Caribbean island with the status of United States commonwealth.
As a Spanish colony between 1492 and 1898, Puerto Rico principally exported sugar and sugar products such as rum. During the Spanish-American War of 1898, a U.S. military force seized Puerto Rico, which Spain then ceded to the United States. The United States had pledged in 1903 under the Platt Amendment not to annex Cuba, but it had made no such promises about Puerto Rico. Many Puerto Ricans saw American annexation as an attractive way to establish commercial and economic ties, and many islanders wanted to become a territory with an eye on possible statehood. Prior to World War II, Americans invested heavily in Puerto Rican sugar, and the industry boomed while other sectors in Puerto Rico languished.
Puerto Rico’s status has been a bone of contention between the island and the United States since its annexation. In 1952, Puerto Rico drafted its own constitution and gained U.S. commonwealth status, which gives Puerto Rico a degree of autonomy over its own affairs. The Puerto Rican government has its own tax structure, and residents do not pay federal U.S. taxes. At the same time, Puerto Rico uses the U.S. dollar as its official currency and is exempt from U.S. customs duties. Furthermore, Puerto Rico is subject to American minimum wage laws, and Puerto Rican residents are free to enter, work, and travel within the United States. Because of tax breaks in Puerto Rico and freedom from U.S. customs duties, several American corporations have invested heavily in the island since the 1950s. As a result of American ties, Puerto Rico is the most industrialized and wealthy state in the Caribbean. However, Puerto Rican development pales in comparison to even the poorest states in the United States. In 2003 Puerto Rico remains a territory of the United States. Its people have all the privileges of U.S. citizens except the right to vote in national elections.
