regional report

puerto rico pushes for global commerce

By Millie Acebal Rousseau

Puerto Rico is like an undiscovered pearl at the bottom of the ocean. The island is at the center of global commerce, and major corporations and international companies want to harvest that oyster. The island nation serves every industry, from agriculture and manufacturing to pharmaceuticals and tourism. It’s so ripe with opportunity that the United States Hispanic Chamber of Commerce voted four years ago to host its annual convention there this year. Two main chambers in Puerto Rico are at the forefront of progress.
Camara De Comercio De Puerto Rico, (Puerto Rico Chamber of Commerce) is the first. Founded in the late 1800s, the chamber reports now having more than 1,700 members and 60 private sector organizations represented from various industries: agriculture, services, manufacturing, tourism, construction, banking and health. The diversity is immense. The chamber quotes a Census figure citing 50,000 enterprises on the island, which doesn’t include several thousand self-employment ventures.
“Because of Puerto Rico’s physical location, it is a very strategic location,” says Bartolomé Gamundi, Puerto Rico Chamber of Commerce president. “We should be a gateway for business in the future with Miami and the Americas.”
It also helps, Gamundi says, that 90 percent of Puerto Ricans speak both English and Spanish. These competitive advantages that have caught China’s eye. A delegation has visited three times to explore business opportunities. “We’re looking forward to importing and exporting to China, but first we have to develop confidence.”
In addition to global commerce opportunities, the chamber also offers added value for businesses, both big and small. Efforts range from tax incentives and discounts from major stores, to streamlining operations and economic development. Larger companies rely on the chamber for lobbying help.
Other initiatives, according to Gamundi, include growing Puerto Rico from the inside, making cities more competitive and exploring the DR-CAFTA treaty and how Puerto Rico can benefit. The treaty eliminates 80 percent of tariffs on U.S. goods exported to the Dominican Republic, with plans to phase out the rest over 10 years. Another chamber effort is to promote Puerto Rico in Spain, particularly Madrid, as a future site for development.
There’s also a continuing education program that includes three labor seminars, two on the environment and another on renewal energy. A series of seminars help members get out there and compete. “Our intelligence unit addresses how to support members in marketing of their products, make sure they’re competitive,” says Edgardo Bigas Valladares, the chamber’s executive vice president.
Salvador Calaf-Legrand is a board member who serves on the chamber’s executive committee. “As a multi-sector chamber, we identify problems in commerce for the impresario and help them so they are able to fulfill their business plan,” he says. “To be able to have social and economic success, we have to be united with a common agenda.”
The second chamber promoting business on the island is Camara De Comercio Del Oeste De Puerto Rico (Western Puerto Rico Chamber of Commerce). The chamber, founded in 1962, is dedicated to uniting the western part of the island, which encompasses 17 municipalities from Quebradillas in the north to Guánica in the south. Mayagüez, right in the center of the zone, has a significant economic impact.
New President Nelson Albino says his goal is to bring more merchants, big and small, to the chamber. “We’ve become a powerful organization, but we want to grow more, accrue more members,” he says. The chamber currently has about 300 members from several industries including healthcare, retail, supermarkets, pharmacies, clothing stores, jewelry, hardware stores, hotels, restaurants, universities and many more.
Major corporations are also members, including Hewlett Packard, which has a site in Aguadilla, and Australian company Baxter Laboratories. Holland America, which offers cruise service through the Mayagüez Port, is also joining.
Expanding global commerce is also on the chamber’s agenda. Just ask Roque Abad Ramirez, a chamber member and past president. He owns a wholesale office and patio furniture company. His products come from various countries: China, Colombia, Argentina, India and Dominican Republic. He says there’s a network with the Santo Domingo chamber—they do business with each other and are in constant communication, helping each other in their respective cities. “There’s a market in Central and South America. We’re exploring opportunities.” And like the Puerto Rico Chamber of Commerce, the organization is also interested in maximizing opportunities for Puerto Rico from the DR-CAFTA treaty.
The chamber has various initiatives and hosts multiple events to spur economic development. It hosts two four-day commercial expos, one at the Mayagüez Mall and the other at the Aguadilla Mall. According to Albino, the expos allows businesses and professional services companies to exhibit their products and conduct business. There are also plans to bring back Feria Industrial y Comercial (Industrial and Commercial Expo), an event that attracts larger businesses and technology companies.
Other plans include reaching out to families, getting women involved in their husband’s businesses and encouraging their children’s participation so when parents retire, the business is passed down to the next generation, rather than getting sold.
Another important goal is the marketing of Puerto Rico’s Porta Del Sol as a tourist destination. While San Juan has gotten most of the attention, there are plans to position Porta Del Sol in the same way Cancun is to Mexico and Puerto Plata to the Dominican Republic, according to chamber member Jose Soto Pacheco. “It’s [Puerto Rico] a beautiful Caribbean island. We’re promoting tourism as a substitute to what was manufacturing.” It’s all part of improving the economy for Western Puerto Rico.
With major global corporations expressing continued interest, Puerto Rico is well on its way. The chambers are making sure they work from the inside out, promoting unity within, while expanding globally in the process.
“We need to understand who we are to help others move forward,” says Soto Pacheco.