Vol. XII, No. 5 www.cubatradenews.com May 2010 Ag debate shifts to privatizing distribution radually moving the focus of reform Selling debate from state decentralization to potatoes part-privatization,G private farmers at a three- in Trinidad, day congress of the National Association of Cuba Small Farmers (ANAP) blamed the state for bottlenecks in food production and distribution in Cuba, and — while not using the p-word — proposed more privatization of distribution. Photo: Rosino, Wikimedia Photo: Rosino, In a 37-point resolution, the organization representing some 362,000 private farmers supports the expansion of suburban agriculture with direct distribution to Also see: city outlets, and suggests allowing the Opinion direct sale of cattle to slaughterhouses page 3 by cooperatives, direct farm sales to the tourist sector, and that the state promote and support farm-based micro-processing plants for local crops, whose products should be freely sold on markets. Private farmers — ranging from small landowners leasing state land to cooperative Cont’d on page 5 U.S. grants Cuba travel license to Houston-based oil group he International Association of Drilling Contractors Treasury’s Office of Foreign Assets Control rejected IADC’s received a travel license from the U.S. Department of first license application in December. Al Fox and the group TreasuryT May 19, allowing the Houston-based group to send appealed and reapplied in March; OFAC granted the license a delegation to Cuba within three months, Tampa lobbyist and Continued on next page businessman Al Fox told Cuba Trade & Investment News. This marks the first time a U.S. oil industry delegation will visit the island, another stepping-stone event in the gradually rising and increasingly public opposition of the industry to INSIDE the U.S. embargo. Agricultural co-ops getting profitable...............................5 “It’s now up to the Cubans State-church talks hint at political thaw............................7 to find time for us,” says U.S. diplomats briefing Cuba on oil spill.........................7 Brian Petty, IADC’s executive Repsol contracts rig..........................................................8 vice president for government Sugar harvest ‘awful,’ minister resigns..........................10 affairs. “They’ve indicated they wanted us to come, but that Analysis: The Supreme Court and the travel ban.......3 was last broached in October.” Oil group gets Cuba permit, from previous page with Cuba, and the time to do it is now.” According to Reuters, Spanish oil company Repsol YPF SA in the second round. contracted an exploratory deepwater rig from a “I think it was this blowout in the Gulf of More on oil, subsidiary of Italy’s Eni SpA. The rig is being Mexico that changed minds in the Obama built in China. Repsol, which leads an offshore Administration,” Petty says. “They realized we see pages 7&8 consortium in Cuba, has been trying to obtain a can’t say ‘no’ to the Cubans.” rig for drilling in Cuban waters since 2004. The IADC is an international organization, but According to Fox, who has been chipping it is headquartered in Houston, chartered as a U.S. non-profit, away at the embargo from behind the scenes in Washington by the bulk of its members are U.S. companies, and the delegation engaging oil industry and other groups, the Cuban government will consist exclusively of U.S. citizens, Petty says. had been seeking U.S. participation in offshore drilling as far The trip comes just as public confidence in deepwater back as five years ago. In 2005, the Cubans, in what Fox calls drilling is at a low point, after the April 22 Deepwater Horizon “an amazing concession,” said they were willing to operate spill on the U.S. side of the Gulf of Mexico. But the association joint ventures under U.S. standards and had requested a seminar is fielding the disaster as an argument in favor of allowing introducing Cuban industry officials to U.S. state-of-the-art Cuba access to U.S. technology and techniques. techniques and regulations. Back then, the IADC chose not In a white paper arguing the need to open up Cuba to U.S. to go. oil industry standards, the IADC lays out a horror scenario The group has yet to figure out details of the trip. “The of a Deepwater Horizon-style blowout without the safety intent [is] to take a delegation of technical experts to engage standards, response teams and logistical support for damage Cuban offshore regulatory authorities in a dialogue on offshore control provided by the U.S. oil industry. safety,” the white paper says. The IADC would like to make “It’s inevitable that Cuba will explore and exploit their Cuban authorities “aware of global standards and best practices offshore hydrocarbon resources, and it would benefit both the regarding accident and blowout prevention, environmental American public and the Cuban people to make sure it is done mitigation and protection, safety procedures, hurricane right,” the paper concludes. “It is in our national interest to preparation and personnel training,” according to the white have a constructive, educational and informational exchange paper. Fox says he expects the trip to last three days. Note from the Publisher Sometimes, a monthly can be ahead of real-time news services: In this issue, Cuba Trade & Investment News is Cuba Trade & Investment News is a monthly publica- first to report that the Obama Administration granted a tion of Trade & Investment Publications LLC (TIPs), Tampa, FL, USA. CTIN is distributed to subscribers via Houston-based oil group a travel license to visit Cuba – an mail or e-mail. unprecedented breakthrough in the soon 50-year history of the U.S. embargo. My point? Cuba Trade & Investment News Publisher Andrew Goddard does not pursue copycat coverage. P.O. Box 13752 Nor do we think that the Washington and Miami narratives Tampa, FL 33681-3752 USA define Cuba. We tune out the high-volume static about Tel: 813 839 6988 dissidents and prisoners (as we do with Havana’s evil- Fax: 813 831 3811 imperialism narrative), and go straight to the core of economic [email protected] issues: Note the exciting discussions at the farmers’ congress www.cubatradenews.com Editor Johannes Werner about part-privatizing food distribution. Tel: 941 330 0303 We strive to be no-nonsense and select the “data points” [email protected] that an info-saturated and time-constrained business public cares most about. Editorial Advisors That is probably why some readers have told us they “read Chris Aberle, FCStone, Des Moines it in bed,” or “start the week” with it. “You don’t have to do Kirby Jones, US-Cuba Trade Assn., Wash. DC anything else, just read Cuba Trade & Investment News,” one David Lyons, Daily Bus. Review, Miami business reader said. John McAuliff, FFRD, New York Phil Peters, Lexington Institute, Washington I always look forward to your comments. SUBSCRIPTIONS Call 813 839 6988. One year $375. In Canada and Mexico, add $15 postage. Andrew Goddard — [email protected] COPYRIGHT NOTICE No part of this publication may be copied, photographed or duplicated without TIPs’ consent. 2 Florida Strait Analysis The U.S. Supreme Court and the travel ban What if the latest assault on the U.S. travel ban against Cuba in Congress fails? The ban — and the embargo — are also vulnerable on the judicial front; the nomination of Elena Kagan to the U.S. Supreme Court spotlights this. The following analysis was written by Anya Landau French and first appeared in the Havana Note blog. By Anya Landau French eased under the Carter Administration). By Johannes Werner In a 5-4 decision, the Supreme Court ith President Obama’s affirmed the President’s authority to issue The rise of Cuba’s new Wnomination of Elena Kagan travel bans in the interest of national entrepreneurial class to replace Justice John Paul Stevens, security, although they might infringe the U.S. Supreme Court is changing he recent congress of the upon Americans’ Constitutional rights to (although this change should not National Association of Small travel and move freely. significantly alter the ideological FarmersT (ANAP) dragged into The United States, balance of the Court). the light a new Cuba — a country Cuba, and the Supreme While the Judiciary that aims to be middle class and Court have all undergone is usually considered entrepreneurial. significant changes since the least pertinent Raising food production has that 1984 ruling. The of our government’s become a matter of national security, Cold War is over and three branches to and that puts the small farmers and Cuba is no longer a foreign policy issues, ANAP in a politically powerful security threat (and thus the Supreme Court position. And ANAP is using this the original rationale for does get to weigh in moment, raising issues that makes the travel ban has ended). on international issues the organization look like a trade Meanwhile, with Justice from time. Cuba is no Stevens’ retirement, there association rather than a mass Supreme Court nominee exception, and over the will no longer be any movement. Elena Kagan nearly 50 years that the As Progreso Weekly analyst Jorge current Justices on the U.S. embargo on Cuba Gómez Barata put it very eloquently: Supreme Court that were has existed, the Supreme Court has The 860 ANAP delegates during serving at the time of the 1984 ruling. heard several cases that challenged the high-profile meeting at the — of In addition to the original concerns of the Constitutionality of the travel ban all places — Revolutionary Armed those who opposed the travel ban, a new on Cuba. Forces ministry in Havana didn’t twist has also developed in the travel ban Zemel v.