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Title: : Technology as an Engine of

Economic Development Date: March 18, 2016 Time: 2:15 PM to 3:30 PM

Moderator

Barbara P. Alonso, Partner, Squire Patton Boggs

Panelists

Lauren Valiente, Senior Counsel Foley Lardner

Aymee Valdivia, Associate Holland & Knight Tab 1 – Biographies or CVs Barbara P. Alonso

Partner, Miami, Florida; , NY T +1 305 577 7040; + 1 212 872 9827 [email protected]

Barbara Alonso’s practice focuses on international and domestic Practice Focus  Financial Services corporate matters, including corporate and project finance, and debt  Project and Corporate Finance and equity capital markets. Barbara regularly advises clients on  Institutional Investors cross-border transactions across a wide range of sectors and has  and Caribbean represented institutional investors in connection with their equity and debt investments in Florida based companies.

Education Barbara served as assistant general counsel for Chase Manhattan  Columbia University, J.D., 1992  Harvard University, M.P.P., 1988 Bank in New York from 1997 to 2000. In that role, she supported  Cornell University, B.A., 1986 Chase’s Latin America capital markets business in connection with bond issuances and liability management transactions by sovereign and corporate issuers in Latin America. Barbara also served as in- Admissions  Florida, 2002 house counsel for Nortel Networks (Caribbean and Latin America  New York, 1993 region), where she handled telecommunications transactions in the Caribbean and Latin America. Languages  English Barbara has represented clients on their transactions in Cuba—  Spanish including a European telecommunications company in its sale of its shares of joint venture company in Cuba. She has also advised clients on compliance issues relating to doing business in Cuba. A native of , Cuba, Barbara has recently participated in various seminars in Cuba, including a conference co-sponsored by CUPET (Cuba’s Petroleum Company) in October, 2015.

PROFESSIONAL MEMBERSHIPS/CIVIC ACTIVITIES  Hispanic Lawyers Society of New York, Steering Committee

 Co-founder, SEED, a not-for-profit education foundation supporting international public education in South Florida.

 Florida Bar, International Law Section and Business law Sections

AWARDS & RECOGNITIONS  Selected by leading publication Latinvex as one of Latin America’s Top 50 Female Lawyers, 2014.

 Selected “Dealmaker of the Year – Corporate Finance,” ALM’s Daily Business Review, 2012.

 Listed, Chambers USA Guide, Latin American Investments, 2009 – 2010.

 Member of the team that won the “Chambers Award for Latin squirepattonboggs.com 1

C:\Users\balonso\Documents\Alonso Barbara HNBA Accreditation Feb 2016.docx American Investments (US-based firms),” 2009.

 Finalist, “Dealmaker of the Year – International Finance,” ALM’s Daily Business Review, 2008.

 Member of the Winning Team, Euromoney’s Project Finance “African Telecom Deal of the Year,” 2007.

 Selected, “Dealmaker of the Year – International Corporate,” ALM’s Daily Business Review, 2007 for SEACOM (East Underwater Fiber Optic Cable)

squirepattonboggs.com 2

C:\Users\balonso\Documents\Alonso Barbara HNBA Accreditation Feb 2016.docx

Lauren L. Valiente

Lauren Valiente is a senior counsel and litigation lawyer with Foley & Lardner LLP. Her practice focuses on counseling and defending individual and corporate clients in a variety of government enforcement and complex business litigation matters including Foreign Corrupt Practices Act (“FCPA”) investigations, white collar criminal matters, SEC enforcement matters, securities class actions, shareholder derivative actions, and other complex business litigation matters. She is a member of the firm’s Government Enforcement, Compliance & White Collar Defense Practice, Health Care Litigation Group, and Latin America Industry Team. Ms. Valiente also serves on the firm’s Diversity SENIOR COUNSEL Committee.

[email protected] Foreign Corrupt Practices Act Enforcement In connection with the Foreign Corrupt Practices Act 813.225.5443 (“FCPA”), Ms. Valiente provides compliance advice, 100 NORTH TAMPA STREET conducts internal investigations, and defends SUITE 2700 individual and corporate clients against government TAMPA, FL 33602-5810 enforcement actions. She has conducted FCPA investigations, in both English and Spanish, in Latin 305.482.8442 America, as well as in China. ONE BISCAYNE TOWER 2 SOUTH BISCAYNE BOULEVARD Cuba Regulations SUITE 1900 Ms. Valiente counsels clients on compliance issues MIAMI, FL 33131 relating to U.S. laws and regulations on doing business in Cuba.

Health Care Enforcement and Litigation As a member of the firm’s Health Care Litigation Group, Ms. Valiente has represented individual and corporate clients in various aspects of the healthcare industry, including managed care and pharmaceuticals. She has defended health care clients in connection with government investigations and enforcement actions involving allegations of health care fraud and financial fraud.

Securities Litigation Ms. Valiente also has experience in securities litigation, defending corporations, officers, and directors in

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Lauren L. Valiente

securities class actions and shareholder derivative international business people to one another and to actions, as well as SEC enforcement matters. the Chamber.

She also serves on The University of South Florida’s (USF) Latin Community Advisory Committee, which Complex Business Litigation and Dispute Resolution advises the University’s president on issues affecting Ms. Valiente has significant experience in both court- Hispanic students and raises money for scholarships based litigation and AAA arbitration under the for Hispanic students. Ms. Valiente actively mentors Interstate Land Sales Full Disclosure Act, as well as in undergraduate students in connection with this group. the defense of claims for fraud, breach of contract, interference with contract, and many other areas of Ms. Valiente is also a member of the Federal Bar commercial disputes. Association, the Hispanic National Bar Association, the Harvard Club of New York and the Harvard Club of the Ms. Valiente is experienced in a wide range of West Coast of Florida. appellate matters, in both the Eleventh Circuit Court of Appeals and Florida’s appellate courts. She also has In 2013, Ms. Valiente contributed more than 100 pro experience in bankruptcy matters, having represented bono hours to the Bay Area Legal Services Volunteer debtors in chapter 11 proceedings, and creditors in Lawyers Program and was recognized by the Thirteenth litigating claims against bankruptcy estates. Judicial Circuit Pro Bono Committee with a Gold Award.

Education In 2010, Ms. Valiente graduated from the Tampa Ms. Valiente received her bachelor’s degree from Connection program, a selective program for up-and- Harvard University in 2000, with honors, and received coming leaders in the Tampa Bay business community. her law degree from the University of Florida, Levin College of Law (J.D., magna cum laude, 2006), where From 2010 – 2012, Ms. Valiente helped coach the USF she was managing editor for the Journal of Law and Mock Trial Team. Public Policy and elected to the Order of the Coif. Selected Publications, Presentations, and Media Recognition » Panelist, “Facing a Changing Cuba – Opportunities Ms. Valiente was selected for inclusion on the Florida and Obstacles,” Greater Miami Chamber of Super Lawyers – Rising Stars® lists in 2012 - 2015. In Commerce Goals Conference (June 5, 2015) 2007, she received the Tampa Bay Business Journal’s » Presenter, “The Changing U.S. Cuba Landscape: "30 Under 30" award which recognizes the top 30 Managing Risks and Opportunities” (February 26, young professionals in the Tampa Bay business 2015) community. » Author, “Easing the Cuban Embargo: Automotive Community Involvement, Pro Bono and Professional Industry Unlikely to Realize Any Immediate Benefit,” Memberships www.autoindustrylawblog.com (January 2015) Ms. Valiente serves on the International Business Committee of the Greater Tampa Chamber of » Co-Author, “Analysis: Easing the Cuban Embargo: Commerce, which works to support and increase U.S. Businesses Should Engage in Cuba with Three international commerce in Tampa and to connect Caveats in Mind,” Cuba Standard (January 2015)

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Lauren L. Valiente

» Panelist, “Unlock India,” Tampa, FL (March 19, 2014)

» Panelist, “Custom-Made Counseling for the Fashion Industry,” Miami, FL (March 6, 2014)

» Panelist, “What’s Your Story: Defending a White Collar Client,” National Academy of Continuing Legal Education (December 2013)

» Quoted, “Guidance Available for Anti-Bribery Law,” Tampa Bay Business Journal (January 11, 2013)

» Co-Author, “FCPA Internal Investigations in Latin America,” The Review of Securities & Commodities Regulation (September 2012) Admissions Ms. Valiente is admitted to practice in Florida and before the Eleventh Circuit Court of Appeals, the District Courts for the Northern, Middle, and Southern Districts of Florida and the United States District Court for the District of Colorado.

Languages Ms. Valiente is fluent in spoken and written Spanish.

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Aymee D. Valdivia Granda Associate

Miami T 305.329.2302 [email protected]

Related Practices: International and Cross Border Transactions International Practices Latin America Practice

U.S. Export Control and Sanctions Laws Cuba Action Team

Aymee Doris Valdivia is an attorney in the International and Cross-Border Transactions Team of Holland & Knight's Business Group and a member of Holland & Knight’s Cuba Action Team. Ms. Valdivia focuses her practice on corporate and international law, representing foreign and domestic clients in joint ventures, mergers and acquisitions and a broad variety of commercial transactions. Her background and legal education in both common and civil law systems provide Ms. Valdivia with the ability to advise clients on transactions and projects involving multiple jurisdictions, legal systems and cultures.

Ms. Valdivia's recent work includes the following transactions:

representation of a U.S. client in the financial services sector in the evaluation and negotiation of a business project in Cuba representation of a U.S. cruise company in the application process for obtaining the required licenses and permits from the Cuban government in order to operate in Cuba representation of an Irish parent company in the purchase, through its Guatemalan subsidiary, of the melon farming and marketing business in Guatemala, North America and Europe representation of a multinational buyer with headquarters in Luxemburg in the acquisition, through its Dutch subsidiary, of exclusive franchise rights of five large food restaurants in Central America representation of Irish parent company in the purchase, through its Costa Rica subsidiary, of the bulk assets of Costa Rican pineapple farming and marketing business representation of a U.S. leading provider of specialty consumer financial services in the acquisition of a 60% ownership interest in a specialty consumer finance company that is headquartered in Mexico City and is one of the top three and fastest growing providers of payroll deduction loans in Mexico advising U.S. clients on issues that arise under agency, sales representation, distribution, franchise, or management/administration agreements in Latin America, with a special focus on the contractual relationships with the clients’ domestic counterparts and the existence and potential implications of protectionist laws in several Latin American jurisdictions that provide local parties with protections beyond the contract terms Prior to joining Holland & Knight, Ms. Valdivia practiced law in Cuba for several years, which provided her with extensive knowledge of the Cuban legal system, especially in the areas of foreign investment, financing, regulatory compliance and immigration.

Ms. Valdivia has experience in international commercial arbitrations in which she has served as assistant to one of the parties or the arbitrator. Throughout her practice, Ms. Valdivia works directly with foreign in-house as well as outside counsel in serving clients on multijurisdictional projects.

Ms. Valdivia received formal education in both common law and civil law legal systems and graduated with honors from the University of Miami Law School and the Faculty of Law of the University of . She is a native of Cuba and has an in-depth understanding of the business culture in the U.S., Latin America and the Caribbean.

Speaking Engagements

Changes in Cuban Immigration, American Bar Association's Immigration & Naturalization Committee, December 2, 2015 The Future State of Banking in Cuba, South Florida Banking Institute, September 16, 2015 Cuba Roundtable Discussion: What You Need to Know, Holland & Knight and Jacksonville Business Journal Program, June 2, 2015 South Florida Market Update - Navigating South Florida: Paradise Regained, Holland & Knight Program, May 14, 2015 FIBA 15th Annual Anti Money Laundering Compliance Conference, The Impact of the New Cuba Regulation on your Institution, March 4-6, 2015

Education University of Miami School of Law, J.D., cum laude Universidad de La Habana, Licenciado en Derecho (J.D. equivalent), with high honors

Bar Admissions Florida Cuba

Spoken Languages English Spanish

Attorney Advertising. Copyright © 1996–2016 Holland & Knight LLP. All rights reserved. Tab 2 – Course Materials (articles, publications, other materials) JANUARY 2015 PUBLISHER OF SINCE 1992 | VOL. 23, NO. 1 cubastandard CUBAN BUSINESS AND ECONOMIC NEWS monthly www.cubastandard.com

Politics In this Issue What to expect e White House bullet After Obama's big step: points of easing sanctions • page 2 All eyes are on 'small' Up, but how much? U.S. travel under new regulations regulations now • Page 5 | by JOHANNES WERNER Q&A Robert Muse e embargo — more holes than cheese • Page 8 Analysis: Dealing with strangers New actors will take the stage at the next Party Congress • Page 13 Bank crackdown Will Washington ease its pressure on third-country banks? • Page 15

Big endorsement Official White House Photo by Pete Souza Obama talks with Ricardo Zuniga, Senior Director for Western Hemisphere Affairs, after his U.S. agriculture secretary statement on Cuba Dec. 17. National Security Advisor Susan E. Rice is looking on. speaks at launch of Cuba trade group • Page 16 s full normalization in U.S.-Cuba LLC about President ’s an- U.S. food exporters... relations seems suddenly within nouncement. “We cannot wait to initiate ...zero in on new A reach, the enthusiasm is palpable contact with clients [in Cuba]. We would opportunities in Cuba among U.S. businesses. But the rst busi- like to be the rst to build golf courses to • Page 17 nesses to benet from the easing of Wash- American standards in Cuba. If U.S. tour- Onshore oil ington's sanctions are U.S. law rms. ists are going to ow to Cuba, the facili- Sherritt signs new contracts for oil exploration Philippe Leclerc, for instance, is eager ties will increasingly need to be up to U.S. • Page 21 to oer his golf construction services to standards.” Tough game developers in Cuba. However, Leclerc’s plans are two or MLB to follow Japanese “ e news was a great joy and hard three political steps removed from becom- model with Cuban players? to believe,” says the co-owner of Stu- ing reality. For one, the travel ban-easing • Page 30 art, Fla.-based Classic Golf International steps announced by the White House

Cuba Standard monthly (ISSN 1073-7715) is published by CUBA MEDIA LLC. © 2015 | All rights reserved. Annual subscription: $398; go to www.cubastandard.com for more subscription information. For editorial inquiries, call (941) 702-8614, or email [email protected] 2 Cuba Standard Monthly it he lifted,” is adds. operational place,bargo in is by the time to befully perform pre-commercial the em while activities o-limits. still of laws sanctions and restrictions, and investing is continue to will besubject bodyservices to avast U.S. entitiesBut providing more anything, than or New YorkMiami not bepossible will just yet. so golf vacations on for the island acionados from Dec. 17 include travel categories all except tourism; Regulations (1) The WhiteHousebulletpoints What toexpect: A House statement said. provision such of services,” the White generaland licenses authorize will governing travel to Cuba, services OFACcomplies with regulations through provider any that service to able make be will arrangements travelof to by Cuba law authorized license anymore. OFAChave aspecific to for apply excluded). except tourism (which category still is every almost in visits application-free residents citizensand U.S. allowing to 12 expanded be categories,will no reports." applications, "no thumb of new rule is months. A removal six could occur within "terror-sponsoring of nations".list status the on State Department’s the presidential order to review Cuba's is around the globe players financial mostThe probably relevant step for Politics “ e question now beable whether is to we will aware of that. Leclerc fully is “Travelers the 12 in categories Travel apparently providers won't •Travel under“general licenses” For the travel remittances, and 17 laid out the new openings. 17 the newopenings. out laid HouseWhite statement Dec. on payments will now be interpreted now be as will payments term “cash advance” in export for transactions. processing authorized of to institutions facilitate the financial correspondent Cuban accounts at to open permitted be entities will alcohol. and tobacco of products worth $100 to up acombined including goods, Cuban of to up $400 to import Cuban private sector.” to “empowerimplements, the nascent equipmentagriculturaland private construction, for materials building including expanded, be will license. Cuba” nolonger require will aspecific development private of businesses in the for support and people, the Cuban for support projects, quarter. "humanitarian for Donations per to $2,000 $500 raised from be to Cubanremittances nationals" will “general for donative limits and license aspecific anymore,need • The regulatory definition of the of definition • Theregulatory relations: banking U.S • Direct allowed travelers be will • U.S. exports permitted of • Thelist won't forwarders • Remittance - administration regulations overadministration the few next weeks. amended CubanControl Asset (CACR) and export bureaucracying Washington in likely is to phase in have to have patience, sanctions-watch the main as associate with Foleyassociate with &Lardner, and aformer en later,” aWashington-based says Christopher Swift, issues contentious politically and complex more overes in the easier with time, and the issues rst “ e administration will bephasing the chang will “ e administration To get the answers, Florida businessman will hole” the Mexico. Gulfof in border,maritime the “donut to fill the U.S. Cuba about with Mexico and trilateralWashington talks start will options, oil long-term offshore trade" Cuba.” with humanitarian "certain in engaging to enter the United States after third countries. in businessdo Cuban with individuals generally be licensed will abroad to therest of world". the United States in people the and toCuban communicate people with the of ability toisland, enhance "the the on infrastructure establish and there, sell hardware to consumers, services equipment to Cuba, offer allowedto be export companies will use for by travelers topermitted Cuba. departure. rather than before arrivalCuba upon goods to for pay “cash transfer before allowingof title”, • In a step that expands Cuba's expands astep• In that • Foreign ships allowed be will • Subsidiaries corporations U.S. of telecommunications• U.S. cards credit debit and be • U.S. will —Continued on page 3— page on —Continued - - - 3 Cuba Standard Monthly takes arestrictiveinterpretation. There's acertainriskthatOFAC Regulations (2) ment’s Oce of Foreign Control Assets (OFAC). forcement ocer the U.S. in Treasury Depart part of Obama’spart initiative, which may go from sell important an — activities telecommunications be easier Congress.” to Cubawith dance with than the relationship izing Maybe Havana. it with will onyou normal needto to tango two do anything doneto Congress. to tango get in And anything at studies Georgetownty University. “It two takes adjunct an professorwho also is of national securi placestay in long as Congress as resists change. the travel— such —will the laws ban as enshrining out.” pretation. be a gradual process It to that sort will that OFAC risk a certain a restrictive takes inter and how everyone interprets it,” says. “ ere’s Swift or worse, Congressman. their sorted out by the businesseshelp with of lawyers, House and OFAC enforcers, have to be which will shows bedierences there between the White will are, and that’slimits where it may get History iy. cers who implement them to Leclerc tell what his suggests. Swift sanctions, and similar cause OFAC wording from Burma existing use can e lawyers won't have to reinvent the wheel be- over the holidays regulations. re-writing existing ment of Commerce lawyers who have been busy of the hands the OFAC bein ities” will and Depart —Continued from page 2— page from —Continued Details such Leclerc’s as Details “pre-commercial activ Whether and how much tolerate Cuba will U.S. to it tango,” case, three takes “In this says Swift, the body of sanctions But more anything, than dierences“I expect between what the law says beup en, to OFAC’s it will enforcement o It willbeagradualprocess to sortthat out. ------

Courtesy Foley & Lardner damage to ourcountry, must cease.” bargo, which creates alot of and economic human rms in the United in States.rms go Cuba to boost in law– the rst business will adds alaugh. bydancing himself,”with Swift no changes the law.” in going to ignore“is the second front. be ere will Congress,”not predicts. e this president in Swift tion on that side. publican-dominated, even less expects ac Swift relatively future.” near toSo we conduct expect a business Cuba in within no more justication for the embargo to remain. on the diplomaticnormalized front, there be can condence. of signal things.” doing of approach risk-based sonable, to notnecessary let enthusiasm get ahead of area who knows what they’re doing,” adds. “It’s Swift says,” says. “ at’s Swift why you need alawyer whattween the say headlines and what the law three totango' Swift: 'Ittakes E-mail: [email protected] &Lardner Foley Swift, Christopher www.whitehouse.gov/issues/foreign-policy/cuba More information: Given that boththe House and Senate are Re “You be have of to aview take distinguishing certain is the uncertainty, this oneAmid thing “In the next few weeks, the president be will “We won’t any see movement the near-term, in Says golf builder Leclerc: “Once relations are said, Obama’s things All announcement sends a ing steps.ing “ e economic em Obama’s to embargo-eas ring speechtelevised Dec. 19, refer President a in said Raúl Castro jor issues have been resolved,” up to Cuba, of course. undersea via island cables — is iPhonesing the to connecting “ is doesn’t“ is the mean ma ------4 Cuba Standard Monthly T freeing 53 prisoners on the island. the on 53 prisoners freeing side. to other Cubanthe The government also committed CIA side, Alan along-time one Gross asset on and and remaining the Cubanthat of three included the on Five Vatican of help the the Canadianwith the government and in U.S.-Cubarelations A historicmoment PHOTO ALBUM STATE TV) (SCREENSHOT CUBAN to Obama's. TV, simultaneously announcement on makes his Dec. 17:Castro U.S.-Cuba exchange prisoner over negotiated months was easing byhe possible a made of U.S. sanctions Cuban prison. five yearsina released after Gross was Havana airport. (D-Md.) atthe Chris VanHollen Az.), leftandRep. (R- (D-Vt.), withSen. Gross greetsSen. Dec. 17:Alan to Havana. remaining three return ofthe Five afterthe with theCuban Castro poses Dec. 17:Raúl REUTERS TV) Havana. the streetsof celebrating in Dec. 17:Cubans, (SCREENSHOT PHOTO BYPETESOUZA) HOUSE PHOTOSBYLAWRENCEJACKSON) the OvalOffice. talks withPresidentRaúlCastrofrom Dec. 16:PresidentBarackObama announcement. Dec. 17:Obamamakeshis Joint BaseAndrews. plane duringtheflightfromCubato with Obamaonboardagovernment Dec. 17:Grosstalksonthephone (SCREENSHOT SKYNEWS) (OFFICIAL WHITEHOUSE (OFFICIAL WHITE 5 Cuba Standard Monthly M | Up, buthowmuch? U.S. travel under new regulations: Travel &Tourism tours” that can cost $4,000 per week or more,tours” cost $4,000 that can said intent, you won’t have to buy these pre-packaged tions greater for U.S. travelers. “people”least two daily. activities at apply, like would tours “people-to-people” for by OFAC. some And wonder whether current rules be one of the “Travel Providers” Service licensed Caribbean’s largest nation. travel, buy aticketposeful” and then, y o to the plan to engage one in of the 12 categories of “pur at any travel agency, sign apaper you that certies Show this: as up easy beas soon will Americans embargo. the Oce ofControls Asset (OFAC), which oversees theweeks coming in from U.S.expected Treasury’s island. imposedington its embargo on the communist-led U.S. travel a century, to Cuba half sincein Wash announced. Obama visits, gious and humanitarian Cuba 12 in categories including educational, reli travel under application-free an “general” license to government for a“specic” license but can instead but beach-lolling.most anything to – broadly the island mitted dened to al allow den trips per for to “purposeful” take Americans Cubabusiness with slashes the bureaucratic bur ment Dec. 17 to restore diplomatic ties and ease beable they to ndadecentwill room? Howdustry: many, how under what and fast, rules,

by “If “If the regulations to are written the president’s befewer hurdles and op is will What’s certain Others contend the travel need to agency will for visits Some the travel in business think Skip the tours, go on your own But how depend it works largely will on rules e new oers policy the most open access for U.S. visitors no longer need to their ask will President BarackObama’s historic announce DOREEN HEMLOCK DOREEN but big questions for remain thetravel in 2015ba in under Washington’s new policy, ore U.S. travelers forecast are to Cu visit ------handles the extra U.S. visitors. the extra handles under a“specic” license, travel veterans said. fore, the trip, would or as reporting berequired after students, and o go they paperwork –no extra be of the names participating aletter signs listing cial Forprograms. example, adesignated university of and university students visits on for-creditfamily “general” licenses, including Cuban-Americans on day,” Herrero interview. an in said but you won’t have to follow every a set itinerary “And it’s not going to cost you much.” as group engagement urging the Cuban with people. Herrero,Ric executive of director #CubaNow, a at raises the question at raises of numbers and who at’s already how it works for travelers under requirements, be some“ ere minimum will under Obama’snewCubapolicyare: with anapplication-free“general”license The 12categoriesoftraveltobeallowed No applications,noreports Source: White House Source: 12. 11. 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. CERTAIN EXPORT TRANSACTIONS THAT MAY BE EXPORT, IMPORT OR TRANSMISSION OF ACTIVITIES OF PRIVATE FOUNDATIONS OR RESEARCH HUMANITARIAN PROJECTS SUPPORT FOR THE CUBAN PEOPLE PUBLIC PERFORMANCES, CLINICS, WORKSHOPS, RELIGIOUS ACTIVITIES EDUCATIONAL ACTIVITIES PROFESSIONAL RESEARCH AND PROFESSIONAL JOURNALISTIC ACTIVITY OFFICIAL VISITS OF THE U.S. GOVERNMENT, FOREIGN FAMILY VISITS REGULATIONS AND GUIDELINES CONSIDERED FOR AUTHORIZATION UNDER EXISTING INFORMATION OR INFORMATION MATERIALS OR EDUCATIONAL INSTITUTES EXHIBITIONS ATHLETIC AND OTHER COMPETITIONS, AND MEETINGS ORGANIZATIONS GOVERNMENTS AND CERTAIN INTERGOVERNMENTAL  - - 6 Cuba Standard Monthly D Travel Providers Service too, said. McAuli tour operators, and under by new licensed rules, be oered by currently licensed “people-to-people” U.S.el to with group the island tours. ose can restrictions to Cuba. Riverhead,in N.Y., and long travel opposed to all Fund for Reconciliation and Development, based it is,” John said McAuli, executive of director the and it goes up from there, people as how see easy the number without of Americans Cuban relatives, ban-Americans ostensibly visiting, to family.) see ico. ( at’s Cu separate from the 300,000-plus or third-countriesights through such Mex as visited Cuba U.S. trips on for direct “purposeful” in Cubanearlydoubles U.S. travelers'interest Travel U.S. travel(1) beach resort increased by 166%. increased by 166%. beach resort searches Varadero and hotels the for increased by 206%, adramatic could would be change.”undergoes countries arethese keen to country visit the before to time visit prime Cubathe visitors from —perhaps that media could now in the speculation be some been Italy, France UK, Spain. the and has There in particular prompted increase an in searches countries, other from Trivago.for presence of Cuba “The also media in the aspokeswoman future,”in the Bartlett, Denise said likelihood travel indicatesU.S. users the of interest strong months. three week. the Searches were users down 25% by12%. German during French Spanish and 26%, were users users users up 30%, Italian period, increased overusers same the by 42% website trivago.co.uk. Searches to Cuba by British made according to British hotel search by 180%, jumped users Many rst-time may prefer visitors still to trav “My ayear, that within guessis we’re doubling 2014,In Americans estimated 100,000-plus an By destinations within Cuba, within destinations U.S. searchesBy Havana for “A increase preliminary in hotel searches by made Searches following the during were ahotel for stay announcement, hotel searchesannouncement, to Cuba by made U.S. President following week the uring Obama’s 17 Dec. - - - up for the winter months. winter the for up hotels preferred already booked are by Americans goingare to stop going,” Chu. said Many of the top doesn’t French that mean Canadians, or Russians Cuba, hotelin especially rooms. Chu.said But there serious are capacity constraints next, season and perhaps this 3,000 to 2,000 take Cuba the Sept.-May in season 2013-14. It expects per or day.” bookings 20-30 30-40 ing few the announcement, days after we were averag- educational tours to “And the island. for the rst America for Road Scholar, the nonprot that takes for planning Cuba, and Southgram the Caribbean ly have 6to 14, Chu, of Elaine director “ said pro to Cuba.35 bookings average On an day, we usual and into 2016. spring ey’re this dates adding departure starting on in the excitementcashing over Obama’s plan. players, marginal travel said. as charters experts major to resume, expected carriersare likely leaving commercial by ights Delta, and other American ofba from state its list sponsors of terrorism, then ic ties restored are and Washington removes Cu resentatives of major Once U.S. diplomat airlines. rep with fall hosted Havana this ameeting shrink. landing rights. dependsion on will them Cuba additional granting from moredepartures U.S. cities. But that expan Cuba to seek more expected are frequencies and companies licensed to oer to U.S. ights charter Cubans,” said. ordinary McAuli with experience people-to-people authentic more even and othernadians visitors do, McAuli. said short Ca tours Europeans, –just or guides as hire onvisit ey own. their could sign up Cuba in for more experienced globetrotters may choose to ”Just because more to want go, Americans it Road Scholar took nearly U.S. 1,800 travelers to “ e day the announcement out, came we had are operators tour “people-to-people” Already, Longer-term, the role of likely charters will To more y in the short in term, Americans losers and Winners outside“Getting the group tours an permits But and repeatchildren with visitors, families ------»Briefs 7 Cuba Standard Monthly OFAC out to gure rules moves. theirnext those projects could years. take larger-scale hotels and travel though facilities, the gaps. foreign seeks Itll also investment for cooperatives ventures small-scale to help to start around.” not beinsurance,” Chu. said “It’s not to get easy there may not be enough available. cars ere may “Even you if could rent a credit with card, a car tour operators. Plus, up too. those rooms oftenll headache alogistical particulares,” eight for casas agroup of people, 20 ortaking six mean that can you’retwo, and if lucky, you’re If bedrooms. three ple,” Chu have added. “Most particulares casas do rent out rooms, not “but for more 100,000 peo foreign reserve figures reserve foreign releases reportedly Cuba U.S. travel(2) ly, and is reportedly set to begin begin to set reportedly is and ly, recent Russia and Mexico China, substantial cuts in debt with Japan, tional bond market. It has achieved interna the re-enter to like would reform. preparing for currency and Venezuela in turmoil more for bracing is country the given plausible, but high seems which billion, $10 of figure eign-reserve States could harm. use to it inflict United the arguing secret, state a as information debt and serve Cuba's reserves. foreign currency about report economic official an be to appeared what seen had they agency news ters Reu- the told diplomats Foreign Briefs In the meantime,In U.S. travel companies await Cuba encouraging entrepreneurs is local and Transportation pose abottleneck. can also Some private particulares homes casas called Cuba needs fresh credit and and credit fresh needs Cuba for- a quoted sources The re- foreign treated has Cuba - - stimulate growth. stimulate 13%by to Cubaincreasesimports as 2015 in million $5 to drop will surplus account current the said Murillo 2014. in billion $1 of plus session that Cuba produced a sur- year-end its in Assembly National the telling early, unusually figures current-account released Murillo figures. reserve debt and lease its lenders, which of requires Cuba to Club re Paris the with year this talks soon, accordingsoon, to Bloomberg. begin to Cuba in unfication rency brecht say they are cur-expecting tion and giantinfrastructure Ode- construc- of and Brascuba maker cigarette Brazilian of Executives ready for currency reform Foreign joint ventures Also, Economy Minister Marino - http://www.roadscholar.org E-mail: [email protected] http://www.ffrd.org/Programs More information: 'Logisticalheadache'?CasaparticularinTrinidad - Tabacuba, told Bloomberg. Brazil’s state-owned and SA Cruz Souza between venture joint a Brascuba, of co-president ter, Carpen Alexandre quarter,” first the for it expect and it for pared talks on trade Cuba, EU postpone release said. session,”negotiatingEUpress the next the for date convenient ally mutu- new a on agree to course in apress release. said Havana in delegation Union European the Havana, in 8-9 Jan. scheduled originally agreement, cooperation a for talks of round third the Cuba asked postpone to I’ imnn; e r pre- are we imminent; “It’s Bt sds il iie n due in liaise will sides “Both areason. sideNeither stated -

Photo courtesy Road Scholar 8 Cuba Standard Monthly Q A More holesthancheese The embargo: cases against Cuba. Cuba. against cases claims property in corporations major represented has U.S. W e most chargé in embassies is the deputy chief to replacea chargé d’aaires, the chief of mission. of diplomatic relations, appoint and then we will asimpleis exchange of notes for the resumption may happen dierent. bevery things So what will point.conrmation But —at this ayear from now, to bevoted out of to the committee the oor for So it for would ambassador an dicult bevery and Menendezmittee, on the remains committee. (Florida Sen.) Marco Rubio He on is. is the com over animated ticularly the subject of Cuba, but ofhands Bob Corker of Tennessee, who not is par now e is committee the in dicult. equally the foreign relations would committee have been Democratic Senator for New Jersey) chairing as ambassadoran approved Bob Menendez with (the the Republicans. with course, Of dicult getting ambassadortion, an andapproved getting be will RM: evolve? Havana. Howin do process you to this expect e president soon pick ambassador an will ing months. ing nouncement likely and scenarios unfold to in com about the implications of Barack Obama’s an Standard Editor Johannes Werner talked Muse to Cuba Straits. on of both the Florida sides friends ashington lawyer Robert Muse

An ambassadorAn requires Senate conrma & of U.S.-Cuba politics, gainingof politics, U.S.-Cuba and respect not and only Cuban law, of U.S. but also long the way, become an he expert has A - - - - - Same thing on the Cuban side? thing Same economic else.with ocers, and everything Cuba in today,bassy services, the consular all with ambassador. an is ing Functionally, we have em an ance of diplomatic relations; miss the thing only awayis from the embassy. It completes the appear of mission, charge who in when is the ambassador mentum and some enthusiasm. To keep more controversial. mo with pursue this He will moreof far it immigration, was domestic and far to conduct the nation’s the case In foreign aairs. prerogativeercised the historical of the president decision bold is seen as is and big. He ex has president. the only one who’s now, right dancing the U.S. and the Cuban government. Let’s with start dancersthree —the U.S.president, Congress e processthat normalization takes atango is bassador. chieftheir of mission, becomes José Cabañas, am RM: RM:

e president some has momentum real here. Yes, But easier theirs thing. is same because ------9 Cuba Standard Monthly Q a-vis the United States, which most-favored-nation vis- status advantageCuba of from taking tion of the WTO that prevents exemp security national —the 21 Article morrow: lift He can to tothority do things two trade and investment. and trade Please expand on Stage Two, eventually. involve will Congress ree to aminute. that in en, Stage come Cuba,with back and I’ll at’s the restoration of trade somewhich in ways overlaps. to Cubans,and get to Stage Two, mostare and oensive irritating that dotinuum is those things con e relations. of malization goingis to late be left the nor in (laughs).activities Guantánamo you’re not engaged terroristic in when that — particularly sort toing anation of to beon alist It’s insult objectionable. highly ror-sponsoring nations). Again, (State Department’s) (of list ter review, Cuba take o the will Kerry, following the six-month a foregone conclusion that John moved It’s that irritant. but all violations of U.S. law. Sohe re ishment enough for small their connement pun itary — was prison –manyin of them sol in angels, but spent having 15 years doubt felt that these men weren’t ocers. e people of Cuba no releasing intelligence these three gone some way toward that by current He’s sanctions. already objectionable features of the early to remove some of the more counsel the president to move the momentum going, Iwould RM:

& e president the au has A Robert Muse(1) ------backtrack? brash, Washington causing to trol, could they do something they maysenses lose con the CubanIf government WTO. of 21 exemption resolved by removing the Article dutyare issues, but be can they authority.under existing ere Cuba to the U.S. do He that can from juice fruit of importation ecutive order say, allowing, the Tomorrow, ex sign he an can worth of Cuban goods. to $400 accompanyingas baggage of up allowed,and has importations itive. But right now, allow he can goods, it’smanufactured prohib ment. some In particularly areas, treat most-favored-nation have it doesn’t matter that you don’t of beer for $7, it’s de minimis, youasix-packSo, if selling are aliter of 5cents. beer is I think variable. once, Iresearched this duties; those duties wildly are besubject tocome will they in, treatment. now Right when they der most-favored-nation status entergoods can the U.S. un that. he When does Cuban that, president the authority has to lift suspenseright now,in but the at’s treaty. multilateral that it entitled is asignatory to as of shipments to Korea, North the embargoof the UN on weapon equipment on board, violation in foundwas Cuban military with ple, when Korean aNorth ship drive the relationship’. For exam ‘Weas, not Cuba allow to will pressed by government ocials been one theme. central It ex is there’s administration Obama RM:

I don’t so. Under think the ------er. What’s your prediction? embargo laws altogeth lifting in which plays part the crucial Let’s move on toCongress, United States and Cuba. a source of tension between the get could to thatbe point, it still anybodylike else. But we until bedeported can illegally arrives Adjustment aCuban Act; who ney general rescind can the Cuba to the United States. e attor to get to try these rickety crafts Cubans into a magnet that pulls Adjustment Act. ey that see as notba is Cuban happy this with States Cu of Cuban migrants. into entry ofthe United illicit ship. We have problem agrowing relation this in be downdrafts overreacting. ere going are to not any longer and reacting the United States So Ithink is and issued did areport. e UN forsomething to consider. UN bothfeet.that It with that’s said United States not did jump into until Cubauntil reaches embargo no be shall Helms-Burton. at law says the executive authority, full his is whenbe left, the president uses cheese.than What’s going to goingis to end up more holes RM:

Well, the embargo I think terminated terminated - - - - 10 Cuba Standard Monthly Q get tricky. very at includes the someare other elements that could rescind the license. ere president, 2017, say January in the hotel. next build But the next Hilton the license to borrow and ecerting. president could give bit nd that a little discon will to reassemble that. So, business president authority the full has the embargo, that the is future executive branch dismantling aw the in the fundamental ing dent. under the nextagain presi now, the cheese could grow But, no how matter much hole We're about Obama. talking more symbolic?thing than laration of termination beany point? would And aformal dec would heat beterminating that anymore.exist So, what exactly it wouldn’tgo sofundamentally authority, to change the embar licensing authority, the executive It gives the president the by Helms-Burton.him utive authority, given to president exec this has toly e ceased exist? the embargoif large has ditions. Iwould ask,what of these conto meet all the embargo,minate Cuba has met these conditions. But to ter whetherdetermining Cuba has wouldstandards beemployed in on on. Ido an not know what goes on —the list and judiciary to participate; independent an must beallowed parties political all elections; monitored free, and not aRaúl or Fidel power; in full including conditions, multiple RM:

& You’re correct suggest in A Robert Muse(2) - - - The embargoisgoingtoend up moreholesthancheese. ------What's goingtobeleft ing an ambassador. an ing do ey can moment role their conrm in to Cuba’. Let’s leave aside for a exports facilitating or otherwise exemptions license creating in by the Department of Commerce say ‘No money beexpended shall bassador to Cuba, or could they be expended creating am in an that no monies bill may funding explicit the State in Department could they do make it is, thing One appropriations. and tions budget authoriza mechanisms, the purse. ere’s of avariety RM: process? the opening with How could Congress interfere the role of Congress. whatwith permanent and eect, to how the executive far go, can some genuine questions here, as of ere that sort. and things are ambassadorsments, conrming investment protection agree agreements, trade supervising of role traditional classic, the of Helms-Burton conditions, but ger the enforcement supervising Congress’ role becomes no lon no embargo at that point. en declaration?al ere may be ident doesn’t make that annu wouldWhat happen the Pres if It dates back to the Truman era. keep the whole embargo place. in emergency, to whichnecessary is declarationannual of state of is Helms-Burton.

Congress the power has of ------Cuba? and the president regards to in interaction between Congress Could we any positive expect there anymore adjudicating the the adjudicating anymore there licenses? ere’s nobody sitting people-to-people to relative ity gress de-funds OFAC’s author Con eect if any meaningful licenses on travel, does it have Treasurylike and the general matic licensingplace, system in you If of havesort thing. auto an hard toit’s enforce that awfully butthat Isuggest of sort thing, is guerrilla action will action will guerrilla is it comes rapprochement. to this when country the spirit of this to blow the bridges — that’s not trying tion, airborne unit an like normaliza against campaign rear-guard aguerrilla, toing run forward. Congress,ing attempt progress.see We to want bego been character adesire has al to of nation the American aspect acentral thought Ithink on this: RM:

I will oer my personal I will general licenses work. done de-fund is the way have will they censes, all general li administer OFAC to and its ability de-fund they them. Soif signing and applications ------11 Cuba Standard Monthly Q strongly leadership disciplined a is Cuba. in is any instability by the way, don’t believe there’s early stages of implementation. I, where change impending oris at most at vulnerable the moment that governmentsstand become under ey Gorbachev. under from the events of those years trol. at’s the Cuban takeaway the government; lost they con lowed events to get away from ey1990s. feel that Russia al the laterin 1980s and early experience of bloc the Eastern and learnedstudied from the you tell that they Cubans will ofdeal Many thought to this. nior leadership given has agreat for the Cuban government. side. amajor is challenge is Let’s look at the Cuban coming. was he this knew the embargo and Cuba if out so favorstrongly in of Bush would not have come sion over Cuba? IguessJeb obses punitive negative, alargelyidential with candidacy does he to want go into apres Rubio to want go into debates, en’t he Does Marco seen has. if TedI suspect but Cruz, Ihav and denounced it? Sofar, Rubio; ably quiet. Sowho’s come out been remark has Christie Chris and he he said favorsof this, it. to get on the right sidetrying He thoughtthis. it through, he’s or two, sought some counsel on favorin He aday waited of this. candidate. Rand Paul out came of yourcally. presidential ink beviewed unsympatheti will and Ibelievebe unsuccessful, it RM:

& Yes. the Cuban se Ithink A Robert Muse(3) - normalization, that'snotthe a guerrillacampaignagainst 'Congress, attemptingtorun ------substantial entry into entry the island, substantial So far, have they not made any macaroni packages. instant ing demonstrat Fair the Havana had at astand Kraft wine. like voted for to U.S. exports, things ba. ey attended de trade fairs havemanufacturers gone to Cu few value-added, branded goods to Jack bourbon. Daniels Soa ties extend from gum chewing commodi ba. But agricultural to Cu by sales Cargill soybean commodities such as ricultural what the word describes — ag modities. Some of just that is com the areaof agricultural done any business Cuba, in in U.S. companies havespecialized territory. very, Only few, very that they’re entering unknown expect fromexpect Cuba? shouldWhat U.S.businesses expectations. ey’re to goingmanage to try relations the United with States.” we’re going to dictate the pace of ment that “we’re charge, in and govern the from rearmations control.ing you’ll see So I expect States, or that they’re relinquish made aconcession to the United the island, that somehow they no euphoric sensedevelops on they’re that going to becareful that ofels Cuban So I think life. greatwith control of most lev RM: spirit ofthiscountry.'

I think they should they expect I think ------U.S. government intends intends government U.S. envisaged here, and how the regulations, Idon’t know what’s entrepreneurs. Before those Isee or of the sale goods to Cuban equipment al farms, to small agricultur example for prises, abouted to private sales enter don’t around the streets in walk to state ey agency Alimport. commodities to Cuba, sell they agricultural selling Companies instrumentalities. government they’re going with to bedealing done Cuba, in and understand themselves are how with things orient themselves, familiarize would encourage to them to try territory. I visits, the initial In they’re going to beentering new developed. has expertise So al So far, transaction little very income hard-currency in terms. lowa very amount of disposable for reasons. One, several there’s near- and mid-term Cuba. in to apply the to any openingsin Now, the president talk has e same thing is going is e thing same purchasing agency.tral the cen through to run ey wine. haveGallo interested buying in they’re whether ask and of and restaurants bars and knockon the doors - - - - - 12 Cuba Standard Monthly but they'regoingtohavebedealtwithin Q the claims have tothe claims be resolved porate general So, counsels. yes, memories and archives of cor have any idea of the elephantine rations work. Idon’t they think but don’t they know how corpo o, havenies the claims written say these compacolloquially people I’ve heard commission. U.S. foreign settlement claims of the U.S.cy government, the have agen by been an certied that ese property are claims receive value from those claims. But do they have to ful. to try don’t have success to betotally Herculeanuse eorts, and they er people. ey don’t have to ers and bondholders and oth sharehold their to obligations ey haveotherwise. duciary them. eyvancing can’t do be activeprotecting in and ad hold going are to these claims corporationsAmerican that It’ssurfaced. no secret that RM: some soon?ing time do toget you roll this expect — tion of claims U.S.property butLast not compensa least, equipment. American buy to private in island looking hands, ere’s not a lot of on cash the ush. altogether not they’re and erees. aren’t Cuba, many in beto only privatecan enterpris to enforce the notion that sales Property claimsaren'tgoingtogoaway,

& Denitely, it already has A Robert Muse(4) ------dividual claims… dividual in comparisonin tocertied lookCorporate simple, claims that. wants really remedies, where the corporation debt-equity swap, restitutional — substitutional investment, vative approach to be found has inno knows. everybody Soan as Cubabillion. doesn’t have that, late and $8 between $7 billion amounts to I calcu something 6% compounded interest. It now years, at 54 been running has reners,oil Coca-Cola. Sothat ny, the telephone company, the when hit the they power compa day,same Aug. 1960. 6, at’s were taken the big claims all innovative an in way.with e but it’s going to have to bedealt won’tcountries. Sothis go away, investors American port other in to actively sup and successfully it makes it much more dicult expropriations one in instance, ple. uncompensated allow they If a resolution, apoint as of princi ernment on insisted always has the United States. e U.S. gov toing execute on cargos entering try vesselsseizing and aircrafts, bunch of U.S. creditors at large, sumption of you trade if have a reasons. You can’t have re areal — it happens, always for many normalization. China, Vietnam continuum this towardin full an innovativeway. ------I have no idea. ment. befunded, How that will settle monetary small-claims investment. bea Sothere will of restitutional or substitutional a corporation would terms be, in tion resolution to the claim that ofor solu interested the type in, these people not are eligible for, settlement. monetary Buta nal have ere to be, Ibelieve, will how to trace the successors. longare dead; Idon’t even know Many of those$500. claimants Many of themof for are claims. apartment there —these types by the government, an left they then that expropriated was hind be automobile an left who ple ereclaimants. many are peo leaving many, many individual solvedessentially the problem, the back you’ve of those claims, you If break top can 25 claims. once you fall a free get below to of value. the It’s total two-thirds you about with 15 deal claims, Butact. you if the top take 10 or 5,911 claims, dividual to be ex RM: E-mail: [email protected] http://www.robertmuse.com More information:

ere’s alot in of certied ------13 Cuba Standard Monthly A experts had followedexperts Soviet events and leaders. tonothing do Cuba!). with For U.S. 50 years, the almost most brilliant Dealing with Strangers with Dealing Congress Party 7th Communist one knew. one phin? the chosenthis successor to Raúl Castro? Was 40s? Miguel who???!!! his in Another “kid” appointed.— was name: Miguel Díaz-Canel. His second-highest Cuba’s in rank hierarchy political ident of of the the Council State —nominally won’tthis happen to you Cuba! with looked completely. My only comment I hope was: not was Putin therename it at had all; been over Nobody dared to accept the challenge. Indeed, the Putin. Vladimir the name journal famous this in entire retirement someone if savings could nd dience prepared and the panel: Iwas to oer my showed it around, and challenged boththe au forNext Russia?” (September-October 1999). Sovietologists wrote essays under the title “Who’s nism. of the former USSR to the crumbling the eld,in its after name changing Problems of Communism of Problems One day, not too long ago, anew vicepres rst outI pulled issue, acopy of that particular When Boris Yeltsin Boris When stepped down, famous six Everyone the United in States baed; no was turn, I started with alesson with from U.S. Istarted Sovietologyturn, (apparently CubaDepartment and discussing its leadership. my Whenit was few of years back,apanel part sponsored Iwas by the State Problems of Post-CommuProblems was a key publication publication key a was Le dau Le - - - - - For more years, U.S. 20 makers policy than among many others? Don’t bet your money on it. Pérezvas, Zaldívar, Lauzau Jiménez, Díaz Gallardo, OchoaCoubiella Gómez, Carrasana, guer, Miguel Otero, Corona, Alfonso Brook Chivás, Ortega,Amado Borjas Velázquez Arguelles, Alma Rodríguez, Ermio like names with makers familiar policy Are the General in Sta? top ministers vice afew in years, not armies to mentiontral several replace will the chiefWho of the Western and Cen out new their relationship. the Unitedwhile States and Cuba are hammering going is on to the happen issue of of this Cuba. All U.S. again, policymakers surprise, and others will Espósito,Guilarte, Monteagudo, Cuevas, Tapia, consentand popular behindthem? is Names like simply followers? amount What of eective power and inuence do bear? they leaders real they Are or be promotedwill to the Politburo? feedback What place? come into play? new will What gures Who hold its 7th Congress. How take many changes will Changes are afoot in the armed forces afoot are theChanges armed in well. as 2016,ofIn Cuba will Party the Communist economic reform,andSouthFlorida’s regularly onCuba’sinternalpolitics, Former Cubanintelligenceofficer Domingo Amuchasteguihaslived in Miamisince1994.Hewrites Gómez Cue Gómez Cuban community - - - 14 Cuba Standard Monthly Strangers (1) sembly … sembly - of the National session Winter As *** for of surprises Washington.may befull the early —and 1990s thefuture near in 30s their media have ignored thenotion very of a Putin mistake. Putin Cuba. Who” Is in of Don’t “Who their repeat the and businesspeople update better do a substantial stage, U.S. diplomats particular picture. At this for biological reasons or retirement —out of the jority of the old Cuban leadership be–either will to. four ma less years, In the vast than talking are to the content of the issues at —of stake who they volved need to have addition aclear picture —in Planning Minister Marino Murillo included: Murillo Marino Minister Planning and Economy Pedraza, Lina Prices Minister and sure. Major concerns pointed out by Finance and public health, received disclo agreen lightfor full the content of such reports. itors and reporters words used or to dodge bypass and corruption to how see magical it cases; was ed notdid one asingle disclose of the many problems torney general. Yet newsmedia ocial reporters Comptroller General Gladys Bejerano and the at extensively, activities inal following reports from - crim and corruption debated Deputies prevalent. In any successful negotiation, any successful In in the parties Other problems, economics in especially and • tax evasion, both by the “non-state” and the “non-state”and the by both evasion, tax • wageswithout state320companiesthe • raised 2014, generatedin companies151losses state • state sector; to 1,438 pesos CUP 842 pesos; ceuticals) whose average wage went up from pharma and biotech of (production/exports oneonly positive exception: BioCubaFarma productivity increases. erenecessary was industry); (nickel industry), and Unión CubaPetróleo (oil of Agriculture),(Ministry Grupo Cubaníquel state MINAGRI sugar holding AZCUBA, including some strategic companies such as —top executives who and ocials were in Secrecy and Newspeak are still still are and Newspeak Secrecy generación inter------and challenges: problems of set complex a showed Miranda, tal ofVice Public Dr. Minister Health José Angel Por workers companies; capitalist another than reader their from prot more obtaining of companies Two examples: One reader accused Cuban state reader outside Mariel, regardless of widespread and bitter ondiscussion wages of foreign company employees of the many newsmedia corruption corruption single one e report on public health, delivered by First Ocial media did notdid media Ocial publish one word about • good news: There were 51 reported cases of cases reported 51 were There news: good • in than cases Denguefewer 2,500 werethere • drought. by affected are water of sources 113 • • Major water supply challenges: 82 local aquae • frequent delays in purchases and imports, imports, and purchases in delays frequent • • lack ofof hard availability currency, one of the ill-prepared• deficientand investment process - disclose a a disclose reporters reporters chikungunya, 49 of them imported. chikungunya, 41in municipalities and 110 districts.; health 2013, but Dengue-infected there areas still are inces; theprov and central eastern mostly in built, to be waiting are septic tanks Some 22,000 ducts out are across of service the country; causing disruptions to the domestic economy. most pressing problems; and es; Ocial Ocial did not not did cases. cases. Comentarios published in in published of the expected GDP.of the expected CUP, representing 6.2% decitscal of 5.6 billion cation). leave a will is edu and health public of to committed that is (53% CUP to billion 54.9 beup 10% will expenses pesos CUP; to billion 48 revenues beup 6% will go according to plan, new.” of the poor. Nothing CUP. exploitation More and pay workers with keep the hardcurrency eillusions. state will wrote, “Don’t have any 2015 budget: things If Granma online. online. - - - - 15 Cuba Standard Monthly T Strangers (2) | third-country banks,too? With easingsanctions,willU.S.easeup on Finance U.S. Treasury Department Housefrom the or White Tampa oces. and Miami nior counsel at Foley &Lardner's them,” says Lauren Valiente, se approval may be needed to change der Helms-Burton, and Congressional of the relevant requirements un arise some area, as changes this signicant in be able to make will Administration Obama Don't hold your breath, recommends one expert. now?crackdowns banks third-country against dard Cuba,tions with by a$1 paying ne. billion a U.S. investigation, over part transac in dollar that Germany’s about Commerzbank was to settle

by “So far we’ve“So far seen nothing “At point, it not is this clear whether the WashingtonWill exclude Cuba from future A Commerzbank spokesman told Cuba Stan the Party will be held will the Party JOHANNES WERNER JOHANNES Dec. 19 that there “no was settlement yet.” e 7th Congress of against Cuba,against the nounced sanctions to ease that he seeking is he day before President an Barack Obama important political political important announcement: announcement: in Aprilin 2016 e most Financial Times Financial - - reported

- - - 2016. 2016. beheld April in e will 7th Congress of the Party vestigation Sudan and Iran, over with transactions summer, France's aU.S. in settled BNP Paribas Crédit Agricole and Germany's Deutsche In Bank. geted more including France´s European banks, Designatedof Nationals'." 'Specially entities on appearing OFAC's and individuals list tospect enforcement the Cuban actions against be any change re thatwith indicating there will Cuba of the for of part $8.9 As apenalty billion. agreement pledged the bank out to pull of Cuba e most announcement: political important • finally, anationwide plan to prevent Ebola was • more good news: There a was considerable reduc U.S. enforcers sanctions have reportedly tar altogether. altogether. mental vaccine showing is “promising results”; and adolescents; children targeting experi an tion to of preventive cholera thanks cases, actions designed and implemented. and designed stopped; eectively was Dissemination of the disease banks has been disruptive increasingly has and banks Rising U.S. pressureRising on third-country costly in Cuba's in costly business transactions with the restwith of the world. Accord ing to an ocial Cuban ocial to report,ing an U.S. pressure prompted has 27 nancial institutions to closeinstitutions accounts of Cuban banks or cancelCuban corre banks spondent bank relationships, relationships, bank spondent between April 2013between April and June 2014. ------16 Cuba Standard Monthly 2014. to Cuba importmore expected $2 was than were to exported Cuba 10 the rst in months of lion products worth of U.S. food and agricultural and Rodney (R-Ill.). Davis Reps. (D-Cal.), Farr Sam Cramer Kevin (R-N.D.), Moran (R-Ks.) andKlobuchar Amy (D-Minn.), and congresspeople states fromsuch Jerry farm Sens. as Jayof Missouri, group Nixon, of andabipartisan said. play," Vilsack America's great farmers and ranchers come into and promote positive change Cuba. in at's where serious debate about what do we to can produce honest toward Congress engaging an with in and vestment. end the embargo for and allow open trade and in ACC it said the ultimately United wants States to the National Press Club 8. Jan. foralition Cuba (USACC) at apress conference at announced the launch of Co the U.S. Agriculture companiesfood and agriculture and associations have dropped to a 10-year low 2014, in at least 25 new trade group focusing on Cuba. ence Washington in the announcing launch of a | at launchofCubatradegroup U.S. agriculturesecretaryspeaks Politics

Congress serious debate’with Vilsack: ‘Honestand by According to U.S. ocial trade data, $253 mil joined was byVilsack the Democratic governor " e president look for administration and this apressIn release the event, announcing the US to maythe island exports U.S. agriculture As JOHANNES WERNER JOHANNES I speaker at apress confer sack agreed to bethe main Tom Vil Agriculture of in Congress, U.S. Secretary Congress,in U.S. Secretary for embargo-lifting eorts Obama administration administration Obama the by endorsement n what amounts to an ------Johnson, founding executive of director the U.S. of Chamber Commerce’s Cuba force. task Paul Corp. and amember Cargill of giant the modity werk, vice-president of at corporate ag com aairs adecade.in shape up the worst as year for to U.S. Cuba exports November in curred and December, 2014 would ofbillion food year. last Unless amajor spike oc e USACC Boughner Vor by chaired Devry is Source: USACC Source: CoBank Corp. Cargill Chicago Foods International Federation Rice USA Council Bean Dry US Association Canola US Council Export Dairy US Council Export Soybean United Associates Wheat US America North of Association Soyfoods Institute Meat American North Association Grain Export American North National Turkey Federation National Sorghum Producers Association Processors Oilseed National National Milk Federation Producers Association Feed and Grain National National Farmers Union Cooperatives Farmer of Council National Association Growers Corn National National Chicken Council National Barley Association Growers Growers Wheat of Association National Agriculture of Departments State of Association National International Foods Dairy Association Bureau Farm Illinois Growers Illinois Soybean Group Working Cuba Illinois Association Refiners Corn Association Soybean American Federation Bureau Farm American Agribusiness. Membersinclude: The USACCisaWho'sWhoofU.S. Heavyweights - - - 17 Cuba Standard Monthly W | Cuba tradegroup(1) Cuba tradeeasingmeasures U.S. foodexporterszeroinon transfers. trade, regulations along on with bank liberalized exporters statements zeroed on in his involving gets us backgets us to the earlier when days of the 2000's groups. trade among well-received is Cuba, to with conduct U.S. banks ting transactions direct exporters food to sell on credit. Enhancement permit food (TSRA) Act will of 2000 the amended Trade Reform Sanctions and Export to aCuban of port goods’ entry.” arrival Cuba long as payment as received is prior to the products to ofly the export permits agricultural to (OFAC), aTreasury spokesperson e-mail an in said Department’s Oce of Foreign Control Assets prove and food to Cuba. sales agriculture im revision alone that will this of title” —asserting that it “cash means to specify beforerevised transfer tion to reduce be U.S. to food Havana) exports will “cash advance” in (imposed by the Bush administra announcementter his stated that the statutory term Companies U.S. foods to Cuba, of the trade vicechair group. is go Foods International, company asmall exporting Cuba WorkingIllinois Group and owner of Chica assistance —includingassistance credit —to U.S. agricul oce Cuba, in U.S. promotion allow export and trade would the opening agricultural of allow an tionships” on Capitol to seek legislation Hill that

by Cuba Standard A fact sheetA fact released House by the just White af “ is is a very big deal in practical terms and terms practical big avery in is deal “ is Even news, permit Obama along with so, this OFACBoth were and Obama silent on whether responseIn to aquestion to the U.S. Treasury Johnson says the group formed “strategic rela VITO ECHEVARRIA lomatic relations Cuba, with U.S. food nounced intent his dip to normalize hen President an BarackObama that the amendment “essential amendment the that ------nois Association Soybean (ISA). rector of strategic market development of the Illi title,”payment di Mark Albertson, said and taking the goods at before port inspect a Havana releasing outers scenarios. already are guring “weeks.” regulationsspecic within Some export imposed.” when the denition of prior cash to shipping was big drop U.S. to Cuba in ag betied to exports can the U.S. less competitive. cost, making turn, in e shipper and buyer, and the risk, needlessly raising by Bush) put on undue boththe constraints time (imposed reg cash-prior-to-ship e world. the done overis all way businessmal to the norreturn sion, but rather a concesa special not title’ transfer is Va. “‘Cash before tion Arlington, in Federa Rice USA advisor of the Lehrer,vin senior Mar said plied,” the denition ap was this fact in with Cuba.with food to companies negotiate the ability trade terms commodities going totural Cuba, and permit U.S. http://www.cargill.com/news/ [email protected] E-mail: http://www.usagcoalition.com More information: “With the new interpretation, even Cubans can OFAC publish December announced in it will ------18 Cuba Standard Monthly U.S. foodexporters(1) lion in 2013). in lion have that dropped amount steadily ($348 to half mil Cuba. Since then, to food Havana American exports that $710 U.S. in shipments million were executed to when U.S. Dept. of Commerce conrmed statistics Cuba. e bestyear for food to Cuba selling 2008, was and evenCanada, Vietnam, Brazil that oer credit to over losing market Cuba share in to countries like credit well, good as terms and with reason. Washington to themamend to oer TSRA, allowing —fromucts rice to potatoes and wheat —urged down and encourage them to buy more.” go of doing to the business U.S. Alimport with will errors, that. Soyes, costcal the total charges and all France in —many delays, abank use holidays, cleri Mexicobe like from buying the U.S. but had they to the U.S. less competitive. making Itfurther would would the price need to Alimport pay, raised turn in commissions rencies, and all,” he “ is said. banking and for —exchange costs rates dierent with cur growers. to Cuba,ports aone-time major market for U.S. rice non-existent rice American ex revive virtually will now-liberalized regulations on Cuba, U.S. banking trade association for that event. Fidel sampled Castro some of the rice by served the show over Havana in the years. At one point, even up elaborate FIHAV trade at booths the annual trade including agency USAbuying Alimport, Rice setting spite group’s his eorts to woo Cuban food import from instead of Vietnam the United de States. is, sues, since over the years Cuba opted has to buy rice just after Obama’sjust after announcement on Cuba. Marengo, a press in releasetrade Ill, group his issued fromand a farmer soybean keting chair committee Growers Soybean Illinois mar says Dahlman, Duane products tobusinesses reach and agricultural Cuba,” Illinois allow tions that and improving will nancing In response,In U.S. prod exporters farm of various recentIn years, U.S. trade groups have been uneasy Lehrer was particularly sensitive to these particularly trade- Lehrer is was “We feel this is the beginning of“We opening up rela the beginning is feel this Other U.S. food producers even are more bullish. increased risk, banks third-party with “Dealing Lehrer hopes that Obama’s changes, including Lower cost for Cuba ------banking andcredit Johnson: Direct credit, or just permitting someonecredit, or just permitting to oer transferable credit export ing insurance, MAP, GSM 102 &103, and private Ex/Im bank USDAcapital loans, the form in of FMD, funds country, according to Johnson. Cuba with ‘normal’”. transactions nancial here to come to some make step, next which will Business Administration). need to weigh ey in all stitutions, ag industry, U.S. Commerce, and (Small come from a combination in of Congress, banking come into play. Ultimately, will it that seems clarity laws U.S. and the various departmentsisting that the ex going is to aHoudini take to is de-codify that happen, and the new language reects that. countries. aways But o from making we still are of sales productsthe export to compete other with products competitive Cuba. in We need to nance it. Eventually what that is needed is to make U.S. and the potential for U.S.actions with banks cred can”,legally includes trans he “ is said. nancial of possiblyending they the embargo as far and as ments to TSRA that would permit credit terms. not that has Obama rmed authorized amend food items from South America.According to the ly factor that led them to buy and other soybeans asked for from terms 30-day U.S. suppliers –alike ofbertson ISA previously noted has that Alimport recently Al Argentina like lost and Brazil. to rivals to like the regain market Cubaalso share in they “Financing options could SBA mean working U.S. food that trade further with Financing can aspect every taking is the administration “I think U.S. producers soybean would Dahlman like House recently. Johnson con- Group,ing visited the White Cubaof Work the Illinois ACC) and executive director for Coalition ture Cuba (US of the USvice chair Agricul national, who also LLC, is son of Chicago Foods Inter — $39.4 2013. —in million to just over that number half 2008 in of million $66.6 high U.S. went soybeans from a USDA, Cuban purchases of Food exporter Paul John letters of of letters ------19 Cuba Standard Monthly as otherbuyingagencieswithin Alimport mayhavecompetition Cuba appeartoservetheneeds U.S. foodexporters(2) trade with Cubatrade with onlyimprove. can andothersJohnson feel that U.S. at this point, free-tradethrough Republicans and Flake Paul. like Cubago against altogether, likely happen it will Cuba,with even voting the embar to eliminate Congress concrete takes trade steps to liberalize Rubio (R-Fla.) over Cuba. with Assuming trading recently got of into words awar Sen. Marco with and Sen. Rand Paul (R-Ky.) , in – who from ight toon Havana Joint his Andrews Base Gross Alan contractor USAID former companied Cubatrade with Sen. are Je (R-Az.), Flake who ac Cuba.”overtures with mant deance amongst its leadership any against leadership splitissue, is but on this there ada is 114th beled by Republicans Congress will whose above, what see Obviously, we transpires. shall the he “As said. for any of Congress the permitting individually,” risk all and assume terms nancing Even uncertainy with regarding Congress, Among the Republicans who favor more U.S. of emergingsectors. - - - p,adlclpouto,seicly” specically.” production, andlocal ops, , agricultureco- —cuentapropistas Cuban society within ofemergingsectors the needs to serve Cuba within agencies other appear buying tion as may also er to U.S. have ey competi- suppliers. warm- to be may reason they have “But anew ed. oncost,” andpurchase to reduce imports henot- “Alimport remain consistent will look they as sanctions willeventuallyallowaccessto: Exporters hopethattheeasingofU.S. not yetinthebox Tools ofthetrade, Source: Paul IllinoisCuba Johnson, WorkingSource: Group FUNDS: AGRICULTURE OF DEPARTMENT • US CAPITAL WORKING ADMINISTRATION BUSINESS • SMALL INSURANCE CREDIT EXPORT • EX/IM INSURANCE CREDIT • PRIVATE EXPORT CREDIT OF LETTERS • TRANSFERABLE AND TERMS FINANCING OFFERING PARTIES • THIRD LOANS RISK ALL ASSUMING

Gsm 102 &103Gsm Programs Guarantee Credit Export (MAP) Program Access Market (FMD) Development Market Foreign 20 Cuba Standard Monthly P | on 'terrorlist'removal Telecom openingsdepend Politics by being removed from the terror list,” An said geteventually Cuba o the State Dept. terror list. terrorism.tional Observers action believe will this months about Cuba’s current support of interna of State John six Kerry to review and report within State ordered Department. has Obama Secretary underwayis to change Cuba’s the U.S. with status generated has Obama Cuba with now, movement the morewith conciliatory diplomatic climate that deaths and other issues. wrongful alleged some of which were by led Cuban-Americans for judgments civil the Cuban government, against isfy the andUnited Cuba in beseized can States to sat to ETECSA aresult as of phone between USA calls that whatever means turn, revenues generated are have in is, sovereign U.S. in courts. immunity the Terrorism Cuba Act, Insurance does not Risk long that’s as point out, legal experts the case, under partment’s of “state list sponsors of terrorism”. As Cuba’s was experts, presence on the U.S. State De to according reason, main e ETECSA. company U.S.tween long-distance carriersand Cuban phone 2009, which didn’t result any major in be deals age broader U.S.-Cuba back telecom April in links vices that would help areality. make this related applications, software, hardware, and ser to Cubaexport of U.S. communication devices, Cuban their counterparts. and with close deals countries, by authorizing U.S. telecoms to initiate broader telecommunications between the two

by “Cuba will have“Cuba its sovereign restored will immunity that, is time dierent makes this things What encour to announcements similar made Obama authorizingHe the commercial also is and sale VITO ECHEVARRIA Cuba, declared that he encouraging is also with relations diplomatic full of resumption resident the announcing BarackObama, in ------to comment. comment. to ETECSA,with spokesman Conner declined Chase this. involving AT&Tcarriers like have to out hammer will adeal course,Of for that to happen, ETECSA and U.S. a reduction is U.S.in courts of U.S. phone rates. to Cuba its sovereign having restored immunity Cuba.” long-distance fees from the U.S. and then it pays countries,” the collects country he “ e said. third judgmentsby U.S. civil over the years. U.S.-connected phone revenues from being seized mentioned that Cuba had taken steps to prevent its of afraction billed are such islands rates.bean He Phone from the United States calls to other Carib cause of Washington. the island’s with legal status cents to $1 aminute over the years, precisely be- http://www.naic.org/cipr_topics/topic_tria.htm [email protected] E-mail: http://www.acmartinez2.com More information: Antonio Martinez Asked whether AT&T had to initiate talks plans says that the mostMartinez obvious benet “All to Cuba connected are third through calls hovered at expensive an $.90 from USA to Cubacalls have forward.” to movecilitate transactions com sector. then fa “It will issues involving Cuba’s tele consultant who follows legal York attorney and political aNew II, tonio Martinez C. Martinez notes thatMartinez phone - - - 21 Cuba Standard Monthly E Australia is unlikely to succeed, unlikely is because it “lacks Australia at the University analyst industry of Texas. MEO “challengingare to develop,” says Jorge Piñon, an io of prices oil below $70 abarrel, new elds oil soon. With the current anytime scenar activity Cuba.central (see map) production agreement sharing for blocks two in ritt’s Petrovietnam blocks. negotiating Also, is a agreementsharing for Block 9, of just east Sher announced aproductionjunior Australia MEO PSCs on the west side of theof City Havana.” approval nal awaiting on additional two also are David Pathe, president and CEO of Sherritt. “We duction of life energy our business Cuba,” in said to of extend strategy our the pro part signicant productiontwo a contractsare they as sharing Havana. of productiontional contracts for sharing blocks west approval nal awaiting for and is addiareas, two production oil contracts and south east of existing | oil contractsinCuba Sherritt, Australiancompanysign Companies

by Observers skeptical are major see Cuba oil will Sherritt’s expansion comes oil weeks two after “We the addition pleased very are with of these JOHANNES WERNER JOHANNES tional Corp.tional signed production two sharing shore Cuba, in activities Sherritt Interna to its near new current areas xpanding on ------tional 10tional years to March 2028. the Puertoin Escondido/Yumurí areafor addi an nounced agreement the extension existing of an restrictions,” Piñón added. June, In Sherritt an ous’ market such Cuba as due to the U.S. embargo capital depth ‘oner tothe undertake nancial an Sherritt International Sherritt Corp. Source: west PSC additional two of approval final awaiting is • Sherrtt Upper the is blocks two the in interest of zone main • The to commits Sherritt terms. 25-year have agreements • The (261 Bay square Cárdenas of most 10 covers • Block in area an of south kilometers square 967 covers 8A • Block finalizing twomore The companysignedtwoblocksandis Sherritt's onshoreexpansion of Havana of fields oil Yumiurí and Escondido Puerto Varadero, the from oil of bpd 20,000 produces already Sherritt where Cuba, in reservoirs producing oil important most the contains currently Group Veloz The Group. Veloz Cretaceous Jurassic-Lower contracts. the relinquishing of option the has Sherritt work, seismic completing After years. two within data seismic new acquiring and data seismic existing reprocessing resort beach biggest Cuba's Varadero, and Peninsula Hicacos the of south kilometers), oil produces already Sherritt where province oil agreements New onshore in Cuba Map: CubaStandard - - - 22 Cuba Standard Monthly below CDN$5. below on Friday. inApril at shares Sherritt peaked just ashare at toCuba, CDN$3.20 the oftrading close it wouldre-establish diplomatic relations with 17,the day the U.S.Dec. government announced investor,eign share on per fromCDN$2.30 rose 30. ending Sept. dayterest the oilper during nine-month period an average of19,710barrels working-in- ofgross produced Sherritt contracts. sharing production three commercial twoexisting elds its within dent oilproducer inCuba andcurrently operates Oil contracts(1) e stock of Sherritt, Cuba’s e stock ofSherritt, largest for- private company e Canadian isthe largest indepen- Source: MEOAustralia Source: 40% to up secure to option an has Ltd. Australis • Petro split is Cupet with agreement the of phase exploration • The multiple and dataset 2D seismic existing an 9includes • Block and field oil Varadero producing the to close is block • The Santa from south 9stretch Block of miles 919• The square central Cuba The companysignedoneblockinwest- MEO Australia'sCubanventure participating interest in the block the in interest participating tests seismic new with sub-period exploration 24-month asubsequent with proceed to whether electing before data, exploration existing evaluate will it which during period, exploration 18-month initial an to committed has MEO sub-period. each of end the at options withdrawal with years, eight-and-half totaling sub-periods four into wells 1881 in discovered was which field, oil major first Cuba's field, oil Motembo the contains farmland. low-lying of mainly consists It Peninsula. Hicacos the and Cárdenas of city the of east just provinces, Clara Villa and Matanzas Bay, straddling Clara 2cents. below plummeted in August at 8Australiansince andhas cents, onthetrades Australian Stock Exchange, peaked million. US$30.1 month ago, the twocompanies held acombined completed toLtd., inJanuary. be expected A byamergerEnergy bolstered Neon with be will position cash ance million,butits ofonlyUS$9.7 near-terma challenging future.” to lead will reserves and ourcurrent cash limited “We have inmany hadanunsuccessful year ways, company’s this summer. published annual report selves,” saidinthe Short Gregory MEOChairman multiple wells. and 9 includes anexisting dataset 2Dseismic similargeology. with areas MEOsaidthat Block company “signicant saidithas experience” in e to existing andinfrastructure. oilproduction andthe proximity close existence ofoilandgas, studies conrming dueto previous block” entry the region. rstmoveoutside isisits land andIndonesia. Investors aren’t which convinced. MEOstock, ofNovember,As the company bal- hadacash where“I amdisappointed with wendour- MEO isnotinastrong position. “preferred e company its 9was saidBlock Zea- inAustralia, operations New MEO has http://english.pvn.vn http://www.meoaustralia.com.au http://www.sherritt.com http://www/cupet.cu information: More 23 Cuba Standard Monthly | mixed resultsforCuba After 10yearsofALBA, Economy A volume of just $15 million. for estimated atotal transactions, of 2,094 overall 2013;in Cuban companies were involved only 17 in the compensation system have been limited very ba's trade exchanges countries partner using with Cu units, SUCRE in $20 million less than a little though Cuba been assigned has the equivalent of forany even loans And island. the cash-starved cas-headquartered does not bank multilateral list playedfar minor avery role for Cuba. e Cara tradethe SUCRE compensation system —have so — the Banco del ALBA development and bank ception. suppliers have one —with remained ex limited benets fornancial Cuban companies and their benets But from the economic the alliance. and the bloc,joining Cuba seen major has political

ALBA headsofstateduringaculturalgalainHavanaDecember. by e ALBA nancial integration e ALBA nancial instruments JOHANNES WERNER JOHANNES two more small Caribbean island nations island more two Caribbean small December, in Havana at in asummit with s ALBA celebrated its 10-year anniversary - - - Havana InternationalHavana Trade Fair, asked about the company executive told told executive company practicein Cuban state companies have abstained. dor theory, in attractive —seems and Nicaragua Venezuela, with trade transactions Ecua Bolivia, ofthe elimination US costly conversion dollar in "We need dollarsto pay suppliers," our one state the idea system — behindthe SUCRE While not forThe Cuban SUCRE, companies? dor, and Bolivia Venezuela,with Ecua from Cuban activities benetted considerably suppliers —have already —andforeignnies their compa Cuban eld ical way." zuela and Ecuador that wethem to Vene if sell Sucre. "And we won't get Cuba Standard However, the med in at the - - - - -

Cubaminrex 24 Cuba Standard Monthly spheric "complementary economic zone." economic "complementary spheric rocaribe, then Caricom and Mercosur into ahemi bloc, andALBA expand byPet merging with rst permanent the consultation within mechanism declared intention their also summit to create a bloc. wereNevis accepted formally members as of the declaration states. of the summit abasic medicine right," as human tial the nal as able to "accessibility promise guaranteed of essen reason ALBA is be the main will ceutical industry currently being launched —and Cuba's pharma are —bothinstitutions drugs of medical registry Havana-basedand ALBAMED, central the also ALBA member all nations) in for drugs medical mentos del ALBA-TCP (the institution regulatory the Havana-based Centro Regulador de Medica ating acombined pharmaceutical market, through to get beexpected cre ALBA aboost. is can try be continued. cent cooperation Ebola the ght should in against declaration states thethat summit re in the nal people),ly reached million 3.5 less than alittle and patientsreach 6million (the current program has expansion ofcuss the to dis January in Caracas announced in ameeting Havana, Venezuelan President Nicolás Maduro tocommitted such in At programs. the summit government of seems the South country American of funder suchmain the teetering, initiatives, is supplies. other and equipment medical of worth ofand the purchase dollars of tens of millions services worth ofof medical hundreds of millions have put Cuba the driver's in seat for the provision program for tens of of Americans, thousands Latin program for disabled people, studies and amedical lan-funded eye Misión surgery program, Milagro a BA-wide initiatives such the massive, as Venezue- much to Nicaragua, gain and stand more. AL ALBA (1) In amoreIn ambitious move, the leaders at the GrenadaAt the summit, and St. Christopher & stepsNext for ALBA Cuba'sAlso, pharmaceutical indus expanding - Even though the economy of Venezuela, the Pharma and medical, asuccess story Misión Milagro Milagro Misión program to ------lan physician specialists. physicianlan specialists. agreement, to Venezue provide Cuba training will to underserved Venezuela. in areas Under another ba provides doctors and nurses more 30,000 than Adentro One of expand the agreements will food, trade, science, technology and environment. and agriculture transport, tion, culture, sports, ofthe health, areas basic and university educa signed 62 cooperation agreements in Havana in the summit's opening in speech. said Raúl Castro eciency,cosur with and continuity,” rationality Economicmentary Zone ALBA-Petrocaribe-Mer http://www.sucrealba.org http://alba-tcp.org/en http://www.portalalba.org More information: Just before Venezuela the summit, and Cuba Comple the forward moving on work “We will 1 and 2, two programs under programs two which 1and 2, Cu Misión Barrio Misión Barrio - - - - - 25 »Briefs Cuba Standard Monthly approves two projects Ministry Construction intors 2013. 2.856% aroundmillion from visi- year-endin its session. Assembly National the told cials offi- economic 2014, in tourists crossed the three-million mark of the past five years or so, Cuba has over reach of out yet close been had that milestone a Reaching visitor record Tourism breaks 3-million mission of the National Assembly Assembly National the of mission to projects. the committed already had investors foreign any whether say didn’t Mesa Cuba. de Santiago in plant cement a up a set to venture joint as well as province, Ávila de produce light construction panels in Ciego to association nomic eco- international an up setting er that the government approved a told Mesa tor, Prensa Latina reported. vestment in the sec construction involving foreignprojects two in- least at approved (Micons) istry min- construction the portfolio, foreign-investment presented ly recent- the to adding Apparently its travelits restrictions. loosening is Washington as year this boost a get likely will second place, in already visitors, U.S. but tourism, Cuban for market Coco. Cayo on airport Rey del Jardines flight by Canada’s Sunwing to the a on million 3 No. visitor comed Briefs Tourism Ministry officials wel officials Ministry Tourism of growth a represented That In addition, Mesa told a com- a told Mesa addition, In René Minister Construction aaa s h lret source largest the is Canada Prensa Latina Prensa report - - - alse i 19 a a license a as 1995 in tablished from Damen Shipyards license Gorinchem. under built was It June. in began model 541045 er tion Agreement. Coopera- Cuba-Venezuelalateral bi- ALBA-TCP the the and of part water as well as acrane. tanks, fuel and containers, 42 for stern, space its at vehicles for ramp a features and waters shallow gate years ago. two Sandy hurricane eastern after Cuba to supplies aid of 300 tons brought Frailes, Los series, the of ship first The missions. lief re disaster amphibious in mainly Monjes Los AB model Lander Stan multi-use the cial daily Granma Venezuelan the navy,offi- to four of series a in vessel cialized cargo spe- last the delivered Cuba de Santiago in shipyard Damex The vesselfourth Santiago shipyard delivers countries. ALBAmember or Russia, China, as such nations friendly from are investors eign materials.produce different to them convert or modernize to order technology,in obsolete with plants supply construction owned the possibility of investing in state- about partners” foreign “several with talks in is Micons said also sa Me province. in western plant mortar a in investment foreign for looking be will ministry before their year-end the meeting, h Dmx on vnue es- venture, joint Damex The of Stanthe Construction Land is program shipbuilding The navi- can Lander Stan The predecessors, three its Like e ad ht ot f h for- the of most that said He il e deployed be will reported. - - - according to Granma. nations, member ALBA other to is currently under construction. second the June, in delivered was first the navy; Venezuelan the for boats patrol coastal 549888 trol land, is also building Stan two Pa Hol- Shipyards Damen for cation lo- service after-sales and holder Netherlands a prefabricatedkitmadeinthe The StanLanderwasbuiltfrom due to a number of things saidin November.officials ing below growth plans, company impacted the cigar business, keep- in 2014. expectations below remained cigars of Habanos sales but rising, is cigars um worldwide. Lon- Cubancigarspremiumdistributes the companydon-based markets and Habanos, venture.Through Imperi- joint of S.A. Habanos al's sales down break report. annual its in said plc Tobacco al Imperi- 30, Sept. ended that year financial the in billion$1.27 to 6% ment of specialist brands dropped seg- overall the of sales but kets, mar- some in gains made Julieta, y Romeo and Montecristo hiba, Cuban premium cigars, led by Co- due to supply constraints Cuban cigar sales drop, Damex also offered its services services Damexits also offered Cb i a upy constraint, supply a is “Cuba Cuba” in constraints “Supply premi- for demand Global not did report company The - 26 Cuba Standard Monthly short term. short the in sales affects that problem globally.”for Cuban products un rm pns htl opera- hotel Spanish from guín Spa & tookbrand over ahotel near Hol- Resorts Memories the the Dominican Republic, Mexico. and Jamaica, Cuba, in facilities ranking of all-inclusive resorts. Traveller’spAdvisor global Choice Tri- the topped Maria Santa Cayo renovations upgradesand were underway. while name old its and continued to operate it under yearago,a resort the of agement TripAdvisor ranking. the by Varadero in resort top the as listed currently is that facility adult-only all-inclusive, 400-suite, a is Resort, Hicacos Royal the as by Jamaica-based Sandals Resorts Resort & Spa, previously operated Cuba. in resort luxury Royalton-brand ond an- sec- a added officially it nounced Diamond Blue chain manage- ment hotel Toronto-based second resort luxury Canadian hotel chain adds »Briefs She called it a “temporary” “temporary” a it called She In other Blue Diamond news, news, Diamond Blue other In offers Resorts Luxury Royalton Royalton the November, In man- over took Diamond Blue The Royalton Hicacos Varadero ead s well as increased demand quite seen we’ve “Also, analyst’s question. said, answering an Tant Alison CEO over the last year,” harvest the [tobacco] happened throughout that fleet to 98 and increasing the the increasing and 98 to fleet its bringing aircraft, Next Generation 737-800 Boeing new added four route, Panama-Havana ClaraSanta Airport. the at office an opened travel agency Panamanian a presence, show their passport. to need don’t Panama in Airport Tocumen at passengers Transit Panama. via Peru, and Colombia Chile, to travelers Cuban at and Cuba in tourists American Latin all-inclusive hotel rooms. press reports. Cuban to and according Guatemala, Peru Argentina, Uruguay, Colombia, Brasil, from tourists 90 brought flight first The Saturdays. Royalton HicacosresortinVaradero María Santa beach resort. Cayo the which serves Cuba, Central in Airport hub in Panama toCity Santa Clara Airlines weekly flights two from its started Copa Panama-based flights to Santa Clara bi-weekly starts Copa Cuba. in hotel Memories-brand fifth the is Turquesa,Playa Ríu the as known formerly Resort, Beach Holguín Memories 531-room The Ríu. tor oa wih lo prts a operates also which Copa, Copa’s of advantage Taking at both aiming is airline The 12,500 offers María Santa Cayo The flights are on Tuesdays and in price. the included are Club Golf Varadero the for fees green service; cierge con- and bar lounge own its with at the Meliá Varadero, section ury en-suite, 63-room "The Level" lux- sev a opened December in Melíá María.Santa ParadisusVaradero, the Cayo and in Internacional Meliá 900-room year,Cubathis in hotels the more bird and fishing watching.diving, a children's include club. Activities and pier, a spa, gym, courts, nis ten- two pools, five includes sort re- The said. company the tion, - planta sugarcane a of ambiance CocoCayorecreates the on sort hotel in Cuba. biggest Rey, del its JardinesMeliá scheduled to open this month the is Meliá Sol chain hotel Spanish Rey del Jardines MeliáSol opens resort in over 2013. 10% by seats available of number in Ebola control and pre- and control Ebola Guineain Equatorial in cities four host the in personnel border port and airport, hotel, hospital, train to began December in tors doc- Cuban Fifteen Ebola. of fear to due event, soccer the host to declined Morocco after vember, No- in in stepped nation African Cup 2015 Jan. 17-Feb. Africa 8. the during controls health supervising be will and ea in Equatorial personnel Guin-tary sani- training are doctors Cuban during Africa soccer cup Cuban doctors in charge n n fot o o upscale, go to effort an In two add to planning is Meliá re- five-star 1,176-room The h sal u olrc Central oil-rich but small The - 27 Cuba Standard Monthly Cuban missionextendscash deal ter a flight this summer to Havana, ternational, said he hopes to char- reported. view Tribune-Re Pittsburgh the Cuba, to flights charter nonstop start to International ASC Tampa-based discussions with in are officials ity Allegheny County Airport Author flights charter Cuba Pittsburgh airport seeking pate in tournament. the TunisiaAfrica, and Zambia partici South Senegal, Congo, of public Re- Democratic Mali, Guinea, na, Gha- Gabon, Coast, Ivory Congo, Cameroon, Verde, Cape Faso, na services. for the paid be will Cuba much how or er Guinea wheth- say didn't torial embassy in Equa vention. »Briefs reservations to extend and renew and travel extend to reservations with States United the in Cubans allows that arrangement cash a — 201531, March through tends for another three months — ex- Section Interests the bank, a ment through 2015. arrange- cash a under visas and passports issue to continue will it announced Washington in tion Sec- Interests Cuban the bank, a find to able been hasn’t it Saying aa ed onr f S In- ASC of owner Reed, Dana Burki- Algeria, from Teams Cuban The While continuing the search for - - - - nouncement of restoring full dip full restoring of nouncement an- Obama's Barack President of wake the in said, Carrión Richard I die,” Popular before Inc. Chairman & CEO Havana in branch ular Business. Caribbean to according said, rión Car Richard CEO and Chairman Popular Banco possible," as soon "asCuba in branch a open to like would bank Rico’s biggest Puerto to openbranch in Cuba Banco Popular would like cess to Cuba's intranet. restricted hour,ac-allow per only will$4.50 for service, The Santiago. of city sitesinthe public select at service wi-fi offering be will it nounced ETECSAan- telecom Cubanstate services wi-fi limited introduces telecom State enough interest. generate can he if 737s 150-seat on year a flights four to up tering char- envisions he said Reed ties. universi- area to mainly catering 11 by the Interests Section said. 11 Section by Interests the try,” a press statement issued Dec. coun-third a Statesor United the in based institution, bank foreign or U.S. a identify to able been yet not have we 2014, February since treatment. ceive priority re- to continue will background at consulate the in Washington. directly or travelproviders filiated af- through either passports their I at o e a ac Pop- Banco a see to want “I Dsie h efrs made efforts the “Despite Applications with humanitarian - - ton as well as in Sarasota. Braden- in luncheon Commerce of Chamber Manatee at Greater speak a and 18 Feb. Manatee Port tour to scheduled is ington, the Wash- in Section of Interests Cuban chief the Cabañas, José to in tour port Florida Cuba's top diplomat in U.S. lomatic relations.

Daniel Hernández 28 Cuba Standard Monthly funding aU.S. Cuba. in embassy funding foreign operations year. next priations Committee’s subcommittee on state and slated of to becomethe Senate chairman Appro to Cuba.” open in embassy of an funds is Graham my in power do all to blocktweeted, “I will the use nominated funded,” embassy and an Rubio said. about how going are they to get ambassador an threatened by Sen. Marco Rubio (R-Fla.). to upend try the president’scan One plan. was to block the move. that embargopolicy supporters Congress in vowed changes Cuba announcedin Barack Obama his WASHINGTON –No sooner had President budget when bill Congress debates for the funding ambassadorship. position that holds much authority the same an as Jerey DeLaurentis,vana, a chargé as d’aaires, top diplomat the U.S. in Interests Ha Sectionin beput ambassador oban also by can keeping the tions request been that made.” has States. SoIdon’t know of any appropria specic terests Sectionthere that represents the United House spokesman Josh “ ere In Earnest. an is diplomaticnicant presence Cuba,” in White said Cuba, because principally there already asig is in embassy to an establish benecessary tions will | resisters inCongress Odds arelongfornormalization Politics

by “It’s not clear to me that additional appropria House e on White shrugged the issue of (R-S.C.)Meanwhile, Graham Sen. Lindsey “We going are to have interesting discussions ere ways aseveral are members of Congress But odds their long. are Some say they will try to attach “riders” try Some say will they to a e need for Senate conrmation of anew Cu ANA RADELAT ------would survive in the House in andwould Senate. survive Cuba –and public support. for the re-establishment of diplomatic ties with were able there’s And to pass. support bipartisan But would lawmakers Obama likely veto anything legislationpass the normalization eort. targeting DHS no has major role Obama’s in Cuba plan. “riders” to but that bill, itsince may bedicult immigrants. of ofover millions the status to plan legalize his GOP clout, could have ashowdown Obama with Feb.til 27, so the new Congress, strengthened with for that agency DHS. e funds only un omnibus end year, of the scal Sept. made 30, exception an the government that funds bill omnibus the until Department of Homeland year. next e Security Blocking openings:Sens.Rubio,Graham So it’s unclear whether any punitive legislation e Republican-led seek Congress to could also toEmbargo attach supporters try say will they - 29 Cuba Standard Monthly W relations. to in Havana normalize equipped is already fully Section U.S. Interests the thinks Muse, who Robert attorney as achargéDeLaurentis, Washington said d’affaires, Jeffrey chiefkeeping Cuban the of the Interest Section, isadministration likely to want to avoid. Obama the Foreign something Relations Committee, also tough face in grilling the inhearing anomination president’s plans the Cuba for with along –would body. votes 100-member 60 secure atin least the blocked could can’t by any be House White senator the if vote Senatea full tricky. by the nomination could be The is votedof committee, out president’s plan. backRepublicans the who Rand Paul of Kentucky, two Flake of ArizonaJeff and of Sens. committee the on however, is presence the president’s nominee, the help of parties. both leaders decisionsfinal by Senate is pending notyet known, year,have senators next more Republicanthan Democratic makeup which will full the committee, of But the nominee. have and threatened up to anyactions ambassadorial hold president’s the about are who furious members two Marco (D-N.J.), Sens. Menendez Rubio (R.-Fla.), Robert and includes panel The difficult. will be Relations Committee Congress. controlled Senate next in the accepted and by aGOP- government toeffective, be Havana. and island.the president’s of goal resuming diplomaticrelations full with toa U.S. ambassador Cuba the will implement who Get anambassador Normalizing relations,step1: Politics Obama couldObama avoid all this congressional drama by to candidate U.S. ambassador CubaThe for – But even if the nomination that could Something votedof Senate the Foreign out nominee the Getting president. the task for toughest the might be latter The Cuban by the respected be candidateThe must Obama’s in Washington —both problemsare political President in is Obama his Cubanaming new policy taskASHINGTON —Perhapsfor toughest the political appointee? Jorge Mas:Long-shot talks on normalization in January.— normalization on talks universities. year last and the to speak at think tanks States United Cabañas in the in has traveledextensively current of head Cuba’s in Washington. Section Interests candidate leading Cabañas the the is R. Rodríguez, José Castro government. the from reaction negative in Cuba humanleader’s on focus rights may provoke a CANF the Mas were he if but nominated by Obama, reject senators to GOP tough most for be would It a terrorist. late father, Castro considered Fidel whom organization, by his which was founded exile of bent the has the moderated Chairman its Mas. Mas Jorge and Cuban National Foundation American say. some direction, different mission Nations. to United the in U.S. served and Hemisphere Affairs Bureau of Western Department’s Chief 1999-2002. from Political-Economic Section in 1991-93, as then as consularHavana officer before,first in twice job, Cuba DeLaurentis knows well, having served moreStates than ayear. for Cuba ongoing and hadbeen United the between secret talks when mission, in August, DeLaurentis was recently chief made Foreign of Service, anyway. Senior ofambassador the member Acareer d'affaires? chief tochargé Interests Section DeLaurentis: From The United States United CubaThe and have to planned continue as Cuba’s far As States, to United ambassador the president closeThe to has the been Even so, could Obama in go a State of head the the DeLaurentis has also been he’sAlthough anewcomer to chief the of mission top of job candidate U.S. the for of time. periods long for served isambassador away, have some but basis the when atemporary on serve a regular ambassador. usually They as immunities and privileges same are accredited the to,and enjoys they country his nation in the her or already,” said. he of range consulara full services provide who officers foreign service DeLaurentis is considered a A chargé d’affaires represents of complement has afull “It ANA RADELAT Cabañas

30 Cuba Standard Monthly U at home. Athletes who previously little as earned players of ball the salaries and otherraised athletes Nacional club competition on is break. the players to perform abroad Cuba’s while Serie apparentlyare to permitted keep most – allowing contracts some in of of thosewhich cases, players negotiated institute sports INDER million-dollar minor league Cuba’s team. aCanadian up with so played Italy, in and Yunieski Gourriel signed Norbertowhile and Joan González Carlos Pedro Despaigne joined Japan,and club Alfredo in teams Yulieski stars Gourriel, , on athletes to perform overseas year. last 2014, In its ban tions, lifted defec high-prole another wave of yetpensated, after - com are players baseball forming how its top-per pressure to change under ernment, teams. (MLB) Baseball to Major League players in baseball could havethis on up signing more talented Cuban speculationabuzz with on the potential windfall sons news.have to media Sports cheer been this | with Cubanplayers? MLB tofollowJapanesemodel Companies

by Along with this step, the Cuban this Along government with gov Cuban e VITO ECHEVARRIA .S. baseball fans following ad the Obama fans baseball .S. relations Cuba with have own their rea diplomatic of resumption ministration’s ------national and international events). for top performers (with bonuses for victories in amonth to US$200 from US$40 ranging a salary the equivalent ofas US$20 per month now make MLB. oncesalaries they’re signed agents up free as the in pressureing to change how future with it deals ate with Cuban ball players,ate Cuban ball with would they as ment policies, andcompel instead them to negoti and Tampa Bay Rays) to ignore the league’s recruit requires that state’s Marlins (Miami teams MLB here. Florida’s new law signed 7095, by HB Scott, and proteeringcking of arrival their aspects to away take traf human minimum, the unsavory for reforms eorts, at itscalling recruiting thein tem, some, Florida like Governor are RickScott, Cuban talent the free-agent through tracting sys playersban countries, to defectand con third via Meanwhile, MLB itself has been Meanwhile,under has itself MLB increas Since MLB has longSince has on MLB forcing insisted Cu multi-million-dollar multi-million-dollar sizeable cut of their a agentsball taking cut-throatto base maa, the Mexican ckers with aliated ba by traf human smuggled out of Cu froming being their here –rang arrival generated over their negative publicity players, given the waves of Cuban ball ------31 Cuba Standard Monthly to thearrangementMLBhaswith develop apostingsystemsimilar 'A pragmaticsolutioncouldbe to ment policies. its current changing recruit MLB observerssports skeptical are about relations.” Cuban-American garding monitoring House’s the White announcement re tion released apress statement, it “closely saying is tion from Cuba Standard. For now, the organiza subsidies. tax Florida ing of the risk los these franchises that lawwith runs to comply Failure evidence of tracking. human playerswith from other countries and report any Major LeagueBaseball(1) Cuban players to travel freely created that has boats; it been Cuba’s has to allow unwillingness been forcing Cuban players to get on smugglers’ Gov. Scott misplaced. are “It’s not that has MLB rent when policy it comes to Japan.” one-allows or two-year Cuba’s contracts,is as cur for a few months each year, Cuba if only especially be allowed to play or the minor leagues MLB in to investteams big money players in only who will Ited. wouldn’t make sensefor MLB players, even the embargo if lift is sign large numbers ofwill Cuban policy, it’s teams that MLB unlikely dard. “Unless Cuba changes this to Cubahoskie, email Stan an in formersaid agent sports Joe Ke Cuban National Series ended,” has of the foreignpart the season, after ly allowed them to play abroad for years, but two the past it on has to play Japan in and elsewhere over ber of mostly veteran, players loyal Nippon ProfessionalBaseball'. “Cuba num allowed a small has Even pressure, political with not did MLB respond to requests for informa Skepticism about change at MLB Kehoskie also asserts thatKehoskie eorts by those like asserts also ------USA Today. players no escape with compensation,” he in said foring the , seen which marquee has of “Such couldto cash MLB. beappeal infusions to release one $20 million as of members its team 2013,in compensates the Nippon league much as notedBaseball,” he that Ortiz system, said. revised Japan’s with has top league, Nippon Professional to the arrangement system similar MLB posting Serie Nacional could and MLB beto develop a players. “A pragmatic solution for both(Cuba’s) contracts from forceeds future its most talented negotiate to aleast get MLB, with acut of the pro- ticles that the Cuban government eventually will Jorge one who in recent asserted of his Ortiz, ar a proposal advanced by USA Today der to get out of Cuba and into the U.S.” Cuban playersall need smugglers would or still in agents free sign as the United in States, most not if changed and allowed Cuban its rules players to the demand for smugglers,” he “Even said. MLB if is writing a book due writing is for release next year the website runs rkman BaseballdeCuba.com and to Peter email an in Bjarkman el, suggested as by expert Cuba Ortiz,” said baseball “Cuba will most“Cuba likely follow will the Japanese mod to seriously take Meanwhile, some starting are Cuba Standard sports writer sports (Bja - - - - -

Graphic: BaseballDeCuba.com 32 Cuba Standard Monthly in the future. “MLB will bethe big loser, “MLB thewill future. in because should it have INDER to out hammer with deals players to happen unlikely it –something wants lows them to pick and choose which Cuban ball on these issues, because the embargo currently al agentfree and not beable MLB.” to sign with that any player who leaves NOT Cuba bea early will Cuban lawsnize and Cuban contracts —meaning have to then recog nally will tions because MLB ment of diplomatic end defec relations, will this re-establishreleased agents. free as there If afull is ers to home remain for ve-six years before being playset Japan upsystem like aposting —requiring why is IbelieveCuba is Cuba nished. are will careers their in ers after to getMLB Cuban play for is the onlypossibility therefore and winter, the 100 ditional games in players perform ad an not (Cuban) let all will season of winter playfor Cuba. in clubs afull MLB spaigne to and Gourriel, return guaranteed are they retired/nished Cuba, in or (2) Cepeda, like De los Pedroso or Norberto already are they González either the summer if during seas (1) Joan like Car toplayers allow that Cubais over onlywilling is problem faces negotiating that MLB in Cuba with about Cuban players who defected to USA). “ e Major LeagueBaseball(2) Bjarkman believes the MLB has stayed believes has Bjarkman silent the MLB MLB will bethe big looser - - Some Cubanplayersmaynot want thingstochangeeither. ------past. Observers speculate. only past. can ington’s of embargo the Cuba athing against is players, of Cuban ball arrival oncefuture Wash agents.” free as Gourriel not are themselves negotiating Japan with League,” he noted. “So players Cepeda like and the contractsthe Japanese arranges with INDER to sendthe players overseas and willing are they any Cuban players picks INDER want; they out to change either.things why plains some players Cuban ball may not want denitely You change the dynamic. now few see those players Cuba releases agents, free will as this lions of dollars just for the right to negotiate with clubsand MLB have to bids post sealed for mil Japandefect. therein system like If aposting is Cuban laws, have they pick free of players who does “Becausesaid. MLB not currently recognize the ood end,” of quickly Cuban ‘defectors’ will he Kehoskie. Kehoskie. not require Cuban players to besubject to it,” said would and Iwould MLB want if expect wide draft, “It’s would clear MLB to like implement aworld the handle It to beseen remains how will MLB “Cuba does not Japan allow to negotiate with league, Bjarkman ex Bjarkman league, Japan’s with ous dealings Cuba.” likely become with true or also Mexico. at will players signed from Japan Citing Cuba’s previ Citing - - - - - 33 Cuba Standard Monthly T policy.” change inPresident Obama’s foreign important the most we have witnessed said,“today oneEuropean journalist As ofchallenges set a new change brings Historic but rejected he was by U.S. makers. policy putvana the option on the table Washington, in of State of the Vatican Ha years visiting back, after Tarcisioa swap. Cardinal Bertone, Secretary while to the persuade past in tried Washington to accept the others. other Several diplomatic had quarters on unconditional imposing an release of Gross and publicly private, and in Washington while insisted Cubanagain, authorities had oered swap, this yielded. Time and time nally administration U.S. had shown interest special the past. in gether some with other which the in minor cases tosh trade) captured by Cuba years 20 ago, to but atop Cuban double agent for (the the CIA big After years of the Obama systematicAfter refusal, not just Alan Grossnot (a just Alan minor publicity stunt) prisoners went o without ahitch, including the long-awaited with, o begin exchange of - - strongly denied any connection Gross. with and , Canada the UK, in institutions Jewish that receives community froma small assistance sition elements Cuba. in Cuba’s community, Jewish sophisticateddistributing IT technologies to oppo volved USAIDregime-change —served programs how aware in of Gross the many risks tail —fully TraceyU.S. journalist Eaton de revealed every in mation sheer technologies. was manipulation. is to help other Jews Cuba in to have access to infor aJew as trying arrest, nocent unlawful of an victim something like “Why did it did “Why solong?” like take something comment rather was the typical Butsaid. Hialeah, in and recognition of people,” our the Cuban president decision of President deserves Obama the respect oners by ve Raúl praised Castro. “ is years was after For years, Alan GrossFor portrayed the in as was years, Alan Obama’s acceptance nal for the exchange of pris Domingo Amuchastegui since 1994.Hewrites economic reform,and South Florida’sCuban regularly onCuba’s intelligence officer has livedinMiami internal politics, Former Cuban community ------34 Cuba Standard Monthly Historic change(1) announcements. made theirrespective noon, bothpresidents en, on Dec. 17 at minutes45 by phone. hadCastro spoken for made, and Raúl Obama were announcements tion. e day before the normaliza such reach the waysto and means thorities, where of understanding to came an they sponsorship of Pope au Francis and Canadian and at Canada in the Vatican, the eective with marches, which U.S. in andCuban met ocials its foecess with of more 56 years. than ready anormalization is pro toministration start piece of abigger announcement: e ad Obama munity in Florida, in the rest well as ofmunity as the world. com Cuban-American the of and opinion public measures have by been the majority praised of U.S. ico without agreed limits. hole”, the of middle theof section in Mex the Gulf agreementnal borders on maritime the “donut in and others; g. Negotiate Mexico with and Cuba a tracking, human disasters, issues and natural environmental drug-tracking, against struggle authorities elds various such in migration, as the ple-to-people contacts; Cooperate f. Cuban with tion-free to peo expand licenses to seeking 12, categoriese. Widening the existing of applica to more andtrade allow transactions; nancial sures by the Treasury and Commerce departments embargo, including soon-to-be implemented mea the U.S. at lifting steps aiming the necessary ing of statesthe list sponsoring terrorism; Adopt d. Cuba’sview inclusion in State John Kerry to re of Secretary c. Asking Havana; in embassy an relations; b. Opening diplomatic normal ing tives are: Establish a. Obama’s key initia 18 after came months of is dé successful e U.S-Cuba prisoner just asmall was swap shift historic A ese Obama’s are most constructivesteps. e - - - - other side.' other European European it's about from the tourists; tourists; tourists tourists 'It's not about about ------countries. Floridain benets —to provide for the full both other obstacles on the state level —particularly and policies,nisms not to mention legislation and huge body of and regulations, laws, mecha rules considerable take it will down bringing the time overnight; happen not will implementation eir of Korea’s North dollars in Kaesong special South if Korea all, tate. investing billions is After big tourism, es investments: and real oil, mining, atincluding looking Floridians, four key for areas capital. And, of course, there the U.S. is investor, countries, which could bemajor sources of fresh Malaysia, South Korea, Japan, and oil-rich Arab tive reactions markets from such Asian India, as most beposi promising ere partners. will Cuba addition —in —some has of to its China nearby economies of Mexico where and Brazil, was right. the other side nger).” (pointing his with north He about it’s European tourists; about from tourists much European “It’s tourismhe expected: not 10 said María years ago, when asked about how feel never and reassured safe Cubaas in before. will come end, to an and those interested investing in hopefully ofthe EU will partners Cubaal within onand nes multibillion dollar potential or actu more. extraterritorial practices, U.S. illegal threats, astate that with “sponsorsdealing terrorism” any dierentvery climate now; not investors be will and cooperation. But more importantly, there’s a its new framework fornalizing normalrelations dated “Common Position” on Cuba and proceed to forthe European Union good dismiss its out can wrong avery coursewas of action. ba toward collapse” or “a becoming state” failed not worked on Cuba,” but added “Cu that pushing acknowledgedObama not that only “isolation has of Cuba’sparalysis and trade activities. nancial forced attempts of recent years to bringabout total droption its rein that administration the Obama But the benets there, are namely the expecta Similar reactions from toare the beexpected Similar one hotelAs Spanish investor Cayo in Santa e repercussions rst already are visible. First, Global repercussions ------35 Cuba Standard Monthly case of a normalization. a of case ny possibilities U.S. investors could Cuba ndin in Bernardo Benes, spoke of the enthusiastically ma to Cuban-Americandel talking Castro, negotiator reminder: back the late far as small 1970s, As Fi Mexico, but it second is to none the region. in A od of time? Cuba not is economy an of of the scale arelatively in market the Caribbean in short peri should Cuba not become the most U.S. important zone or without —with nuclear tensions —why Historic change(2) system. Havana will have may kind, to in answer will Havana system. adjust of and redesign whole their the functioning have to make profound and complex changes to re probablyis agood idea.” doesn’t seem to beworking (…). up Opening Cuba hasn’t worked; regime change, the goal is if it sure better when he concluded that the embargo “just date, Sen. Rand Paul (R-Ky.), couldn’t have it said President Apotential Obama. presidential candi vative Republican lawmakers seem to agree with sworn to block any eort leading to normalization. —have losing d’être makers raison their —after whether that works better. Cuban-American law simple the stick for switching as the to carrot, see even bit using refuse alittle of common sense, as of 56-year denial their to proven bein and failure Cuba keeps ey playing tune. continue the same ers, and most of the U.S.-sponsored opposition in exclusively will benetthat this broth the Castro of treason. ey argue administration the Obama machine, political accusing are many Hall-style ers, led by belligerent lawmakers andTam their Meanwhile, the old-generation Miami re-eat Miami old-generation the Meanwhile, On the other hand, the Cuban authorities will Paradoxically, even some of the most conser answer in kind, maybeanswer in Havana will haveHavana to will even greater with pragmatism and subtleness. subtleness. ------sures (meaning the carrot) that could have madepolicy it impossible to resort to other mea tion of the Cuban people.” He added that the old situa the of improvement an promoting at aimed democratic reforms, addition in to other measures of implementation the and rights human proving “sound entail and continuouswill support im in leading Cubain to a more promising is future. that the United continue States to will beinvolved manner.”civilized to live tonext each other our dierences, with a in —that “Wesystems of having must the art learn the many dierences political between the two when acknowledging he stated —after thinking probablyalong was that Raúl these lines Castro ever before. than sure, greater skill political It was the new Cuban leadership have to display, will for Guantánamo, etc.) that lies ahead, and Raúl Castro compensation,claims, embargo, security, and settlements (property of pending conicts services… Revoluciónla by the hundreds ofeven thousands, the arriving start U.S. If constitutional tourists text. witness changes,not if stitution a whole will new to ahost of new and operations; activities the con have to redene system will ing and itself open up become Cuban bank amust. e small sector will cooperative) and its interactions the external with expansion of the “non-state sector” (private and more promising. makes Further everything scale whose and partner proximity unexpected toed an of labor. e Mariel project may soon beconnect become imperative, will tures including the hiring proach to foreign investment direct and joint ven havelaw to bere-examined; amore will exible ap currentlyes are unfolding. e foreign investment freedom rights, to travel,ty and many other chang continue tenure, toand Land will expand. proper market-oriented the making in system is socialist change Washington’s in Cuba since policy 1958. A to the challenges derived from the most drastic be even greater with pragmatism and subtleness, Obama’s announcement stated quite explicitly wordA of caution Given along, negotiations long, series of talks, will have to considerwill providing B&B Palacio de Palacio de ------36 Cuba Standard Monthly What are the are lessonsWhat from to the bedrawn Rosa the picture. in missing of is something the carrot, from the inconveniences of the stick using instead tive contributions made by Cubans abroad. of the island, regardless Cubans in of the construc the hands in lies essentially that the future is truth imposition an plainly onis Cubans. e simple sovereign and self-determination rights aside, this of Principles opposition. domestic of promotion er-ending of regime strategy change on based the lutely of the nev the pillars reinstating clear in cies, but abso he was auspices of U.S. poli under future the litical patronizing Cuba’s po not was Obama just riously?! the government …Se to standing equal an should participate on opposition domestic April, this in Panama mit of in the Americas participate the Sum in should government the Cuban that ing if demandwent as far as mestic opposition. He a U.S.-sponsored do clear that he meant ba made it crystal support for “an independent Cu in society” civil change Cuba.” in “political promoting programs implement to well continue as will ba, and that the administration to its programs promotewith democracy Cu in he went continue on to stress that Congress will toserved “promote apositive change Cuba.” in But Historic change(3) If the Obama administration learned anything learned anything administration the Obama If English, plain In repeatedHis references to continued U.S. ------can easily be easily can ‘civil society’ ‘civil society’ the gardens gardens the sheltered in in sheltered of the U.S. Interests Obama’s Obama’s Section. - - - - outcome. contexts may contribute to shape amore positive countries and how the regional and international developments ofunfolding future betweenthe two the following caution, considerable and approach have to to give a more in will optimism balanced made by presidents and Raúl Obama Castro, but inevitable following was mism the announcements under dierent of engagement. rules opti Initial continuation confrontation of this but, hopefully, rience. From now on, we going are to witness the not bringabout the collapse of the Cuban expe confrontation —incredibly it as may seem —did uneven more But 56 years, this metrical. after than contenders’ resources, scale, and power assy are done for 25 years. the last the U.S. Interests have they Havana, as Section in be sheltered easily can the gardens in speaking, of tion to say that Obama’s “civil society”, numerically leaders well. It’s as and citizens not exaggera an workedhas being redesigned and is far thus by havethey aresult contract as of built asocial that the people structures and political and the social to support apparently excludes majority of the vast e Cuban Washington “civil society” would like the U.S. government not is being ecumenical. very the Stateing Department’s outdated denition, aspiresObama steps, to support follow his with Wikileaks. through great in disclosed detail Havana, as in sta on the matter from coming own their diplomatic to disregard completely the reports and criticism previous well as presidents —as Obama —seem 1989? since opposition domestic promoting of more recently, what the are lessons from 25 years 1990 another became huge And miscalculation. U.S. about expectations Cuba’s collapse 1989- in Pigs, Operation Mongoose, or the Torriente Plan? Bay of warfare, Blanca terrorist guerrilla tactics, e challenges there are for bothsides. e Besides, what is “civil President if society” - - - - - 37 Cuba Standard Monthly T those waiting decadesthose waiting for to to Cuba. return the opportunity development and business leaders inspired families particularly alike, relationsand normalize historic regime. the Castro is with he old the announced to 54-year ease plans embargo on Cuba President month last many Americans when surprised Obama inmind caveats three with U.S. inCuba should engage businesses What ahead? is the embargo: Easing Guest column ban nancial institutions. And for And institutions. time the rst nancial ban beable to openwill correspondent accounts at Cu able U.S. to use credit and debit U.S. banks cards. services. nancial restrictions on ease States will to statements House, from the White the United implications. yond the headlinesand understand the practical month,later this business leaders need to look be sional support. With anticipated the new rules the entire embargo lift cannot without Congres new regulations. even And then, President Obama Some implications are already clear. According According clear. already are implications Some until the U.S. Treasuryuntil Department releases to besure. Yet not eect take will the policy openhese new opportunities, changes will Travelers be Cuba visiting will banking and - - - - telephone and Cuba, in service Otheres. proposed changes include expanding for materials private building as Cuban residenc equipmentagricultural to Cuban well farmers,as House to authorizethe plans White of the export cations agriculture, construction, and telecommuni facilitate business other in key sectors, including U.S. law. that already are authorizedtransactions under commercial and nancial streamline steps will vance. By removing cumbersome barriers, these payment or requiring ad banks in third-country ofsale goods to Cuban customers without using beable decades,in the to nance exporters will Easing restrictions on nancial services will will services restrictions onEasing nancial . Although specic details are pending, pending, are details specic . Although Lauren Valienteisan and amemberofthe Lardner LLP’sMiami firm’s LatinAmerica Litigation practices. Department official attorney atFoley& and Tampaoffices, Export Controls& Foley &Lardner’s National Security Swift isaformer and WhiteCollar and memberof U.S. Treasury Christopher practice - - - 38 Cuba Standard Monthly Easing theembargo(1) nal penalties. nal that pursuepanies them and crimi may face civil prohibit strictly sanctions and com such dealings, the new regulations while pending. are basis U.S. into any Cuba-related agreements on acontingent under U.S. law. 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monthly standard cuba Trend Report Economic to ndouthow. [email protected] or ask www.cubastandard.com to Go Armando H.Portela Doreen Hemlock Vito Echevarria Domingo Amuchastegui Ana Radelat Johannes Werner CARTOGRAPHER FEATURE WRITERS POLITICAL ANALYST WASHINGTON CORRESPONDENT EDITOR 2/8/2016 Cuba’s Web Entrepreneurs Search for U.S. Clients, and Reliable Wi­Fi ­

http://nyti.ms/1JK9UNv

AMERICAS Cuba’s Web Entrepreneurs Search for U.S. Clients, and Reliable Wi­Fi

By VICTORIA BURNETT JUNE 10, 2015 MEXICO CITY — At his parents’ cramped house in Havana, Yondainer Gutiérrez builds apps and websites on a makeshift computer that runs on pirated software. He has no Internet access there, so he rents time on other people’s connections to send his work to clients in France, Britain, Canada and the rest of Latin America.

This is outsourcing, Cuban­style, a little­advertised circle of software developers, web designers, accountants and translators who — despite poor and expensive Internet access — sell their skills long­distance.

And ever since the United States in February authorized Americans to import goods and services from Cuban entrepreneurs for the first time in half a century, they have their eyes on America as well.

“This opens up the world,” Mr. Gutiérrez, 27, said of the new rules, which mean that an American can hire Cubans, or buy a limited range of goods from them, so long as they work in the private sector, not for the state.

After President Obama announced a new era of engagement with Cuba in December, Havana has been awash with American executives scouting business opportunities and hoping to sell commercial flights, yogurt,

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pharmaceuticals and other products.

Of course, there is still an American embargo against Cuba. Trade is complicated by the fact that American exporters are barred from offering credit to their Cuban customers, and many more restrictions will have to be lifted before Americans can freely invest on the island.

But under Mr. Obama’s new policy, Cuba’s tiny outsourcing sector is now open for American business, several experts said.

“This has an immediate impact helping entrepreneurs in Cuba,” said Tomas Bilbao, the executive director of the Cuba Study Group in Washington, referring to the new regulations.

Cuba is certainly no Bangalore and is unlikely to ever rival the great outsourcing hubs. But more and more Cubans are marketing their services online, using skills obtained in the country’s socialist education system and workarounds learned from years of hardship.

Websites like Freelance.com, Behance, twago.es and Traductores Autónomos carry postings from Cubans across a dozen cities, from Pinar del Río in the west to in the east.

There are no official figures, but nearly a dozen Cubans with postings on online job sites, who were contacted by telephone or by email, said that this work was their main source of income and that their peers were doing the same. Some said they already had American clients who hired them through middlemen.

John McIntire, a former investment banker and chairman of Cuba Emprende Foundation, a nonprofit that trains Cuban entrepreneurs, said the computer programming sector had the greatest potential to flourish under the new American regulations.

“It’s in huge demand,” said Mr. McIntire, speaking at a conference in

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Washington hosted by the Brookings Institution last week. “And guess what? Cubans are world class at it.”

Many who work at the University of Information Sciences, or UCI, near Havana, or the José Antonio Echeverría Higher Polytechnic Institute, or Cujae (pronounced Coo­hai), moonlight as freelance programmers, using the institutes’ broadband to transfer large files, software developers said.

Others buy dial­up connections on the black market — for about $200 per month — or rent time on wireless connections at big hotels. The smoky lobby of the Habana Libre hotel in downtown Havana serves as an office for Cubans who write software, build apps, unblock or fix mobile telephones, or rent houses. They huddle daily on deep armchairs and pay $8 per hour for Wi­Fi.

Dairon Medina, 28, a Cuban computer programmer who worked as a freelancer for several years before moving to Ecuador four years ago, hires colleagues in Cuba to do jobs for clients in Argentina, Canada, Germany and the United States.

He believes Cuba’s proximity — 90 miles across the Straits of Florida — is a plus.

“There’s a cultural affinity,” he said by Skype. “And then there’s the question of time zones.”

If American clients began hiring Cubans on a regular basis, he said, “it could be an immense market” for Cuba.

Oquel Llanes, a fluent Russian speaker who works with a Spanish tourism company in Havana and writes translations on the side, said there was constant demand.

“Translators are like barbers,” he said by telephone. “No matter what, people will always need them.”

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Especially when they come cheap. Mr. Llanes, 52, who studied mathematics and computer science in Moscow in the 1980s, said he charged $5 to $10 per page to translate literary criticism and history books. That is hardly a fortune when a page can take an entire day, he said, but much more than the average $20 per month paid to state workers.

The Cuban government has long had a policy of exporting services, especially those of doctors, nurses and sports trainers, in order to increase state income. Some 65,000 Cubans are working for the state overseas, earning it about $8 billion per year.

Datys, a Cuban state­owned software company with 700 employees, sells services to Latin America, according to its website, and Desoft, a state­owned high­tech company, has several clients in Cuba.

Were the government to improve Internet connectivity and telecommunications, Cuba could develop a competitive outsourcing sector, either state­run or independent, experts said.

“If you wanted to run a Spanish­speaking call center, why do it in Mumbai?” Mr. Bilbao said. “Maybe Cuba could eventually do that.”

That is still a way off, though, experts said. Under current sanctions, Americans are permitted to buy services only from the private sector; Cuba may not wish to see that sector grow.

Improved Internet connectivity is also a big “if.” A plan apparently leaked by the Cuban communications ministry and published this week in a blog, La Chiringa, indicates that the government aims to connect 50 percent of Cubans to broadband by 2020, but the anticipated speed would be too slow to stream video or play games online.

One Cuban software developer working in Chile on a contract for a Chilean software company said 80 percent of his cohort at the Cujae had left

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the country to work in Canada, Ecuador, Italy, Spain or Uruguay because Cuban Internet connectivity was unreliable and expensive and the rules for freelancers were murky.

“There’s huge potential that’s being drained out of the country because we don’t have the conditions” to work, said the software developer, who spoke on the condition of anonymity for fear of reprisals.

Still, Cubans selling services, rather than goods, have lower start­up costs and do not have to worry about the expense and hassle of shipping, Mr. Bilbao said.

“One laptop can last you for five years of translating, which can earn you X amount of dollars,” he said.

Exporting goods is more complicated. The Obama administration’s new rules allow Americans to buy an unlimited amount of products from Cuban entrepreneurs — with exceptions that include live animals, vegetable products, textiles, machinery, arms and ammunition.

The Cuban government does not give entrepreneurs export licenses, however, so Cubans must ship goods the way they currently import them: by courier or in the duffel bags of relatives and other so­called mules.

This “suitcase economy,” as Mr. Bilbao called it, could grow after the Treasury Department in April authorized companies to begin ferry service to Cuba. Businesses could send goods more cheaply by ferry and sell them on websites like Etsy, experts said.

It is also unclear how keen the Cuban government will be to see trade flourish between the island’s entrepreneurs and the United States.

John Kavulich, the president of the U.S.­Cuba Trade and Economic Council, said the new American regulations allowing imports from Cuba “are designed to create the middle class that the Cuban government sought to

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extinguish.”

As the United States eases restrictions, it will test the Cuban government’s willingness to open up, Mr. Kavulich said.

“At some point the impediments will leave the shores of the United States and wash up on the Malecon,” he said, referring to Havana’s seafront promenade.

For now, experts said, restrictions on both sides are limiting engagement with Cuba’s private sector.

Mr. Gutiérrez, whose products include an app that helps drivers find a parking space and AlaMesa, an online Cuban restaurant guide, said that, for the moment, he would have to find a workaround to get payment from American clients. His projects range from around $500 for a basic website to several times that amount for one project that required hiring three people.

Banking and Internet problems aside, he said, he is optimistic that the thaw between Cuba and the United States will help freelancers like himself.

“There’s a lot to build here in the way of services; there’s a whole market to exploit,” he said. “All I need is a normal Internet connection and a way of getting paid.”

A version of this article appears in print on June 12, 2015, on page A4 of the New York edition with the headline: Cubans Try for a Piece of the Outsourcing Pie.

© 2016 The New York Times Company

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Wharton, University of Pennsylvania

PUBLIC POLICY Cuba’s Tech Start-up Sector: ‘People Are Hungry to Work’

Feb 24, 2015  Latin America

Growing up in Cuba, Jose Pimienta didn’t see the Internet until 2006. He and his friends taught themselves computer programming with a Russian textbook on the Pascal programming language that had been translated into Spanish. Even in university, when he finally had access to the Internet, Pimienta, now 27, was limited to 20 megabytes per month of data — a small fraction of what fits on a thumb drive today. Yet, in 2013 when PayPal hosted its first-ever global hackathon competition in San Jose, Calif., with a $100,000 purse, Pimienta and two partners placed third for developing a peer-to-peer lending app called LoanPal.

“In Cuba, you have a lot of people who have done things with limited resources and no

http://knowledge.wharton.upenn.edu/article/cubas­tech­start­sector­people­hungry­work/ 1/7 2/8/2016 Cuba's Tech Start­up Sector: 'People Are Hungry to Work' “In Cuba, you have a lot of people who have done things with limited resources and no real access to knowledge,” Pimienta, who emigrated to Miami in 2009, says. “You have a lot of talent there.” Pimienta is proof of the level of talent Cuban universities are producing. He and his Cuban partner won the regional PayPal hackathon in Miami two years running, and he’s now working with clients in the United States, Europe and Cuba, building websites and brands from the ground up, while employing former Cuban classmates.

Presidents Barack Obama and Raul Castro on December 17 made an historic announcement that the adversaries, separated only by 90 miles, would work to reopen diplomatic channels, ease travel and trade restrictions, and allow for U.S. banks to start processing transactions on the island. But even before the announced thawing of relations, Cuba was developing sought-after computer programmers and a tech start- up community that has drawn interest from entrepreneurs and industry giants like Google.

“ You have a highly educated workforce, excellent programming talent and a huge amount of opportunity for companies that want to invest in the knowledge economy ,” notes Faquiry Diaz Cala, CEO of Tres Mares Group, a private equity investment firm in Miami that has partnered with Pimienta. “There’s already demand for these programmers. There are full-blown projects that are being done in Cuba by guys who are working underground because they haven’t really opened up the sector yet.”

There is no official number for the size of the information technology sector in Cuba or the number of trained professionals. But Diaz says Cuban universities are churning out large numbers of graduates who have learned to program with limited resources

“These guys are sought after because their programming is so tight,” Diaz notes. “And their programming is so tight because they have learned with limited access to time on computers and limited access to the Internet.”

That could change. New regulations announced by the U.S. Treasury Department allow for the export of technologies to Cuba that were previously banned under economic restrictions against the island. That, coupled with economic reforms slowly rolled out by the Castro government, has positioned the Cuban technology and start-up sector as one of few areas of the Cuban economy truly poised for growth. Before the island can transition into a tech hub, however, it has to overcome serious hurdles including a lack of critical infrastructure, laws that limit foreign investment and government control of http://knowledge.wharton.upenn.edu/article/cubas­tech­start­sector­people­hungry­work/ 2/7 2/8/2016 Cuba's Tech Start­up Sector: 'People Are Hungry to Work'

of critical infrastructure, laws that limit foreign investment and government control of access to the Internet.

“We know from previous transitions that a gradual transition — such as the ones staged in China or Vietnam — were better than those that followed the so-called shock-therapy recipes.” –Mauro Guillen

Not an Overnight Process

While the joint announcements made by Obama and Castro were met with much enthusiasm, analysts warn that the outcome of the thaw between the two countries will largely rely on a long, arduous process of negotiations, which began in January when assistant secretary of state for western hemisphere affairs Roberta Jacobson traveled to Havana for two days of discussions with the Cuban government. “The fact that they were meeting at all is hugely significant,” says Cynthia Arnson, director of the Latin America program at the Washington-based Wilson Center, a think tank. “But this is going to be a process, and it’s not going to happen overnight.”

Even if the negotiations are successful, fully opening the Cuban economy will take time, notes Wharton management professor Mauro Guillen, who is also director of The Lauder Institute. “That process of transition from all points of view — the legal, the economic, the financial, the monetary, the regulatory — is going to be very complicated. It cannot happen all at once. It cannot happen overnight,” he says. “We know from previous transitions that a gradual transition — such as the ones staged in China or Vietnam — were better than those that followed the so-called shock-therapy recipes.”

Standing in the way of fully normalized economic relations between the U.S. and Cuba is the economic embargo first instituted by John F. Kennedy in 1962 and then later strengthened by Congress. There is a near-zero chance of it being lifted. The U.S.Treasury has exercised its limited ability to make exceptions to the embargo, but

removing the embargo completely needs Congressional approval. Republican lawmakers are mostly opposed to loosening restrictions against Cuba. The Republican-controlled Senate may even block Obama’s nominee for the ambassadorship. http://knowledge.wharton.upenn.edu/article/cubas­tech­start­sector­people­hungry­work/ 3/7 2/8/2016 Cuba's Tech Start­up Sector: 'People Are Hungry to Work'

Senate may even block Obama’s nominee for the ambassadorship.

“All of the economic bottlenecks that existed before still exist, despite [the] much- lauded FDI [foreign direct investment] law,” says Christopher Sabatini, former senior director of policy at the Americas Society and Council of the Americas (AS/COA). “It’s not going to be a windfall that will save and shore up [the] economy.”

To be sure, full normalization of the economy has the potential to bring an enormous windfall. The Peterson Institute for International Economics estimated in a 2014 paper that Cuba, which currently attracts about $500 million in FDI, could lure as much as its Caribbean neighbor the Dominican Republic, which has $17 billion in FDI, including $2 billion from the U.S.

And the Cuban government has identified information technology as one of the sectors it is seeking to develop under the reforms to its economy that President Raul Castro began to roll out in 2008. “Today’s situation does not allow computer activity to address many of the needs required by the population,” deputy minister of communications Wilfredo Gonzalez Vidal said in an interview with Granma, the official newspaper of the Cuban Communist Party. The government sees technology as “an industry of strategic development for the nation, strengthening the economy and providing broad access to contents of digital services,” he said.

The government has a multi-part plan to develop the industry that includes promoting training, focusing on government and electronic commerce, allowing for new business models, and cooperating with international actors to improve content and infrastructure and the availability of equipment.

“There are full-blown projects that are being done in Cuba by guys who are working underground because they haven’t really opened up the sector yet.” –Faquiry Diaz Cala

Perhaps the most significant sign of both the Cuban government’s approach and the international interest in the island came on February 9, when Netflix said it would immediately begin offering streaming service to the island.

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Severe Limitations

Netflix’s announcement drew headlines, but also exposed the severe limitations that pose a threat to the development of the information technology sector. Penetration rates for cellular telephone usage and Internet connectivity remain uncommonly low: Only 5,360 home and business broadband Internet connections exist in Cuba, according to the International Telecommunications Union. Roughly one in 10 Cubans regularly use mobile phones, according to Freedom House, citing 2011 figures.

Among the country’s largest investments in telecommunications infrastructure came in 2013 when it activated a $70 million undersea cable laid by the Venezuelan government, giving the country a dependable link to the Internet.

Still, most Cubans won’t be able to afford to access the Internet or buy a cell phone in the short term. An hour of access to the web eats up roughly almost one fourth of the average Cuban’s monthly salary. And most Cubans can only check e-mail or visit government-approved sites through a domestic intranet.

Pimienta knows the government-imposed obstacles well. He is currently partnering with Cuba-based designers on jobs from international clients. Due to restrictions on file sizes, his partner has to send large files broken up into as many as 30 e-mails, which are then pieced back together. Beyond that, he is not legally permitted to pay his Cuba- based employees. “I supply them with equipment and technology instead,” he says.

Pimienta hopes new regulations will make it easier to work with Cuba-based designers. To that end, he and several partners have launched a website that highlights the work of Cuban designers and programmers. He hopes to bring together dozens of professionals from across the island, showcasing their work. “We want people to know about the talent that exists in Cuba,” he says. “With these regulations changing, we want to be able to provide companies with access to Cuba. You’re an American firm and you want to go to Cuba? We know the market both in the U.S. and in Cuba. And we can help you build a brand.”

Changing the Image

The popular image of Cuba, at least in the United States, is that of a closed-off, tightly controlled island where the Castro regime has a hand in nearly every facet of life.

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controlled island where the Castro regime has a hand in nearly every facet of life. Miami-based entrepreneur Hugo Cancio sees the potential of the Caribbean island, where he was born, beyond its appeal as a tourist destination full of the robust cigars, vintage cars and aged rum for which it has become associated. “Cuba is more than that. You’re talking about a country of 11.2 million highly educated people. It’s about more than just the Castros,” he says.

“There was a Cuba here before 1959, and it’s a Cuba that is still here today.” –Hugo Cancio

An understanding of Cuba is the message Cancio tries to relay to readers of his magazines and websites, including the flagship OnCuba publication. The magazine informs readers about Cuba’s cultural uniqueness, its history and current events. “There was a Cuba here before 1959, and it’s a Cuba that is still here today,” he says. Yet, perhaps more revealing than Cancio’s message is how he built the magazine and website with homegrown Cuban talent.

Cancio plucked some of the island’s best and brightest, trained them to produce a bilingual publication, and hired a handful of programmers to maintain the website. “The talent here is extremely highly trained,” he notes.

Cancio says he has worked with U.S. companies that have expressed willingness to get into the Cuban market when it opens. “It’s amazing to see how interested American businesses are in Cuba,” he notes. “We believe there is going to be hundreds of millions of dollars flowing from the U.S. to Cuba and Cuba back to the United States, eventually.”

The potential is so large that it could attract major U.S. companies, such as AT&T, Verizon and Google, the latter of which has already said it is interested in expanding its reach on the island.

How quickly investments proceed likely depends less on U.S. regulators and more on the rules that Cuba sets for investment. The state-controlled ETECSA (Empresa de Telecomunicaciones de Cuba S.A.) and its subsidiary Cubacel (Telefonos Celulares de Cuba S.A.) currently have a monopoly on the telephony sector.

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Welcome News

However, the early signs in the negotiations between the U.S. and Cuba are welcomed news for entrepreneurs. “I think that you’ll see a lot more direct assistance to the private sector … in the form of technical assistance so that they can grow and prosper and perform at a high level. That’s what’s happening on the black market already anyway,” notes Ted Piccone, a senior fellow at the Brookings Institution who follows Cuba. “Creating institutions that respect property rights — this kind of thing is a whole new concept in Cuba. A major transformation is underway.”

Regardless of how quickly reforms take place, Pimienta says there is already buzz around the potential for change in Cuba. Greater access to knowledge from U.S. companies and the ability to import needed technology and equipment can only benefit the start-up industry in Cuba, he adds.

“The reality is that there are people hungry to work. They’re creative and they are just waiting to show what they can do,” he says. “If this happens, it would be wonderful for the people of Cuba.”

All materials copyright of the Wharton School (http://www.wharton.upenn.edu/) of the University of Pennsylvania (http://www.upenn.edu/).

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