing in an American territory should be a priority shared by all.

Carl W. Bentzel is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.