The CNMI consists of 14 islands in the Pacific Ocean, 3 of which are substantially inhabited, just north of Guam and about 5,500 miles from the U.S. mainland. In 2005, more than two-thirds of the CNMI’s workers were non-U.S. citizens (noncitizens), who were predominantly Chinese or Filipino. Foreign workers make up more than two-thirds of the workforce for the CNMI’s two major industries, garment manufacturing and tourism. Noncitizens also invest in the CNMI, contributing entrepreneurial skills and capital and owning businesses. In 2007, we reported that the CNMI’s economic potential was constrained, in part, by its lack of diversification and faced serious challenges owing to declines in garment manufacturing and tourism. Among factors affecting the garment industry, liberalization in trade law in the early 2000s reduced the CNMI’s trade advantage relative to low-wage countries such as China, causing CNMI exports to fall. The CNMI’s tourism industry has been subject to fluctuations due to Asian economic trends in the late 1990s, as well as recent changes in airline practices. Until 2007, the CNMI’s workforce was subject to a minimum wage set by the CNMI government that was lower than the U.S. mainland’s; however, Congress enacted a law in 2007 that applied the U.S. minimum wage to the CNMI and will gradually increase the CNMI minimum wage until it meets federal minimum wage requirements. In 1976, after almost 30 years as a trust territory of the United States, the District of the Mariana Islands entered into a covenant with the United States establishing the island territory’s status as a self-governing commonwealth in political union with the United States. The covenant grants CNMI citizens the right of self-governance over internal affairs and grants the United States complete responsibility and authority for matters relating to foreign affairs and defense affecting the CNMI. Under the covenant, the U.S. government may enact legislation in accordance with its constitutional processes that will be applicable to the CNMI. To respect the CNMI’s right of self-government under the covenant, certain provisions of the covenant may be modified only with the consent of both the federal government and the CNMI government. These provisions include those relating to the political relationship between the United States and the CNMI; the CNMI Constitution, citizenship, and nationality; the application of the U.S. Constitution to the CNMI; and the land ownership rights of CNMI citizens. Most other provisions of the CNMI covenant may be modified by the federal government without the consent of the CNMI government, and local CNMI laws that were not inconsistent with federal laws or treaties of the United States when the covenant was enacted remain in effect. In addition, international treaty obligations between the United States and other countries apply to the CNMI through the covenant. The covenant initially made many federal laws applicable to the CNMI, including laws that provide federal services and financial assistance programs. The covenant preserved the CNMI’s exemption from certain federal laws that had previously been inapplicable to the Trust Territory of the Pacific Islands, including federal immigration laws with certain limited exceptions and certain federal minimum wage provisions. However, under the terms of the covenant, the federal government has the right to apply federal law in these exempted areas without the consent of the CNMI government. CNMI immigration law currently includes the following provisions for foreign workers, tourists, and foreign investors: Foreign workers. The CNMI currently retains legislative authority over most immigration laws. While it does not have embassies or issue visas in other countries, it regulates entry to the CNMI through a permit system. The CNMI recently passed a bill that establishes new immigration and labor rules for foreign workers in the CNMI, as of January 1, 2008. These rules continue to provide for, among other things, a nonresident worker entry permit for noncitizens entering the CNMI whom the CNMI Department of Labor has certified as eligible for temporary work. Employers seeking work permits for their temporary workers must be able to demonstrate that they advertised the position and were unable to find a qualified CNMI resident, with some exemptions available. CNMI law also contains an employment preference for citizens and permanent residents, requiring that most employers in the CNMI hire at least 20 percent of their employees from these groups, increasing in phases to 30 percent by 2013. Employers with fewer than five employees are exempt from this requirement, and the CNMI Secretary of Labor may grant waivers for construction projects of limited duration and for light manufacturing. CNMI law currently includes a general moratorium on hiring foreign workers, under which employers can renew contracts for foreign workers and can replace current workers with transfers for certain occupations but cannot add to the total number of foreign workers employed in the CNMI. Additional exemptions from the moratorium exist for visitor industry supporting services, certain light manufacturing operations, employers who have hired over 35 percent of their employees from CNMI citizens, and major new developments that benefit the CNMI economy. The moratorium for the tourism industry expired on January 1, 2008; after a gradual phase-out applicable to other industries ends in 2011, all employers will be able to hire foreign workers. The CNMI has developed related regulations, effective February 1, 2008, for hiring and admitting foreign workers and for their subsequent employment. For entry into the CNMI, a foreign worker must provide certain documents to the CNMI immigration authority and sign a form in the worker’s native language attesting to compliance with CNMI immigration requirements. The CNMI Director of Labor must approve the employment contract and the worker’s right to be present in the CNMI. Foreign workers must attend an orientation session upon admission into the CNMI and must carry a valid entry permit with them at all times. Under the standards for employment, employers in the CNMI are required to provide foreign workers with medical insurance, and they may provide additional benefits, such as housing, food, and transportation. CNMI regulations also contain specific requirements for the renewal, nonrenewal, and termination of employment contracts for foreign workers. Compared with previous CNMI law regarding foreign workers, the new law reduces the time for filing labor complaints; requires that almost all CNMI government employees be U.S. citizens or permanent residents; and adds a requirement that most foreign workers leave the CNMI for at least 6 consecutive months during every 3.5 year period, among other changes. Immediate family members of foreign national workers may enter the CNMI for the term of the approved employment contract after the foreign worker has been in the CNMI for 90 days. CNMI employers do not currently have the option to petition for immigrant status of workers under CNMI law. While U.S. lawful permanent residents may work in the CNMI, time spent in the CNMI generally does not count toward the time in the United States required to attain U.S. citizenship. Residence in the CNMI only counts as residence for naturalization purposes for immediate relatives of U.S. citizens; other lawful permanent residents residing in the CNMI currently do not accrue time for naturalization purposes. Tourists. According to the CNMI government, tourists from certain countries may enter the CNMI as part of its entry permit waiver program. The program allows eligible participants to enter for tourism or business for up to 90 days without a visitor entry permit. Noncitizens who are ineligible for a waiver may apply for a visitor entry permit, which is valid for a single entry for 30 days. Visitors entering the CNMI with a visitor entry permit must have a valid passport and a verified round-trip itinerary and must have either a CNMI sponsor or acceptable proof of the financial means to support the visit. According to the CNMI government, information on visitor permit applicants from China is collected and reviewed by the CNMI under the Electronic Visitor Entry Permit Program. No other countries have asked to participate in the program. In addition, Japanese, Korean, and certain other tourists ages 55 and above may enter for up to 90 days under a comity entry permit for citizens of countries that provide a comparable permit to CNMI residents. Foreign investors. The CNMI currently has a foreign investor permit available for an indefinite period of time for individuals who submit evidence of good moral character and who meet all of the requirements of the foreign investment certificate. Foreign investors in the CNMI must maintain an investment of at least $250,000 by an individual in a single investment or $100,000 per person in an aggregate investment exceeding $2 million. The CNMI also offers a retiree investor entry permit requiring a minimum investment of $100,000 in residential property (or $75,000 on the islands of Tinian or Rota) by an applicant 55 years or older. In addition, the CNMI’s long-term business entry permit for holders of a long- term business certificate is valid for 2 years and requires an investment of at least $150,000 in a public organization or at least $250,000 in a private investment. They also must provide a security deposit of $25,000. The CNMI also offers a regular-term business entry permit. Immediate relatives of aliens may obtain an entry permit if they satisfy other requirements of CNMI law and can post a cash bond in an amount of twice the cost of return travel. Noncitizens may apply for entry into the United States as either immigrants intending to reside permanently or as nonimmigrants. The immigrant categories include various employment-based categories for admission to the United States as lawful permanent residents, who are permitted to work in the United States as part of their immigration status. The nonimmigrant categories for temporary admission include diplomats, visitors for business or pleasure, treaty investors, students, journalists, teachers, fiancés or fiancées of U.S. citizens, extraordinary artists or athletes, and workers who meet certain requirements, among others.