The recent narrative, suggesting that “Puerto Rico is the perfect partner in Trump’s re-release,” feels eerily familiar. It’s like a remix of old, failed economic promises dressed up in patriotic rhetoric.
This concept pushes the US to view Puerto Rico primarily as a means to boost manufacturing profits, this time cloaked under a slogan like “Reshoring.” Yet for those of us from Puerto Rico, it’s a storyline we’ve encountered before—one that typically concludes with economic failure, increased reliance on the colonial structure, and a wave of emigration.
Supporters of this initiative reference the island’s attractive tax conditions. However, beneath the polished surface, there’s a less flattering truth. Currently, Puerto Rico isn’t prepared to be a dependable hub for the pharmaceutical sector.
As a colony of the US, Puerto Rico lacks control over key areas like trade, tariffs, energy infrastructure, and economic policy. This political backdrop is critical for understanding the repeated failures of previous recovery efforts and the risks faced by any future investments.
The Puerto Rican government markets the island as a cost-effective manufacturing center, but this narrative is built on shaky ground. The electric grids, now maintained by Luma Energy, are plagued by persistent power outages. With high energy costs and low reliability, it’s hardly an ideal environment for manufacturers dealing with temperature-sensitive pharmaceuticals.
Moreover, the island’s infrastructure has deteriorated significantly, suffering from inadequate public investment hindered by US fiscal oversight and unyielding colonial debt. Today, over 43% of residents live in poverty, and nearly 80% are deemed socially vulnerable when it comes to disaster resilience. These conditions create a landscape rife with instability and risk instead of fostering growth and innovation.
Proponents often highlight Puerto Rico’s historical role as a pharmaceutical manufacturing hub. It’s true that companies benefited from Section 936 tax laws for years, allowing them to operate there with tax advantages. However, when this incentive was quietly revoked by Congress in 1996—without any input from locals—businesses exited and the economy spiraled into crisis.
Today’s push for revitalization seems to mirror the failed Section 936 model. While specific incentives might differ, the underlying dependencies remain unchanged, keeping Puerto Rico stuck in a political and economic framework it cannot control.
To be candid, this isn’t a strategy for economic growth; it’s more of a survival tactic. Puerto Rico is unable to formulate long-term industrial policies as long as it remains a colony. Negotiating trade agreements or making significant investments in infrastructure—necessary steps for real development—are just not feasible.
If Puerto Rico were to achieve full sovereignty, it could redefine itself as a strategic partner in global trade. The island needs the power and resources to build a competitive national economy, a vision that is already being outlined by local leaders.
Earlier this year, a coalition of economists and planners introduced “Plan B: Independencia,” which lays out a comprehensive economic development strategy aimed at achieving sovereignty. This plan provides a roadmap for restructuring the energy grid, drawing in foreign investment, and supporting advanced manufacturing, including biopharma. Encouragingly, support for sovereignty has grown, now reaching 43% following the recent referendum, even as state backing declines.
This represents a genuine opportunity for President Trump and American leaders who truly champion freedom and self-determination. A newly proposed executive order around Puerto Rico’s independence is on the table. Ultimately, addressing this status issue could alleviate a potential burden of over $617 billion in future federal spending. Clearly, Puerto Rico’s sovereignty could benefit both the island and the United States.
Pharmaceutical firms considering reshoring need to confront tough realities. Is the location politically stable? Is the infrastructure and power supply reliable? In Puerto Rico today, the answers to those questions remain ambiguous. However, with sovereignty, Puerto Rico could offer businesses a safe and competitive atmosphere for long-term growth.
It’s time to stop assuming that a recycled tax scheme is the solution. Instead, let’s focus on a path that fosters national sovereignty for Puerto Rico and benefits the United States. This can pave the way for a partnership rooted in dignity, stability, and equality.
