American Singapore: A MAGA Agenda for Puerto Rico

In 2019, 47.53 million metric tons of liquified natural gas (LNG) valued at $12.4 billion dollars were exported from America to points all across the globe. Despite importing over $557 million of LNG in 2019 from as far afield as Oman, why did Puerto Rico only import 0.02 percent of their LNG from the United States of America?

Pause for a moment to ponder the language of colonialism that saturates the politics of Puerto Rico. There is a famous mural along the main freeway in San Juan that declares, “WE SEE OUR FUTURE AND ITS FREE OF COLONIZERS.” If we are to suppose then that this is an extractive colonial relationship with America as the oppressive colonizer and Puerto Rico as the oppressed colony (55 percent of the residents of Puerto Rico are on some form of federal economic assistance), then is not the colony supposed to help the empire? Why is Puerto Rico not being flooded with American LNG?

The truth is that both mainlanders and Puerto Ricans have been getting a raw deal for decades due to crippling federal and island legislation, underinvestment, and neglect. Past performance is not and does not have to be indicative of future performance.

Making America Great Again should also include Puerto Rico, where over 3 million U.S. citizens live. Strategically located at the northern edge of the Eastern Caribbean, Puerto Rico serves as a vital logistics hub linking the Eastern Seaboard, South America, and the Panama Canal. By its geopolitical birthright the island should be the booming advanced economic powerhouse of the Caribbean and America’s Latin American counterweight to the failed and corrupt regimes of Central America and what was once the Spanish Main. One only has to look to jurisdictions like Singapore or Hong Kong to imagine what should have been here—and can still be.  Puerto Rico should be a free zone, a place of investment, growth, innovation, and economic pride for mainlanders and Puerto Ricans alike.

President-elect Donald Trump’s MAGA movement emphasizes revitalizing industries, ensuring fiscal responsibility, and reinforcing global leadership. Trump projecting a new vision for Puerto Rico as America’s Singapore and recognizing Puerto Ricans as fellow Americans would energize the island. The way for Trump to guarantee a new and 100 percent favorable impression to all Puerto Ricans is simple: end the most hated piece of legislation on the island, the legislation that forces Puerto Rico to buy all its $447 million worth of consumed liquified natural gas from countries not named the USA—the Merchant Marine Act of 1920, commonly known as the Jones Act.

This archaic legislation mandates that goods transported between U.S. ports use ships that are U.S.-built, -owned, and -crewed. In Puerto Rico, this results in a de facto monopoly, with a limited number of compliant vessels inflating shipping costs and making everything imported from the mainland more expensive. Studies, such as one from the Cato Institute, show that the Jones Act imposes significant economic burdens on Puerto Rico, leading to higher consumer prices and stifling economic growth. Specifically, the act costs Puerto Rican consumers approximately $1.4 billion annually, equating to about $411 per resident each year—a significant sum for the average Puerto Rican, whose income is half that of the average Mississippian.

By exempting Puerto Rico from the Jones Act, Trump would be a hero to everyone on the island and simultaneously stimulate trade and attract investment, all in alignment with MAGA’s commitment to reducing governmental constraints and promoting economic freedom. It is egregious, unpatriotic, and undemocratic that some of the poorest citizens in the Union are subject to unnecessary expenses via federal regulation for which they have no representation in Congress to change. It is a situation shockingly analogous to the Boston Tea Party on the eve of the American Revolution; simply replace taxation with regulation.

The blame does not squarely fall on Uncle Sam for the problems here. Political corruption is rife. A former governor was arrested for bribery, and numerous former legislators and mayors are in prison for kickbacks or bribes.  Perhaps as bad, in the aftermath of Hurricane Maria in 2017 systemic inefficiencies in infrastructure and disaster relief efforts were exposed: Parts of the island were without power for months, federal aid funds went awry, and the island was in dire straits.  Trump should consider establishing a commission to investigate political corruption, root out the causes of systemic infrastructure failure, and restore public trust. 

Supercharging the island would not be difficult if Puerto Rico was made into a permanent federal economic empowerment zone with extended tax incentives. Singapore and Hong Kong are the models for how this could work. America should bring back the federal tax exemptions for corporations that generate income in U.S. territories. Puerto Rico should return to its previous role as the pharmaceutical supply hub for the U.S. and Latin America. Such moves would repatriate offshored manufacturing and technology jobs. The island’s workforce and proximity to the mainland offer a cost-effective solution to reduce reliance on foreign production and labor. Sectors such as pharmaceuticals, aerospace, and renewable energy could thrive, contributing to national security and economic independence. Notably, Puerto Rico’s proximity to the equator makes it an ideal location for spaceport development, potentially surpassing sites like Boca Chica, Texas, where SpaceX launches.

Another important initiative is investing in Puerto Rico’s disaster preparedness by establishing it as the Caribbean’s hurricane response hub. This would not only protect Puerto Rico’s residents but also turn a liability into a potential asset as Puerto Rico could offer its services to less developed neighboring nations. This strategy would generate revenue and assert U.S. leadership in regional crisis management, showcasing American resilience and expertise. This investment would also require improving the capabilities of local law enforcement to fight international crime which is also essential for economic growth and social stability. Combating drug trafficking, transnational organized crime, and corruption would create a safer environment for residents, tourists, and businesses, aligning with the MAGA commitment to law and order.

It should be the hope of every American that one day the mural on the freeway in San Juan will read, “WE SEE OUR FUTURE AND IT IS FULL OF GREATNESS”.  The Puerto Rican economic miracle would belong to Puerto Rico and Puerto Ricans just as the “Texas Miracle” belongs to Texas, and the miracles of Singapore and Hong Kong belong to them. The recipe in all these cases is the same: implement policies that reduce regulatory burdens, ensure governmental accountability, and promote economic development. Puerto Rico can be a stunning contrast to the plethora of Latin American political and economic failures. Puerto Rico can be a beacon of American hope and greatness whose pride belongs to the Puerto Rican people and whose success will be the envy of the Spanish speaking world. Let’s make that future happen and ensure that the people of Puerto Rico are empowered to achieve their own success. 

The post American Singapore: A MAGA Agenda for Puerto Rico appeared first on The American Conservative.