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Current News |
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March 07, 2011
The Government of the Republic of the Marshall Islands has recently learned that the U. S. Administration (U.S. State Department) has acted favorably on a report submitted by the Government in September, 2009, regarding lost tax and trade benefits in the original Compact.
When the original Compact of Free Association was enacted by the U. S. Congress in 1986, they made several major changes in the negotiated tax and trade provisions that were favorable to the RMI. In its place, the U. S. Government provided several additional federal programs and some development funding. Congress further provided that the RMI could submit a claim for an additional amount of up to $20 million if it could show additional economic losses resulting from the changes. This provision was extended in the amended Compact for one additional opportunity prior to September 30, 2009, to show adverse economic impacts that resulted in the RMI’s Tax and Trade Report being submitted in September, 2009, to the U. S. Government.
A letter from the State Department to Senate Energy Chairman Bingaman stated, “The IAG (Inter Agency Group) concluded that the RMI has reasonably demonstrated net adverse impacts based on the loss of Title II benefits in making their request for $20 million in further compensation under Section 111(d) of the Compact Act.” The letter went on to state that the IAG would be willing to look at additional compensation beyond $20 million if the Committee requested it.
This is great news for the government and people of the RMI since these additional amounts would do much to help make the Trust Fund viable and sustainable for the Marshallese people in the future. As we all know, our Trust Fund is in dire need of additional contributions to ensure that it is viable and sustainable in the future. This is a big step in providing a better future for our youth and for future generations of our nation.
The RMI would like to thank the US Administration for their assessment to the US Congress. It has been over 24 years since this controversial part of the original Compact was enacted, and we finally have a way forward to resolving this issue that has remained between our two governments. The Government will now work with the Congress to fund the additional compensation.
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