Cuba Trade & Investment News

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Vol. VI, No. 3 March 2004 Embargo Updatet Economyt RUM CASE: FROM COURTS TO POLITICS POLITBURO PICKS NEW TOURISM BOSS In a ruling that moves a nearly decade-long battle from the Continuing a wave of change in the nation’s top economic courts back to the political arena, the U.S. Patent and team over the past 12 months, and following an industrywide Trademark Office’s Trademark Trial and Appeal Board (TTAB) purge in tourism companies, the Politburo of the Communist decided in favor of French liquor giant Party on Feb. 11 let go Tourism Minister Ibrahim Ferradaz Groupe Pernod Ricard SA’s rights to García, 54. Ferradaz, who had been in office since 1999, was the Havana Club rum trademark in replaced by Manuel Marrero Cruz, 40, an architect and most the United States. The Patent Office recently president of Grupo de Turismo Gaviota S.A. rejected a motion by Pernod rival Gaviota, which owns 15 percent of Cuba’s hotel rooms, is Bacardi-USA seeking to cancel the under the control of the label’s registration, and recognized armed forces; Marrero is the validity of its 1998 renewal by actually an army colonel. Havana Club Holdings, a joint venture by Pernod Richard and The government said Cuban rum producers. that Ferradaz would be However, the TTAB didn’t specify who owns the U.S. rights “assigned to other to the trademark. duties,” without saying Bacardi had based its motion on Section 211, a five-year what they are. old law that rejects the recognition of many Cuban trademarks The change at the top in the U.S. The Patent Office’s decision indirectly questions comes at a moment when the necessity of Section 211, which triggered the wrath of close the Cuban tourism U.S. allies and a 2002 ruling by the World Trade Organization industry is in full against the United States. recovery from the 9-11 A Cuban delegate used the opportunity to accuse the United effect, with a 16-percent States before a dispute rise of tourism revenues in Gone: Ferradaz resolution panel of the 2003 over the previous organization in Geneva of year. At the same time, top executives of leading tourism ignoring the WTO ruling. company Cubanacán S.A. were fired in December, due to The Patent Office ruling “grave errors,” including “lack of expectations and control.” puts the spotlight on The Tourism Ministry and Ferradaz temporarily took over Congressional efforts to control of Cubanacán. Officials denied that the executives were repeal Section 211. A bi- accused of corruption. The government appointed another cameral bill, under the name U.S.-Cuba Trademark Protection Gaviota executive, Manuel Vila, as new president of Act (H.R. 2494/S. 2002), is pending. An impressive coalition Cubanacán, according to Marc Frank’s Cuba Review of U.S. corporations supporting the bill consider Section 211 newsletter. The Revolutionary Armed Forces control an not only a threat for more than 5,000 U.S. trademarks registered estimated 60 percent of Cuba’s economy. in Cuba, but for all international trademark agreements. I N S I D E T H I S I S S U E CUBAN FAIR VISITS BECOMING ROUTINE Cuban trade fairs are becoming increasingly popular among Phil Peters: U.S. agribusiness and food companies. Next on the circuit is Sugar in Cuba’s Future Page 3 the Alimexpo food fair April 20-28 in Havana, which will be attended by at least a dozen American companies. Idaho Sen. Cuba formally seeks Mercosur entry...... 2 Larry Craig and Rep. Butch Otter, which took an Idaho trade OFAC strips two travel firms’ licenses ...... 2 mission to Cuba in February, said they’ll visit Alimexpo. Festival Cruises survives, Caribe continues...... 8 More embargo 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 TREASURY CONSIDERING LOWER CASH LIMITS CUBA FORMALLY SEEKS MERCOSUR ENTRY During a visit to Miami, U.S. Treasury Secretay John W. Foreign Minister Felipe Pérez Roque said Cuba would Snow announced his agency is “taking a hard look” at the “soon” file a formal request to hold negotiations with Mercosur possibility of reducing the $1,200 it allows Cuban Americans and sign an agreement to become an associate member of the to transfer to the island. Cash remittances from the U.S. are trade bloc. Argentina, which currently holds the Mercosur probably the second-largest source of hard currency for Cuba. presidency, committed to consult with members Brazil, Uru- Snow also said Treasury is considering to revoke a regulation guay and Paraguay regarding a “4+1” agreement with Cuba. that allows travelers to bring back $100 worth of Cuban goods. Argentina, Brazil and Paraguay are backing such an agree- The announcements, likely aimed by the Bush administration ment, Uruguay, which broke diplomatic relations with Cuba at gaining Miami votes for the presidential election, seem to last year, will likely oppose it. Pérez Roque made the an- be a test balloon to probe reactions among emigres. Snow’s nouncement after a meeting with Argentinean President Néstor remarks met skepticism even among embargo supporters. Kirchner in Buenos Aires. Francisco ‘Pepe’ Hernandez, president of the Cuban American National Foundation, called the remittance proposal JOURNAL: CUBA RUNNING UP BIG OIL DEBT a “diversionary tactic” by the Bush The Wall Street Journal, citing sources close to Venezuela’s administration to avoid tackling state oil company PDVSA, said Cuba has run up a debt of tougher issues, such as the policy of $752 million for Venezuelan oil shipments and has sending back Cuban migrants renegotiated the arrears twice. Cuban and Venzuelan officials detained at sea. deny that Cuba has fallen behind with payments. If the amount Snow also announced Treasury is true, it would represent 80 percent of PDVSA’s outstanding would prosecute unlicensed U.S. amounts from clients. travel agancies and citizens who do business with 10 Cuban companies SUGAR HARVEST BEHIND SCHEDULE it specified in a list. The travel and Milling and yields of the current sugar harvest were behind retail companies are CIMEX in most provinces, Communist Party daily Granma reported. subsidiary Havanatur S.A. and its Snow on Cuba According to Reuters, Sugar Ministry officials now predict branches in Canada Argentina, the that the harvest will reach 2.4 million or 2.5 million metric Bahamas and Chile; and Cubanacán Group and its branches tons by May, a little bit below the 2.6 million-ton goal. The in the Netherlands and England as well as its Internet gift shop 2002-03 harvest was 2.2 million tons, the lowest since the Tiendas Universo S.A. Snow threatened unlicensed U.S. travel 1930s, down from 3.6 million tons in 2001-02. In January, agencies who do business with those companies with civil and Sugar Minister Ulises Rosales del Toro said that the 2004 criminal penalties and to freeze their bank accounts. harvest, if the yields are right, could reach 5 million tons.

OFAC ‘KILLS’ TWO TRAVEL ORGANIZATIONS NICKEL OUTPUT EXPECTED TO RISE After a three-month period of intense charter flight Mining ministry officials said they believe nickel production inspections, the Office of Foreign Assets Control (OFAC) will increase by 5,000 metric tons to 76,000 tons this year, to suspended the licenses of two organizations engaged in Cuba reach again the output of 2002. Nickel production in 2003 travel. OFAC, the U.S. Treasury agency in charge of enforcing dropped by 4.7 percent, partly due to the overdue renovation the embargo, didn’t disclose the names. Four other licenses of aging nickel processing facilities in eastern Cuba. Most of are under review, OFAC said. those projects are now finished or in the final stages.

More embargo news on page 5 More economy news on page 6

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2 Cuba Sugar industry Sugar in Cuba’s future on the Hill The sugar industry, one of the driving forces of Cuba’s economy, is going through a major crisis. In May 2002, the Sugar Ministry ordered a drastic downsizing that included closing half of all sugar mills on the island and conversion of massive tracts of sugarcane land to other crops. The first benefits of the measure can be felt. Although information on the current harvest indicates delays in milling, officials are optimistic about reaching a significantly higher harvest total than last year, at — more importantly — lower per-ton production costs. But there is a big question mark over the long-term effects of the downsizing.We are reprinting the outlook chapter of an analysis written by Phil Peters, vice president of the Lexington Institute. The full article, published in February by the Washington-based free-market think By Dan Waltz tank, can be found at http://www.lexingtoninstitute.org/cuba/research.htm

It Must Be Election Time While the restructuring of the Cuban 1969 to return sugar to its central position To a casual observer, it might sugar sector is at an early stage, some in the economy. Ironically, in the ensuing seem that little has happened in implications of the restructuring are two decades the sector remained as Washington with respect to Cuba in clear, and some large issues remain to dominant as ever. The Cuban saying, the past month. I would argue that be resolved. “Without sugar, there is no country,” was there have been significant First, it is clear never as true as during developments. The war of words is that sugar’s pre- the 1970’s and 1980’s heating up, and in some cases those eminent position under the socialist words are being translated into in Cuba’s government. action. economy has Sugar’s reduced On behalf of the Administration, been broken. profile thus Treasury Secretary John Snow took Sugar will be an accomplishes an time from his G-8 meeting in Florida important factor, economic Feb. 9 to address Cuban-American but no longer a restructuring that was leaders in Miami. Predictably, he determining part of the revolution’s emphasized the Administration’s factor in Cuba’s original political hard line against Cuba and described economy, and program. It was the tangible steps that the can no longer be delayed by unusual Administration has taken to both used as a international tighten the embargo and increase barometer for the economic enforcement. Secretary Snow also island’s circumstances, and it took the opportunity to tout OFAC’s economic health. was finally forced designation (that same day) of 10 There is a upon Cuba by the historical irony economic conditions travel-related entities owned or Sugar harvest, the old way controlled by the government of in this of today. Cuba as’“Specially Designated development. During the revolutionary Second, it seems clear that a reduced Nationals.” Of the 10, however, conflict, Fidel Castro criticized the emphasis on sugar is healthy for Cuba’s several were well-known companies ‘monoculture’ that sugar represented economy. During the 1990’s, investments located in Cuba including Cimex, for Cuba — an industry that dominated that could have gone to sugar were Havanatur, and Cubanacan. Even in the Cuban economy and made it directed to tourism, nickel, energy the absence of Treasury’s vulnerable to international market production, biotechnology, “designation,” these companies swings, was itself dominated by pharmaceuticals, and infrastructure needs were subject to the prohibitions of foreign investors and owners, and such as telecommunications. These U.S. embargo regulations. Thus, caused workers to labor under investments have created a more their designation had no practical allegedly unjust conditions. diversified economy that capitalizes on effect. Of the other newly designated Sugar production was thus de- Cuba’s natural resources and comparative entities, most were clearly already emphasized during the early years of advantages. With sugar prices remaining recognizable as Cuban companies. the revolutionary government, but with near six cents per pound, these were the Soviet bloc’s preferential trade clearly sound investment decisions. In Continued on page 4 available to Cuba, policy shifted in 2003, in spite of the lowest sugar harvest Continued on page 4

3 Sugar industry

Continued from page 3 workers will need jobs upon graduation, and scores of communities need to be sustained after losing the industry and in seven decades, Cuba’s economy is registering modest organization that has been at their center for centuries. The positive growth led by a recovering tourist sector and very economy will also feel a slowdown in the indsutries that high nickel prices. provide goods and services to the sugar sector. The outcome of other issues related to sugar’s restructuring Finally, the impact on Cuban agriculture remains to be seen. are less clear. Productivity is a major question mark. Cuba’s The sugar ministry will now manage non-sugar agricultural sugar production remains concentrated in the more lands that are larger than the lands devoted to all non-sugar collectivized units of Cuban agricultural production, the UBPC agriculture today. In time, this could result in vastly increased cooperatives [Unidades Básicas de Producción Cooperativa]. food production for domestic consumption and export, and it Savings have been realized by taking the least productive lands could lead to development of a large forestry sector and the out of sugar, and the ‘industrial’ part of the sector — the mills positive ecological change that large-scale reforestation — will benefit from the fact that fewer mills will be competing implies. In theory, it could lead to models of ownership, for scarce resources. But state management of this sector of organization, and production that differ from those of the the economy will be challenged to develop management and agriculture ministry today. incentive schemes that will bring production levels up to the The jury is still out on these questions, but it is clear that industry’s new targets. Cuba has moved decisively to restructure a formerly protected Employment is another major challenge. The employment industry, it has done so without causing social unrest to date, effects of sugar’s downsizing have been cushioned by the fact and Cuba’s economy will feel the effects of this decision for that so many idled workers have returned to school. At least years to come. for a few years, this cushion will continue to function. But The author can be contacted at [email protected]

“Castro sends hundreds of performers to the United States Cuba on the Hill (contd.) to earn dollars to send to the regime” and justified the State Department’s visa denials by saying’“Castro’s cash cows These include Havanatur S.A. of Buenos Aires, Havanatur will not be grazing through the United States under this Bahamas of Nassau, Havanatur Chile of Santiago, Administration.” The facts do not match the rhetoric, Cubanacan International of the Netherlands and Cubanacan however. U.S. law prohibits significant payments to Cuban U.K. Ltd. of London. U.S. persons (unless licensed) were artists who perform temporarily in the United States. NBC already prohibited from doing business with these News quoted drummer Samuel Formell as saying “We can’t companies. On the other hand, companies that have been be paid under the blockade. So, we play for free because we licensed as Travel Service Providers or Carrier Service want to break into that market.” If so, it is hard to see how Providers, because of their licenses, may continue to do visa denials also act to deny money to Castro. business with these entities. Of course, both Snow and Noriega discussed the increased Clients have asked for my assessment of the practical inspection of travelers to and from Cuba. Snow stated, since impact of these new designations. As I see it, in terms of the Oct. 10, 2003 (the date of President Bush’s Rose Garden effect of U.S. law and regulations, they do nothing. They announcement of the increased enforcement on travel to do, however, allow the Administration to claim (to Cuba), 264 cases have been opened by OFAC for sympathetic audiences) that it is getting tough on Cuba. investigation of alleged travel to Cuba, and three cases have Several days earlier, Roger Noriega, Assistant Secretary been referred for criminal investigation. Noriega claimed for Western Hemisphere Affairs, made similar remarks to that hundreds of unlawful travelers have been identified and the Cuban Liberty Council in Miami. While the substance that more than’200 violations have been referred for criminal of his remarks was similar to those of Secretary Snow, his investigation and prosecution. Of course, referring a matter rhetoric was much more inflammatory. He stated, for for criminal investigation hardly guarantees prosecution. example, “Castro is an aged dictator, shuffling off the world More importantly, a press release put out by the Treasury stage” and offered his belief that Castro “knows that we Department Feb. 9 puts these figures (whatever they are) will work together to sweep away every trace of his wicked into context. It states that more than 44,000 passengers were regime.” screened as they departed the United States for Cuba and Noriega also announced that in the last several months over 50,915 were screened upon their return on charter the United States has denied every request for a visa flights. Of these numbers, 275 travelers were denied travel submitted by a Cuban performer seeking to enter the United and 376 seizures were accomplished. Most of the seizures States. This is apparently true, as NBC has reported that, were related to the unlicensed importation of Cuban cigars since last November, all 151 Cuban musicians who applied and alcohol (Havana Club anyone?). In light of the enormous for a visa had been turned down. Ambassador Noriega stated, Continued on next page

4 M o r e o n t h e E m b a r g o

OFAC UPDATE •President Bush announced a plan to stop U.S. pleasure Electronics Engineers raised the issue after asking OFAC to boaters from traveling to Cuba. The new policy allows U.S. interpret existing regulations. The American Chemical officials, if they believe a boat in U.S. waters may be headed Society’s publishing division decided to challenge Treasury to Cuba, to inspect the by continuing to edit articles from embargoed nations. The vessel, place guards on it society publishes some 24,000 articles a year. Several groups and, if necessary, take have appealed to President Bush’s science advisor. possession of it. The •OFAC has been training U.S. Customs inspectors regulation expands a stationed in Canada, Bermuda, Bahamas and Aruba. The Clinton policy that gave the inspectors at the “U.S. Customs Preclearing Facilities” in Coast Guard authority to those countries are aimed at illegal Cuba travelers. OFAC’s decide whether to give Miami office is also working with the Coast Guard to provide Exiles, headed to Cuban waters permission for boats to Cuba embargo travel training. OFAC’s ‘War on Tourism’ leave U.S. waters for Cuban absorbs one-sixth of its budget, critics say. OFAC is playing waters. Between 1996 and 2003, the Coast Guard granted 1,500 an important role in the Administration’s War on Terrorism. permits to boaters to make the trip. •OFAC tried to block two wire transfers from Spain and •In a new interpretation of the embargo law, Treasury’s Office France to a Wachovia Bank account, and questioned of Foreign Assets Control (OFAC) put American publishers supporters of five Cubans in U.S. prisons who have been on notice that they may publish but not edit Cuban manuscripts. convicted of spying about their work. However, the agency Editing manuscripts, OFAC argues, would mean providing a released the money after a week. The amount collected by “service” to an embargoed nation. The move triggered an outcry European solidarity groups will pay for the cost of a one- among academic publishers. The Institute of Electrical and page ad in the New York Times for the “Cuban Five.”

Cuba on the Hill, from previous page Freedom to Travel to Cuba Act.” In a Senate floor statement number of individuals screened, the numbers of violations, Jan. 5, Sen. Baucus discussed the importance of the United and their nature, hardly appears worth the effort. States’ war on terrorism. Then, he noted that “the very agency What the Treasury Department does not discuss is the level that is charged with this crucial task must divert valuable of harassment being experienced by travelers who are resources to enforce an absurd travel ban that a clear majority properly licensed. To cite but a single example, a group of of Congress has already voted to terminate.” One week later, 28 students and several faculty members from the Napa on February 11, Senators Dorgan and Craig told Assistant Valley College’s Art Department were stopped for two days Secretary Noriega and his Deputy, Dan Fisk, that they in Florida as federal authorities refused to allow them to planned to request a General Accounting Office audit of U.S. continue on to Cuba. They were questioned by aggressive procedures for granting licenses to travel to Cuba. agents, then huddled in a local hotel until the matter was In some perverse way, I feel sympathy for the resolved. Only after the office of Rep. Mike Thompson Administration. Insofar as the U.S. embargo of Cuba is intervened did OFAC coordinate with Customs officials in already screwed down about as tight as it can get, it’s pretty Miami. As it turned out, the group had properly been licensed hard to tighten further without stumbling into the realm of by OFAC. Thus, we have significant governmental resources the absurd. The U.S. has refused to participate in bi-annual devoted to the investigation and delay of travel that is talks with Cuba on migration. This too was trumpeted by perfectly lawful. What is the U.S. government doing Snow and Noriega as a sign of U.S. toughening toward Cuba. harassing its own citizens who arecomplying with U.S. law? But is this good U.S. policy? We agreed to hold these periodic The reference to criminal prosecution of illegal travelers talks precisely to avoid another Mariel boatlift crisis. Do we is, if anything, more troubling. Participants in the Conch want another? Rumors are rampant that the U.S. will clamp Republic Cup — a regatta that sails from Florida to Cuba down on remittances from Cuban-Americans to their relatives carrying humanitarian aid –– have been issued subpoenas, in Cuba. Is this compassionate conservatism? Does the and several have already testified before a federal grand jury. Administration want to anger the same Cuban-American Organizers of the regatta claim at least to believe that their constituency that it is pandering to? regatta was properly authorized under an OFAC license. In Did someone say that there may be an election in the the old days, this type of violation might have been pursued offing? as a civil penalty matter by OFAC. But criminal prosecution? You’re talking jail time. This is serious business. Dan Waltz is a partner at the Washington DC-based law On the other side of the debate, Sens. Max Baucus, Larry firm Patton Boggs LLP. He practices in the area of interna- Craig, Byron Dorgan and Mike Enzi continue to push the tional trade with a focus on imports and exports generally, Senate leadership to allow floor debate on their bill, “The and embargoed countries such as Cuba more particularly.

5 M o r e o n t h e E c o n o m y

TOP OFFICIAL: CUBAN ATHLETES NOT ‘FOR SALE’ NUMBER OF FOREIGN JV’S FALLING Cuban sports officials denied that Cuban baseball and The ministry of foreign investment said that 70 foreign joint volleyball stars could soon play abroad. ventures were dissolved in 2003, and that 60 more are in the “We neither sell, nor rent, nor process of closing, due to lack of profitability. A total of 342 commercialize, nor give away athletes or foreign joint ventures operated in the island at the end of 2003. coaches,” said Humberto Rodríguez There are also 313 cooperated production projects. Only seven González, president of Cuba’s Instituto new joint ventures were approved during 2003, for an Nacional de Deportes, Educación Física estimated total of $250 million in direct foreign investment. y Recreación (INDER). A comment by a Cuban sports official visiting Mexico had CUBA DROPS ENTRY PERMITS FOR EXILES triggered press reports that Cuba may As of June 1, Cuban emigrants who return to visit their Rodríguez González allow its athletes to play for professional homeland won’t need to apply for an entry permit with Cuban teams abroad. authorities anymore. The relaxation coincides with the Nation and Immigration conference slated for late May in Cuba. Some BOOK FAIR SETS ATTENDANCE RECORD 1,000 Cubans living abroad are expected to attend the event. Nearly 500,000 Cubans visited the 13th International Book Officials announced an end to the entry permit in September, Fair in Havana in February, 10 percent more than last year. but they didn’t attach a date to it. The entry permit was one of More than 1 million books were sold, according to fair the top issues exiles have brought up in previous meetings officials. The fair is now moving on to 33 provincial cities. with Cuban government officials.

FISHERIES ADAPT TO JAPANESE NEEDS VARADERO EXPECTS 10% SPIKE THIS YEAR Cuba has begun production of “deep frozen” lobsters, which Cuban tourism authorities expect beach resort Varadero to sell at higher prices than regularly frozen ones. The move host more than 800,000 tourists this year, 10 percent more comes after a Japanese trade mission visited the island. Lobster than 2003. The Tourism Ministry expects profits to rise 13 is Cuba’s No. 1 seafood export, followed by shrimp. percent. Varadero is Cuba’s main beach destination.

M o r e o n t h e E m b a r g o

U.S. WAGES WAR ON MUSIC U.S DEEP-FREEZES MIGRATION TALKS The United States denied seven Cuban musicians, includ- The United States is not seeking to restart the semi-annual ing Ibrahim Ferrer, 76-year-old mem- migration talks with Cuba anytime soon, said James Cason, ber of the Buena Vista Social Club, to the U.S. top diplomat in Havana. The United States suspended attend the Grammy Awards ceremony. the decade-old talks, one of the few institutional U.S.-Cuban Ferrer won a Grammy for best tradi- links, in January. tional album. Providing visa to the Cu- ban musicians would be “detrimental BRO-TECH BROTHERS SUE THEIR LAWYERS to the interests” of the United States, Philadelphia law firm Morgan, Lewis & Bockius was sued the State Department said. Since No- by brothers Stefan E. and Don B. Brodie, owners of Bro-Tech vember, the U.S. turned down 151 visa Corp., over alleged legal malpractice. The law firm had requests by Cuban artists, almost ev- advised the water purification company on trade issues with ery musician who applied for a visa. Cuba during the early 1990s. The Brodies and a Canadian One exception is Cuban singer and executive of the company were criminally prosecuted and Carlos Varela composer Carlos Varela, who said he convicted for violations of the trade embargo. The company, will start a U.S. tour March 10. Varela will promote his latest doing business as Purolite Co., had sold water purification album ‘Siete’, which features U.S. guitarist Bonnie Raitt. resins to Cuba through a British subsidiary. Although Undersecretary Roger Noriega recently called Cuban musicians “cash cows” for the Cuba state, the State FLORIDA REPS PLAN ‘TERRORISM SURCHARGE’ Department denies a specific policy against musicians. Cu- A group of Cuban American lawmakers in Florida are ban musicians say they actually lose money on their U.S. con- planning to introduce a bill in the State House that would certs because they can’t receive any pay under embargo rules. force travelers who fly from a Florida airport to a “terrorist They only play in the United States to keep a foot in the door sponsor” state to pay a surcharge. The United States maintains for a large post-embargo market, most say. Cuba on its list of terrorist-sponsoring nations. The money The State Department also denied visa to Cuban filmmaker would go to a Homeland Security trust fund for state airports. Fernando Pérez (‘Suite Habana’) and a Baptist pastor who is The group also wants Florida public universities to submit also a member of Cuba’s parliament. itineraries and passenger lists of Cuba trips before each visit.

6 C O N F E R E N C E S & E V E N T S News from the

•Havanabel International Beauty Fair, Havana, March 2-6 Sales Department •Intl. Agricultural Fair (FIAGROP), Havana, March 20-28 •3rd Intl. Meeting on Contract Law, Havana, April 1-4 ++Alimport’s purchases from U.S. companies will continue •2nd International Conference on Arbitration and Mediation, to grow, said Alimport S.A. chief Pedro Álvarez. Cuba bought Havana, April 5-7 between $343 million and $347 million worth of agricultural •Intl. Construction Fair (FECONS), Havana, April 6-10 goods from the United States in 2003. Álvarez said that Cuba •International Salon of Technologies and Products for Tourism will spend an expected total of $1.2 billion on food imports (TECNOTUR), Havana, April 20-23 •National Food Exh. (ALIMEXPO), Havana, April 20-24 this year, up from $1 billion in 2003, but he wouldn’t set a •6th Annual Caribbean Conference on Sustainable Tourism target amount for U.S. imports.++ Development, Havana, April 27-30 ++A delegation from Iowa secured a promise by Alimport •Water Symposium 2004, 5th International Event on Water S.A. to buy corn products worth $10 million. The deal also Technology and Science, Havana, May 1-9 includes a purchase of 10,000 metric tons of cattle and pork •24th Cuban Tourism Convention, Varadero, May 3-6 feed from Iowa producers, the first of its kind. The delegation rd •3 International Workshop on Architecture and Engineering was led by David Boettger, president of the Iowa Corn Grow- at the Service of the Environment (Arinsema), Camagüey, ers Association.++ May 13-15 ++Two Republican lawmakers from Idaho, Sen. Larry •Music industry fair CUBADISCO, Havana, May 26-30 •Nation and Emigration Conference, Havana, May 27-29 Craig and Rep. Butch Otter, and a 15-member state busi- •International Rum Festival, Havana, June 6-9 ness delegation returned from a three-day trip to Cuba with a •Expocaribe, Santiago de Cuba, June 13-18 letter of intent signed by Alimport S.A. to buy $10 million •Gregorio Fuentes International Fishing Tournament, Hicacos worth of goods from Idaho. The plan is for the purchase of Peninsula (near Varadero), July 22-28 5,000 metric tons of potatos and 10,000 tons of beans starting •Intl.Transportation Fair (FIT), Havana, Sept. 22-25 in April. Alimport chief Pedro Álvarez said there are ongoing •3rd Intl. Conference of the Society of Orthopaedic and negotiations with Idaho companies regarding the purchase of Traumatological Surgery, Havana, Sept. 23-29, 2004 5,000 tons of paper and 200 heads of cattle. Craig and Otter •Intl. Havana Fair (FIHAV), Havana, Oct. 31-Nov. 7 said they will return to Cuba in April to attend the Alimexpo •International Jazz Plaza 2004 Festival, Havana, Dec. 13- 19 food trade fair.++ ++RAPCO, an agriculture business consulting firm based Call (941) 330-0303 or send an e-mail to [email protected] in Rochelle, Il. signed an agreement with trader PS Interna- for more information on events tional Ltd. at the DeKalb County Farm Bureau to export 15,000 tons of dry field peas from Illinois to Cuba later this year. RAPCO is still looking for Illinois farmers who want to participate in the program by planting crops of dry field peas. M o r e o n t h e E m b a r g o North Carolina-based PS International, which secured the dry pea-deal with Alimport S.A. at the Havana Fair in Novem- CUBA RISES IN IMPORTANCE FOR U.S. EXPORTS ber, has been working with other states as well.++ In 2003, Cuba has become the United States’ 35th market ++The Latin America head of the U.S. Rice Federation for food exports, according to the U.S.-Cuba Trade and was in Havana again in mid-February to negotiate additional Economic Council. Cuban purchases of U.S. agricultural rice sales with Alimport S.A. Marvin Lehrer said that U.S. products doubled last year to $256.9 million, the New York- agribusinesses will continue fighting to end the embargo.++ based organization said. ++The board of the Port of Lake Charles, La. approved a The exports include cattle, soy, wheat, corn, rice, poultry, letter of intent with Alimport S.A. Feb. 23. The port agrees to supermarket products, lumber and newsprint. lobby against the embargo, identify additional exporters and shippers in Louisiana and elsewhere, and to offer competitive CASON DENIES INVASION PLANS rates to U.S. companies that do business with Alimport. Port Cuba is accusing the U.S. government officials met Cuban representatives at a conference in Havana of plotting an invasion and the in December.++ assassination of Fidel Castro. The Bush ++Cuba agreed to buy another 50,000 metric tons of wheat administration has recently attacked in Argentina, for an estimated $8 million. The announcement Cuba for its close links with Venezuela was made during a visit of Foreign Minister Felipe Pérez and joint activities in Latin America. Roque to Buenos Aires. This is the second major wheat pur- James Cason, the top U.S. diplomat in chase from the South American nation within three months. Havana, denied any invasion plans. Cuba had agreed to buy 50,000 tons of wheat from Argentina He didn’t talk about the assassination during the Havana Fair in November. An Argentinean trade James Cason allegations. mission will visit Cuba in April.++

7 C o m p a n y B r i e f s

Betting on continued tourism growth in Cuba, Spain’s The Carlos Marx plant in Cienfuegos, Cuba’s second- Barceló Hotels & Resorts SA said it wants to build another largest cement factory, is expected to reach annual production hotel on the island, bringing its total to five. Barceló operates of 1.5 million metric tons of clinker once a $100 million one hotel each in Cayo Largo del Sur and Varadero, and is set remodeling process is complete in June. The rehabbing of the to open another 896-room facility in Varadero this year. For plant, two-thirds owned by Spain’s Ibersuiza SA, includes 2005, the company plans to open one hotel each in Santa Lucía, the kilns, cooler and three cement mills, as well as the cement Camagüey province, and Guardalavaca, Holguín province. exporting facilities at the port. The plant, built during the 1970s The company now announced it plans to open a five-star, with East German technology, opened in 1980. The previous 2,361-room hotel on Cayo Santa María off Villa Clara peak production was 1.115 million tons in 1989. province’s northern coast in December 2006. Ibersuiza is also building a new cement plant near Santiago *** de Cuba. After a one-month paralyzation of operations, Festival *** Cruises apparently secured its survival, but the new investors Spain’s Repsol YPF said it will start drilling several wells want the cruise line to shed three of its seven ships. Cuban off western Cuba by April. Repsol has the right to explore operations apparently are largely unaffected. The more than five blocks in the Gulf of Mexico. The company said it had five decades-old ‘Caribe’ is among the survivors, but Festival finished seismic studies and will start the first survey at the delayed the end of March or early April. Cuba opened the 43,000 square start of mile-area in the Gulf of Mexico to foreign exploration in 1999. seven-night Repsol and Canada’s Sherritt International have signed trips from its exploration contracts, Brazil’s Petrobras is conducting a home base feasibility study. in Havana *** from April A Beijing-based Chinese-Cuban joint venture, Biotech to May. Pharmaceutical Ltd., will manufacture and market the H- Festival’s Caribe will continue Festival R3 humanized monoclonal antibody in China. The antibody also said the ‘European Vision’ would restart March 14 from was developed by Cuba’s Molecular Immunology Center the Dominican Republic. The ‘Vision’, based in the Dominican (CIM) for the treatment of brain and neck tumors. CIM is Republic this season with stops scheduled in Cuban ports, part of the West Havana Scientific Complex. was among three Festival ships French shipbuilder Alstom *** SA temporarily seized in late January to cover alleged arrears. Comercial Cubacafé S.A. presented two cigar-themed *** coffee brands at the 6th International Habano Festival. The Corporación Cimex S.A., Cuba’s largest conglomerate, Cohiba and Montecristo coffees, developed in a three-year said it had revenues of $1.012 billion in 2003, up 10 percent cooperation project with tobacco experts from Habanos S.A., from 2002. The service and tourism holding has grown an are supposed to taste particularly well with the cigars of the average 6.8 percent since 1998. Cimex president Eduardo same names. Cuban coffee is strong-tasting. Cubacafé belongs Bencomo predicted 2.2-percent revenue growth for 2004. to the Cuban Ministry of Agriculture.

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