The Diplomat
Puerto Rico offers great business opportunities for Spanish companies in the current context of economic recovery after the pandemic and as a gateway to the U.S. market.
This was made clear this past Wednesday during the online celebration of the meeting Opportunities for commercial development between Spain and Puerto Rico, organized by the Fundación Consejo España-EEUU and the Casa de Puerto Rico en España (CAPRE).
“Puerto Rico has the potential to be a first-rate logistics hub for Central America and the Caribbean for Spanish companies,” said CEOE President Antonio Garamendi at the opening of the meeting, which analyzed the business opportunities that exist for companies in both countries in light of the millions of dollars injections of funds expected in a context of post-pandemic economic recovery and aid packages for the reconstruction of the island after the devastating hurricanes María and Irma four years ago.
Gonzalo Ulloa, vice president of the Fundación Consejo España-EEUU, said that the institution also intends, albeit from afar, to join in the celebrations taking place in Puerto Rico on the occasion of the 500th anniversary of the founding of San Juan de Puerto Rico by Ponce de León of Valladolid. For his part, the president of the Casa de Puerto Rico in Spain, Rafael Pérez-Colón, emphasized that the current situation is very favorable for companies given the context of economic growth and the expectations that are opening up.
The event included a message from the Secretary of Economic Development and Commerce of the Government of Puerto Rico, Manuel Cidre, who pointed out that, just like five hundred years ago, there should be a new galleon traveling between the island and Spain in both directions full of ideas, entrepreneurs and investments. He also stated that the trade balance is unbalanced and that many products that Puerto Rico exports to Spain, including medical equipment, are not produced on the island. In addition, the bulk of Spanish imports are pharmaceutical products. Cidre also added that an economic injection of $100 billion is expected over the next ten years, via federal funds, and pointed to construction, food, technology, energy and banking as the main sectors of opportunity, in addition to the possibilities in the commercial aerospace sector. Cidre announced an important trade mission from Puerto Rico to Spain for November of this year.
The debate-which was moderated by El Nuevo Día journalist Joanisabel González-featured economist José Carballo Cueto of the University of Puerto Rico at Cayey; Spain’s economic and commercial counselor in Puerto Rico, Rosario Paradinas; the executive of the Puerto Rican company Ultimate Solutions, Adolfo Rodríguez, who explained the success story of a company from the island in Spain; and the CEO for North America of Mapfre, Jaime Tamayo who recalled that hurricanes Irma and María caused more than 90. 000 casualty claims, causing the insurer to disburse more than $1.4 billion on the island. “Mapfre is a good payer and we are responsible for the well-being of families in Puerto Rico,” he assured.
The meeting analyzed some of the strengths that Puerto Rico offers as a commercial destination and for developing investment projects, such as access to the U.S. market, legal security, tax incentives, the presence of a well-trained and bilingual workforce, high level of development and the aforementioned high funds that are expected in the near future.
In 2020, the trade deficit between Spain and Puerto Rico continued, with a total of $1.324 billion in exports from Puerto Rico to Spain, compared to $145 million in exports from Spain to the island. The main Spanish export sector is agri-food products, with 36% of the total, compared to a very high concentration in Puerto Rican exports, with 98% of which are pharmaceutical products, according to data from the Puerto Rico Planning Board.
