Ask the Scholar

{
    "localId": "1554456",
    "label": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/1554456"
}

{
    "id": "1554456",
    "sourceUrl": "https://catalog.archives.gov/id/1554456",
    "contentType": "document",
    "title": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
    "citationUrl": "https://catalog.archives.gov/id/1554456",
    "collections": [
        "White House Special Files Unit Files",
        "Issue Decision Papers for the President"
    ],
    "subjects": [
        "Puerto Rico",
        "Intergovernmental relations",
        "Territories and possessions"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "imageCount": 59,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/1554456",
    "naId": 1554456,
    "coverageEndDate": {
        "day": 14,
        "logicalDate": "1976-01-14",
        "month": 1,
        "year": 1976
    },
    "coverageStartDate": {
        "logicalDate": "1975-10-01",
        "month": 10,
        "year": 1975
    },
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 21,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_22_Image_0001.jpg",
    "mediaId": "01f1d13626a784c0",
    "ocrText": "-3-\nUnited States has entered into pursuant to the General\nAgreement on Tariffs and Trade (GATT). Article XXIV of\nthe GATT states, in pertinent part, that its provisions\n\"shall apply to the metropolitan customs area of the\ncontracting parties\nEach such customs territory\nshall, exclusively for the purposes of the territorial\napplication of this Agreement, be treated as though it\nwere a contracting party. 11 As noted above, General Head-\nnote 2 to the TSUS provides that Puerto Rico is included\nin the Customs Territory of the United States. However,\nsubsection 9 (d) would leave open the possibility of se-\nlective reduction or elimination of duties by Puerto Rico\nsubject only to prior consultation and coordination with\nthe United States. We believe that this constitutes much\ntoo loose an arrangement and lacks sufficiently appropriate\nsafeguards against possible adverse effects on U.S. industry.\nMoreover, not even the U.S. Government can arbitrarily raise\nor lower a duty or quota on goods entering the U.S. without\nconforming to the requirements of relevant tariff and trade\nlegislation which provide various safeguards as conditions\nto reducing or eliminating tariffs. In this connection, we\nalso note that the second restriction in subsection 9 (d) is\nunclear as to its application. For example, is it to be\nread in conjunction with subsection 9 (e) or does it relate\nonly to those cases where Puerto Rico reduces but does not\neliminate a tariff?\nAccordingly, we suggest that subsection 9 (d) be deleted.\nAt a minimum it should be revised to require U.S. con-\ncurrence with respect to any change in tariffs or quotas.\nMany of the problems stated as applying to subsection 9 (d)\napply equally to subsection 9 (e) While this Department\nrealizes the need to further develop the economy of\nPuerto Rico by providing industry with incentives to\nestablish operations there, we feel that the provisions\nof this subsection may have serious adverse effects on\nmainland U.S. industry and employment. With the incentive\nof duty-free treatment for the importation of goods to which\n35% value is added in Puerto Rico before shipment to the\nUnited States, many U.S. firms may be encouraged to leave the"
}