The recent op-ed, “Puerto Rico is Trump’s Perfect Partner in Reshoring,” is a familiar remix of failed economic promises wrapped in patriotic language.
It urges the U.S. to use Puerto Rico, yet again, as a passive asset for U.S. manufacturing interests — this time under the banner of "reshoring." But for those of us who call Puerto Rico our nation, we’ve seen this movie before. It ends in economic collapse, deeper colonial dependence, and mass emigration.
Those who support this reshoring initiative highlight the island’s favorable tax conditions. But behind the polished messaging lies a less flattering reality. Puerto Rico today is ill-equipped to serve as a reliable reshoring hub for the pharmaceutical industry, and promoting it as such risks repeating costly mistakes of the past.
Puerto Rico is a U.S. colony - one without control over its trade, tariffs, energy grid, or economic policy. That political reality is central to understanding why past reshoring efforts on the island have failed and why future investments face serious risks.
Puerto Rico’s government touts the island as a cost-effective manufacturing hub, yet this narrative is built on very fragile foundations. The electric grid, privatized under LUMA Energy, suffers from near-daily blackouts. Energy costs are high and reliability is low — hardly ideal conditions for manufacturers of temperature-sensitive, precision pharmaceutical products.
Beyond energy, the island’s infrastructure is severely degraded. Public investment is hampered by U.S. fiscal oversight and an unpayable colonial debt. More than 43 percent of the population lives in poverty, and up to 80 percent are considered socially vulnerable by disaster preparedness standards. These factors create a business environment marked by instability and risk, not innovation and growth.
Reshoring advocates often point to Puerto Rico’s history as a pharmaceutical manufacturing center. It is true that, for decades, companies took advantage of Section 936 of the federal tax code to avoid taxation by locating operations on the island. When Congress unilaterally repealed the incentive in 1996 — without consulting the Puerto Rican people, of course — the companies left and the local economy spiraled into crisis and depression.
Today’s calls for reshoring amount to a modern repackaging of the failed Section 936 model. The incentives may differ in detail, but the dependency remains the same and Puerto Rico remains trapped in a subordinate political and economic system it does not control.
Led by the corrupt pro-statehood party, Puerto Rico has found itself increasingly constrained and ignored in Washington. With limited authority and mounting pressure, officials have turned to reshoring as a strategy to prove the island’s continued “value” to the U.S.
But let’s be honest: This is not a strategy of growth. It is a strategy of survival. Puerto Rico, as a colony or a state, cannot set long-term industrial policy. It cannot negotiate trade agreements or invest in infrastructure at the scale needed for real development.
As a sovereign nation, Puerto Rico would no longer be a colony. It would become a strategic ally and a trade partner. Puerto Rico needs the power and tools to build a competitive national economy. And that future is already being mapped out by Puerto Rican independence leaders.
Earlier this year, a coalition of economists, planners, and pro-sovereignty advocates under the banner of "Plan B: Independencia," published a comprehensive National Economic Development Plan for a sovereign Puerto Rico. The plan lays out how, with independence and a negotiated transition fund, Puerto Rico could rebuild its energy grid, attract foreign investments, access global markets, and support advanced manufacturing, including biopharma. Thankfully, support for national sovereignty (independence and free association) is growing, now up to 43 percent since the recent 2024 referendum. As support for statehood declines, support for sovereignty rises.
Here’s the real opportunity for President Trump or any U.S. leader who truly believes in American principles of liberty and self-determination: Support the recent draft executive order for Puerto Rico’s independence. Not only would this finally resolve the status dilemma, it would also save the United States more than $617 billion in future federal expenditures. As you can see, Puerto Rico’s sovereignty is a win-win for both Puerto Rico and the U.S.
Pharmaceutical companies looking to reshore should ask the hard questions: Is the location politically stable? Is the infrastructure and power reliable? In Puerto Rico today, the answer to each of these is "not yet." That could change — a sovereign Puerto Rico could offer companies a secure and competitive environment to grow long-term operations.
Let’s stop pretending that failed and repackaged tax schemes are the answer. Instead, let us embrace the one solution that benefits both Puerto Rico and the U.S. — national sovereignty. It is the only path to dignity, stability, and a true partnership between equals.
Javier A. Hernández is an author, educator, entrepreneur, former federal official, and advocate for Puerto Rican independence. He is the author of "PREXIT: Forging Puerto Rico’s Path to Sovereignty," and "Puerto Rico: The Economic Case for Sovereignty." He resides in New Jersey and Puerto Rico.
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