The Trade and Geography Provision of the United States Amendment regulates Puerto Rico’s international and domestic interactions. They are therefore subject to the full authority of Parliament. The Secretary of State of Puerto Rico, an executive department, was mandated to oversee the island nation’s foreign activities by domestic legislation. Additionally, this executive department oversees the nation’s economic agreements and diplomatic ties. Below is a description of these ties.

Diplomatic relations and agreements

To uphold and strengthen its diplomatic ties with other nations, Puerto Rico has signed a small number of economic agreements with them. The countries with which Puerto Rico has diplomatic ties are listed below.

Australia

The United States has a free trade agreement with Australia known as AUSFTA. The AUSFTA was approved on May 18, 2004, and it became active on January 1, 2005. There are 23 provisions in the accord. According to the provision on market access, each nation will treat imported goods from the other nation the same way it would treat locally produced items.

The system for removing the majority of duties for agricultural items exchanged between the two countries is described in the agreement’s agribusiness chapter. The treaty also covers matters related to labor, the environment, customs, textiles, and telecommunications.

Bahrain

A USBFT agreement has been made between the two nations. The accord removes all tax and non-tariff trading obstacles, lowering export costs and boosting the profitability of both countries’ exports. Cross-country investment obstacles are eliminated as a component of the FTA. Long-term, the deal ensures that the traditionally positive relationship between the two countries will not only remain but also strengthen.

Canada

Canada and Puerto Rico have established diplomatic, commercial, and cultural ties. Both countries are united through the NAFTA trade pact. On January 1, 1994, the agreement, which removed the majority of the trade barriers between the two nations, came into force.

NAFTA was replaced by USMCA in 2020. With the creation of a sizable free-trade zone, this agreement intends to lower import and export duties between the member nations. 

Columbia 

A pact between the two nations, known as the CTPA, was concluded in 2006. The Agreement removes tariffs as well as other economic restrictions in areas like public contracts, investments, telecommunications, technology sales, proprietary laws, and environmental protection.

Products made from cattle and pork, grains, corn, beans, and textiles are among the exported goods that will profit from the pact. The deal provides instant duty-free entry to the exporting groups that are most crucial to the American cattle sector. Important fruits and vegetables like apples, pears, peaches, and citrus fruits as well as many processed foods are also immediately duty-free.

Morocco

A bilateral arrangement exists between the US and Morocco called the US-Morocco Free Trade Pact. The pact aims to boost trading between the two nations and open up new investment opportunities. The free trade deal is anticipated to have a favorable, but little overall impact on the U.S. economy.

The agreement opened up new market prospects for retail and commercial goods, as well as for producers, ranchers, banks, and e-commerce. A guarantee on intellectual property, patents, commercial secrets, and corruption is also included in the agreement for the benefit of local enterprises.

South Korea

The United States and South Korea have a trade deal called the United States-Korea Free Trade Pact. The treaty’s terms abolish 95% of each country’s import duties on commodities within five years and add new measures for international financial institutions and other businesses.

Singapore

Both nations approved the USSFTA agreement in 2004. The deal not only reduced tariffs but also made it simpler for citizens of both countries to travel. Some Singaporean nationals were able to live in the US for long durations once it was implemented. The current stay length for entrepreneurs and dealers with E1 or E2 visas is two years, however, extensions are permitted indefinitely.