Vol. XI, No. 4 www.cubatradenews.com April 2009 IN: Raúl’s Reshuffle OUT: Trying to stamp his mark of pragmatic problem solving Carlos Lage, 57 General and teamwork on government, Raúl Castro presided over José Amado Ricardo Guerra the biggest government restructuring in Cuba since the lost his job crisis year 1994. of cabinet secretary Cabinet secretary On March 2, the Council of State announced the release ? of 10 ministers, appointment of eight new ministers, and expansion of portfolios for two ministers. As part Felipe Pérez Roque, 43 Bruno Rodríguez Parrilla, 51 of the reshuffle, the ministries of foreign trade a n d f o r e i g n lost his job Foreign minister investment were merged, as were of foreign minister those of the food i n d u s t r y a n d fishing. Otto Rivero Torres, 41 Rodrigo Malmierca Diaz, 52 The majority of the appointees — including at least two of the three military men — can be considered technocrats with ample lost his leadership Foreign investment of the “Battle of Ideas” and trade minister experience in their fields. After adding three soldiers to his cabinet, 10 military men are now in top positions. According to official communication, the cabinet Marino Murillo Jorge, 48 reshuffle is part of an effort to make government more José Luis Rodríguez, 63 efficient and distribute functions more evenly. The most Economy minister tangible result of the recent changes is the elimination of lost his job and vice president parallel structures within the institutions of the state. of economy minister With the release of Otto Rivera, who had been in Continued on next page Obama may ease travel, permanently President Barack Obama is pondering whether to ease Cuba travel restrictions via executive order, before facing anti- embargo pressure from Latin American heads of state at the INSIDE Summit of the Americas April 17-19 in Trinidad and Tobago, two U.S. newspapers reported. Oil: Offshore activity speeding up...... page 7 A travel-easing law passed in early March by Congress is Cupet, on its own, says it’s coping OK...... page 7 only temporary and leaves restrictions intact (see page 9). Anti-travel ban bill gets big send-off...... page 8 Citing “senior administration officials,” both the Washington Cuba cuts spending...... page 10 Post and Wall Street Journal said Obama is considering instructing the Department of Treasury to provide “more Opinion: Embargo easing poses challenge...... page 3 leeway to ease the licensing requirements.” Analysis: U.S. tourism scenarios...... page 3 The “decision is not yet final,” one official said, according to the Washington Post. By the Numbers: Cuban tourism...... page 14 The executive order would allow Cuban Americans to visit family as often as they want, and lift limits on remittances, according to the Wall Street Journal. But the Washington Continued on page 8 ‘Raúl’s Reshuffle,’ from previous page OUT: IN: charge of Fidel Castro’s “Battle of Ideas,” the future of José M. Myiar Barrueco that program is cloudy. The “Battle” has been a richly Raúl de la Nues Science minister, funded program that superseded ministries. Also, the now also in chage new science minister is now in charge of Cuba’s biotech lost his job of Scientific Pole “Scientific Pole,” which had previously reported directly of foreign investment to the Council of Ministers. minister Lina Pedraza Rodríguez One foreign observer in Havana interpreted the changes as an expression of “Raúl’s different style of governing.” Minister of finance “In Fidel’s system, only one person and prices Georgina Barreiro Fajardo took all the decisions. Until maybe mid- 2006, Fidel and his shadow cabinet lost her job micromanaged many aspects of the María del Carmen of minister of finance Concepción González economy. Now, you have ministers that and prices are really in charge of their portfolio.” Minister of food Many of the new faces are fairly unknown, even to industry and fishing Cubans. The biggest question mark is General José Amado Ricardo Guerra, who replaces the popular Carlos Lage Fernando Acosta Santana, 47 as cabinet secretary. Little more is publicly known than General Salvador Pardo Cruz the fact that he was secretary of the current minister of lost his job defense, and that he worked under Raúl when the younger of iron, steel and Minister of iron, Castro was defense minister. heavy machine steel and heavy minister machine industries Former President Fidel Castro supported his brother’s moves by defenestrating two well-known politicians continued on page 5 Note from the Publisher Congress is awakening to the reality that the U.S. trade embargo against Cuba hurts ordinary Americans more than it does the Castro government. As the new administration Cuba Trade & Investment News is a monthly publica- considers revising the hardline position of the Bush tion of Trade & Investment Publications LLC (TIPs), Administration, a bipartisan group of U.S. representatives Tampa, FL, USA. CTIN is distributed to subscribers via and senators, plus important Cuban American leaders within mail or e-mail. the Cuban-American community, staged a noteworthy press Publisher Andrew Goddard conference in Washington (see news on page 8). The Cuban- P.O. Box 13752 Americans “hit it out of the park,” leaving little doubt about Tampa, FL 33681-3752 USA the support for “travel for all” from the Cuban-American Tel: 813 839 6988 community to travel to Cuba without U.S. restrictions. Fax: 813 831 3811 Foreign visitors are central for the Cuban economy, and [email protected] their growing numbers positively affects all other areas. The www.cubatradenews.com “Florida Strait” column on p. 3 shines a light on the role U.S. Editor Johannes Werner visitors may play in easing Cuba’s cash crunch. But with the Tel: 941 330 0303 waning embargo, as the column points out, U.S. policy makers [email protected] must think about how to extend credit to Cuba. Editorial Advisors If you have already peeked at the back of the book, you Chris Aberle, FCStone, Des Moines may have discovered the “By the Numbers” section. This Kirby Jones, US-Cuba Trade Assn., Wash. DC feature is our response to requests from readers whose job David Lyons, Daily Bus. Review, Miami requires recent, relevant and reliable statistics. Finally, I wish John McAuliff, FFRD, New York to welcome our growing readership in Canada, the United Phil Peters, Lexington Institute, Washington Kingdom, Europe and Latin America. SUBSCRIPTIONS Call 813 839 6988. One year $350. In Canada and Mexico, add $15 postage.
COPYRIGHT NOTICE No part of this publication Andrew Goddard — [email protected] may be copied, photographed or duplicated without TIPs’ consent.
2 Florida Strait Analysis Easing the travel ban: The impact The easing of U.S. travel restrictions is imminent. Below, we are compiling news and perspectives on the economic impact. Most Cuba travel players believe Very timely, Cuba almost finished an that U.S. travel will pick up in the near expansion of Terminal 2 and customs future. facilities at José Martí International An official of Havanatur Airport in Havana, the building told Reuters that Cuba’s main where all U.S. flights arrive By Johannes Werner tour operator for U.S. tourists and leave. expects “a good influx of But, although much of the Embargo easing U.S. visitors” as a result of recent tourism infrastructure on poses challenge relaxing travel restrictions in the island was built with U.S. the United States. Meanwhile, tourism in mind, the Cuban Congress’ passing of a temporary Rob Hodel, owner of Tico government is downplaying travel-easing law in March is only a Travel in Fort Lauderdale, Rep. Kathy its preparations for a possible baby step. But it is the first indication went through the expense of Castor: Free tourism boost from the United of something bigger: A U-turn in issuing a press release via PR family visits States. Washington’s Cuba politics. Newswire, saying he expects would triple The tourism ministry “is That’s, of course, great news. a rush of travelers. travel volume preparing to be able to respond However, the unfreezing of U.S.- What triggers this optimism to the market,” Deputy Tourism Cuban relations also has tricky is the sharpest U-turn in U.S. Minister María Elena López consequences for U.S. companies politics on Cuba in decades. Once we recently told reporters in Havana. Current already doing business on the island. accept the tidal change in politics as a projections, however, are solely based on That’s because, once the United fact, the question is for what kind of Cuba’s traditional feeder markets, she States definitely eases payment growth to plan. said. Cuba continues to project Canada restrictions, they will lose their cash- Of course, it all depends on politics. as the No. 1 source of tourism. in-advance privilege, the unusually The travel-ban easing law passed Given that much depends on how comfy cushion the Cubans were in early March allows family visits Cuba reacts to changes on the U.S. forced to provide their U.S. suppliers once a year instead of every three side, we decided to be as cautious as the due to U.S. restrictions. years. This will sure produce a rise in Cubans. The most likely scenario for U.S. exporters, let’s be frank: travel. However, since the law only the industry over the mid-term seems Thanks to this cash privilege, temporarily blocks enforcement of to be a return to Clinton era-style your sales to Cuban state importer restrictions that will otherwise remain restrictions, allowing limited travel for Alimport have been almost eerily on the books, and since travel agencies all Americans. smooth, compared to the way your and charter airlines can still be held Which is not bad at all, if you are a Canadian, Latin American, European liable for servicing non-qualified travel agent or charter airline. Today, and Asian competitors must do travelers once the law sunsets Oct. 1, Cuba is welcoming just three to five business with Cuba. U.S. travel providers won’t be opening smaller aircraft from the United States To be sure, Cuba’s current cash the gates just yet for everybody who per day. Before the Bush restrictions in crunch has turned that smoothness a would like to visit Cuba. 2004, Cuba received daily up to 22 flights little rougher lately. Some non-food More travel-easing measures are from U.S. airports. goods under contract have been held coming, though. If recent reports are In Tampa’s effort to join Miami, New up in American ports for as long as correct, the Obama administration York and Los Angeles as only U.S. four months, because Cuban letters is apparently planning to return to airports with direct flights to the island, of credit are not coming through. Clinton-era travel rules within a matter Rep. Kathy Castor (D-Tampa) wrote a As one exporter complained to me: of weeks, via executive order. letter to the U.S. Customs and Border “Alimport has apparently a huge Also, a group of legislators in Protection, the Tampa Tribune reported. liquidity problem, and I am stuck Congress have started an energetic In the letter, she said if Cuban Americans with it.” push to get a law passed that would lift would get freedom to visit relatives on That, in turn, begins to make credit the travel ban altogether. However, the the island, the number of U.S. travelers to or even complex three-way financial law project is facing an uphill struggle Cuba would triple from 10,000 per month deals look comparatively attractive. in Congress. to 30,000 per month. This, in turn, would Another unknown factor in the increase charter flights from three to eight Continued on next page equation is Cuba. to 10 per day.
3 Opinion & Analysis Reading Tip: Post-Castro scenarios The Cuba Wars: Fidel Castro, the United States, and the Next Revolution. Daniel P. Erikson 2008, Bloomsbury Daniel Erikson, the frequently quoted senior associate of the Inter-American Dialogue think tank in Washington, is on a tour to present his latest book. In “The Cuba Wars,” he is putting the spotlight on the scenarios facing Cuba as the Castro era is nearing its end. “Whether writing about Guantánamo, Havana, Miami, or the shenanigans in Washington, Erikson’s reporting, analysis, and his wry sense of irony make The Cuba Wars a lot more fun to read than the serious title implies,” judges fellow Cubanologist Julia Sweig.
‘Florida Strait’ from previous page instruments such as 3-year CDs as payment, using the rising revenue stream from U.S. tourism income as security. The Cubans seem to be interested in negotiating the latter In fact, once travel and finance restrictions are lifted, now, by the way. you don’t have to wait for Congress to act on export Given all this, the inevitable decision U.S. agricultural guarantees, or for the Cubans to move. The most creative exporters will be facing soon is — if they want to stay in and active exporters might be able to put together three- business in this cash-strapped but increasingly important way arrangements involving U.S. tourism providers such as market — they must agree to more flexible financial terms charter airlines or travel agencies. with their Cuban buyers. This wouldn’t be the first time U.S. companies and their Once the financial restrictions are gone, the most obvious Cuban partners get into this kind of three-way contracts. A financial tools at hand for exporters will be 1. Extending few years back, I learned about the following deal: When short-term credit, and 2. Government guarantee programs a now-defunct biotech research firm in California needed for longer-term credit. to pay Cuba royalties for a license to develop and market a Extending short-term credit to buyers is standard procedure. Cuban cancer drug, a major U.S.-based commodity trader But because this implies higher risk, which in turn requires a agreed to supply Cuba with grains worth the equivalent of financial cushion, the already reduced group of smaller U.S. the California company’s fees. The medical company then agribusinesses selling to Cuba could shrink even more. The paid the U.S. commodity trader in cash, with the apparent good news for smaller players is, there’s help for exporters consent of the Bush Administration. extending credit. The U.S. Department of Agriculture’s Of course, such three-way arrangements require Supplier Credit Guarantee Program guarantees a portion of imagination, diplomacy, persistence, trust, reliable partners, payments due from importers under short-term financing and good accountants and lawyers. But it sure beats doing (up to 180 days) that exporters have extended directly to the no business at all. importer. These direct credits must be secured by promissory *** notes signed by the importer. The dynamics of Cuban American politics have changed: What U.S. exporters have been eyeing most eagerly are Doing business with Cuba is becoming mainstream in Miami. export guarantees, since their competitors from Canada, Asia, This was manifest during a Cuba business conference in Europe and some Latin American countries receive this type Miami March 19 and 20. While just a handful of senior of support from their respective governments. citizens braved the Florida sun for three or four hours outside The U.S. Department of Agriculture’s GSM-102 export the Hotel Intercontinental to protest the Cuba Trade Expo, credit guarantee program, which backs up commercial inside I saw many new faces among the sizable crowd. loans for terms up to three years, could kick in once U.S. I saw American businesspeople that recently discovered commercial banks are allowed to grant credit to Cuba. The Cuba (including conference organizer Jonathan Bedard, a inclusion of Cuba in both programs after financial restrictions Massachusetts developer), a retired U.S. diplomat who served are lifted would, of course, have to clear a challenging at the U.S. Interests Section in Havana in the 1990s, and long- political obstacle course in Washington. And that will, as we time embargo defenders such as Carlos Saladrigas. all know by now, take time and patience. The Miami insurance tycoon and co-founder of the Cuba Anyway, given the current cash crunch on the island, even Study Group is one of many Cuban Americans who believe long-term loans may not look that attractive to Alimport that now is the time for engagement. Just a few years back, executives right now. After all, every loan must be repaid. Saladrigas would definitely not have shown up at such an That’s where more creative payment arrangements come in. event, let alone give a panel presentation. Think, for instance, about the possibilities coming into play once U.S. travel restrictions are lifted. Cuba might want to — Johannes Werner is editor of Cuba Trade & Investment as they did with a major Canadian partner — offer financial News
4 E c o n o m y ‘Raúl’s Reshuffle,’ from page 2 follies with my silence.” and confidantes Raúl had sidelined in the reshuffle. In a Coinciding with the cabinet reshuffle, two veterans of the column, Fidel sent an indirect signal that personal ambitions, revolution, Pedro Miret, 82, and Osmany Cienfuegos, 78, impatience, and positioning for Raúl’s succession had no retired as vice presidents, due to health and professional place in Cuba’s power elite. Without naming them, the reasons. The Cuban Council of Ministers includes six leader of the revolution in a column harshly criticized vice presidents, five of which have been changed under Vice President Carlos Lage and Foreign Minister Felipe Raúl Castro. Pérez Roque for having “enjoyed the honey of power, for In a note announcing the reshuffle, the Council of which they have known no sacrifice.” The commander State hinted at more changes to come. Cuba’s leadership of the revolution accused them of having fostered will “continue studying the actual government structure, “ambitions that led them to an unworthy role,” which in with the objective of gradually reducing its complexity turn “filled the external enemy with illusions.” and raising its efficiency,” the note said. In similar-worded letters, both Lage and Pérez Roque Representative of Spanish group arrested accepted non-public Politburo criticism, admitted to “errors,” Cuban police in mid-March without further explanation, and resigned from all their posts. detained the Cuba representative of The “indignity” of their acts aside, neither of the two has been a regional Spanish business office accused of any wrongdoing. Both will continue as members at the airport in Havana when he of the communist party. was trying to leave the country, Mexican magazine Proceso said diplomats and foreign Spain’s El Mundo reports. businesspeople believe Lage took important decisions benefiting Conrado Hernández who is a foreign businesses and governments, sometimes without Cuban citizen, remained in jail as of consulting his superiors. He also had differences on economic early April. Following Hernández’ issues with members of the Council of Ministers. Pérez Roque, arrest, Cuban law enforcement according to diplomats asked by the magazine, dashed ahead searched the Havana offices of by contacting members of the Obama Administration, and he the Sociedad para la Promoción Hernández Correo Digital used the foreign ministry for personal issues. y Reconversión Industrial (SPRI), The public defenestration of the pair triggered calls on leftist a business organization of the forums that debate Cuban politics from a friendly perspective regional government of the Basque Country, confiscating — Spanish publication Rebelión and the Kaos en la Red Web computers and papers. site — to make the Politburo’s criticism of the two public. The Cuban government has neither announced the Participants in the forums also expressed criticism of the non- detention, not has it publicly explained what Hernández institutional power Fidel Castro is wielding. is accused of. The Spaniard has been associated with Otto “If I expressed my opinion about the cabinet changes, it was Rivero Torres, the head of the “Battle of Ideas” program. due to the necessity to cut short the gossip about a conflict Rivero in March was released from his post. The politician between the men of Fidel and those of Raúl,” Fidel Castro later had traveled frequently to Spain’s Basque Country, partly defended himself, asked by sociologist Atilio Borón, according to visit a generator manufacturer that supplied hardware to Argentina’s Página 16. “I couldn’t afford to support these to Cuba’s “energy revolution.” advertisement
5
E c o n o m y Cuba: Eight offshore wells in three years Using an annual oil and mining conference La Jornada. “And we have high expectations to in March as stage, Cuba is trying to overcome find large accumulations.” a low-price slowdown by projecting an image Meanwhile, after some back and forth, a of accelerated offshore activity. consortium led by Spain’s Repsol YPF decided The seven foreign companies holding rights to begin offshore drilling this year. According to 21 of 59 blocks in Cuban waters of the Gulf to Cuban officials, the consortium will begin will drill at least eight wells in the next three drilling in June or July. years, Manuel Marrero Faz, senior oil adviser Before the conference, the consortium, of Cuba’s ministry of basic industries, said consisting of Repsol, Indian state company at the 2nd Cuban Congress of Oil and Gas in ONGC Videsh, and Norway’s Norsk Hydro, led Havana. discussions with Cuban partner Cupet regarding Cuba requires companies who contract low oil prices and difficulties of finding a rig offshore blocks to begin drilling within a time that complies with U.S. embargo restrictions, frame, or otherwise abandon the block. Mexican drilling rig in the according to Reuters. The rig issue has been A PdVSA official said at the meeting that Gulf photo: Chad Teer resolved, according to Reuters. the Venezuelan state company had found Finally, Petrobras officials said at the indications of “large accumulations” of crude conference the Brazilian company would soon in four Cuban blocks off the western tip of the island. begin seismic studies. Brazilian Energy Minister Edison Lobao “We have high expectations,” José Noya, an executive with recently said that Petrobras could begin drilling in Cuba within the exploration arm of PdVSA, told Mexico’s La Jornada at a year. Petrobras signed a 32-year exploration and production the conference. According to preliminary studies, the reserve agreement with CubaPetróleo, which includes a seven-year found by the Venezuelans is connected to the big Cantarell oil exploration pact on Block 37. field in southeast Mexican waters. Also at the conference, Cuban officials announced they Noya said that PdVSA will begin to drill its first exploratory are negotiating with representatives of Russian, Chinese and well in Cuba at the end of next year. “A general conclusion is Angolan oil companies about granting rights to more offshore that the potential that exists in the area is very high,” Noya told blocks. A Russian consortium that includes state company Gazprom is interested in 15 blocks, according to the ministry Cupet, by itself, says it’s OK of basic industries. China National Petroleum Corp. and Facing the challenge of having to run all operations by Angolan state company Sonangol are negotiating about eight itself after buying out two Canadian oil companies, Cuba blocks. All these blocks are located in the sector northwest wants to maintain production levels of its on-shore and of the island. near-shore wells this year, Manuel Marrero Faz, senior Oil officials said at the conference that Cuba began two years oil adviser at the ministry of basic industries, said during ago to build out the port of Mariel, just west of Havana, as a the 2nd Cuban Congress on Oil and Gas. Last year, Cuba logistics base for offshore drilling. Facilities include an airport, produced 4 million barrel of oil. heliport, storage, and general services that are scheduled to During the first two months of the year, Cuban oil workers begin functioning when Repsol begins drilling again. in Matanzas province, the island’s main oil area, extracted 205,000 tons of crude, nearly 9,000 tons more than in the ISLAND GETS BIOMASS MINI-PLANT same period a year ago, according to Radio Rebelde. In a pilot project for isolated communities, Unión Eléctrica Marrero said CubaPetróleo engineers have identified and the United Nations Industrial Development (UNIDO) are new heavy crude reserves off the northern coast of installing a biomass generator at Cocodrilo, a small fishing Matanzas. In February, Cupet workers began drilling their village on the Isla de Juventud. first horizontal near-shore well on the coast of Matanzas The plant will include a 50-kw generator, fueled with province, the Varadero 1000. a mix of diesel and gasified forest biomass from a nearby natural reserve. The village is CUBA MAY SHUT DOWN NICKEL PLANTS not connected to the island’s Reacting to slumping nickel prices, Cuba may be temporarily larger grid. closing two state-run plants, Reuters reports. The partners will set up According to a foreign source “close to the industry,” another biomass plant at the Cubaníquel is considering to shut down two inefficient state- village of La Melvis, also on run plants that produce unrefined nickel and cobalt. the island. A joint venture plant operated by Sherritt International Corp. The Cuban personnel was Biomass generator is not affected, according to the Reuters article. trained in India. in an Indian village
7 E m b a r g o Travel-ban lifting bill gets big reception on Hill Dashing ahead of a cautious White House, a sizable group Martinez and Bill Nelson, promised to fight the bill. Last of Congressmen launched corresponding standalone bills in year, a similar bill was beaten twice in the House by more late March that would entirely lift the Cuba travel ban. than 50 votes. The Cuban American National Foundation, The initiators believe they have mustered enough votes to get which has helped Barack Obama’s election campaign and the law passed. S 428 and HR 874 garnered broad bipartisan supports the easing of family travel restrictions, distanced support in both the Senate and the House. Twenty senators are itself from the bill. sponsoring the bill, as are 125 House representatives. Among others, House Speaker Nancy Pelosi and Richard Lugar, the C u b a n A m e r i c a n s top Republican on the Senate Foreign Relations Committee, supporting an end of are supporting the bill. the travel ban, at a press “I think there’s sufficient votes in both the House and the conference announcing Senate to finally get it passed and get it to the president,” Sen. the House version Byron Dorgan (D-N.D.) said during a press conference. of the bill (l. to r.): Business and farm groups are lobbying hard in favor of Silvia Wilhelm (Cuban photo: LAWG the travel bill; Washington-based Human Rights Watch also American Commission endorsed the bill. for Family Rights), “The U.S. embargo is a 50-year failure, and lifting the ban Ignacio Sosa (Cuba Study Group), Alfredo Durán (Cuban on travel is a good first step toward a more rational policy,” Committee for Democracy), and Bishop Felipe Estévez, said Myron Billiant of the U.S. Chamber of Commerce. Auxiliary Bishop of the Archdiocesis of Miami. The pro-embargo caucus, including Florida Senators Mel
‘Obama may ease travel,’ from page 1 Brazilian President Luiz Inácio Lula da Silva said it’s time for the United States to accept the leftist governments of Will Obama get to feel Latin America and end its embargo. “There is nothing any Cuba heat at the Hyatt? more from the political perspective, from a sociological The hotel on Wrightson perspective, from a humanitarian perspective, that impedes Road in Port of Spain the reestablishment of relations between the United States will be the seat of the and Cuba,” Lula said. “It’s not possible in the 21st century summit. to make policy looking toward the 20th century. Let’s think about looking toward the 22nd century.” Meanwhile, Jeffrey Davidow, Obama’s special advisor Post’s source said Obama is pondering easing travel for all for the Summit, told a Trinidad newspaper the United States U.S. citizens and residents. hopes Cuba would not be a major issue at the meeting. In early March, Congress voted in favor of temporarily “I think it would be very unfortunate if the topic of Cuba suspending enforcement of travel restrictions for Cuban were to become the principal issue at this summit and detract Americans, allowing one trip per year, but U.S. critics say the attention from the other important issues,” Davidow told the move does not fulfill Obama’s campaign pledges. Trinidad Express. Also, Latin American leaders are expected to appeal to Vice President Joe Biden made it clear twice at recent Obama at the summit to lift the embargo, countering the meetings in Latin America that Washington is not willing to pressure Obama gets from the right side of the political lift the embargo without concessions from Cuba. spectrum. The previous Summit of the Americas in Buenos There will be change in U.S.-Cuban relations “over the Aires four years ago put a harsh spotlight on a very isolated next decade,” Biden promised reporters after a meeting with George W. Bush. Central American heads of state in Costa Rica. The Obama “President Obama will need all of his charm and rhetorical administration is willing “to reach out” to Cuba, Biden said, ability to thread the needle at Trinidad,” Washington-based but its measures will be “something short of saying ‘We lift Internet publication La Alborada commented. “He faces angry the embargo.’” opposition at home from sectors within the Republican party Biden’s “whining complaints make one feel sorry,” who are already calling him a socialist, and from the remaining Fidel Castro wrote in a column about the Administration’s pro-blockade forces within his own party and in Congress.” insistence on the embargo. “Specially when there is not a “At the April Summit, President Obama will surely be received single Latin American or Caribbean government that doesn’t with enthusiasm and great expectations for better South-North see this antediluvian measure as a burden from the past.” relations. On the particular issue of Cuba, however, he could On April 2, Republican Sen. Richard Lugar urged Obama feel a chill (…) if he fails to live up to those expectations.” to designate a special envoy to Cuba, who would report Speaking before a group of New York investors in March, directly to Secretary of State Hillary Clinton.
8 E m b a r g o Amendment helps travel, not exports An amendment of a major spending bill passed by Congress “substantially change” the restrictions, assuring them Treasury in early March temporarily eases family travel to Cuba, would narrowly interpret the travel provision and essentially allowing one visit per year instead of once every three years, ignore the “cash in advance” provision. and eliminating the need to apply for a specific license. “Any business using the general license would be required to It also cuts some red tape for business travelers to Cuba, provide both advance written notice outlining the purpose and by providing a general license for travel by agricultural and scope of the planned travel, and, upon return, a report outlining medical goods exporters. the activities conducted, including the persons with whom they On the trade side, the amendment includes a provision that met, the expenses incurred, and business conducted in Cuba,” blocks prosecution of exporters who get paid by Cuba for food Geithner wrote in his letter to the senators. and agricultural goods upon arrival at Cuban ports, instead of Critics such as Rep. José Serrano (D-N.Y.) argue that before departure at U.S. ports. However, the “cash in advance” Geithner’s letter is opening up President Barack Obama to regulation remains on the books, and enforcement will begin attacks for selectively interpreting laws passed by Congress, again at the start of the next fiscal year Oct. 1. similar to George W. Bush. “Companies can not be prosecuted until Oct. 1, but can Even so, pro-normalization activists in the United States be afterward unless it is all changed,” says Kirby Jones, a rejoiced, praising the changes as “important steps forward,” Washington-based consultant. “It is meaningless. No company and suggesting the passing of the amendment marks a will violate the law, even if they can’t be prosecuted.” turnaround in embargo politics on Capitol Hill. What’s more, in a move to calm concerns about the business “Senators Bob Menendez, Bill Nelson and Mel Martinez provisions, Treasury Secretary Timothy Geithner in a letter used all their political leverage to remove the Cuba language told pro-embargo lawmakers that the amendment would not from the bill,” said John McAuliff, director of the Fund for Reconciliation and Development. “The best they could get New bill would allow direct payments were face-saving letters from the Obama Administration.” Reacting to the Obama Administration’s restrictive Activists are now urging the president to honor campaign interpretation of an embargo-easing amendment signed into promises of free travel for all Cuban Americans. law in early March, Rep. Jerry Moran (R-Ks.) introduced “President Obama should follow up by issuing an executive legislation that would allow direct payments from Cuban order to eliminate all restrictions on travel and remittances buyers to U.S. banks, and spells it out to the Department for Cuban Americans,” said José Miguel Vivanco, Americas of Treasury that U.S. exporters can receive payment once director of Human Rights Watch. the Cuban buyer takes possession of the goods. The bill TAMPA SEEKING CUBA FLIGHTS also includes wording that would make it easier for U.S. Tampa is seeking to host Cuba charter flights, joining Miami, businesspeople to get travel licenses for meetings in Cuba, New York and Los Angeles as only U.S. airports with direct and allow Cuban officials to obtain U.S. visas for meetings flights to the island. Rep. Kathy Castor (D-Tampa) wrote a and inspections in the United States. letter to the U.S. Customs and Border Protection requesting services at Tampa International Airport to dispatch passengers RAUL MEETS CONGRESSIONAL GROUP to and from Cuba, the Tampa Tribune reported. In the letter, she A congressional delegation left for Cuba April 2 to talk about said if Cuban Americans would get freedom to visit relatives improving relations as well as trade and commerce policies. on the island, the number of U.S. travelers to Cuba would triple The seven-member group consists of participants in from 10,000 per month to 30,000 per month. This, in turn, Congress’ Black Caucus, all Democrats. Led by Rep. would increase flights from three to eight to 10 per day. Barbara Lee (D-Cal.), the delegation includes Reps. Mel Watt (D-N.C.), Emanuel Cleaver (D-Mo.), Marcia Fudge (D-Oh.), JUSTICE HELPS FLORIDA AGENTS Bobby Rush (D-Il.), Michael Honda (D-Cal.), and Laura Raising hopes among Cuba travel agents in Florida, an Richardson (D-Cal.). Sheila Jackson Lee (D-Tx.) joined the opinion handed down by the U.S. Justice Department seems group later. to add ammunition to eventually overturning a state law that The group talked about cultural, health and academic harshly regulates travel agencies that send visitors to Cuba, exchanges during the five-day trip, meeting with President according to the Miami Herald. Raúl Castro and Foreign Minister Bruno Rodríguez Parrilla. In the 35-page report, the Justice Department says the one- Visits of the biotechnology research center CIGB and the Latin year old Florida law interferes with federal regulations. American School of Medicine, where a dozen U.S. citizens “This demonstrates that the Obama administration is are studying, are also on the agenda. obviously only interested in kissing up to the Castro regime “The election of President Barack Obama presents a great rather than protecting Florida consumers from the abuses of new opportunity to rethink U.S. foreign policy in many regions these travel agencies,” said the law’s sponsor, state Rep. David of the world,” Lee said. Rivera, according to the Miami Herald.
9 E c o n o m y Government makes across-the-board spending cuts The Cuban government has quietly ordered state institutions Hard-currency spending controls loosened “at all levels” to shave off 6 percent of spending this year, The Cuban government has loosened hard-currency Reuters reported, citing a commentator on state TV. spending controls on state companies imposed in 2004, Cuban economist Ariel Terrero, according to Reuters, said news agency Reuters first reported, based on information on TV that the move was due to low nickel prices and in from Cuban and foreign businessmen and economists. anticipation of drops in tourism revenues. He also said that Five years ago, anticipating a rush for imports in times some Cuban state companies are having problems getting of fast economic growth, Cuba required state companies financing to import goods, which could lead to a decline in to pass a vetting process by the Central Bank for each production. payment exceeding $10,000. Reuters cites the case of an aluminum plant in Havana that Cuban sources told Reuters that the process had slowed shut down through April, due to lack of raw material. down operations and production, and did little to curb The general cut comes after a four-percent rise in spending spending. in this year’s budget. The Central Bank recently dissolved its “Comité de Citing Spanish businesspeople, Spain’s El Mundo said that Autorización de Divisas” (CAD), and state companies Cuba has been holding back for more than one month funds don’t need a “número de autorización” before signing that Spanish companies would like to send home. contracts anymore, businessmen are telling Cuba Trade The problem is not so much the lack of payment — which & Investment News. is “quite normal,” according to a veteran businessman from “This means two things,” a foreign observer in Havana Spain asked by El Mundo — but obstacles to sending money says. “One, that red tape in foreign trade has bee reduced abroad. This, in turn, creates problems for companies in regards — even though we don’t know how much is left. Two, the to payments for suppliers and others. politics of decentralization are advancing slowly.” In the future, state companies will be assigned funds in a ACOPIO CHANGES MINISTRIES normal annual budgeting process, economists told Reuters, Acopio, the state food leaving company managers more leeway in determining purchasing and distribution hard-currency spending. m o n o p o l y, w i l l n o longer be overseen by the agriculture ministry, CENTRAL BANK DISSOLVES FINAGRI Reuters reported, based on The Central Bank dissolved Finagri S.A., a state non-bank a short announcement on financial institution that granted up to $25 million in loans to state TV and “farmers and Cuban agricultural companies and joint ventures. Central Bank President Francisco Soberón announced the The Domestic Trade Ministry cooperative producers.” dissolution with Resolution 14/2009 in the Gaceta Oficial. is now in charge Acopio, in charge of distributing 90 percent of Havana-based Finagri was set up in 1998 to finance import the island’s agricultural an export of equipment and services, provide loans and credit production, has been a major bottleneck in getting food to facilities, participate in debt refinancing, collect debt, and market in Cuba. The state company has been notoriously provide brokerage services. short of cash to pay farmers, containers and trucks to bring The Central Bank did not explain the dissolution. the harvest to market. In 2002, the Central Bank set up Corporación Financiera Under the new arrangement, the agriculture ministry will Azucarera S.A., a similar institution for the sugar industry. be exclusively focused on production, while the domestic trade ministry will be in charge of distribution. At the same CADECA OFFERS NEW SERVICE time, the number of state produce markets will almost double, In a resolution published in the Gaceta Oficial, the Central from 156 to 300. Bank is authorizing Casas de Cambio S.A. (Cadeca), the Acopio supplies food to state markets and institutions such state-owned chain of currency exchange offices, to also offer as schools, hospitals and company cafeterias. import-duty payment services. President Raúl Castro has repeatedly attacked Acopio for advertisement letting produce rot on the fields, as was the case for the tomato crop earlier this year. Meanwhile, the government granted 56,000 private farmers long-term leases under a one-year old program that provides fallow state land to those willing to cultivate it. However, more than 80 percent of the new farmers have little experience. www.progreso-weekly.com
10 E c o n o m y EU, Cuba discuss triangular cooperation European Union Aid Commissioner unfrozen for Cuban food security programs in Louis Michel visited Havana in March to 2009-2011. hold high-level talks about resuming EU- Michel and Foreign Minister Bruno Rodríguez Cuban cooperation. also said both sides were interested in forming During his 48-hour visit, Michel met with a three-way arrangement under which the Vice President Ricardo Cabrisas, Cuba’s EU would fund Cuban-operated aid projects point man for international economic in the Caribbean, Latin America, Africa and relations, and with Rodrigo Malmierca, Asia. Michel said he had been a “privileged the new minister of foreign trade and witness” of Cuban healthcare programs in investment. EU Commissioner Louis Africa and East Timor, “which is why I am very The next day, Michel participated in a Michel, l., talks with committed, and request triangular cooperation “Cuba-European Commission Conference Ricardo Cabrisas between the European Commission, Cuba, and on Cooperation.” The conference at the developing countries.” hotel Meliá La Habana focused on food Caribbean countries, particularly Haiti, could security, research and development, economic cooperation and be the first beneficiaries of this triangulation. trade, environment, renewable energies and climate change, Cuban officials will travel to Brussels in May to attend a and disaster mitigation. European Union development aid foreign minister meeting. for Cuba in the past has been for about 40 million euro ($52 Michel said in a press conference he was “convinced” the million). EU’s common position on Cuba, in force since 1996, could be Michel announced that the EU is providing 7.5 million euro modified within the “next months.” ($10 million) in post-hurricane aid, in addition to 4 million euro ($5.4 million) in humanitarian aid already delivered in HONDURAS SEEKING CUBA PROJECTS October. Finally, Michel said that 11 million euro will be Two weeks after signing a trade and healthcare cooperation framework agreement in Havana, the president of Honduras, PANAMA, CUBA REDUCE TAXES Manuel Zelaya, met for five hours with the Cuban ambassador Panama and Cuba signed an economic cooperation in Tegucigalpa to evaluate bilateral cooperation projects agreement that includes a mutual reduction of import duties underway in his country under the umbrella of the ALBA trade for a large group of products, mainly food and construction and integration agreement. supplies. According to a statement from the Cuban ministry of foreign The treaty was signed by Panamanian Foreign Minister relations, Cuba is implementing health, eyecare, literacy and Samuel Lewis Navarro and Cuban Vice President Ricardo energy savings programs in Honduras. Among others, Cuba Cabrisas. President Martín Torrijos will leave office June 30. is helping Honduras open a research institute for contagious Bilateral trade was $76 million in 2007. diseases and a Technical Healthcare School. Honduras is also Cuba is providing Panama with literacy campaigns and the negotiating Cuban support for the purchase of generic drugs, Operación Milagro eye surgery program. which would not begin until 2010. Zelaya said he wants to leave high literacy among Hondurans as his main legacy after his term expires in 2010. Neither of the Panama’s Samuel Lewis, frontrunners in the presidential race to succeed Zelaya wants l., and Ricardo Cabrisas to maintain the country’s ALBA membership. signing the economic In a report to Congress, the president said that ALBA can agreement in Havana provide Honduras with resources to search for offshore oil, support to boost food production in the country, technical assistance to build up a state TV network, medical aid for poor Hondurans, support with medical drug imports, scholarship DOMREP, CUBA BOOST COOPERATION programs for Honduran students, literacy campaigns, and During a visit to Cuba in early March, President Leonel energy savings programs. Fernández of the Dominican Republic sustained meetings with Raúl and Fidel Castro, and toured the University of CUBA: CALDERON VISIT ON TRACK Computer Sciences (UCI). The two countries agreed to The Cuban ambassador in Mexico said that Mexican increase cooperation in information technology. President Felipe Calderón still plans to visit Cuba during the Cuba in March began providing literacy services to the first half of this year, “when his agenda permits it,” and that Dominican Republic in a three-year program. Cuban experts both sides are refining the program, according to Mexican news in educational TV and educational software are also in the service Notimex. Relations between both countries are back to neighboring country. “totally normal,” the diplomat said. 11 E c o n o m y ALBA presidents discussing common currency in Caracas The heads of state of ALBA member countries, plus a yet- to-be designated representative of the Cuban government, Venezuela funding ALBA Alimentos will discuss details of the creation of a common currency at The Venezuelan parliament approved an agreement over an extraordinary summit of the ALBA trade and integration food security and sovereignty by the members of the ALBA agreement April 14-15 in Caracas. trade and integration pact and PetroCaribe. Discussion about the common currency, dubbed Sucre, is The agreement includes the creation of ALBA Alimentos, “quite advanced,” Venezuelan President Hugo Chávez said. a company controlled by the governments of the “It’s already decided on a political level,” the said from participating nations. The company will be mainly funded Tokyo. “Now, there’s time and technical work being done by Venezuela. by the finance ministers, the central banks, the presidential ALBA Alimentos will promote cultivation of food representatives, elaborating the concept and all the technical crops and rural development to guarantee food supply at phases, the flows and components of the system.” affordable prices. The currency will first be virtual, a system in which the Cuba is expected to both receive the benefits of ALBA participating currencies are pegged to each other, he said. Alimentos’ services and provide agricultural expertise. Chávez called for the ALBA summit the day before the Last year, before the drop in oil prices, Venezuelan beginning of the U.S.-dominated Summit of the Americas in officials said the program could be as big as $500 million neighboring Trinidad and Tobago. per year. Chávez criticized the exclusion of Cuba from the Summit. MORE CABLE DETAILS RELEASED OAS CHIEF: BRING CUBA BACK Telecomunicaciones Gran Caribe S.A. (TGC), the Cuba should be readmitted to the OAS, the secretary general Venezuela-Cuban joint venture in charge of installing an of the Organization of American States said during a meeting undersea fiberoptic cable from La Guaira to Siboney near in Colombia. Santiago de Cuba, revealed more details about the project at a The OAS should initiate “serious study and dialogue” before press conference in Caracas. welcoming Cuba back, José Miguel Insulza said. The first two stages of the project under the umbrella of the Insulza believes that Cuba’s re-entry into the OAS will be ALBA trade and integration agreement will cost $72 million, preceded by its joining of the Interamerican Development Bank said TGC President Wilfredo Morales. They include the 1,630- and the Pan-American Health Organization. kilometer stretch from Venezuela to Cuba, and the second stage The U.S. argued in 1962 that the ban of Cuba was necessary — 230 kilometers — from Cuba to Jamaica. due to Cuba’s close ties with the Soviet Union and China. TGC recently applied for a license with Jamaica to build “One of the countries has disappeared, and the other is buying and operate the second stage of the project. Jamaica will not a lot of U.S. Treasuries,” Insulza said at the Interamerican contribute to the funding. The Jamaican government is likely Development Bank’s annual meeting in Medellín. to impose a buildout requirement of 12 to 18 months. The pair of cables will increase Cuba’s data, voice and video ...AND THEN THERE WAS ONE transmission capacity 3,000-fold, Morales said. The Venezuela- El Salvador and Costa Rica said they will re-establish full Cuba cable, made and installed by Chinese companies, will diplomatic relations with Cuba. have 10 times the capacity of existing cables in the region, for President-elect Mauricio Funes of El Salvador, who was up to 20 million simultaneous calls, 26,000 TV channels, and running on the ticket of the leftist FMLN, declared he would 640 gygabites for Internet service. seek normal relations with Cuba. Just days later, Costa Rica President Oscar Arías, a long- SUGAR STILL LAGGING time supporter of Washington’s Cuba restrictions, announced Cuba’s sugar harvest is in for another disappointing result. his government would establish regular diplomatic ties within Cuban experts told news agency IPS they expect the total to a matter of weeks. reach 1.4 million metric tons, similar to last year’s harvest. This “That leaves the United States as the only country in would be 100,000 tons below the target of 1.5 metric tons. America that persists in its policy of isolation and economic The low yields, seven years after a radical restructuring that strangulation of the island nation,” commented Washington- eliminated roughly half the industry’s capacity, come in spite based Internet publication La Alborada. of ideal climate, the fact that imported supplies arrived in time Thomas Shannon, assistant secretary of state for hemispheric before the season began, and a new salary structure that includes affairs, said in a press conference in San Salvador after Funes’ performance bonuses, partially in hard currency. election that El Salvador is “a sovereign state,” and that the The experts blame frequent breakdowns of the aging Obama Administration would “respect the sovereign decisions” machinery in the 51 sugar mills that have been operating of Funes’ government. during this harvest. 12 E m b a r g o U.S. artists stage big show in Havana In what is the biggest exhibit of U.S. art in Cuba since 1986, this year’s Biennial of Art in Havana is hosting “Chelsea visits Havana.” The group show of 30 artists who live and work in this district of New York City, was organized by Alberto Magnan, a Cuban American and owner of a gallery in Chelsea, “Castrobama,” right, and Dara Metz. Alberto Magnan, below. The show, at the Museo de Bellas Artes in Havana, includes a sculpture by Padraig Tarrant called Castrobama, showing the profiles of former President Fidel Castro and President Barack Obama. The Bush Administration frequently denied U.S. artists travel licenses to Cuba. Under the Berman Amendment of On the other hand, the U.S. 1988, art has always been allowed to cross U.S. borders in Treasury Department did not both directions. provide a travel license to New Curator Abelardo Mena of the Museo de Bellas Artes told York resident Setsuko Ono, sister Reuters that the U.S. government had been very cooperative of John Lennon widow Yoko Ono, in getting the artwork to Cuba. to participate in the Biennial. CHURCH LOSES SPECIAL STATUS LAST U.S. PAPER SHUTS BUREAU Cuba is rescinding a 1997 covenant that had allowed the The last U.S. newspaper with a bureau in Havana is Florida United Methodist Conference to maintain close calling back its correspondent, AFP reported, due to financial relations with Cuban Methodists, Florida Bishop Timothy problems. Whitaker announced, according to the Lakeland Ledger. The Fort Lauderdale Sun Sentinel’s Ray Sanchez follows Although the Cuban government said it wants the the fate the Dallas Morning News’ and Chicago Tribune’s relationship between the churches to continue, the change correspondents suffered over the past three years. may lead to fewer and more tightly controlled Cuba visits, This leaves the Associated Press and CNN as the only U.S. the newspaper suggested. media left with permanent presence in Cuba. According to Whitaker, the Cuban minister for religious The Sun Sentinel belongs to the Tribune Co., which has affairs had requested a meeting with him and his Cuban been in bankruptcy since December. The newspaper opened counterpart to express the government’s concern about its Havana bureau in 2005. the uniqueness of the covenant. The Cuban government had approved the covenant between the Cuba and Florida CLASSIC: CUBA OUT IN 2ND ROUND Methodists 11 years ago, which allowed at least two dozen Falling victim to the strong showing of East Asian teams in visits last year and the ability to send $72,000 and material this year’s edition of the World Baseball Classic, the Cuban assistance in hurricane aid to the Cuban church. national team was eliminated by Japan in the quarterfinals of the tournament. FIRST OFAC ACTION UNDER OBAMA Two Cuban players, Frederich Cepeda and Yoennis Céspedes The Office of Foreign Assets Control (OFAC), now under were selected for the tournament’s All-Star Team. Treasury Secretary Timothy Geithner, fined the U.S. subsidiary During some of the games of the Cuban national team during of French milk producer Lactalis $20,950. According to the World Baseball Classic at Petco Stadium in San Diego, a OFAC, Buffalo, N.Y.-based Lactalis USA violated restrictions digital advertisement flashing “Viva Cuba,” the logo of a Cuban by making six payments to institutions “in which Cuba or tourism ministry campaign, appeared behind home. Cuban nationals had an interest” between February 2004 and The organizers of the tournament, Major League Baseball March 2007. This was the first enforcement action of OFAC and Major League Baseball Players Association, did not since President Barack Obama arrived at the White House. respond to inquiries by Cuba Trade & Investment News. As one of the teams eliminated in Round 2, Cuba was entitled SIXTO GETS 30 MONTHS to receive $700,000. U.S. embargo regulations make it difficult A federal court in Washington condemned former White to pay Cuban entities. House assistant of George W. Bush to 30 months of prison, three years of supervised release, and a $10,000 fine for Petco stadium: stealing government funds intended to support opposition in How did the “Viva Cuba” Cuba. As an employee of the Washington-based Center for a flashes get there? Free Cuba, Felipe Sixto stole $579,000. 13 BY THE NUMBERS TOURISM
Arrival of international visitors Arrival of international visitors (by country of origin, February 2009) (by country of origin, Jan. & Feb. 2009)
Country 2008 2009 % change Country 2008 2009 % change
Total 259,832 262,969 +1,2 Total 508,278 531,071 +4.5 Canada 119,986 132,236 +10.2 Canada 232,501 270,370 +16.3 UK 15,637 14,191 -9.2 UK 30,728 27,470 -10.6 Italy 14,969 12,958 -13.4 Italy 29,713 26,558 -10.6 Spain 10,987 10,683 -2.8 Spain 19,527 19,090 -2.2 France 10,486 9,923 -5.4 France 20,593 18,350 -10.9 Germany 10,022 8,615 -14 Germany 19,379 16,425 -15.2 Argentina 5,597 5,639 +0.8 Argentina 12,753 12,552 -1.6 Mexico 6,176 4,230 -31.5 Mexico 12,164 10,030 -17.5 Russia 3,502 3,222 -8 Russia 7,816 7,790 -0.3 Netherlands 2,505 2,423 -3.3 Netherlands 5,401 4,940 -8.5 Poland 2,237 2,201 -1.6 Poland 4,349 4,711 +8.3 Venezuela 2,919 1,743 -40.3 Venezuela 5,162 4,465 -13.5 Czech Rep. 1,511 2,093 +38.5 Czech Rep. 3,065 4,356 +42.1 Chile 3,723 2,759 -25.9 Chile 5,869 4,307 -26.6 Austria 2,220 1,746 -21.4 Austria 3,873 3,245 -16.2 Colombia 1,487 932 -37.3 Colombia 3,662 3,153 -13.9 Portugal 1,725 1,521 -11.8 Portugal 3,391 3,090 -8.9 Switzerland 1,877 1,452 -22.6 Switzerland 3,977 3,035 -23.7 Others 42,266 44,402 +5.1 Others 84,355 87,134 +3.3
Source: Oficina Nacional de Estadísticas Source: Oficina Nacional de Estadísticas
Visitor arrival, by province (overnight stays by destination, 2008) What they come for Province 2007 2008 % change (type of tourism, by revenues, 2008)
Matanzas 5,844,884 6,972,935 +19.3 Cd de La Habana 2,846,611 2,883,370 +1.3 ecotourism health Holguín 1,889,171 1,849,579 -2.1 2% 1% Ciego de Ávila 1,591,821 1,590,153 -0.1 city Villa Clara 712,037 897,816 +26.1 25% Isla de la Juventud 358,738 411,803 +14.8 beach Camagüey 344,250 402,575 +16.9 72% Sancti Spirítus 364,455 368,664 +1.2 Santiago de Cuba 333,461 363,747 +9.1 Cienfuegos 261,026 165,172 -36.7 La Habana 162,206 157,337 -3 Pinar del Río 161,264 156,733 - 2.8 Granma 78,394 110,085 +40.4 Guantánamo 40,628 46,825 +15.3 Las Tunas 42,630 45,288 +6.2 Source: Oficina Nacional de Estadísticas
14 C O N F E R E N C E S & E V E N T S News from the •Poor (as in low-income) Cinema Festival, Gibara, April Sales Department 13-19 ++An agriculture-heavy 20-member business delegation •Caribbean Hotel and Tourism Investment Conference, from the German state of Lower Saxony visited Cuba in early Bermuda, April 14-16 April. Led by state Agriculture Minister Hans-Heinrich •Fifth Summit of the Americas, Port of Spain, Trinidad & Ehlen, the group held a round of negotiations at the Hotel Tobago, April 17-19 •International Tourism Fair, FITCUBA 2009, Havana, May Nacional in Havana with representatives of Cuba’s agricultural 4-8 sector. The topics included exchange of technology transfer, •Cubadisco 2009 (music industry fair), Havana, May 16-24 production and distribution of food, raw materials, and •Tropical Medicine Congress (celebrating 70th anniversary of veterinary drugs. The group also toured agricultural coops in Instituto Pedro Kourí), Havana, June 1-4 Havana province and Pinar del Río. Participating companies •“Canada and the Cuban Revolution,” symposium, University include machinery supplier Agrar Marka Deppe GmbH, of London, June 19 export credit guarantee firmAKA Ausfuhrkredit-Gesellschaft •7th Int’l Meeting on Nature Tourism, TURNAT 2009, Zapata mbH, commodity trader Alphamate Commodity GmbH, Swamp National Park, Sept. agricultural equipment manufacturers AWILA Agrar- und •18th Latin American Congress of Ethno-Medicine (natural medicine), Havana, Sept. 14-18 Industrieanlagen GmbH, Lubing Maschinenfabrik and •International Caribbean Culinary Festival, Santiago de Cuba, Ludwig Bening & Co. KG, agricultural goods wholesaler Sept. 21-25 Friedrich Fangmeier Agrarhandel GmbH & Co KG, food processor Nietfeld Feinkost GmbH, construction company Call (941) 330-0303 or send an e-mail to JWerner@ Heinrich Dolle GmbH, aquiculture expert Fischtechnik cubatradenews.com for more information on events International Engineering, veterinary drug makers Bela- pharm GmbH & Co. KG and Lohman Animal Health GmbH & Co. KG, and DEALA-Nienburg, a human resource E c o n o m y training company.++ ++Rising faster than overall U.S. exports, Texan agriculture CUBA BUYING TRAFFIC LIGHTS exports to Cuba nearly doubled in 2008, according to Parr Cuba is short of more than 375,000 Rosson, an agriculture economist at Texas A&M University. traffic lights and plans to install them Texas sold up to $90 million in farm goods to the island within four years, Communist Party last year, mainly wheat, corn, soybeans and frozen chicken. daily Granma reported. Rosson, however, is pessimistic about sales this year.++ Alvio Gil, director of the center, ++Cuba received a joint donation of 20,000 tons of rice said that the government hopes to from Brazil and Spain, as part of a post-hurricane aid program. close the gap by 2013. He did not Brazilian Ambassador Bernardo Pericas announced that say where Cuba is planning to buy its Cuba would soon receive another joint donation shipment of traffic lights. powdered milk and vegetable seeds.++ In 2006, GKT, a Cuban-Chinese joint ++Cuba held a round of negotiations with Vietnamese venture, bought Chinese-made digital businesspeople in Havana Feb. 27. The talks centered on traffic light systems for Havana’s 5th New digital traffic tourism construction and hotel operations in Vietnam, Avenue. light in Havana industrial and electronic products, shoes and food.++ The deficit is due to lack of maintenance, technical breakdown, or simply “disappearance,” the official daily said, based on E c o n o m y figures from the national traffic engineering center. UK CUBA CENTER SEEKS NEW HOME HEALTH PROGRAM EXPANDS The management of London Metropolitan University Cuba and Venezuela want to expand to other countries a stopped funding the International Institute for the Study of bilateral agreement for preventive and corrective medical Cuba. A memo sent out by the institute blamed the university’s treatment, Juventud Rebelde reported. “financial difficulties,” and promised “to work hard to ensure More than 36,500 Venezuelans have traveled to Cuba for that the Institute can continue its work.” The members of the medical treatment under the agreement signed eight years ago, institute have begun discussions about a possible transfer to according to the official weekly. another institution. The institute will publish the third issue of More than 20,000 of the Venezuelans received medical its research journal, and it will, for now, proceed with public treatment, and more than 16,000 accompanied the patients. seminars and conferences. Most of the patients came with needs that are difficult “Unfortunately, we will have to cancel or suspend events to satisfy in Venezuela. The largest number of the patients planned to take place beyond the end of June,” the memo received physical rehabilitation in Cuba. said.
15 C o m p a n i e s
Closing a profitable 15-year run with a loss, Montreal- Peru’s TACA airline added a three-flights-a-week route from based oil junior Pebercan Inc. reported a net loss for 2008 of Lima to Havana. TACA hopes the direct flight will add to the $116.8 million, on revenues of $116.41 million. Oil quantities Lima airport’s function as a hub for South America. produced were down 11.4 percent from 2007. The company *** forfeited production and revenues for the month of December. In Cienfuegos-based Empresa de Soluciones Mecánicas del January Pebercan announced the premature end of a production Ministerio de Construcción (SOMEC) is negotiating with sharing agreement with CubaPetróleo, in exchange for a $79.4 Spain’s Serviplent SA to assemble trucks for the transport million lump sum payment covering its accounts receivable of construction material. SOMEC, which already assembles with Cupet, and on Feb. 20 the company said it would go out Ukrainian KrAZ trucks, didn’t say what brand the other trucks of business, distributing its remaining assets to shareholders. would be. The shareholders will essentially receive their corresponding *** share of the $79.4 million payment from Cupet. The Biotechnology and Genetic Engineering Center (CIGB) *** in Havana is developing a tropical variance of corn that is Vancouver-based hotel and resort developer Leisure Canada resistant to the fall armyworm, Juventud Rebelde reported. The Inc. said March 12 it raised $1 million in financing thanks to CIGB planted three hectares of the new corn in Sancti Spíritus a partially brokered private placement of 10 million shares. province. The fall armyworm is one of the biggest corn pests The company said it will use the funds for operations in 2009. in tropical zones. Leisure Canada says it is in the process of building hotels and *** golf courses in Cuba. Exports of Cubanita-brand citrus juices to Europe have grown *** exponentially since the opening of a cold storage facility at the Thanks to high demand, Canada’s Sunwing Charter Airline port of Matanzas last year. The juices originate at a processing is extending its Sault Ste. Marie-Varadero flights by four plant at the Jagüey Grande grove, the island’s biggest, in weeks this season, the Sudbury Star reported. The once-a-week Matanzas province. Since the opening of the facility, Cuba has flights were originally scheduled to end in March. According exported more than 10,000 tons of fruit and concentrated citrus to the newspaper, the demand is also high because Sault Ste. juice, according to Radio Rebelde. Netherlands is the biggest Marie is a border airport, attracting passengers from the U.S. market for Cubanita juices. state of Michigan. advertisement LOVE, LOSS AND LONGING — THE BOOK The Latin America Working Group Education Fund (LAWGEF) and the Washington Office on Latin America (WOLA) are pleased to announce the publication of Love, Loss and Longing: The Impact of U.S. Policy on Cuban-Amer- ican Families, a stunning photo and text book. The photos and testimonies in the book movingly capture how Cuban- American families feel at being separated from their family members on the island. This new book is based on the photographs and stories exhib- it that toured across the country for the past year and a half. With venues in over 20 cities throughout the United States, the photo exhibit reached thousands of Americans and is aimed at moving policymakers towards a policy of engagement with Cuba. The book includes expanded text on the background and implications of current restrictions.
To order your copy today, go to: www.lawg.org/misc/Sign_up_pubs.htm. Proceeds will contribute to LAWGEF’s work to educate the American pub- lic and policymakers about the impact of the Cuba travel ban. To preview a free version of the book go to: www.lawg.org/misc/Publications.htm
16