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Puerto Rico

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Country Presentation

Located in the Caribbean. It is a jurisdiction

with its own internal government, but under

the Constitution and laws of the USA

Language spanish and english

The archipelago of Puerto Rico consists of

several islands.

Area 9104 Km2

Population 4 million people, U.S. citizens

since 1917 and is estimated to 4 million

portorricains people living in the U.S.

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The Business in Puerto Rico

Political Risks

Economic Risks

Sociocultural Risks

Technologic Risks

Ecological Risks

Legislatives RisksIn terms of country risks, the risks to the

business environment are basically the same

in Puerto Rico existing risks in the U.S.

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The Political risks

Puerto Rico has representation in the U.S. Congress

with a right to voice but no vote except for a few

commissions of the Congress. 3 political parties Partido Nuevo Progresista (PNP),

Popular Democrático (PPD) y Partido Independentista

Puertorriqueño (PIP)

Governor´s island Luis Fortuño.

The uncertainty on the political status makes the

island difficult policy

But the agency Ducroire notice 2 on the political

stability of the island.

Tense political situation until the problem of political

status is resolved

Even with recent events, politicals risks

that could affect the environment

business are low.

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The Economic Risks

PIB 93.3 billion USD in 2008

Positive trade balance with the U.S.

Average income per family in 2009 was 43,193.0

U.S. $

One of the best economies of the Caribbean

Industry leading sector of the island

The Free Trade agreement (FTA) between USA,

Mexico and Canada supports Puerto Rico

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•Tourism is an important source of income for

the island.

•With Costa Rica, PR was designated as the

best country for foreign investment in all the

Caribbean and Central America.

•Because of its close relations with the U.S.,

PR was affected by the crisis, but recovering

economy.•The agency Ducroire notice B on the

comercial risks in Puerto Rico

Economic risks that could affect the business

environment are weak and PR appears to be a

very attractive country for foreign investment.

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The Sociocultural Risks

•Rate of unemployment 15.9%

•Good level of education 94.1% Illiteracy low

•Crime linked to drug trafficking rather high

Sociocultural risks rather sizable.

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The Technological Risks

•Technological threats related to fires, leaks ofchemicals in industrial areas. The industry is thefirst sector of the economy of Puerto Rico

•Good knowledge of technology many American companies

Technological risks are not a danger to the business environment

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The ecological Risks

•High probability of flooding and landslides in areas of low altitude•Located almost at the point between two tectonic plates of Caribbean and North America possible earthquakes but not happened for several years•Hurricanes and tropical storms like all Caribbean islands•There are the local building codes and federal (USA) strict order to avoid possible disasters

Environmental hazards may affect the business remain because of its location in the Caribbean

but implementation of measures to reduce them.

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The Legislatives Risks

•Puerto Rico is part of the customs territory of the USA. In PR rules apply equally manner in all U.S. states•International agreements Nafta, SGP, TLC with Chili

and Singapur, CARICOM, Interpol, IOC, ITUC, UNWTO,

WFT

•Lack to pay federal taxes and no quota restrictions between the U.S. and PR•Imports Local Sales Tax of 7%•There are three areas where it is applied a special customs regime•Transport to USA Domestics does not require official documentation as if it were to trade with foreign countries.

Do not present legislative risks and benefits of US international agreements for foreign trade.

N

A

F

T

A

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Conclusion

•Problems of drug-related crime persist but,

•Do not have a lot of risks in all other areas

•Enjoys many advantages for trade

•Possesses almost the best investment status

of all the Caribbean and Central America. Just

as a stringent laws against corruption. There is

no impunity for corruption.

Puerto Rico is the best

Investment Opportunity

Caribbean.