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July 03 Newsletter Our 5th Year Cuba Trade & Investment News A service of NORTH AMERICAN PARTNERS, Tampa, FL, USA, a marketing management firm connecting business to new markets. Vol. V, No. 7 July 2003 t Embargo UpdateYear Annive Economy h Year Anniversar WASHINGTON BLOCKS TRADE FAIR CABINET RESHUFFLING CONTINUES Reacting to Cuba’s recent crackdown against hijackers and Amid a slumping economy, the Cuban U.S.-connected political dissidents, the U.S. government Council of State gave the boot to two key denied PWN Exhibicon International a license to host a second ministers. The move is part of a reshuffling agricultural and food fair in Havana. The Connecticut-based of an economic team that has so far failed company had planned a follow-up in January 2004 to last to revive Cuba’s stagnant economy. September’s wildly successful fair that generated an estimated Observers expect more replacements as $92 million in sales for U.S. companies. Fidel Castro tries to restart growth with OFAC also denied PWN Exhibicon a license to host a younger executives. separate health products fair in Cuba. PWN held its first Finance and Prices Minister Manuel Gone: Millares healthcare fair in Havana in 2000. Millares Rodríguez, 69, was replaced by Treasury’s Office of Foreign Assets Control (OFAC) Georgina Barreiro Fajardo, 39, a vice president at the Central declined to comment, but said in a statement that the decision Bank. After eight years in the post, was “based on foreign policy guidance received from the Millares will be reassigned to “other Department of State.” tasks,” official daily Granma wrote in a June 20, John Kavulich, president of the U.S.-Cuba Trade terse note. and Economic Council and one of the organizers of the fair, Two days earlier, Transport Minister told Reuters that companies, state agriculture officials and Alvaro Pérez Morales, 54, was replaced Congress members are pressing the State and Treasury by Carlos Manuel Pozo Torrado, a 40- departments to reverse their decision. year-old engineer who previously Gone: Pérez Morales Cuban official media are speculating the license denials headed the Department of Construction, could be a first step in an effort by the Bush administration to Transportation and Communications of the Communist Party’s limit trade with the island. However, since the license denials, Central Committee. No reason was given for that shift either. Washington has allowed wood sales (see news on page 2) and granted visa to two Cuban cattle inspectors. The veterinarians GDP: No recovery in sight in June visited cattle ranches in 10 states, including Florida. The semi-independent Centro de Estudios de la Analysts interpret the administration’s contradictory signals Economía Cubana (CEEC) in Havana predicts a modest as an effort to avoid all-out conflict with agribusiness interests 1.5% growth of the island’s economy, making 2003 the while trying to please Cuban exiles. third subsequent year that economic growth has fallen More embargo news on page 2 below government expectations. Government officials had originally set 3% as their economic growth target for this year. Cuba’s economy grew just 1.1% in 2002, 2.5% in 2001 and 5.3% in 2000. I N S I D E T H I S I S S U E Leading officials recently announced that the miserable Cuban trademark wars: condition of public transportation in Cuba couldn’t be improved A new way to peace and security? due to the economic crisis. The number of road accidents and deadly railroad crashes rose considerably last year. The two appointments were made on recommendation by page 3 the Politburo of the Communist Party’s Central Committee, which is headed by Fidel Castro. Cuba buys lumber, beef, pork............................................2 Cuba fired four of six deputy ministers at the Economy and Lula endorses Petrobras deal..................... .................. 5 Planning Ministry in March, sparking speculation that Minister Accor pulls out of Novotel Miramar..................... ........ 6 José Luis Rodríguez would also be forced out. In December, the construction minister was replaced. More economy news on page 2 M o r e E m b a r g o N e w s M o r e o n C u b a’ s E c o n o m y CUBA BUYS LUMBER, BEEF, PORK CASTRO LASHING OUT AT EUROPEAN UNION Despite a war of words between Havana and Washington, Cuba’s crackdown against dissidents and hijackers has Cuba is continuing to buy more food and agricultural products. triggered a conflict with its biggest trade partner, the European Lanahan Lumber Co. of Jacksonville, Fla., announced it Union. So far trade and investment have not been affected in a closed a sales contract for softwood lumber with Cuba. It took major way by the row. company president Michael Lanahan six visits to Cuba since After the EU froze Cuba’s application for membership in September to seal a deal for 360 containers in 2003, with an the Cotonou Agreement and recommended its member option for 800 more over the next year. In June, Lanahan began governments to limit high-level governmental exchanges, the shipping orders twice monthly out of Jacksonville and Cuban government reacted by accusing the EU of caving in to Gulfport, Miss. U.S. pressure, organizing mass demonstrations in front of the The lumber will be used mainly to rebuild homes destroyed Italian and Spanish embassies in Havana, closing Spain’s by hurricanes and make pallets to move goods shipped from cultural center in Havana, and calling Italian and Spanish U.S. farms. leaders Silvio Berlusconi and José María Aznar fascists. Negotiations are also underway between Cuban officials and European another Florida company in the Tampa Bay region for the sale diplomats say of lumber. investment, This is the first time the Cuban government is going beyond trade and food in its U.S. purchases. tourism could Also, food importer Alimport S.A. is now including beef be hurt if ties and pork purchases in its shopping list with U.S. companies. deteriorate Washington has granted visas to two Cuban meat inspectors. further. Italy’s right- LEADING EXILE GROUP SELLS OFF ASSETS Castro: ‘Benito Berlusconi’ and ‘Führercito’ wing Attempting to stabilize its financial situation, the Cuban- government already cut $45 million in aid. American National Foundation (CANF) is selling off most of However, the EU is not likely to impose any sanctions its real estate holdings. beyond those previously announced, and most European Only two years after buying it, the governments have soft-pedaled the conflict since. Spain, foundation put up its Washington Cuba’s largest trade partner in Europe, said it will maintain “embassy” and another building in the economic ties with Cuba. Belgium’s foreign minister rejected capital for sale. Also, the foundation is the idea of sanctions against the island. In June, a high-profile trying to find a taker for the Freedom British business delegation toured the island, and Austria Tower in Miami, which just underwent a signed a judicial cooperation agreement with Cuba. costly renovation. Miami-Dade Community College recently rejected a No EU embargo against Cuba in sight political advance to take over the historical U.S. Secretary of State Colin Powell expressed his delight building near the port of Miami. over what he said could be a coordinated U.S.-EU approach The most influential Cuban exile vis-à-vis Cuba. Cuba was an issue in informal conversations Freedom Tower: at the U.S.-EU summit in Washington in June, but according No takers organization has recently lost clout due to a split with some of the more radical to a source close to EU commissioner Javier Solana, the membership and the bad financial shape of MasTec, the EU continues to reject economic sanctions because they company owned by CANF chairman Jorge Mas. would hurt the Cuban people. More embargo news on page 4 More economy news on page 5 Cuba Trade & Investment News is a monthly publication of North American Partners (NAP), Tampa, FL, USA, for its clients. It has also served as the “Official Publication” of the US-Cuba Trade Association and the 2000 and 2001 US-Cuba Business Summits. Publisher Andrew Goddard P.O. Box 13752 Tampa, FL 33681-3752 USA Tel: 813 839 6988 Fax: 813 831 3811 E-mail: [email protected] Editor Johannes Werner E-mail: [email protected] SUBSCRIPTIONS Call 813 839 6988. One year $215. In Canada and Mexico, add $15 postage. COPYRIGHT NOTICE No part of this publication may be copied, photographed or duplicated without NAP’s consent. 2 U.S.-Cuban legal relations House members pitch trademark and patent bill Members of the House Ways and Means and Judiciary However, there still is no mechanism for U.S. companies to committees in June introduced the “U.S.-Cuba Trademark monitor the accuracy, reliability and stability of the Cuban Protection Act of 2003.” The bill’s sponsors say it will help government’s registration and renewal process. U.S. companies protect trademarks registered in Cuba and Cuba has set up a half-dozen lawyers’ collectives in Havana prevent Cuba from becoming a haven for cyber squatters. such as Bufete Internacional, Consultores de Marcas y Patentes, For the first time in 40 years, U.S. companies are selling Consultores Asociados and others, to deal with international their brand products in Cuba, but patent and trademark issues. The due to a lack of agreements and a typical cost is $550 plus attorney politicization of the issue in the fees. The Cuban lawyers then United States, mutual patent and deal with OCPI. Registrations trademark recognition is shaky lapse after 10 years if they aren’t on both sides of the Florida renewed.
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