Torres pitches CEIA as engine for diversification, higher-paying jobs

The Commonwealth Economic Incentive Authority, the CNMI’s newest economic development agency, is being positioned as a vehicle to diversify the economy, attract high-paying industries, and create jobs beyond tourism, according to CEIA Board chair Anthony Torres.

Speaking at the Saipan Chamber of Commerce’s monthly meeting last Feb. 4 at the Saipan World Resort, Torres said CEIA’s mission is to aggressively market the Commonwealth’s economic incentive districts to international businesses willing to invest, create jobs, and grow the local economy.

“We’re not just a renamed entity. We’re a revitalized force mandated to aggressively market and promote our economic incentive districts internationally,” Torres said. “Our core mission is to drive long-term economic diversification, reduce bureaucratic hurdles, and create an environment where businesses can flourish without the weight of excessive taxes or restrictions.”

Torres described CEIA as the evolution of a long-dormant policy vision aimed at attracting high-skill, low-impact, high-wage industries such as technology, software, financial technology, and intellectual property.

“We needed high-skill, low-impact, high-wage industries,” he said. “Think technology, software, financial tech, intellectual property, et cetera, that don’t crowd our roads, don’t hurt our reefs, and pay our people salaries they can actually build a future on.”

Under the CEIA framework, designated economic incentive districts allow qualifying businesses to receive long-term tax rebates or exemptions, streamlined permitting, and other incentives in exchange for investment and job creation.

“We can designate economic incentive district special zones where qualifying businesses get real, meaningful breaks,” Torres said. “This isn’t about handouts. It’s about matching incentives to the real value a business brings—jobs for our people, investment in our infrastructure, and long-term growth for our families.”

Torres said the recent designation of Garapan as a Saipan Economic Incentive District is intended to bring new life to underused areas and shuttered buildings by attracting technology and knowledge-based companies.

“The goal is to fill in all those shuttered, empty office buildings in Garapan with tech companies,” he said. “Bringing them in so that they can have foot traffic to go into your establishments to build our hotels.”

He added that the long-term vision for CEIA extends far beyond Garapan.

“The vision for CEIA is to have the whole island of Rota be an EID, the whole island of Tinian, and then also from Garapan all the way to past [Pacific Islands Club Saipan), all of Beach Road,” Torres said. “Heck, even the whole Saipan. Why don’t we just do the whole Northern Islands?”

During the question-and-answer portion, Torres was asked how the new agency and the businesses it hopes to attract would help workers—both residents and nonresidents—earn more than the minimum wage.

“We want to be the rising tide that lifts all boats,” Torres said. “If we get more businesses in here—tech companies, IT companies—you name it, they’re going to bring in new people.”

He said CEIA is still drafting its regulations, but acknowledged concerns about wages and living standards.

“We want to also create jobs, livable wages,” Torres said. “Yes, we hear you. I hear you. We all hear you.”

Torres suggested that wage-related requirements could potentially be tied to participation in economic incentive districts.

“If we want to grant somebody the permission to be in the economic incentive district, I think we could impose a minimum wage that they must pay,” he said.

Questions were also raised about how designating Garapan as an incentive zone could affect the CNMI’s tax base, particularly since the tourist district has traditionally been a major source of business gross revenue tax collections.

In response, Torres emphasized that attracting new businesses—even at reduced tax rates—would still be preferable to leaving properties vacant.

“Three percent is better than zero,” he said. “One percent is better than zero.”

He said CEIA’s board would have the authority to negotiate incentives based on job creation and community benefits.

“What more can you give back to the community?” Torres said. “Fix this area. Spruce this up.”

Torres said CEIA is still in its early stages but is moving quickly to finalize regulations and begin implementation.

“We’re baby steps here,” he said. “We’re still drafting our regulations, but we’re moving fast.”

Framing CEIA as a long-term investment in future generations, Torres said the agency’s success depends on collaboration with the local business community.

“Saving this economy won’t be done by just incremental improvement,” he said. “We must look for a massive, calculated shift.”