Page 12 - ARUBA TODAY

A12 WORLD NEWS
Friday 17 November 2017

Experts suggest Puerto Rico may
struggle for more than a decade

By DANICA COTO
Associated Press
SAN JUAN, Puerto Rico (AP) — Puerto Rico could face
more than a decade of further economic stagnation
and a steep drop in population as a result of Hurricane
Maria, experts said on Thursday.
The stark estimates were presented to members of a
federal control board overseeing finances of a U.S. ter-
ritory that is already in the 11th year of a recession.
“The situation is dire to say the least with destroyed in-
frastructure, lack of power and water and an accel-
erated pace of migration,” economist Heidie Calero
said.
She estimated that the hurricane caused $115 billion in
damage, even without counting business losses.
“We believe that is very conservative,” she said.
The administration of Gov. Ricardo Rossello said earlier
this week that it was seeking $94 billion in federal aid
Canadian Prime Minister Justin Trudeau meets with Mexican President Enrique Pena Nieto during for an island where power generation remains at 40
a bilateral meeting at the APEC Summit in Da Nang, Vietnam Friday, Nov. 10, 2017. Mexico said percent and where nearly 10 percent of people are
Wednesday it is open to a thorough evaluation of the North American Free Trade Agreement
every five years. still without water almost two months after the storm.
(Adrian Wyld/The Canadian Press via AP) More than 20 of Puerto Rico’s 78 municipalities remain
completely without power.
Mexico open to 5-year NAFTA reviews So far, U.S. Congress has approved nearly $5 billion in
aid for Puerto Rico.
Economist Juan Lara told board members that the lo-
MEXICO CITY (AP) — Mex- evaluate what is happen- demand that North Ameri-
ico said Wednesday it is ing, an analysis, what ef- can content for automo- cal economy could contract anywhere between 8
open to a thorough evalu- fects the agreement is hav- biles be raised from the percent and 15 percent in fiscal year 2018, depending
ation of the North Ameri- ing. And based on those current 62.5 percent to 85 on the restoration of power, with overall revenues fall-
can Free Trade Agreement results, each country can percent. ing by 30 percent.
every five years, but not the decide what to do in the “That is very rigid for an “We are undergoing both a demand and supply
kind of “sunset clause” the future.” automotive industry that shock,” he said, saying that some 5,000 businesses
United States is reportedly None of the three coun- has to compete glob- could close permanently, representing 10 percent of
seeking. tries’ trade representatives ally,” Guajardo said of the membership of the island’s National Retail Federation.
The comment came as or economy secretaries will 85-percent proposal. Businesses that have reopened have been forced to
delegations from Mexico, directly participate in the “It is illogical to say that in reduce their hours or depend on costly generators.
the U.S. and Canada were latest talks. three years you are going “We need electric power to be back and to be reli-
in Mexico City engaging in The round is to formal- to go from whatever the able,” Lara said. “We need roads to be cleared. We
the fifth round of talks on re- ly open Friday and run percentage is today to need supermarkets to be able to replenish their inven-
negotiating NAFTA. through Tuesday, but the what you want it to be to- tories.... We need to restore basic operating infrastruc-
The administration of U.S. U.S Trade Representative’s morrow. This transition has ture.”
President Donald Trump office said Wednesday that to be technically logical.” Lack of power remains the biggest obstacle, with the
reportedly proposed allow- 30 groups of lower-level Guajardo also suggested island’s electric company struggling to maintain the 50
ing the treaty to lapse after negotiators already have the Trump administration percent power generation it had reached on Wednes-
five years until all countries been meeting in Mexico should think about the pos- day just as a major blackout occurred for the second
decided to renew it. City this week. sible effects of the NAFTA time in a week. Rossello has said the company would
But Mexico’s economy Talks involving upper-lev- talks on Mexico’s presiden- reach 80 percent generation by end of November
secretary, Ildefonso Gua- el officials were held this tial election next July 1, for and 95 percent by mid-December, goals that many
jardo, says his country op- month at the Asia-Pacific which leftist Andres Manuel have called ambitious. In contrast, the U.S. Corps of
poses any “sudden death” APEC meetings in Vietnam. Lopez Obrador is ahead in Engineers has said it expects 75 percent generation by
clause. The negotiations have the polls. end of January.
“We are going with a coun- stalled over tough Ameri- “There certainly has to be Before Hurricane Maria hit, Puerto Rico was trying to
ter-proposal: Let’s put more can demands, including a reflection on the possible restructure a portion of its $73 billion public debt load
force into evaluations, but changes to the dispute-res- effects of any change (in amid a deep economic crisis that has prompted an
let’s not establish an auto- olution process and higher NAFTA) on our elections,” exodus of nearly half a million people in the past de-
matic phase-out mecha- U.S. content for automo- Guajardo said, accord- cade. That migration will only accelerate because of
nism,” Guajardo said. “Let’s biles. ing to a transcript of an post-hurricane conditions, with an estimated popula-
establish a commitment Guajardo said it would be interview provided by his tion of 2.8 million people by 2030, compared with the
that every five years we will very hard to meet the U.S. office.q current 3.4 million, said economist Jose Villamil.q