It appears the CNMI governor’s pivot from China and persistent relationship-building with the federal government is paying off. President Biden has accepted Arnold Palacios’ call for 902 talks. The president appointed Carmen Cantor, the Assistant Secretary of the Interior, as his special representative.
Mr. Palacios will be appointing the CNMI’s representatives over the coming days, according to a news release from the governor’s office.
902 talks refer to consultations between the governments of the CNMI and the United States regarding issues one or both governments want from the other. The authority for these consultations come from Section 902 of the Covenant that established the relationship between the CNMI – a U.S. commonwealth and insular area – and the federal government.
The last time 902 talks were held was in early 2019, after then-Governor Ralph Torres called for the consultations during the Trump administration. Those talks focused on immigration and labor issues from which no resolution materialized prior to the pandemic, which began early the following year.
The shuttering of the Best Sunshine casino in Garapan, the pandemic that nearly obliterated the CNMI’s tourism industry, the squandering of hundreds of millions in federal aid by Mr. Torres, and the financial crisis in China that caused a slowdown in tourism to Saipan all precipitated the Commonwealth’s current financial and economic exigency.
While conflicted parties (hoteliers and businesses and groups with ties to China) have called for Mr. Palacios to support increased revenue from China, the governor has remained steadfast in his pivot away from anything resembling even remote connection to the Chinese Communist Party. Instead, the governor has sought to rebuild and reinforce trust (damaged by his predecessor) with federal agencies, including an embrace of defense buildup and infrastructure funding in order to move more dollars into the CNMI’s languishing economy.
“As I’ve stressed in multiple testimonies, speeches, and other forums, the people of the Northern Marianas are proud Americans. We support the position of our country in the Indo-Pacific region and appreciate the partnership of the U.S. Government in our shared endeavors,” Mr. Palacios said. “We will approach the consultation sessions from a spirit of cooperation, mutual respect, and with a laser-focused aim of improving the lives of the people of the CNMI.”
Earlier this year he wrote to Mr. Biden, calling for 902 talks in hopes the White House will agree with the governor that the CNMI 1) should receive financial assistance during this tumultuous period through Section 702 of the Covenant, 2) aid in improving tourism and transportation infrastructure, and 3) exemptions from current regulations on skilled labor so that an economic buildup can happen. Section 702 was an annual pledge of $14 million by the federal government to the CNMI government for financial assistance that lasted the first seven years following the section’s enactment.
“I trust that this section 902 consultation will be a vehicle for addressing the critical issues raised by the CNMI,” Mr. Biden wrote to the governor in a letter dated July 17.
“The issues that we will bring to the table are exceedingly timely and relevant,” said Governor Palacios.
“I thank President Biden for his response, and we look forward to engaging with Assistant Secretary Cantor and her team in a transparent and candid discussion about these issues and about how we can work collaboratively toward achieving goals that would mutually benefit the CNMI and the Federal Government,” Mr. Palacios said.
The talks may result in recommendations for change to administrative rules or federal statute with White House backing.
