Barceloneta

Barceloneta exists because Section 936 existed. The 1976 federal tax exemption that allowed U.S. corporations to repatriate profits from Puerto Rican subsidiaries tax-free transformed this northern coastal municipality into "La Ciudad Industrial"—the Industrial City. Pharmaceutical companies arrived in the 1970s; at peak, Barceloneta supplied all Viagra for North America. The tax incentive expired in 2006, but the manufacturing infrastructure remained.

Puerto Rico's pharmaceutical positioning survived incentive sunset through comparative advantage that regulation created. The island ships over billion in biopharmaceuticals annually to 120 countries—more than twice second-place Indiana. Fiscal year 2024 saw .3 billion in pharmaceutical exports, representing 74% of Puerto Rico's total export value. The industry provides 30% of GDP and 78,000 jobs. Barceloneta remains central: AbbVie's cogeneration plant there powered both the facility and a local bakery after Hurricane Maria demonstrated grid vulnerability.

The same concentration that creates export dominance creates fragility. When Maria struck in 2017, global pharmaceutical supply chains learned that saline bags, certain cancer drugs, and specific generics depended on Puerto Rican production that Caribbean hurricanes could interrupt. Manufacturing costs remain 15-20% below mainland equivalents; Act 60's 4% corporate tax rate undercuts the federal 21%. But energy infrastructure remains unreliable, physicians age without replacement, and Medicaid cuts threaten the healthcare ecosystem.

**By 2026**, Barceloneta will test whether pharmaceutical concentration compensates for infrastructure vulnerability. The 4.76% projected compound annual growth through 2029 assumes reliable power, stable tax treatment, and workforce continuity. Whether any of these assumptions holds—or whether the next hurricane season demonstrates concentration risk again—depends on infrastructure investments now competing with federal budget priorities.