CNMI's economic meltdown to hurt US presence in the Pacific, officials warn
- Admin
- 4 minutes ago
- 3 min read
Gov. Apatang officially reverses 'pivot from China' policy
By Mar-Vic Cagurangan
Northern Marianas leaders have pleaded for urgent federal action on their long-standing request for policy changes they say would salvage the islands’ sinking tourism, warning that the commonwealth's economic collapse is America 's burden.
"It would weaken U.S. credibility, diminish American commercial presence and leave strategic ground unoccupied at a time when the United States is actively competing for presence, credibility," the CNMI's top leaders said in a Jan. 6 letter to President Donald Trump.
“We are running out of time,” CNMI Gov. David Apatang said.
“Businesses are closing, people are leaving and the effects are
compounding."
Apatang has officially backpedalled on the administration’s “pivot from China” policy, joining Del. Kimberly King-Hinds’ call for the federal government to lift restrictions on flights from China.
"The federal government has tools available right now that can help steady
the situation. Acting sooner rather than later makes a real difference," the governor said.
CNMI officials argued that while China remains a viable tourism market for the islands, it has been inaccessible because airlines cannot secure route authority for scheduled service.
In 2023, then-Gov. Arnold Palacios, who passed away in July last year, announced his administration’s policy to cut reliance on the Chinese market amid the escalating geopolitical tensions.
He turned to the military for relief to make up for the loss of the CNMI’s main source market, resulting from the U.S Department of Transportation’s decision in 2020 to restrict China flights, which affected the CNMI’s Annex VI exemption from such limits.
“The commonwealth raised this issue in 2023. warning that the economic repercussions of restrictions on Chinese travel extended beyond transportation and directly impaired the CNMI's ability to fund and deliver basic public services,” Apatang and King-Hinds said in a Jan. 6 letter to President Donald Trump.
Senate President Karl King Nabors and House Speaker Edmund Villagomez also signed the letter to Trump.
“Had the exemption authorized under the bilateral agreement been confirmed and applied by the Biden administration at that time, many of the conditions now facing the commonwealth could have been avoided and now compound the severity of the current crisis,” they added.
The CNMI officials wrote a separate letter to Adm. Samuel J. Paparo, commander of U.S. Indo-Pacific Command, to make the case for reopening the CNMI to the Chinese market.
“Given the small size and limited resilience of the commonwealth's economy, the margin for error has effectively vanished,” the CNMI officials said.
They also reiterated an earlier proposal to include the Philippines in the Guam-CNMI visa waiver program, aiming to expand this market to offset declining arrivals from major source countries in Asia.
“The Philippines is the CNMI's nearest and most accessible market. Continued
exclusion effectively prevents the commonwealth from accessing its most viable source of near-term demand,” the CNMI leaders said.
They noted that as an island destination on the edge of East Asia, the CNMI's tourism market has always depended on nearby population centers.
"The commonwealth's situation is urgent, solvable, and time-bound. The actions outlined above require no new appropriations and align squarely with U.S. strategic and economic interests," the CNMI leaders told Trump. "Delay will narrow the available options and increase the cost of recovery, while timely action can still prevent lasting damage."
Several major companies have pulled out of Saipan after decades of operation on island. The latest to jump ship was ABC Stores, Hawaii’s chain retail shop, which closed its doors on Dec. 31.
“The commonwealth’s small economic scale leaves little room for additional
shocks,” King-Hinds.
“When core civilian systems begin to fail, the consequences extend well beyond local governance. Stable communities, reliable infrastructure, and a functioning
local economy are essential to a sustained U.S. presence in the Pacific. Addressing these issues now is in the nation’s security interest," she added.
The CNMI leaders also hope to get a portion of Washington’s new trade and investment agreements with Japan and South Korea toward restoring air service from carriers in those countries.
“Even ·a small fraction of these commitments would have an outsized and immediate effect on the commonwealth's economy at a moment when time-sensitive intervention
matters most, supporting private-sector recovery and
strengthening ties with our closest allies in the region,” they said.
At the CNMI Senate, Nabors said the strength of America’s
position in the Indo-Pacific rests not only on military assets,
but on the health of the civilian communities that support
them.
“Allowing a U.S. jurisdiction of strategic importance to erode economically
would weaken the very foundation on which long-term presence depends,” he said. “The actions we are calling for are measured, lawful and necessary.”
Villagomez said the CNMI’s plea for help “is about maintaining conditions that allow the United States to operate effectively in the region over time.”
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