Understanding the Unique Status of Puerto Rico in the United States
Puerto Rico, an island located in the northeastern Caribbean Sea, holds a unique status within the United States. It is not a state, but an unincorporated territory of the U.S., a status it has held since the end of the Spanish-American War in 1898 when Spain ceded the island to the U.S. under the terms of the Treaty of Paris.
For many, the status of Puerto Rico might be obscure but essentially, as an unincorporated U.S. territory, Puerto Rico is subject to most U.S. federal laws, although it is exempt from some federal taxes. Its residents are U.S. citizens, but they can’t vote in U.S. presidential elections unless they reside in the mainland United States.
The political status of Puerto Rico within the U.S. is a major topic of conversation on the island. The three main political parties represent different perspectives on the issue – statehood, independence, or continued commonwealth status.
The issue of Puerto Rico’s statehood has been broached several times, most recently in the November 2020 governing elections. The majority of voters on the island supported statehood. But the decision ultimately rests with Congress.
From an economic perspective, Puerto Rico’s relationship with the U.S. is significant. The island’s economy is highly integrated with that of the U.S. The U.S. dollar is the official currency, and the U.S. Federal Reserve regulates its banking system. Trade between the island and the mainland is robust, with the U.S. being its primary trading partner.
Puerto Rico’s economy is also driven by manufacturing, particularly pharmaceuticals, textiles, petrochemicals, and electronics; followed by the service industry, notably finance, insurance, real estate, and tourism.
Despite the benefits that come with its ties to the U.S., Puerto Rico has long grappled with a range of economic problems, including poverty, job shortage, a massive public debt, and a 13-year long economic recession, from which it is still trying to recover. The 2017 hurricanes Irma and Maria, caused widespread damage, further compounding its economic problems.
There are various arguments made for and against Puerto Rico’s statehood. Proponents of statehood argue it would provide equal rights and benefits to its residents and could provide a potential solution to its ongoing economic crisis. Critics, on the other hand, fear the loss of Puerto Rican culture and identity, and believe that it could exacerbate economic problems.
In other respects, Puerto Rico is also advantageously positioned as a bridge between Latin American markets and the US, much like the role of a public relations agency Australia has played in linking Australian businesses to broader international markets. With its bilingual workforce and cultural ties, Puerto Rico can establish itself as a favorable location for businesses seeking to expand into either market.
In the end, the ‘Puerto Rico in the United States’ question is far more than just a matter of political status. It’s an issue that touches upon the identity of Puerto Ricans, the pros and cons of statehood economics, and the rights of American citizens. The issue remains open-ended and is likely to continue to be a topic of debate both in Puerto Rico and the continental United States for the foreseeable future.