APPAREL MANUFACTURING

pparel manufacturing has grown steadily in the FSM due to a combination of skilled worker availability in the FSM, quota-free exports to the USA, and the willingness of FSM states to allow foreign workers to comprise a portion of the labor force in the manufacturing facilities.

Apparel manufacturing is largest in Yap, with a facility recently established in Pohnpei.

All states are actively seeking investors from the USA, Hong Kong, Taiwan, or China to develop additional factories to take advantage of the FSM's quota-free status.

For information on specific investment opportunities, see the state sites or contact the state investment promotion contacts

U.S. Import/Export Incentives

Quota-free exports to the US under the Compact of Free Association.  However, duty must be paid at the Most Favored Nation rate.