The islands have few natural resources, and imports far exceed exports.
Labor
In 2007, the Marshall Islands joined the International Labor Organization, which means its labor laws will comply with international benchmarks. This may impact business conditions in the islands.
Taxation
The income tax has two brackets, with rates of 8% and 14%. The corporate tax is 11.5%. The general sales tax is 6%. There are no property taxes.
Foreign assistance
United States government assistance is the mainstay of the economy.
Under the terms of the Amended Compact of Free Association, the U.S. will provide US$57.7 million per year to the Marshall Islands (RMI) through 2013, and then US$62.7 million through 2023, at which time a trust fund, made up of U.S. and RMI contributions, will begin perpetual annual payouts.
The United States Army maintains its Ronald Reagan Ballistic Missile Defense Test Site on Kwajalein Atoll. Marshallese land owners receive rent for the base, and a large number of Marshallese work there. The main airport was built by the Japanese during World War II.
The only tarmac road of the capital was built partly by the Taiwanese and partly by the Americans.
Agriculture
Agricultural production is concentrated on small farms. The most-important commercial crops are coconuts, tomatoes, melons, and breadfruit.
Industry
Small-scale industry is limited to handicrafts, fish processing, and copra.
Fishing
Fishing has been critical to the economy of this island nation since its settlement.
In 1999, a private company built a tuna loining plant with more than 400 employees, mostly women. But the plant closed in 2005, after a failed attempt to convert it to produce tuna steaks, a process that requires half as many employees. Operating costs exceeded revenue, and the plant's owners tried to partner with the government to prevent closure
