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CANADA-CUBA ECONOMIC RELATIONS: AN UPDATE

By Arch Ritter                                                                                                  October 5, 2016

 Canada and Cuba have maintained a normal and mutually beneficial economic relationship from Colonial times to 2016.  With the beginning of Cuba’s “Special Period” in 1990 and its modest moves towards a mixed market economy in the 1990s, Canadian participants were optimistic about future economic relations.  In the 2000’s, this was replaced by some skepticism, but with the reforms of 2010-2012 and the beginning of the normalization of US Cuba relations, optimism has returned. This article provides an update on Cuban-Canadian economic relations, including trade, foreign investment, development assistance and migration and some speculation concerning the future of the relationship.

Canada-Cuba Trade Relations

Since the start of Cuba’s revolution, normal trade relations between Canada and Cuba have been maintained. However, trade has waxed and waned over the years as can be seen in Chart 1. The chief feature of the trade relationship in the 1980s was the large volume of Canadian exports which were mainly wheat. Trade expanded steadily in the 1990s with the ending of the special trade relationship with the Soviet Union, as Cuba’s economy began to recover and as it began to diversify its export markets and sources of imports.

q1After 2001, Cuba’s exports to Canada expanded and began to exceed Canada’s exports to Cuba due to high nickel volumes and prices. Canadian exports to Cuba have more or less stagnated since 2001 while other countries have increased their market shares.  By 2015, Canada was the fourth ranking exporter to Cuba following Venezuela, China, and Spain (Table 1.) In contrast, Canada was the second largest export market for Cuba after Venezuela in 2015, accounting for 11% of Cuba’s exports.

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Cuba’s exports to Canada have consisted almost totally of nickel concentrates, with cigars, rum, seafood and copper scrap (presumably a quirk in 2015) as very small foreign exchange earners (Table 2.).

By 2015, Canada’s exports to Cuba were reasonably diversified (Table 2.) Its agricultural exports remained significant, though overwhelmed by US agricultural exports. Minerals (sulfur for Cuba’s nickel industry, potash for fertilizer), metals (copper products for Cuba’s electrical system mainly) and machinery of various types have all been significant in the 2010s.

r2 Tourism

Cuba’s best and most faithful friend is the brutal Canadian Winter, which has driven millions of Canadians to warmer Caribbean climes during the December to April period. Canada has been the largest single national source of tourists consistently from 1990 to 2015 and accounted for almost 40% of all tourist arrivals in 2015.  But when US tourism opens up completely, there will likely be a deluge of US winter-escape tourism as well as curiosity tourism, convention tourism, medical tourism, March-break tourism and retirement relocation. The result will likely be that prices rise, and Canadian winter time tourism may well be squeezed out of Cuba into lower cost destinations.

q2Canadian Enterprises in Cuban Joint Ventures

In 1991, Cuba opened itself to foreign investment in joint venture arrangements with state firms. By the end of 1999, there were 72 joint ventures or “economic association” agreements between Canadian firms and Cuban state enterprises but few seem to have ever come to life.

Sherritt International has been by far the most successful Canadian-Cuban joint venture.  Its formula for success is one that cannot likely be replicated by any other enterprise.  In effect, it exchanged 50% of its ownership in the nickel refinery in Alberta Canada for 50% ownership of the Moa mine and concentrator in Cuba and shared in the ownership of the marketing enterprise.  This made Cuba a significant foreign investor in Canada!  The Sherritt experience was explored in the previous issue of this publication.

A number of mineral exploration companies established joint ventures in Cuba by 1994 in association with Geominera S.A. It was thought that Cuba was an ideal location for mineral exploration because much of the country had been covered by aero-magnetic and geological surveys in the Soviet era.  Among the enterprises involved in exploration projects in joint ventures with Geominera were Holmer Gold Mines, Joutel Resources, CaribGold Resources, Northern Orion, and MacDonald Mines. Unfortunately, the exploration undertaken from 1992 to 2007 yielded disappointing results and none of the exploration projects led to producing mines. This suggests that either the quality and/or magnitude of the deposits are lower than in other regions of the world. Alternatively, perhaps the investment conditions, the policy environment and/or the political risk situation were worse than elsewhere. It would be surprising if there were another mineral exploration rush in the medium term future, unless mineral prices were to rise to very high levels.

Canadian enterprises in real estate development have also had difficult experiences in Cuba. One project announced in October 1998 by an association between Cuba’s luxury hotel chain, Gran Caribe and Cuban Canadian Resorts International proposed U.S. $250 million set of four condominiums with hotel and resort facilities. It would have opened up an important new type of tourism for Cuba.  However, in May 2000, the Ministry of Foreign Investment and Cooperation announced a prohibition of foreign ownership of condominium units killing this and other such projects for the time being.

Another project was that of Leisure Canada for the construction of some 11 hotels and two golf courses, a marina. (Leisure Canada Incorporated, 2000). This project fizzled out. In 2011 Leisure Canada, having changed its name to 360 VOX Corporation, was bought out by Dundee Corporation in May 2014.  Any mention of this project has disappeared.

One successful venture was the construction of five airports in Cuba, including Varadero and Havana International Airports by Intelcan Technosystems of Ottawa. The CDN$ 52 million investment in the Havana Airport, was financed in part by Canada’s Export Development Corporation (33%) and 15% from Intelcan. Since 2000, the ultimate payment has come from international passengers who pay U.S. $25.00 (CUC 25.00) as an airport tax on departure.

Unfortunately brilliant successes for Canadian-Cuban joint ventures seem to be few and far between.  Indeed, a number of executives of Canadian trading enterprises and joint ventures, Cy Tokmakjian and Sarkis Yacoubian, were jailed and tried on corruption charges –a cooling factor in the foreign investment process. The moral of the story is that establishing a joint venture in Cuba can work, but it must be done with patience, intelligence, and scrupulous awareness of Cuban regulations and processes and with clear benefits for the Cuban partner enterprise and the Cuban people.

Canadian Development Assistance

The Canadian International Development Agency (CIDA) has provided some interesting development assistance to Cuba since 1994. A major proportion of this has been “economic” in character, aimed at the “modernization of the state.”  Some has been used to support the initiation of projects by Canadian enterprises with Cuban counterparts or to promote Canadian exports. Some of the economic programs were micro-enterprise tax administration, economic management, support for technical training and computer acquisition at the Central Bank, a program to help strengthen administration and professional economics at the Ministry of Economics and Planning and training/certification programs for tradesmen in some basic industrial areas. Various types of commodity assistance were provided as well. Much of the assistance provided by NGOs was aimed at community level activities.  A small amount of assistance was directed towards human rights and governance initiatives including a “Human Rights Fund Pilot Project” and “Dialogue Fund” with multiple Canadian and Cuban partners.

r3Canada’s active development assistance projects in Cuba as of mid-2016 are listed in Table 3. The annual expenditures of these multi-year projects for 2014-2015 was $CDN 2.42 million, a very

 International Migration

 An interesting dimension of Canadian-Cuban relations is migration. As indicated in Chart 3, Cuban migration to Canada has risen from levels in the hundreds in the 1980s to around 1,400 in 2014-2015. However, an unknown number of the Cuban immigrants to Canada move on to the United States, especially Florida, reflecting the attraction of the large Cuban-American population there and the weather.

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Detailed sociological information on Cuban migrants is not available. However, my impressions are that, generally speaking, they are relatively well-educated, industrious, self-activating and entrepreneurial. They also seem to be relatively young, for the most part, many having recently finished their education and just starting out on their careers. Many Cuban immigrants seem to have done reasonably well and have found work in their professional areas, something that is not easy in a new society, culture and language.  This migration represents a “brain drain” or a loss of human capital for Cuba and a corresponding gain for Canada.

 Prospective Canadian-Cuban Economic Relations

The future economic relationship between Canada and Cuba will be shaped mainly by three factors: the strength and durability of Cuba’s economic recovery; the nature of Cuba’s economic policies affecting trade, and foreign investment; and the character and timing of complete normalization of relations with the United States.

A sustained recovery of the Cuban economy would promote a deepened and broadened economic relationship with Canada. A growing Cuban economy would permit increases in imports from all trading partners, including Canada.  At the same time, economic recovery in Cuba also requires expansion of its exports of goods and services.

Is an enduring recuperation of the Cuban economy probable in the next decade or so? First, the driving force for the Cuban economy, namely export earnings, at this time depends mainly on tourism, medical services and nickel exports.  Nickel and tourism should continue to be strong, but the obscured subsidization from Venezuela is over. Cuba’s medical service exports will likely be transitory as other countries develop their own medical systems and increase medical personnel.  Pharmaceutical exports may hold promise in the longer term but have been somewhat disappointing relative to the high hopes once placed in their prospects. Little progress appears imminent regarding the expansion of other merchandise exports. New exports of manufactured products have not appeared on the scene in a significant way and are obstructed by some public policies.

Some continuing problems may prompt skepticism regarding Cuba’s economic prospects in the near future. Among the difficulties often cited are: a dual exchange rate system with negative consequences for export diversification and expansion; a blockage of people’s initiatives, energies and entrepreneurship due to the unwillingness to extend further the reform process especially for medium scale enterprise; and the deterioration of parts of the infrastructure, most notably housing.

The second set of factors that will shape Canada’s future economic relations with Cuba in is Cuba’s policies relating to trade, foreign investment and tourism. These policies are unlikely to undergo dramatic change under Raul Castro’s leadership. This implies that the basic Canadian-Cuban economic relationship should not be affected seriously by changed Cuban policies in the next few years. The state-trading that in part characterizes these relationships is not intrinsically beneficial for Canada.

Thirdly, the complete normalization of U.S. – Cuban relations especially regarding trade and US investment in Cuba, will have a major effect on the Canada-Cuba economic relationship. Complete normalization will permit expansion of Cuban exports, US foreign investment in Cuba, US tourism in Cuba, financial flows and the possibility of open and vigorous collaboration of Cuban-America and Cuban citizens in business activities.  Greater prosperity will be the result.

Normalization with the United States will lead to expanded exports of goods and services to Cuba from the U.S. and vice versa.  This is due to geographic and transport factors.  More frequent freighter connections, high speed hydrofoil passenger boat connections, a re-connection of U.S. and Cuban railway systems and a proliferation of airline connections will lead to a reintegration of the two economies. The diversified U.S. economy can provide a broad range of consumer and capital goods and services competitively with other countries and with low transport costs and quick delivery times.

Canadian exporters to Cuba therefore will face a challenge after US – Cuban normalization. The location and logistical advantages of U.S. exporters, plus the interest, activism and advantages of the Cuban-American business community will outweigh any lingering “goodwill effect” with Canada. Overnight or next-day delivery of products ordered from the U.S. makes continuation of some types of exports from Canada difficult, as delivery from Canada currently may take up to two weeks or more on ships leaving Canada every week or ten days on average.

On the other hand, some of Canada’s current exports to Cuba are competitive with U.S. products and should increase in a post-embargo Cuban economic recovery. This might include fertilizers (potash), cereals, animal feed stocks, lumber, wood and paper products and fabricated non-ferrous metals products. Canada also is competitive in certain types of capital equipment such as minerals machinery and equipment, some paper making equipment, Bombardier aircraft, railway rolling stock and equipment, urban transit vehicles, communications equipment, electrical generation and distribution equipment, and some specialized vehicles. However, some Canadian exports may be threatened by U.S. competition.

In summary, the recovery of the Cuban economy and the increase in foreign exchange receipts that U.S.-Cuban normalization in time should bring about will be of benefit for some Canadian exporters while others may be replaced by U.S. suppliers.  Will the “expansionary effect” outweigh the costs of the “displacement effect” for Canadian exporters?  Perhaps, but this is not assured.

Normalization will also induce U.S. enterprises to invest in Cuba. With no further changes to the foreign investment law and within the current policy environment, one can imagine some but not many U.S. firms entering joint ventures.  But with policy liberalization in a post-Raul Castro situation, one can imagine large numbers of U.S. enterprises investing in Cuba. Cuban-Americans would also enter Cuba to set up small businesses or to finance business ventures with their Cuban relatives or counterparts.  The “geo-economic” gravitational pull of the U.S. will be strong. After U.S.-Cuba rapprochement Canadian trade and investment as a proportion of total trade and investment will likely diminish even though both might increase in absolute terms.

To conclude, there are future uncertainties and challenges regarding the Canadian-Cuban economic relationship.  The character and intensity of future economic performance in Cuba, Cuba’s policy environment and the timing of the complete normalization of relations with the United States are still ambiguous and uncertain. These factors will have mixed effects, but effects that on balance should be positive for Canada and Cuba.

Bibliography

Citizenship and Immigration Canada.  http://www.cic.gc.ca/english/resources/statistics/facts2014/permanent/10.aspAccessed October 23, 2016

Cuban Club Resorts. 2000. Web site: www.cubanclubresorts.com

Global Affairs Canada, Cuba – International Development Projects, http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/fWebCSAZEn?ReadForm&idx=00&CC=CU.  Accessed 3 October 2016

Industry Canada, Trade Data Online (TDO), Trade by Product (HS Codes) http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home

Leisure Canada Incorporated. (2000, August, 17). Press Release. Reproduced in   www.cubanet.org

Nolen, Stephanie. 2015. In tourist-deluged Cuba, Canadian firms are noticeably absent. The Globe and Mail December 13.

Oficina Nacional de Estadisticas, Cuba.  Anuario Estadistico de Cuba. (Various issues) http://www.one.cu/ . Accessed various times and October 4 2016.

Sequin Rob. 2013. Leisure Canada now a defunct Cuba real estate development brand.  Havana Journal September 25,

 

 

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CRISIS IN VENEZUELA MAKES LIFE HELL FOR CUBAN MEDICAL PROFESSIONALS

A growing number of Cuban health professionals working in Venezuela are fleeing or seeking second jobs as a result of the economic and political crisis in the South American country.

By MARIO J. PENTÓN

In Cuba Today, June 22, 2016

Original Article: Cuban Doctors in Venezuela

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Cuban Doctors in Venezuela in More Promising Times

z3 medicos-cubanos-venezuela

Tania Tamara Rodríguez never thought she would escape from the Cuban medical teams in Venezuela and become a “deserter,” now blocked by her government from returning to her country for eight years.

But the many difficulties that Cuban health professionals face in Venezuela as a result of the economic and political crisis in the South American country are leading a growing number to seek refuge in neighboring countries or obtain other jobs to make ends meet.

“Conditions for the doctors and other health professionals are horrible. You live all the time under the threat of being returned to Cuba, losing the job. You’re afraid they will take all the money – which is in Cuban government accounts – and revoke your assignment (to Venezuela) if they want to discipline you,” said Rodríguez, who now lives in Tampa.

While she worked in a medical laboratory in Venezuela as part of Cuba’s “Mission to the Neighborhood” medical aid program, the government deposited Rodríguez’s salary of 700 pesos per month (about $29) to an account in Cuba and gave her access to $280 dollars (U.S.) per month and a card for 25 percent off at the TRD shops in Cuba, which offer hard-to-find imported goods at dollar prices.

In 2014, after acknowledging that its “export of health services” was earning the island more than $8.2 billion a year, the Cuban government increased salaries in the domestic health sector. Even with the increases, which took effect after the public health sector had dismissed 109,000 employees, Cuban doctors are still not earning even close to the international median.

Rodríguez went to Venezuela in early 2015 from the eastern city of Holguín where she worked in the laboratory of the Máximo Gómez Báez. She agreed to join one of Cuba’s many medical teams in foreign countries in hopes of providing better opportunities for her 13-year-old daughter.

Cuba currently has about 28,810 medical personnel in Venezuela working in public health programs that, according to President Nicolás Maduro, represent a priority sector for his government and has cost Venezuela more than $250 billion since 1999.

The payment arrangement, essentially trading Venezuelan oil for Cuban medical personnel, has been repeatedly denounced by critics as a way for the Venezuelan government to cover up its subsidies to Cuba. Cuba then resells part of the refined oil products on the international market.

Rodríguez, who arrived in the United States after a few months in Venezuela under the U.S. government’s special parole program for Cuban medical personnel who defect, saved the money needed to buy her daughter a plane ticket to the United States from Cuba. But when her family took the girl to an Interior Ministry office to apply for a passport, she was denied because the mother was still listed as working in Venezuela.

“I don’t understand how I can be listed as working when I have been in the United States for more than a year. Someone must be pocketing the money the Venezuelan government is paying for me,” Rodríguez said.

According to the U.S. Citizenship and Immigration Service (USCIS) agency, 2,335 petitions were received in Fiscal Year 2015 under the Cuban Medical Professional Parole (CMPP) program, an initiative by the George W. Bush administration that offers visas to Cuban medical personnel “recruited by the (Cuban) government to study or work in a third country. Since its start in 2006, more than 8,000 medical professionals have been admitted under the program.  Solidarity Without Borders, a Hialeah non-profit that helps the arriving Cuban medical professionals, told el Nuevo Herald that the number of Cubans applying for the CMPP has risen in recent years. Not everyone is accepted, and 367 were rejected in fiscal year 2015, according to official data.

Rodríguez said that when she arrived in Venezuela in 2015, she was assigned to work with other Cuban medical personnel in the north central state of Falcon.

 “Everything in Venezuela is a lie,” she complained. “We were forced to throw away the reactive for CKMB (a type of blood test), a product that is scarce in Cuba. But we had to throw it away so that it would be marked in the books as having been used and Cuba could sell more. The same happened with the alcohol, bandage, medicines …  “Everything was produced in Cuba and paid for by the Venezuelan government,” Rodríguez said. “We faked lists of patients and were forced to live on nothing, while Cuba took all the money.”

During the time she worked in Venezuela, Cuban officials paid each medical professional about 3,000 bolivares (about $3) per month — an amount that has increased substantially recently because of an inflationary crisis and the relentless devaluation of the Venezuelan currency.

“Sometimes I had to do little jobs on the side to make ends meet,” she said. “Thank God that many Venezuelans take pity on the Cubans and help us.”  “Maybe what happened in my case was that when I decided to escape, I went to the municipality and told them everything about the disaster” at her clinic, she said. “And now they want to take revenge because I denounced them.”

Another Cuban doctor who works in the northeastern state of Anzoategui spoke on the condition of not being identified because of fear of being punished for speaking with a journalist.

“We started earning 3,000 bolivares and we’re now up to 15,000,” he said, or about $15 on the black market. “What’s interesting is that it makes no difference if they give us more bolivares because they are worthless in real life.”   “Our working conditions are horrible. We are salaried slaves of Cuba,” the doctor said. “They keep us in groups. Since I arrived, I live with three doctors from other parts of the island, so I have to share my room with someone I don’t know, and every day at 6 p.m. I have to ‘report’ that I am home.”

Officials of the Cuban medical teams in Venezuela justify the daily check-ins as a security measure due to the high levels of violence in the neighborhoods where they work. The doctors, however, see it as part of an effort to keep a close watch on them.

“There are many (Cuban) state security agents. Their job is to keep us from escaping,” said the doctor working in Anzoategui. “When you arrive in Venezuela, they ask you if you have relatives abroad, especially in the United States. We all say no, even if we do, because the surveillance is even worse then.”

The economy in Venezuela is so poor, he added, that returning from his last vacation in Cuba he had to carry back laundry and bathroom soap and toothpaste.

“When we first got here, this was paradise. They had everything we did not have in Cuba. Today it’s exactly the opposite,” he said. “We came thinking we would help our families, and it turns out they are the ones helping us. If it were not for the money that my brother in Miami sends me, I don’t know what I would do.”

Several other medical professionals in Venezuela also said that authorities try to hide cases when the Cubans become the victims of crimes, even when they are killed.

“You can’t avoid being robbed, because everyone gets robbed here. A stray bullet, a thug who doesn’t like you, we run all those risks,” said another Cuban doctor who also asked for anonymity. “One day I was mugged by two children, no more than 12 years old. I had to give them all my money because the pistols they were playing with were real.”

The personal relations of the Cuban medical personnel are also watched.

“They warn you that it can go badly for you if you have relations with Venezuelan government critics,” the female doctor said. And although intimate relations with Venezuelans are formally forbidden, “people find a way.”

During the 13 years that Cuba has been sending medical personnel to Venezuela, more than 124,000 have served in the South American country. Thousands have escaped to the United States and other countries, searching for better lives.

For many years, like Rodríguez, the medical defectors were banned from returning to Cuba for eight years. Last year, Cuba announced the defectors could return and would be guaranteed “a job similar to what they had before.”

But there was a catch: Those who returned would need a special permit to travel abroad again.

Venezuela's President Maduro speaks with Cuba's President Castro during their meeting in Havana

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CUBAN BASEBALL CRISIS: THE DOWNSIDE OF WARMING RELATIONS WITH AMERICA

The Economist, December 18, 2015

Original Essay: Cuban Baseball Crisis

zzzzThe Havana Sugar Kings of the old International League, circa 1956

LOOK for the Che Guevara mural on a pitch-black street corner in Lawton, a run-down district on the outskirts of Havana. Turn left, walk up the concrete steps and give the password (today it’s “I sell green dwarfs”). Inside, around 20 Cuban men sit silently. Despite the humidity, the ceiling fan is still, allowing puffs of sweet tobacco smoke to hover in the flickering fluorescent light. The newcomers are asked for a “solidarity contribution” of 25 Cuban pesos, or $1. After the customary first drops are spilled to sate the thirst of the saints, a $3 bottle of clear rum makes its way around.

It could easily be a clandestine political gathering. But this group has far more important business: the first game in the Major League Baseball (MLB) semi-final series between the Kansas City Royals and Toronto Blue Jays. For half a century after Cuba’s revolution in 1959, the island’s sports fans knew little of professional leagues beyond their shores. But today, thanks to the internet’s belated arrival and a wave of Cuban players defecting and starring in MLB, in-depth knowledge of American baseball is a badge of honour for baseball-loving Cubans—that is, nearly all the men and plenty of the women, too. “You didn’t know Kansas City won? You’re an embarrassment,” one attendee teased a friend during the ride to Lawton in an exhaust-spewing 1950s taxi, whose shock absorbers were no match for the area’s cavernous potholes.

The easiest way for Cubans to follow MLB in real time is at hotel bars in Vedado, a central Havana district packed with middle-aged American tourists taking advantage of the recent relaxation of travel restrictions. But few Cubans can afford a beer priced in dollars. And if a woman happens to be running a shift at the bar, locals say, there’s always a risk she will put a soap opera on the TV instead. So baseball fans gather in speakeasies like this decrepit flat, whose owner has managed to acquire an illegal satellite broadcast signal and hook it up to his 1980s Japanese television.

The group try to keep quiet, lest the neighbours snitch to the local Committee for the Defence of the Revolution (a network of government informants in every town). But they are rooting for the Royals because of the team’s first baseman, Kendrys Morales, who fled Cuba on a raft in 2004 after serving several stints in jail for his seven previous failed escape attempts. Every time he comes up to bat they allow themselves a muffled cheer. A round of high-fives follows Kansas City’s 5-0 victory.

The next day a big game is scheduled in the domestic baseball league, at Havana’s rickety 55,000-seat Latin American Stadium. It pits the hometown Industriales, Cuba’s answer to the New York Yankees, against a visiting club from nearby Matanzas. A few years ago the stands would have been packed. But today the outfield bleachers are empty, and only the rows of seats closest to the action appear even half-full. Bored-looking police drag on cigarettes. A group of hometown fans tries to rouse the crowd by blaring on hand-held air horns, but it is well short of critical mass.

One reason for the apathetic mood is that the government has banned alcohol sales in stadiums to stop fights. A bigger problem is the poor quality of the play. Last year 11 Industriales players left for the United States; Matanzas lost ten. Only the weaker players remain, and they are demoralised: runners seem content to jog around the basepaths, and fielders let the ball skip past them on difficult plays. In recognition of the depleted rosters, the Cuban league now disbands half of its teams at mid-season and shares their players among the eight clubs that are doing best.

Today’s game is painfully lopsided, as the Matanzas hitters pound the Industriales starting pitcher for seven runs. The biggest attraction is Rey Ordóñez, who defected in 1993, played in MLB for nine years and is catching a game on a visit home. Fans pose with him for pictures. “It’s very hard for the team,” says Lourdes Gourriel junior, the 21-year-old shortstop for the Industriales, following his team’s defeat. “It’s weird seeing someone on TV [in MLB], and just yesterday they were here with you. But that’s everyone’s individual decision. We’re still friends with those who left.”

South American football fans are accustomed to their countries’ brightest sporting stars decamping to richer European leagues. But for Cuban baseball fans the exodus is new. Less than a year after the United States and the government of Raúl Castro, Fidel’s younger brother and successor, announced they would re-establish diplomatic relations, this brawn drain is the most visible consequence of rapprochement with the yanquis, and an indication of what might be lost as the Cuban economy liberalises.

BOTTOM OF THE NINETEENTH CENTURY

Although baseball originated in the United States, the sport arrived in Cuba during its infancy in the 1860s. Within a decade of the first recorded match on the island, Cuba had established the first professional league outside America and put its adopted national game at the service of political aims: the league’s organisers funnelled its profits to guerrilla groups fighting for independence from Spain, and the movement’s spies posed as baseball players when shuttling messages and funds to and from supporters in the United States. “Baseball is more Cuba’s national pastime than it is America’s,” says Roberto González Echevarría, the author of a history of Cuban baseball. “It was considered modern, democratic and American, while the Spaniards had bullfighting, which was retrograde and barbaric. It’s as if the American Founding Fathers had been wielding Louisville Sluggers [an iconic brand of bat].”

After Cuba gained its independence in 1902 baseball became one of its principal means of exercising soft power. It was Cuban athletes, not American soldiers, who spread the sport across the Spanish-speaking Caribbean, helping to form a shared cultural identity with the Dominican Republic, Puerto Rico, Venezuela and eastern Mexico, and earning the Cuban players the nickname the “apostles of baseball”. And it was baseball players who became the best-known Cubans in the United States. Of all the MLB players born in Latin America who started playing before 1959, two-thirds were Cuban, even though most of the island’s stars were black and banned from MLB until the league’s colour barrier was broken in 1947. (In 1912, in response to inquiries about the lineage of two olive-skinned Cuban players, the Cincinnati Reds conducted an “investigation” which declared them “two of the purest bars of Castilian soap [that] ever floated to these shores”.) During the same period Cuba was putting black and white talent on the same fields in its racially integrated winter league, establishing the country as an exemplar of moral leadership in sports.

After Fidel Castro (pictured, swinging) took power and became the island’s baseball-fan-in-chief, the sport’s tacit political role became explicit. He proclaimed athletes to be “standard-bearers of the revolution playing for the love of the people, not money”. He banned professional sports and founded the National Series, a wildly popular amateur league in which each province fielded a team of players from its territory. He also established a formidable player-development system, with scouts identifying talented children and academies to train them once they became teenagers.

American fans, who then, as now, paid attention only to MLB, were unaware of the stars Cuba was producing, since they never played for a team in the United States. But Cuba’s athletic assembly line yielded a national team that dominated the weak competition in international events like the Olympics (in which MLB players do not participate): from 1987 to 1997, the squad won 156 straight games. The elder Mr Castro made such successes central to his propaganda strategy. “The only way Cuba could raise its head in the world was in sports,” says Ismael Sené, who ran the sports department of the Communist Youth in the early 1960s. “There was a campaign against us from the outside, saying that we were all needy, that we didn’t have food. Well, look at our athletes!” The fact that baseball, America’s “national pastime”, was Cuba’s strong suit made each victory extra sweet.

Fidel Castro might be proud of Cuba’s ability to export baseball players, were they not going to America

But setting so much store by its baseball players left the government vulnerable to shifting geopolitics. In 1991 René Arocha, a pitcher in the national team, walked out of his hotel room during a tournament in Miami, made his way to his aunt’s house, and never returned, making him the first team member to defect in history. He had not been planning on playing baseball afterwards, because he had assumed that MLB players were far superior to Cuban ones. But after connecting with a Cuban-born agent, he was given an MLB contract with a six-figure salary, and the next year became the St Louis Cardinals’ second-best pitcher.

After Mr Arocha had proved that Cuban players were of MLB quality, and the fall of the Soviet Union plunged Cuba into a “special period” of unprecedented poverty, more defectors began to leak out. Two half-brothers, Liván and Orlando Hernández, left the island separately in the 1990s, one at a tournament, the other on a rickety boat. Both played starring roles for World Series champions in their first years in MLB, providing Miami’s Castro-hating exiles with a remarkable narrative about the risks Cubans will take for a taste of freedom and the chance to play America’s game. To reduce the risk of further defections, the Cuban team put its players under tight surveillance whenever they travelled abroad, making their national treasures feel like prisoners and encouraging more defections.

SQUEEZE PLAY

The government responded to early defections with stoicism. “When one leaves, another ten better players emerge,” Fidel Castro once said. But in the past few years, the trickle of defections has become a torrent. As recently as 2007 there were just ten Cubans in MLB. Today there are 27. And whereas some of the early defectors had undistinguished careers, the current crop is aking an impact that, were it to occur anywhere but in the reviled United States, Fidel Castro would probably regard as his greatest accomplishment. Yoenis Céspedes, a burly outfielder with a pronounced uppercut swing, single-handedly powered the New York Mets to the World Series this year. His deadly accurate throws to home plate from distances of 300 feet (91 metres) or more have earned him the nickname the Cuban Missile. José Fernández, who fished his mother out of the ocean after a wave swept her overboard during their escape to Mexico when he was 15, is the toast of Miami’s Little Havana for his unhittable array of blazing fastballs and knee-bending curves. Aroldis Chapman holds the record for the fastest pitch in MLB history at 105 miles (169km) per hour. At the “Esquina Caliente” (Hot Corner), a bench in a downtown Havana park where die-hard fans have gathered daily for decades to talk baseball, the regulars today come prepared with the latest statistics on how Cuban players—and even the American-born children of Cuban exiles—are performing in MLB. They use websites like CubanPlay, a new, locally run site, by connecting their phones to public hotspots accessible with $2-an-hour Wi-Fi cards.

Major-league success has been accompanied by major-league riches: the 27 Cuban MLB players earn an aggregate annual salary of $100m. As the rewards have grown, a sophisticated infrastructure to smuggle more players has built up. Almost all recent defectors have escaped with the help of sinister human-trafficking syndicates. These hire boats to bring players to nearby countries, bribe the Cuban coastguard to let them depart, and Dominican or Mexican authorities to grant residency papers, pay tribute to organised-crime groups for the right to operate on their turf, and hold players hostage until they sign an MLB contract and provide a return on the gangsters’ investment, perhaps from their signing bonus. Yasiel Puig, a star right fielder, was held at a motel in Mexico’s Yucatán peninsula for months while his captors, associated with the fearsome Zetas mafia, argued over payment. Leonys Martín, an outfielder, was held at gunpoint in Mexico and forced to sign a contract in which he promised to pay 30% of his earnings to a front company; his smugglers are now in a Florida jail.

Since Raúl Castro became Cuba’s president in 2006, he has cautiously tried to relax state controls. But the defections have forced the pace when it comes to baseball. In 2013 Cuba said it would allow athletes to play professionally in foreign leagues—if they paid a 20% tax and returned for international tournaments and the winter National Series. A handful have gone to the Japanese league in the summer and earned seven-figure salaries.

Both MLB and the Cuban government now say they want a “normalised” system, in which Cuban athletes can travel to America legally and safely, play for MLB teams on a work visa and return home in the off-season. Antonio Castro, one of Fidel’s nine acknowledged children, an international baseball official and the national team’s doctor, has publicly called for such a change.

In an echo of the 1970s “ping-pong diplomacy” in which table tennis helped restore relations between the United States and China, MLB is encouraging a thaw between Havana and Washington. It has applied for an American government licence to do business in Cuba, is sending former players on a pre-Christmas goodwill tour of the island and is trying to organise an exhibition game in Havana featuring one of its teams next March. Meanwhile, Cuban baseball stars are giving Americans a new perspective on a country many perceive as nothing more than a totalitarian dystopia.

Yet the defections continue, for two reasons. The first is that the Cuban baseball authorities’ proclamations that players are now “free to go” ring hollow. It is the government, not athletes, that determines who can leave and for how long, to which country and team, and how much they will be paid. It generally selects older stars who have shown loyalty to the regime.

The second is the continuing influence of ageing “cold warriors” in the United States. Although Barack Obama has streamlined much of the bureaucracy required to authorise contracts with Cuban players, they must still establish residency outside Cuba and sign an affidavit saying that they “do not intend to, nor would [they] be welcome to, return to Cuba”. And America’s trade embargo, which can only be lifted by Congress, bans transactions with the Cuban government. That precludes any arrangement in which athletes would pay a modest tax on their foreign earnings in recognition of the state’s investment in training them, just as the United States taxes its citizens on their worldwide income. Cuba’s requirement that its players working abroad also participate in the National Series and be available to the national team represents another stumbling block, since MLB clubs would never allow their stars to skip out for an international tournament during the season, or risk injury during a long winter campaign in Cuba.

 

Yet for all the Cuban government’s rhetoric about America’s athletic imperialism, it may have an unlikely ally in MLB on the issues that concern it most. Despite MLB’s reputation as a fiercely capitalist industry worth $9 billion a year, the game’s economic model has much in common with Cuban-style socialist principles. To maintain fans’ interest, MLB needs a competitive balance between its rich and poor clubs. It accomplishes this by levying a tax on teams with high payrolls, and via an annual draft that routes the best young players to losing franchises. Cuban players aged over 23 with at least five years in the National Series are exempt from these rules. That enables them to auction their services to the highest bidder, undermining MLB’s carefully calibrated system of economic redistribution and reducing club owners’ profits. As a result, MLB is likely to advocate a tightly controlled system of acquiring Cuban players, rather than a free-for-all.

Moreover, MLB clubs and agents are already warning that after so many defections, the Cuban baseball pipeline is running dry and will need to be replenished. At the Premier 12, an international tournament held last month in Taiwan and Japan, Cuba finished an embarrassing sixth. The unique baseball culture Cuba has developed over 50 years of isolation has proved to be a formidable manufacturer of outstanding players. The Dominican Republic and Venezuela serve as providers of raw athletic material for MLB. Ordinary Cubans, by contrast, have grown accustomed to a remarkable closeness to world-class athletes, who play only for their home provinces and for almost no pay. “I’m just another fan,” says Reinier Reynoso, a 27-year-old pitcher for Industriales who is hanging out with the faithful outside the ballpark before a game. Fans and players “party together”, he says.

Since MLB has a keen interest in producing a new generation of Cuban superstars, it is reluctant to meddle with this potent combination of popular encouragement and state support. “We have no interest in going to Cuba and taking all of their players,” says Dan Halem, MLB’s chief legal officer. “We want Cuban baseball to thrive. We’re perfectly happy for Cuba to develop their own stars and keep them for a period of time. If they lose all their stars, fans will lose interest. There aren’t enough countries where baseball is played for this to just be a feeder for Major League Baseball.”

zzzzzzA recent friendly game

zzzzzWorld champions many times over

CASTRO AT BAT 1977

A Cuban baseball star

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HOW CUBA IS, AND ISN’T, CHANGING, ONE YEAR AFTER THE THAW WITH THE U.S.

By Nick Miroff December 15 at 7:00 AM

HAVANA — No event in decades shook up Cuba like the announcement last Dec. 17 by presidents Obama and Raul Castro that their countries would begin normalizing long-broken relations. In the 12 months since, Cubans have witnessed scenes few expected to see in their lifetimes, or at least in the lifetimes of Fidel Castro and his brother, Raul.

A U.S. flag snaps once again in the sea breeze outside a U.S. embassy in Havana. Raul Castro and Obama held talks on the sidelines of a hemispheric summit in April. So many U.S. politicians, corporate executives, foreign leaders, tourists and celebrities have visited, that an island long known for isolation suddenly feels it is at the center of the world.

The psychological impact of these events, however, has far outpaced any physical one. So far, U.S. businesses have only completed a handful of new deals. Cuba remains the only closed, one-party state in the Americas, and if anything, normalization with Washington has left communist authorities increasingly anxious about dissent and more determined to stifle it.

Cuba is still very much the same country it was a year ago. And yet, not quite.

“For a lot of my friends who are university graduates, the news was positive, and we saw it as the beginning of a long and complicated process,” said Lenier Gonzalez, a founder of the group Cuba Posible, which advocates gradual reform. But for more of the population, “it produced an unrealistic expectation

That third group of Cubans heard in Obama’s words last Dec. 17 a cue to flee. They fear normalization will put an end to the immigration rules that essentially bestow residency and welfare benefits on any Cuban who reaches U.S. soil.

As many as 70,000 Cubans have left for the United States in the past year, in what appears to be the largest wave of migration from the island in decades.

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The Legal Emigration Route to the USA: Early Morning Queue outside the American Embassy, April 2015

The changes of the past year have set Cuban authorities on edge too, bringing an escalating crackdown on public protest or opposition activity.

Dozens, even hundreds of activists are detained or arrested each Sunday, when the Ladies in White dissident group attempts to march in Havana and another group, the Patriotic Union of Cuba, stages a weekly mobilization in Santiago, the island’s second- largest city.

Though the government generally no longer locks up dissidents for long prison terms, it increasingly relies on short-term arrests to block protests by activists it considers “mercenaries” at the service of foreign interests.

The illegal but tolerated Cuban Commission of Human Rights and Reconciliation tallied 1,447 political arrests or arbitrary detentions in November, the highest monthly total in years.

In an interview published Monday, Obama said that the United States would continue to support Cuban rights activists and that he was considering a trip to the island — but on the condition that he can meet with dissidents. “If I go on a visit, then part of the deal is that I get to talk to everybody,” he said, in an interview with Yahoo News.

“Our original theory on this was not that we were going to see immediate changes or loosening of the control of the Castro regime, but rather that over time you’d lay the predicates for substantial transformation,” said Obama, whom surveys show is a widely popular figure on the island.

Cuban officials this year have tried to push back at public perceptions that Obama is a friend and the United States is no longer a threat or a foe. Relations will not be truly normal, they insist, until Washington lifts its trade embargo, closes the U.S. Navy base at Guantanamo Bay and makes reparations for a half-century of economic sanctions and other grievances.

Yet the rivalry has morphed from hostile confrontation into something more sportsmanlike: a low-intensity contest to set the pace of change, with Washington trying to move faster and Cuba preferring slow, cautious steps.

As Rafael Hernandez, editor of the Cuban journal Temas, put it: “We’ve traded a boxing ring for a chess board.”

For all its revolutionary slogans and lore, Cuba can be a profoundly conservative place, in the strict definition of the term. It is a country where the television programming, food rations and newspaper editorials seem to remain the same, year in, year out. This drives young Cubans crazy. But the continuity is a comfort to some, not least the communist party elders who have ruled for 57 years.

Raul Castro, 84, has pledged to step down in February 2018. Obama has 13 months left in office. That leaves a narrow window for the two men who charted the normalization course to see it through.

Rarely does a week go by without some new chess move. The Obama administration in May took Cuba off the list of state sponsors of terrorism, paving the way for the countries to formally reestablish diplomatic ties in July.

The two countries have signed new agreements on environmental cooperation. They’ve enhanced anti-narcotics enforcement. Direct mail service is set to resume on a trial basis. U.S. and Cuban officials have even started discussing their oldest grievances, opening negotiations to settle billions in U.S. property claims and Cuban counter-claims.

The U.S. secretaries of agriculture, commerce and state have all visited Havana in the past year, along with dozens of U.S. lawmakers, adding up to the highest-level government contacts in decades.

A U.S. tourism tsunami still seems to be building. U.S. travel to Cuba increased by 40 percent since last December, according to industry estimates. Overall tourism to Cuba increased nearly 20 percent, bringing billions in additional revenue for the government.

“Our booking activity has been off the charts,” said Tom Popper, president of Insight Cuba, the largest U.S.-based provider of the licensed “people-to-people” travel permitted under U.S. law.

Most of the U.S. travelers have come to Havana, where a shortage of hotel beds has kicked off a scramble among Cubans and their foreign business partners to buy, renovate and rent properties. Each city block seems to have at least one crew of contractors patching cracks and applying paint.

A deal to reestablish regular commercial flights between the two countries is said to be imminent, with United, JetBlue, American Airlines and other U.S. carriers pledging to begin service as soon as they’re cleared by the two governments.

Cuba established a direct phone link with a U.S. company, IDT, and a roaming agreement with Sprint. It has set up nearly 50 outdoor WiFi hotspots at parks and boulevards across the island, where Cubans gather round-the-clock to chat with friends and relatives overseas.

But the initial Cuba excitement among U.S. companies has been replaced by something more “sober” a year later, said James Williams, president of Engage Cuba, a group lobbying to lift the embargo.

Williams said he knew of at least two-dozen U.S. companies that had submitted formal business proposals to the Castro government, aimed at taking advantage of more flexible rules. “I would imagine it’s probably in the hundreds,” he said.

The companies want to lease office space, build warehouses, dock cruise ships and ferries. Not one has gotten a green light so far, he said.

“Frankly I think the Cubans have been overwhelmed with a surge in interest and the decentralized nature of how that interest is coming to them, with companies calling them up, consultants coming to them, and not a lot of clarity about how to make a deal,” said Williams. “The non-responsiveness has slowed things down.”

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A NEW CRISIS OF CUBAN MIGRATION

By WILLIAM M. LEOGRANDE, New York Times,  DEC. 4, 2015

Original Essay Here: Cuban Migration

zzCuban migrants remonstrated with a Costa Rican immigration official at the border with Nicaragua, in Penas Blancas, Costa Rica, on Monday.

 zzzNicaraguan soldiers and policemen stand guard in Penas Blancas, Guanacaste, Costa Rica, on the border with Nicaragua on November 16, 2015

 Washington — A standoff in recent weeks that has trapped hundreds of Cuban migrants at Costa Rica’s border with Nicaragua as they try to reach the United States is a graphic demonstration that Washington’s migration policy toward Cuba is no longer sustainable. Left unchanged it could produce a crisis on the scale of the 1980 Mariel boatlift or the 1994 balsero (rafters) crisis — if one hasn’t begun already.

Current policy, based on migration accords negotiated with  Havana in 1994 and 1995, commits the United States to accepting at least 20,000 legal Cuban immigrants annually, and to returning to Cuba migrants intercepted at sea as they try to enter the United States illegally.

Unilaterally, the United States also adopted a “wet foot/dry foot” policy, which allows Cubans who arrive in the United States (“dry foot”) to remain in the country under a special status called parole and, a year later, become eligible under the Cuban Adjustment Act of 1966 to seek permanent residency. No other foreign nationality enjoys such privileged status.

The Cuban government has long argued that these policies encourage illegal migration and human trafficking. Still, the problem of Cubans coming to the United States illegally has been relatively minor until recently.

In the years since the migration agreements were signed, about 4,000 Cubans annually have eluded the United States Coast Guard, reached Florida beaches, and claimed “dry foot” status. Some 2,000 to 3,000 others have been intercepted at sea (“wet foot”) each year and returned to Cuba. Because crossing the Florida Strait on rickety rafts or dilapidated boats is so dangerous, and the chances of being caught by the Coast Guard are high, the flow of illegal migrants remained manageable.

It is manageable no longer. The number of migrants has surged since last December, when President Obama and his Cuban counterpart, Raúl Castro, announced their intention to normalize relations. Would-be immigrants fear that reconciliation foreshadows repeal of the Cuban Adjustment Act, prompting Cuban migrants to act now lest they miss their chance.

With that in mind, Cubans have found an air-land route to the United States on which everyone can be a “dry foot” who can expect entry. In the past 12 months, more than 45,000 Cubans entered the United States from Mexico — without having to risk crossing a perilous desert as Mexicans and Central Americans do.  The new route is possible because in 2013, the Cuban government abolished its requirement that citizens obtain government permission to travel abroad. Today, most Cubans can travel to any country that will grant them a visa. Ecuador even admitted them without one until last Tuesday, and Guyana still does.

As a result, would-be migrants have been flying to Ecuador to begin a long, surreptitious trek north, without visas, through Colombia, Central America and Mexico. At the Texas border, they simply declare their nationality and are admitted under the “dry foot” policy.  Hiring “coyotes,” as smugglers of migrants are called, to guide the trek is expensive, but many Cubans have family members in the United States willing to pay. Recently, Cubans armed with cellphones have been crowdsourcing their own smuggling routes by following advice on social media from those who have gone before them.

The current crisis in Central America was triggered on Nov. 10 when Costa Rican authorities broke up a smuggling operation, leaving 1,600 Cubans stranded. When Costa Rica tried to send them north, Nicaragua closed the border. As more Cubans arrive daily, the number stuck there has reached 4,000, with no end in sight.

At a recent meeting of diplomats from the region, Costa Rica proposed creating a “humanitarian corridor” that would allow Cubans free passage to the United States border. Nicaragua rejected the proposal, but even the suggestion of such a plan should be a red flag for Washington. Latin Americans are getting tired of enforcing a United States immigration policy toward Cubans that isn’t working and discriminates against their own citizens. The contrast between Washington’s privileged treatment of Cuban migrants and its coldness toward Central Americans, including children fleeing criminal violence, is indefensible.

18CUBA-slide-8QJE-superJumboEarly morning que for migration visas, American Embassy, February 2015.

Nevertheless, the Obama administration has repeatedly declared that it has no intention of changing current migration policy, for fear that any hint of change will touch off a stampede. United States diplomats reaffirmed that position at a meeting with their Cuban counterparts last Monday. The meeting produced no new thinking about how to resolve the crisis.

There is a solution to this conundrum. If Cuban migrants trying to enter the United States by land were treated the same as those intercepted at sea and returned to Cuba, the incentive to make the long, dangerous passage north would be drastically reduced.

This would not require amending the Cuban Adjustment Act, which allows for the adjustment of status only for Cubans who have been admitted or paroled into the United States. It would require only changing the “dry foot” policy of admitting on parole anyone who sets foot on United States territory. That policy is a matter of executive discretion. To avoid a last-minute exodus from Cuba, it could be rescinded by the attorney general without prior notice.

An end to the “wet foot/dry foot” distinction should be accompanied by a significant increase in the number of Cubans admitted legally, so that those who want to immigrate to the United States have more opportunities to do so safely.

But to do nothing is to face a slow-motion migration crisis that will be interminable. Cuba will not reimpose travel limits on its citizens, and Latin America will not cooperate indefinitely by blocking Cubans’ transit when Washington’s policy is to let in all Cubans who arrive — and keep other Latin Americans out.  For Washington to refuse to change a policy when new circumstances have rendered it utterly ineffective makes about as much sense as King Canute trying to hold back the tide.

zWilliam M. LeoGrande is a professor of government at American University in Washington, D.C., and a co-author with Peter Kornbluh of “Back Channel to Cuba: The Hidden History of Negotiations between Washington and Havana.”

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CUBA DETENTE CREATES MIGRANT CRISIS IN MEXICO

Financial Times, 9 November 2015

Amy Stillman in Tapachula, southern Mexico

Original article here: Cuban Migrants in Mexico

As Cuban president Raúl Castro met Mexican President Enrique Pena Nieto on Friday to strengthen trade ties and smooth over past tensions, a new political problem was mounting in the south with the huge influx of Cubans flowing across Mexico’s border.

Almost 6,500 Cubans arrived in Mexico en route to the US in the first nine months of the year, more than five times as many as a year earlier, according to official statistics. And the numbers have continued to surge. Mexico’s national migration institute, INM, said that more than 8,000 Cubans have been processed in Mexico so far this year.

The national human rights commission, CNDH, noted that over a thousand Cubans turned up at the Tapachula migratory station in the space of one week in October, overwhelming migration officials’ capacity to attend them.

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Many Cubans have spent days sleeping rough outside the Tapachula station awaiting processing. Local human rights groups have begun to open their doors to them amid the growing humanitarian crisis.

The Cubans are responding to rumours on the island that the US will soon remove their right to automatic asylum upon reaching US soil. The 1966 Cuban Adjustment Act deems Cubans fleeing the island to be political refugees, a product of the Cold War that sits uncomfortably with the recent restoration of diplomatic ties between Havana and Washington.  The law has already been amended once before, when the US implemented the “wet-foot, dry-foot” policy in 1995, enabling Cuban migrants caught at sea to be repatriated.

The Cubans, meanwhile, are sceptical that the gradual lifting of economic restrictions will improve their lives. Political freedom and economic opportunity, they say, are still lacking on the island.

“The [trade] opening is good, but it is not enough to change the culture in Cuba,” said López, 50, who had arrived at the Tapachula migration office with his wife and two grown children after a gruelling, month-long slog through South and Central America.

López, who asked to be identified with a pseudonym, had earned the equivalent of $25 a month working for the government in Havana. Fearing that the US law might change, in September he and his family made plans to join their relatives in North Dakota, selling their car and scrounging all of their savings to afford the trip, which cost $2,500 per person.  Like so many Cubans, López hopes to find better-paid work in the US. “America is a different democracy, it is a different opportunity,” he said.

While trade barriers in Cuba are slowly being chipped away, the US has yet to lift its 53-year old economic embargo on the Communist-run country, and political reform will take time.  Moreover, few people expect Cuba to become a market economy without going through some economic turbulence.

“Cubans understand that there is a good chance things will get worse before they get better,” said Duncan Wood of the Woodrow Wilson Center in Washington.  “Changing the economic culture of the country is going to be enormously disruptive, so I am not surprised that the number of Cuban migrants in Mexico is up.”

The lifting of travel restrictions in Cuba in 2013 has facilitated this process, with many countries along the route now providing Cubans with transit visas.

Also, increasing numbers of Cubans are choosing the circuitous trek across eight borders because it is less risky and cheaper than sailing directly to Miami. Cubans in Mexico told the Financial Times that the journey overland is half the price of the perilous sea voyage along the Florida Straits, which reaches $10,000.

Mexican immigration officials warn that the numbers arriving across the border continue to climb. Mario Madrazo Ubach, director-general of immigration control at the INM, said: “If 300 people show up in the same moment at the same station, what can we do, build a bigger station?”

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U.S. WELFARE FLOWS TO CUBA

“They’re taking benefits from the American taxpayer to subsidize their life in another country.”

Original Article Here: U.S. Welfare Flows to Cuba

By Sally Kestin, Megan O’Matz and John Maines with Tracey Eaton in Cuba

Orlando Sun-Sentinel,  October 2, 2015

Read  previous investigations into special treatment for Cuban immigrants

Cuban immigrants are cashing in on U.S. welfare and returning to the island, making a mockery of the decades-old premise that they are refugees fleeing persecution at home.  Some stay for months at a time — and the U.S. government keeps paying.

Cubans’ unique access to food stamps, disability money and other welfare is meant to help them build new lives in America. Yet these days, it’s helping some finance their lives on the communist island.

America’s open-ended generosity has grown into an entitlement that exceeds $680 million a year and is exploited with ease. No agency tracks the scope of the abuse, but a Sun Sentinel investigation found evidence suggesting it is widespread.

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Cuban arrivals in Florida

Unlike most immigrants to the U.S., Cubans are presumed to be refugees and can access special assistance. Since 2003, more than 329,000 Cuban immigrants arrived in Florida and were eligible for this aid, which includes cash, medical care and job training. They now make up nine out of 10 foreigners getting refugee services in Florida.

Fed-up Floridians are reporting their neighbors and relatives for accepting government aid while shuttling back and forth to the island, selling goods in Cuba, and leaving their benefit cards in the U.S. for others to use while they are away.

Some don’t come back at all. The U.S. has continued to deposit welfare checks for as long as two years after the recipients moved back to Cuba for good, federal officials confirmed.

Regulations prohibit welfare recipients from collecting or using U.S. benefits in another country. But on the streets of Hialeah, the first stop for many new arrivals, shopkeepers like Miguel Veloso hear about it all the time.

Veloso, a barber who has been in the U.S. three years, said recent immigrants on welfare talk of spending considerable time in Cuba — six months there, two months here. “You come and go before benefits expire,” he said.

State Rep. Manny Diaz Jr. of Hialeah hears it too, from constituents in his heavily Cuban-American district, who tell of flaunting their aid money on visits to the island. The money, he said, “is definitely not to be used … to go have a great old time back in the country that was supposed to be oppressing you.”

The sense of entitlement is so ingrained that Cubans routinely complained to their local congressman about the challenge of accessing U.S. aid — from Cuba.

“A family member would come into our office and say another family member isn’t receiving his benefits,” said Javier Correoso, aide to former Miami Rep. David Rivera. “We’d say, ‘Where is he?’ They’d say, ‘He’s in Cuba and isn’t coming back for six months.’”

The money “is definitely not to be used … to go have a great old time back in the country that was supposed to be oppressing you.”

 “They’re taking benefits from the American taxpayer to subsidize their life in another country.’”

One woman told Miami immigration attorney Grisel Ybarra that her grandmother and two great aunts came to Florida, got approved for benefits, opened bank accounts and returned to Cuba. Month after month, the woman cashed their government checks — about $2,400 each time — sending half to the women in Cuba and keeping the rest.   When a welfare agency questioned the elderly ladies’ whereabouts this summer, the woman turned to Ybarra, a Cuban American. She told Ybarra her grandmother refused to come back, saying: “With the money you sent me, I bought a home and am really happy in Cuba.”

Cubans on the island, Ybarra said, have a name for U.S. aid.  They call it “la ayuda.” The help.

Special status abused

Increasing openness and travel between the two countries have made the welfare entitlement harder to justify and easier to abuse. But few charges have been brought, and Congress and the Obama Administration have failed to address the problem even as the United States moves toward détente with Cuba.

Cubans fuel increase in Florida costs

The U.S. opens its borders and wallets to Cubans like no other immigrant group. The number of Cubans coming to the U.S. is increasing, along with the expense of supporting them. The cost of food stamps, welfare and short-term cash assistance for Cuban immigrants in Florida has increased 23 percent since 2011, compared to five percent for refugees from all other nations.

Adding it up

Florida’s costs are only part of the picture. To calculate the total cost of public assistance for Cuban immigrants, the Sun Sentinel included estimates for federal refugee assistance and welfare for seniors and the disabled. The $682 million total is conservative.*

Cubans’ extraordinary access to U.S. welfare rests on two pillars of special treatment: the ease with which they are admitted to the country, and America’s generosity in granting them public support.

Cubans are allowed into the U.S. even if they arrive without permission and are quickly granted permanent residency under the 1966 Cuban Adjustment Act. They’re assumed to be refugees without having to prove persecution.

They’re immediately eligible for welfare, food stamps, Medicaid and Supplemental Security Income or SSI, cash assistance for impoverished seniors and disabled younger people.

Most other immigrants are barred from collecting aid for their first five years. Those here illegally are not eligible at all.

The Sun Sentinel analyzed state and federal data to determine the annual cost of taxpayer support for Cuban immigrants: at least $680 million. In Florida alone, costs for welfare, food stamps and refugee cash have increased 23 percent since 2011, the last year data was available.

Not all Cubans receive government help. Those arriving on visas are ineligible, and some rely on family support. And many who receive aid do so for just a short time until they settle in, as the U.S. intended. Cubans over time have become one of the most successful immigrant groups in America.

“They come to the U.S. to work and make a living for their family,” said Jose Alvarez, a Cuba native and city commissioner in Kissimmee. “I don’t believe that they come thinking the government will support them.”

But some take advantage of the easy money — and then go back and forth to Cuba.

A public housing tenant in Hialeah, who was receiving food stamps and SSI payments for a disabled son, frequently traveled to Cuba to sell food there, records show. She admitted to a city housing investigator in 2012 that she “makes $700 in two months just in the sales to Cuba.”

Another man receiving food stamps admitted to state officials “that he was living in Cuba much of 2015.”

A recent arrival with a chronic illness got Medicaid coverage and turned to attorney David Batchelder of Miami to help him get SSI as well. But the man was “going back and forth to Cuba” so much that Batchelder eventually dropped the case. “It was just another benefit he was applying for.”

Concerns about Cubans exploiting the aid are especially troubling to exiles who came to this country decades ago and built new lives and careers here.  Dr. Noel Fernandez recalls the assistance his family received from friends and the U.S. government when they immigrated 20 years ago, help that enabled him to find work as a landscaper, learn English and complete his medical studies. Now medical director of Citrus Health Network in Hialeah, Fernandez sees Cuban immigrants collecting benefits and going back, including three elderly patients who recently left the U.S. for good.

“They got Medicaid, they got everything, and they returned to Cuba,” he said. “I see people that said they were refugees [from] Cuba and they return the next year.”

State officials have received complaints about Cubans collecting aid while repeatedly going to Cuba or working as mules ferrying cash and goods, a common way of financing travel to the island.

Another way of paying for the trips: cheating. Like other welfare recipients, some Cubans work under the table or put assets in others’ names to appear poor enough to meet the programs’ income limits, according to records and interviews. Some married couples qualify for more money as single people by concealing marriages performed in Cuba, where the U.S. can’t access records.

Florida’s refugee costs by nationality in 2014

The United States accepts refugees from around the world if they can prove persecution at home. Cubans don’t need such proof – they are the only nationality with open-ended access to the U.S. and government benefits.

 “Stop the fraud please!” one person urged in a complaint to the state. Another pleaded with authorities to check airport departure records for a woman suspected of hiding income. “It would show how many times she has traveled to Cuba.”

Florida officials typically dismissed the complaints for lack of information, because names didn’t match their records or because the allegations didn’t involve violations of eligibility rules. Travel abroad is not expressly prohibited, but benefits are supposed to be used for basic necessities within the U.S.

“Our congressional folks should be looking at this,” said Miami-Dade County Commissioner Esteban Bovo Jr., a Cuban American. “There could be millions and millions of dollars in fraud going on here.”

Money to Cuba

Accessing benefits from Cuba typically requires a U.S. bank account and a willing relative or friend stateside. Food stamps and welfare are issued monthly through a debit-type card, and SSI payments are deposited into a bank account or onto a MasterCard.

A joint account holder with a PIN number can withdraw the money and wire it to Cuba. Another option: entrust the money to a friend traveling to Cuba.

Roberto Pizano of Tampa, a political prisoner in Cuba for 18 years, said he worked two jobs when he arrived in the U.S. in 1979 and never accepted overnment help. He now sees immigrants “abusing the system.”

“I know people who come to the U.S., apply for SSI and never worked in the USA,” he said. They “move back to Cuba and are living off of the hard-earned taxpayer dollars.”

Roberto Pizano of Tampa, a political prisoner in Cuba for 18 years, said Cubans are signing up for U.S. benefits and moving back to Cuba, “living off of the hard-earned taxpayer dollars.“ Photo by Taimy Alvarez

Federal investigators have found the same scenario in other cases.  A 2012 complaint alleged a 75-year-old woman had moved to Camaguey two years earlier and a relative was withdrawing her SSI money from a bank account and sending it to her. Social Security stopped payments, but not before nearly $16,000 had been deposited into her account.

Another recipient went to Cuba on vacation and stayed, leaving his debit card with a relative. Social Security continued his SSI payments for another six months — $4,000 total — before an anonymous caller reported he had gone back to Cuba.

One woman reportedly moved to Cuba in 2010 and died three years later, while still receiving SSI and food stamps, according to a 2014 tip to Florida welfare fraud investigators. A state official couldn’t find her at her Hialeah home, cut off the food stamps and alerted the federal government.

Former congressman Rivera tried to curb abuses with a bill that would have revoked the legal status of Cubans who returned to the island before they became citizens.

“Public assistance is meant to help Cuban refugees settle in the U.S.,” Mauricio Claver-Carone of Cuba Democracy Advocates testified in a 2012 hearing on the bill. “However, many non-refugee Cubans currently use these benefits, which can average more than $1,000 per month, to immediately travel back to the island, where the average income is $20 per month, and comfortably reside there for months at a time on the taxpayer’s dime.”

Rivera recently told the Sun Sentinel that he interviewed welfare workers, Cubans in Miami and passengers waiting for charter flights to Havana. He said he found overwhelming evidence of benefits money going back, especially after the U.S. eased travel restrictions in 2009.

The back and forth undermines the rationale that Cubans are refugees fleeing an oppressive government, Rivera said. And when they return for visits, they boast of the money that’s available in the U.S., he said. “They all say, ‘It’s great. I got free housing. I got free food. I get my medicine.’ ”

Five Cubans interviewed by the Sun Sentinel in Havana said they were aware of the assistance and knew of Cubans who had gone to America and quickly began sending money back. Two said they believed it was U.S. government aid.

“I don’t think it’s correct, but everyone does it for the well-being of their family,” said one woman, Susana, who declined to give her last name.

Outside welfare offices in Hialeah, the Sun Sentinel found Cuban immigrants who had arrived as recently as three days earlier, applying for benefits. They said family and friends told them about the aid before they left Cuba.

“Back in the ’60s, when you came in, they told you the factory that was hiring,” said Nidia Diaz of Miami, a former bail bondswoman who was born in Cuba. “Now, they tell you the closest Department of Children and Families [office] so you can go and apply.”

Crooks collect in Cuba

Miami bail bondswoman Barbara Pozo said many of her Cuban clients talk openly about living in Cuba and collecting monthly disability checks, courtesy of U.S. taxpayers.  “They just come here to pick up the money,” Pozo said. “They pretend they’re disabled. They just pretend they’re crazy.”  SSI payments, for those who cannot work due to mental or physical disabilities, go up to $733 a month for an individual. Most other new immigrants are ineligible until they become U.S. citizens.

Cubans collect, others don’t:

Some Cubans try to build a case for SSI by claiming trauma from their life under an oppressive government or the 90-mile crossing to Florida.  Diaz, the former bondswoman, said she has heard Cuban clients talk about qualifying: “‘Tell them that you have emotional problems. How did you get these problems? Well, trying to get here from Cuba.’”

Antonio Comin collected disability while organizing missions to smuggle Cubans to Florida, including one launched from a house in the Keys, federal prosecutors said. Comin claimed he rented the home to celebrate his birthday — after receiving his government check.

Casimiro Martinez was receiving a monthly check for a mental disability — but his mind was sound enough to launder more than $1 million stolen from Medicare. Martinez was arrested at Miami International Airport after returning from a trip to Cuba.

Outside welfare offices in Hialeah, the Sun Sentinel found Cuban immigrants who had arrived as recently as three days earlier, applying for benefits.

Government disability programs are vulnerable to fraud, particularly SSI, with applicants faking or exaggerating symptoms. Some view SSI as “money waiting to be taken,” said John Webb, a federal prosecutor in Tennessee who has handled fraud cases.

While benefits are supposed to be suspended for recipients who leave the United States for more than 30 days, the government relies on people to self-report those absences, and federal audits have found widespread violations.

The government could significantly reduce abuses by matching international travel records to SSI payments, auditors have recommended since 2003. The Social Security Administration and Department of Homeland Security are still trying to work out a data sharing agreement — 12 years later.

Jose Caragol, a Hialeah city councilman and Havana native, said aid for Cubans “was meant to assist those who were persecuted and want a new life. The bleeding has to stop.”

 

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U.S.-CUBA NORMALIZATION AND MIGRATION POLICY: CHANGING THE CUBAN ADJUSTMENT ACT

Richard N. Gioioso, Assistant Professor of Political Science at Saint Joseph’s University in Philadelphia, focusing on Latin American migration to the U.S.

 Huffington Post, June 18, 2015

Original here: Changing the Cuban Adjustment Act

On a plane ride back from Havana in June 2013, I sat next to a passenger, dressed from head-to-toe in white, and we struck up a conversation. He explained to me that he had lived in Florida for the past five years. He had normalized his status in the U.S. through the Cuban Adjustment Act, which granted him a fast track method to legal residency. For the past year or so, he had been traveling back and forth between Miami and Havana every other weekend to see his fiancé as well as to solidify his religious practice with his spiritual guide and finish his initiation into Santería. He, I thought to myself, certainly did not seem to be a Cuban who feared political persecution on the island and therefore deserved asylum in the United States. He seemed more like a transnational migrant.

On December 17, 2014, President Barack Obama announced a policy change that has reinitiated formal diplomatic relations between the United States and Cuba, begun to open financial and trade opportunities, and expanded American travel to the island. By normalizing relations with Cuba, he has stirred up emotions among both Cuban and non-Cuban Americans, and the person I met on that plane ride comes into mind. Indeed, the migration status of Cubans who enter the United States as political refugees is one of the many policies that will change and bring consequences to both Cuba and the United States when the cold relations between the two countries finally thaw.

In 1960, President Dwight Eisenhower first categorized all Cubans as political refugees. The 1966 Cuban Adjustment Act, passed by Congress and signed into law by President Lyndon Johnson, grants all Cubans an exceptional status compared to other nationalities. It grants eligibility to any Cuban who arrives on U.S. soil permanent residence after a parole period of one year and a day.

For most Cubans, however, leaving Cuba is more about finding economic freedom than about escaping direct political persecution. In fact, many, if not most, Cubans who have left the island since 1991 resemble economic migrants rather than political refugees. The Cuban government is still an authoritarian one-party system under the Partido Comunista de Cuba (PCC). Nonetheless, politics seem to have become at least minimally more inclusionary. The government has relaxed norms for individuals to strictly align with and participate in the PCC. Some non-aligned individuals have been elected to representative positions in government. At the same time, what has surfaced in some recent research, is that perception of and participation in explicit political behavior has changed and continues to change, especially for Cuban youth, such that other concerns and obligations outweigh the expressly political ones. In short, their primary concern revolves around gaining more economic opportunities as opposed to demanding explicit political freedom.

The expanding tourism sector currently provides the bulk of the economic opportunities on the island. Those who are linked to this sector, do, in fact, seem to be prospering. The many new bars and restaurants in Havana, especially, but not exclusively, in the more affluent El Vedado neighborhood and touristy la Habana Vieja, are clear signs of a “middle class” of Cubans who live relatively comfortably on the island.

For many others, migration is the solution to increased economic opportunities. Florida’s proximity and the Cuban Adjustment Act are two factors that motivate Cubans to leave. Some leave the island legally with some variety of visa, then declare their asylum status once they arrive in the U.S. Many other Cubans, however, leave the island through irregular manners and arrive at the U.S. border, over air, land or sea, declare their “Cuban” status to the authorities and begin the parole process on the spot.

The irregular migrant sneaks off the Cuban shoreline at night through some manner of sea vessel, usually in small groups or through a human smuggler. Cuban and U.S. authorities have recognized that irregular departures from Cuba are often treacherous and hazardous and have tightened control and cooperation around unauthorized exits and entries. There are also serious concerns over the notable presence of Cubans who opt to travel first to Mexico, and from there make their way to the U.S.-Mexico border to enter. Ultimately, the incentives to leave Cuba for the U.S. are clear and convincing, but no longer reflect the conditions that led to the Cuban Adjustment Act. This raises doubts about the Act’s continued validity.

The Obama Administration has announced that it has no intention of changing the migratory status of Cubans in the short term. An active “thaw” in the U.S.-Cuba relationship will lead U.S. lawmakers on both sides of the aisle to advocate for ending the trade embargo and bring migration policy to Cuba in line with other countries. Furthermore, efforts to make explicit changes to the Cuban Adjustment Act are currently under way. In short, the realities of normalization will eventually dismantle the law as it currently stands, and Cubans will cease to be an exceptional group of political refugees.

Fears over the elimination of Cubans’ exceptional refugee status and uncertainty over when that will happen will motivate many to contemplate and attempt an exit from Cuba for the United States in irregular ways. Since Obama’s announcement, reports have shown an uptick of Cubans caught at sea by the U.S. Coast Guard.

In the intermediate to long term, ending the Cuban Adjustment Act will hopefully contribute to the type of political change the U.S. government and most Cuban citizens on the island ultimately desire. For decades, presidential administrations, lawmakers, and anti-Castrista activists have tried to ferment discontent among Cubans using a variety of strategies to try and pressure the Castro administration to reform. Past and present tactics include broadcasts by Radio and Televisión Martí, USAID sponsored programs – including the recently uncovered Zunzuneo [Cuban Twitter] scandal, as well as a people-to-people exchange program established in 1999 to enhance cross-cultural relations between Americans and Cubans.

A flaw to the logic of the Cuban Adjustment Act, however, is precisely the wholesale categorization of all Cuban citizens as political refugees, because, if indeed any pressure for change would build through the tactics mentioned above, it could be relieved when Cubans leave Cuba to the United States for good. By removing the Cuban Adjustment Act and no longer granting all Cubans the status of political refugees, the U.S. immigration authorities will instead issue more and more visas – especially for tourism and educational purposes – and increase the amount and quality of exchange between the countries. Cuban travelers, who, for the most part, will no longer be able seek political asylum, will have to return to Cuba to live, with greater demands for change within Cuba having experienced U.S. society.

Nobody wants to lose a special privilege. However, American foreign and migration policy should reflect Cuba in 2015, not in 1960. Changing migration policy to Cubans recognizes those who are truly politically persecuted or fear persecution to become refugees or seek asylum. It will expand the currently small class of Cuban travelers to the U.S. who, as members of and stakeholders in the Cuban polity, will return the island with greater motivation, know-how, and support for more political and economic change. A new official U.S. migration policy for Cubans will be a fresh approach to stimulating the political and economic reforms through openness and exchange that five and a half decades of isolation have failed to achieve.

24327_1371008365655_1545135432_919317_733453_n 24327_1371008405656_1545135432_919318_8061963_n 24327_1371008445657_1545135432_919319_1805493_n balseros18 CUBAN MIGRANTS (FOR RELEASE)

 

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NORMALIZATION OF RELATIONS WITH CUBA MAY PORTEND CHANGES TO U.S. IMMIGRATION POLICY

January 13, 2015 Policy Beat

 Original here: US :Cuba Immigration policy

By Marc R. Rosenblum and Faye Hipsman

 The historic December 2014 agreement by President Barack Obama and Cuban President Raúl Castro to normalize relations between the United States and Cuba may herald revisions to immigration policy and create changes that affect the future migration of Cubans to the United States. The decision to re-establish diplomatic ties with the island nation, severed more than half a century ago after the Cuban revolution in which Fidel Castro seized power and established a socialist government, will prompt a series of sweeping changes. The United States will reopen an embassy in Havana; greatly relax restrictions on trade, travel, remittances, and financial transactions; and re-evaluate Cuba’s decades-old designation as a state sponsor of terrorism.

The two countries have also agreed to greater cooperation on areas such as counter-narcotics, environmental protection, and human trafficking. Despite the long estrangement, the United States and Cuba have cooperated on migration issues for decades and have agreed to do so in the future. While the United States has stated that its immigration policy toward Cuba—which affords Cubans uniquely favorable treatment—will for now remain unaffected, improved overall relations will make today’s immigration arrangements difficult to sustain.

Currently, Cubans who arrive in the United States, even without proper authorization, are granted entry and benefit from a fast-track process that allows them legal permanent resident (LPR) status after one year in the country. This unique policy, based on a presumption that all Cuban emigrants are political refugees in need of protection, may need revision now that a détente is at hand. As the two countries improve relations and open their travel channels, policies that automatically welcome Cubans—including illegal entrants and visa overstayers—and accelerate their access to a green card may need to be revisited.

A Cold War mentality has dominated the U.S. approach to its small southern neighbor since the Cuban revolution in 1959, focused chiefly on isolating the country through economic sanctions in opposition to Cuba’s socialist model. The United States has also cited major human-rights concerns for maintaining a trade embargo and implementing tough travel and financial restrictions. In his December announcement, President Obama called this approach outdated, saying that five decades of U.S. isolation of Cuba had failed to achieve the objectives of promoting democracy, growth, and stability there.

The U.S.-Cuba Migration Relationship

Fraught political relations between the two countries, combined with their geographic proximity, have afforded Cuba a place that is sui generis in U.S. immigration law and policy. On the one hand, the United States has offered generous refuge to Cubans fleeing communism; on the other, it has discouraged illegal and dangerous boat migration from Cuba, which has occurred in large waves several times in recent decades.

The population of Cuban immigrants in the United States surged after the revolution, rising from under 71,000 in 1950 to 163,000 by 1960. In the immediate aftermath of the overthrow of the Fulgencio Batista regime by Castro-led revolutionaries, many wealthy Cubans and other opponents of the Marxist forces fled, particularly as Castro began nationalizing private property. Under Operation Pedro Pan, organized by religious organizations in Miami with the support of the U.S. government, approximately 14,000 unaccompanied children whose parents opposed the Castro regime were flown to the United States between 1960 and 1962. In September 1965, the first Cuban “boatlift” began when the Cuban government announced that people were free to leave for the United States from the port of Camarioca. When thousands sought to take advantage of the opportunity, many in unsafe vessels, the United States and Cuba reached an agreement to instead allow Cubans to fly to Miami on chartered “Freedom Flights;” about 300,000 Cubans arrived this way between 1965 and 1973.

The cornerstone of U.S. immigration policy toward Cuba is the 1966 Cuban Adjustment Act (CAA), which Congress passed to accommodate these flows after amendments to the Immigration and Nationality Act (INA) in 1965 limited the number of Cubans (and other Western Hemisphere immigrants) who could receive visas. Under CAA, all Cubans who arrive in the United States are presumed to be political refugees, and are eligible to become legal permanent residents (LPRs or green card holders) after one year, assuming they are otherwise admissible. Two decades later, when Congress passed the 1980 Refugee Act establishing the current U.S. refugee and asylum system, the CAA provisions were left in place. Under the 1996 Illegal Immigration Reform and Immigrant Responsibility Act, the CAA will sunset once Cuba becomes a democracy.

Following termination of the Freedom Flight program, most Cubans seeking to enter the United States have traveled by sea, and the attempts of hundreds of thousands of Cubans to make the perilous journey across the Straits of Florida have played a large role in shaping U.S. immigration policy toward Cuba. In 1980, maritime departures surged dramatically during the Mariel boatlift, when Fidel Castro opened the Cuban port of Mariel, allowing anyone to depart the country—including several thousand criminals and mentally disabled individuals. In the six months the port remained open, 125,000 Cubans (along with 25,000 Haitians who joined the flotilla) arrived in South Florida. Boat migration again surged in the mid-1990s. U.S. Coast Guard interdictions of Cubans jumped from 2,882 in fiscal year (FY) 1993 to 38,560 in FY 1994.

The 1994 surge prompted a pair of far-reaching migration agreements between Cuba and the United States in 1994 and 1995. Before then, Cuban migrants interdicted at sea by the Coast Guard were admitted to the United States, a practice widely criticized for encouraging more Cubans to attempt the risky journey. Under the 1994 agreement, Cuba agreed to discourage boat departures, while the United States agreed to grant admission to at least 20,000 Cuban nationals annually and to place intercepted Cubans in safe havens to be considered for asylum. Under the 1995 agreement, the United States granted parole status to the roughly 30,000 Cubans awaiting an asylum determination, and changed its policy to returning future migrants interdicted at sea directly to Cuba. Cubans who expressed a fear of persecution upon return and were determined to meet the refugee definition would no longer be eligible for asylum in the United States, but resettled in third countries.

Combined with the CAA, the 1994 and 1995 migration accords set forth the current “wet-foot, dry-foot” policy. Cubans intercepted at sea are returned to Cuba, where the government has pledged not to retaliate against them. Those who successfully reach the United States are permitted to stay, and become eligible to apply for a green card after a year.

Furthermore, to meet the 20,000 admission floor negotiated in the 1994 accords, the United States instituted the Special Cuban Migration Lottery. The lottery, held in 1994, 1996, and 1998, allowed Cuban nationals between the ages of 18 and 55 to register for admission to the United States, provided they possess two of the three following characteristics: a secondary school or higher education, three years of work experience, or a relative residing in the Unites States. Up to 20,000 lottery winners per year (depending on the number of Cubans admitted through regular visa processing) are granted parole status, and may bring their spouse and children. With 541,000 Cubans entering the lottery between 1994 and 1998, Cubans selected in 1998 continue to be paroled into the United States today.

As a result of these policies, and in spite of the hostile relations between the two countries, Cubans represent one of the ten largest foreign-born groups in the United States, with an estimated 1.1 million immigrants (2.7 percent of the foreign-born population). Collectively, Cuban immigrants and their U.S.-born descendants represented a diaspora of 2.1 million in 2011. Cuba also ranks highly as a sending country for new green-card holders, which have numbered in the 30,000s in each of the past five years (see Figure 1).

Figure 1. Annual Number of Cubans Gaining LPR Status, 1990-2013

AAASource: Department of Homeland Security (DHS), Office of Immigration Statistics, Yearbook of Immigration Statistics 2000-2013 (Washington, DC: DHS, Office of Immigration Statistics, various years), www.dhs.gov/yearbook-immigration-statistics.

Loosening Travel Restrictions

Travel between Cuba and the United States has been tightly controlled for much of the last half-century. Americans are only permitted to travel to Cuba for certain authorized purposes, such as educational, religious, humanitarian, or journalism trips. In 2013, Cuba changed a long-standing policy requiring its citizens to obtain an exit permit and letter of invitation from a country abroad in order to travel internationally, even temporarily. Most Cuban nationals now only need a valid passport and visa to depart, although certain skilled workers are excluded from the loosened rules. In response to Cuba’s policy change, the State Department extended the validity of B-2 tourist visas issued to Cubans from six months (single-entry) to five years with multiple entries permitted. Between 2012 and 2013, nonimmigrant visas issued to Cubans jumped 82 percent, from 20,200 to 36,787.

Future Implications

Cuba receives unique treatment under U.S. immigration law. No other nationality is given a blanket right to green-card eligibility, no other country has a floor below which visas may not fall, and no other group of immigrants is guaranteed admission to the United States if they appear at or between ports of entry. In effect, Cuban nationals are exempt from deportation and immigration enforcement policies affecting all other noncitizens. Furthermore, because Cuban arrivals are treated similarly to refugees, many are eligible for federal assistance and means-tested benefits from which most noncitizens are barred.

As the Obama administration and Cuba take steps to normalize their relations, trade and travel between the two countries is only expected to increase. While Homeland Security Secretary Jeh Johnson has stated that current immigration policy and law concerning Cuba will remain “for the time being,” expanded travel and trade raise questions about the viability of the wet-foot, dry-foot policy and the Cuban Adjustment Act: As visa issuance to Cuban nationals increases, will a growing number of Cubans overstay their visas in order to obtain green cards? A policy that rewards those who violate the terms of their visas is sure to invite questions of fairness. How will the U.S. policy of automatically treating Cubans who reach the United States as refugees affect bilateral relations once diplomatic ties are restored?

Indeed, the Coast Guard has already reported a spike in interdictions of Cubans at sea since the announcement, with 500 interdictions in December—three times the typical amount. The Coast Guard attributes the spike to fear among Cubans that the United States could soon repeal the wet-foot, dry-foot policy.

However, while improved relations may create a pressing need for normalized immigration policies toward Cuba, both Cuba and immigration are highly polarized political issues. Permanently changing these laws will ultimately require approval by the U.S. Congress, and faces a steep uphill climb.

 Playas deEste, August 1994. Did They Make it?

Cuba-leaving-1 Cuba-leaving-2

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A CUBAN BRAIN DRAIN, COURTESY OF THE U.S.

New York Times, THE EDITORIAL BOARD; NOV. 16, 2014

Leer en español (Read in Spanish) »

Secretary of State John Kerry and the American ambassador to the United Nations, Samantha Power, have praised the work of Cuban doctors dispatched to treat Ebola patients in West Africa. The Centers for Disease Control and Prevention recently sent an official to a regional meeting the Cuban government convened in Havana to coordinate efforts to fight the disease. In Africa, Cuban doctors are working in American-built facilities. The epidemic has had the unexpected effect of injecting common sense into an unnecessarily poisonous relationship.

And yet, Cuban doctors serving in West Africa today could easily abandon their posts, take a taxi to the nearest American Embassy and apply for a little-known immigration program that has allowed thousands of them to defect. Those who are accepted can be on American soil within weeks, on track to becoming United States citizens.

There is much to criticize about Washington’s failed policies toward Cuba and the embargo it has imposed on the island for decades. But the Cuban Medical Professional Parole Program, which in the last fiscal year enabled 1,278 Cubans to defect while on overseas assignments, a record number, is particularly hard to justify.

It is incongruous for the United States to value the contributions of Cuban doctors who are sent by their government to assist in international crises like the 2010 Haiti earthquake while working to subvert that government by making defection so easy.

American immigration policy should give priority to the world’s neediest refugees and persecuted people. It should not be used to exacerbate the brain drain of an adversarial nation at a time when improved relations between the two countries are a worthwhile, realistic goal.

The program was introduced through executive authority in August 2006, when Emilio González, a hard-line Cuban exile, was at the helm of the United States Citizenship and Immigration Services. Mr. González described the labor of Cuban doctors abroad as “state-sponsored human trafficking.” At the time, the Bush administration was trying to cripple the Cuban government. Easily enabling medical personnel posted abroad to defect represented an opportunity to strike at the core of the island’s primary diplomatic tool, while embarrassing the Castro regime.

Cuba has been using its medical corps as the nation’s main source of revenue and soft power for many years. The country has one of the highest numbers of doctors per capita in the world and offers medical scholarships to hundreds of disadvantaged international students each year, and some have been from the United States. According to Cuban government figures, more than 440,000 of the island’s 11 million citizens are employed in the health sector.

Havana gets subsidized oil from Venezuela and money from several other countries in exchange for medical services. This year, according to the state-run newspaper Granma, the government expects to make $8.2 billion from its medical workers overseas. The vast majority, just under 46,000, are posted in Latin America and the Caribbean. A few thousand are in 32 African countries.

Medical professionals, like most Cubans, earn meager wages. Earlier this year, the government raised the salaries of medical workers. Doctors now earn about $60 per month, while nurses make nearly $40. Overseas postings allow these health care workers to earn significantly more. Doctors in Brazil, for example, are making about $1,200 per month.

The 256 Cuban medical professionals treating Ebola patients in West Africa are getting daily stipends of roughly $240 from the World Health Organization. José Luis Di Fabio, the head of the W.H.O. in Havana, said he was confident the doctors and nurses dispatched to Africa have gone on their own volition. “It was voluntary,” Mr. Di Fabio, an Uruguayan whose organization has overseen their deployment, said in an interview. “Some backtracked at the last minute and there was no problem.”

10-03-2014cuban_ebolaCuban Doctors Arriving in Sierra Leone

Some doctors who have defected say they felt the overseas tours had an implicit element of coercion and have complained that the government pockets the bulk of the money it gets for their services. But the State Department says in its latest report on human trafficking that reported coercion of Cuban medical personnel does “not appear to reflect a uniform government policy.” Even so, the Cuban government would be wise to compensate medical personnel more generously if their work overseas is to remain the island’s economic bedrock.

Last year, the Cuban government liberalized its travel policies, allowing most citizens, including dissidents, to leave the country freely. Doctors, who in the past faced stricter travel restrictions than ordinary Cubans, no longer do. Some 20,000 Cubans are allowed to immigrate to the United States yearly. In addition, those who manage to arrive here in rafts or through border crossing points are automatically authorized to stay.

The Cuban government has long regarded the medical defection program as a symbol of American duplicity. It undermines Cuba’s ability to respond to humanitarian crises and does nothing to make the government in Havana more open or democratic. As long as this incoherent policy is in place, establishing a healthier relationship between the two nations will be harder.

Many medical professionals, like a growing number of Cubans, will continue to want to move to the United States in search of new opportunities, and they have every right to do so. But inviting them to defect while on overseas tours is going too far.

New Picture

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