Tag Archives: US-Cuba Normalization

WHICH TRUMP WILL CUBA HAVE TO CONTEND WITH, THE HARD-LINER OR THE DEAL-MAKER?

WILLIAM M. LEOGRANDE, Professor of Government, American University, Washington, DC 20016

World Politics Review, November 16, 2016

Original Article: Which Trump Will Cuba Have to Contend? 

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DONALD TRUMP HAS A CHOICE TO MAKE ON CUBA

CNBC.com

Ted Henken,  November 14, 2016

zzazaOne example of freer markets in Cuba isthe Paladar La Cocina de Lilliam (Lilliam’s Kitchen), a home-based restaurant garden where President Jimmy Carter ate on his first visit to Cuba in 2002. Photo: Ted Henken

While Americans have been reeling over the shocking outcome of our presidential election, Cubans are experiencing perhaps even greater vertigo as a result of the surprise victory of Donald Trump.

As the saying goes, “When the U.S. sneezes, the rest of the world gets a cold.” Or perhaps the old Mexican adage is more appropriate to the situation Cubans find themselves in: “Poor Mexico! So far from God, but so close to the United States!”

Cubans went from a largely acrimonious relationship with the U.S. prior to December 2014, to one of unprecedented “hope and change” during the past 22 months under bilateral efforts to achieve diplomatic normalization between the erstwhile adversaries, to one of great trepidation and uncertainty over the past week given the president-elect’s campaign promise to “cancel Obama’s one-sided Cuban deal.” President Raúl Castro perfectly captured the moment’s ambivalence for Cuba by quickly sending the president-elect a brief note of congratulations while simultaneously ordering a five-day military mobilization.

In my more than half-dozen trips to the island over the past year, I have noted a palpable, ebullient expectation among Cubans for a better, more prosperous future under Obama’s “new rules” of engagement. This was especially pronounced among Cuba’s emergent entrepreneurial class, which includes old school cabbies in their even older school American cars, hip app designers in Cuba’s surprising tech start-up scene, and some of the many restaurateurs behind the island’s surging circle of “paladares” (private, home-based restaurants) which now number more than 1,800.

This hard-won hope was also born of Cuba’s own “new rules” introduced in late 2010 under President Raúl Castro aimed at expanding the island’s long-suppressed private sector. However, I also found that most entrepreneurs were under no illusions that the Cuban government would be fully lifting its own counter-productive “auto-bloqueo” or internal embargo against grass-roots entrepreneurial innovation and inventiveness any time soon.

This sense of rising hope inside Cuba reached its climax in Obama’s brilliant deployment of soft power during his historic state visit to the island in March 2016. Many Cubans identified with this youthful, optimistic, and eloquent African-American family man endowed with both a sense of history and of humor much more than with their own waxworks of old white ideologues.

However, Cuba’s old guard realized that Obama’s charm offensive had begun to fatally undermine their own authority and undercut their long-effective use of the U.S. boogeyman as a scapegoat for their own economic failures and as a justification for their continued political authoritarianism. In response, the Cuban leadership has spent the past eight months constantly reminding Cuban citizens of the continued U.S. existential threat to Cuban sovereignty under the Revolution and simultaneously dashing their hopes for a better, more open and prosperous future by stepping up detentions of peaceful political opponents and independent journalists and slowing economic reforms to a manageable trickle.

The clearest example of the Cuban government’s efforts to lower expectations has come on the economic front. First, April’s Seventh Party Congress included no new resolutions about deepening or expanding much needed market-oriented reforms apart from a vague reference to studying the possibility of granting status as legal businesses to a portion of the half-a-million strong micro-enterprise sector. Nothing has come of this idea in the intervening seven months.

Second, price controls have been reimposed in the private agriculture and transportation sectors, reducing incentives for greater production. Third, this past summer saw the government scale back economic growth estimates for 2016 to under 1 percent and impose severe energy saving and cost-cutting measures across the state sector due to a liquidity crisis and the Venezuelan debacle.

Finally, the issuing of new licenses for Havana’s surging private, home-based restaurant sector were suspended for six weeks in the fall in order to root out legal violations such as providing bar services and live entertainment without permission, obtaining supplies from black-market sources, staying open past the state-imposed 3 a.m. closing time, and tax evasion. Some have even been accused of doubling as sites of prostitution and drug trafficking and shut down.
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However, the government has so far not delivered on its promise to provide affordable access to wholesale markets for these restaurateurs nor has it allowed them to legally import supplies from abroad or expand beyond the arbitrary limit of 50 place settings. Moreover, the tax system for the private sector provokes “creative bookkeeping” by imposing a rigid 40-percent deduction limit for business often burdened by much higher supply costs due to Cuba’s environment of chronic scarcity. It also imposes a labor tax on any more than five employees disincentivizing legal hiring.

To add insult to this injury, the moribund network of their state-run competitor restaurants do enjoy access to wholesale markets and suffer no seating or size restrictions or employment taxes. Especially frustrating for Cuban entrepreneurs is the fact that this emphasis on law and order comes in the context of shrinking output in the state enterprise sector, a looming emigration crisis with record numbers of new Cuban arrivals in the U.S., and in the midst of a tourism boom that the state hospitality sector has proven unable to absorb.

As Cubans like to say: “¡No es fácil!” (It ain’t easy!)

President-elect Donald Trump could follow the recommendation of some Congressional Republicans by adding his own isolationist wind to the already full sails of the Cuban government’s rigid control that attempts to keep Cuban entrepreneurs in their frustrated and impoverished places. Or he could send Cuba’s business pioneers a message of support and solidarity as they attempt to build a more prosperous future by continuing America’s historic opening to Cuba that aims to empower the island’s mergent capitalists through engagement, investment, and trade.

For someone who campaigned as a anti-politician who would bring a hard-nosed business sense to Washington, Cuba presents Trump with a golden opportunity to place economic pragmatism and the tangible benefits it would bring to citizens of both countries over the out-dated and counterproductive Cold War ideology that undergirds the embargo.

Commentary by Ted A. Henken, an associate professor of Sociology and Latin American Studies at Baruch College, City University of New York and co-author with Arch Ritter of the book “Entrepreneurial Cuba: The Changing Policy Landscape.” He is a past president of the Association for the Study of the Cuban Economy (2012-2014). Read his blog and follow him on Twitter @ElYuma.

 

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U. S. TREASURY AND COMMERCE DEPARTMENTS ANNOUCE FURTHER AMENDMENTS TO CUBA SANCTIONS REGULATIONS

10/14/2016

 Original Document Here

For a Spanish translation of the Treasury and Commerce Fact Sheet, please click here.

zxz AMENDMENTS EXPAND VENUES FOR SCIENTIFIC COLLABORATION, FACILITATE INCREASED HUMANITARIAN SUPPORT, AND BOLSTER TRADE AND COMMERCIAL OPPORTUNITIES

 WASHINGTON – Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security (BIS) are announcing new amendments to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR), respectively.  These amendments help create more economic opportunity for Cubans and Americans, further implementing the direction toward Cuba that President Obama laid out in December 2014.  The changes will take effect on October 17, 2016, when the regulations are published in the Federal Register.

 “President Obama’s historic announcement in December 2014 charted a new course for a stronger, more open U.S.-Cuba relationship,” said Treasury Secretary Jacob J. Lew.  “The Treasury Department has worked to break down economic barriers in areas such as travel, trade and commerce, banking, and telecommunications.  Today’s action builds on this progress by enabling more scientific collaboration, grants and scholarships, people-to-people contact, and private sector growth.  These steps have the potential to accelerate constructive change and unlock greater economic opportunity for Cubans and Americans.”

 “These amendments will create more opportunities for Cuban citizens to access American goods and services, further strengthening the ties between our two countries,” said U.S. Secretary of Commerce Penny Pritzker. “More commercial activity between the U.S. and Cuba benefits our people and our economies.”

 These changes are intended to expand opportunities for scientific collaboration by authorizing certain transactions related to Cuban-origin pharmaceuticals and joint medical research; improve living conditions for Cubans by expanding existing authorizations for grants and humanitarian-related services; increase people-to-people contact in Cuba by facilitating authorized travel and commerce; facilitate safe travel between the United States and Cuba by authorizing civil aviation safety-related services; and bolster trade and commercial opportunities by expanding and streamlining authorizations relating to trade and commerce.  These amendments also implement certain technical and conforming changes.  OFAC and BIS are making these amendments in support of the process of normalizing bilateral relations with Cuba.

 To see the Treasury regulations, which can be found at 31 Code of Federal Regulations (CFR), part 515, please see here.  To see the Commerce regulations, which can be found at 15 CFR parts 730-774, please see here.  Significant changes in the revised Treasury and Commerce regulations are outlined below:

 Health-related Transactions –

Expanding Opportunities for Scientific Collaboration and Access to Medical Innovations

 Joint medical research.  OFAC is issuing a new authorization that will allow persons subject to U.S. jurisdiction to engage in joint medical research projects with Cuban nationals.  This authorization will encompass both non-commercial and commercial research.

  • Cuban-origin pharmaceuticals.  OFAC is issuing a new authorization that will allow transactions incident to obtaining U.S. Food and Drug Administration (FDA) approval of Cuban-origin pharmaceuticals.  An additional authorization will allow the importation into the United States, and the marketing, sale, or other distribution in the United States, of FDA-approved Cuban-origin pharmaceuticals. 
  • Bank accounts.  Persons subject to U.S. jurisdiction engaging in the aforementioned health-related activities will also be authorized to open and maintain bank accounts in Cuba for use in conducting the authorized business.

Humanitarian-related Transactions –

Providing Additional Grant Opportunities and Strengthening Cuban Infrastructure

  • Grants, scholarships, and awards.  OFAC is expanding the authorization for grants, scholarships, and awards to Cuba or Cuban nationals to include grants, scholarships, and awards related to scientific research and religious activities.
  • Services related to Cuban infrastructure.  OFAC is adding a new authorization that will allow persons subject to U.S. jurisdiction to provide services to Cuba or Cuban nationals related to developing, repairing, maintaining, and enhancing certain Cuban infrastructure in order to directly benefit the Cuban people. 

Travel-related Transactions –

Supporting People-to-People Contact by Facilitating Authorized Travel and Commerce

  • Importation of Cuban-origin merchandise as accompanied baggage for personal use. OFAC is removing the monetary value limitations on what authorized travelers may import from Cuba into the United States as accompanied baggage.  This includes the value limitation on alcohol and tobacco products.  Persons subject to U.S. jurisdiction will be further authorized to import Cuban-origin merchandise acquired in third countries into the United States as accompanied baggage, again without value limitations.  OFAC is also removing the prohibition on foreign travelers importing Cuban-origin alcohol and tobacco products into the United States as accompanied baggage.  In all cases, the Cuban-origin goods must be imported for personal use, and normal limits on duty and tax exemptions will apply.
  • Remittances.  Persons subject to U.S. jurisdiction will be authorized to make remittances to third-country nationals for travel by third-country nationals to, from, or within Cuba, provided the travel would be authorized by general license for a person subject to U.S. jurisdiction.

Civil Aviation –

Supporting International Aviation and Passenger Safety

  • Safety-related services.  OFAC is adding a new authorization that will allow persons subject to U.S. jurisdiction to provide civil aviation safety-related services to Cuba and Cuban nationals aimed at promoting safety in civil aviation and the safe operation of commercial aircraft.

Trade and Commerce –

Bolstering Trade and Commercial Opportunities and the Growth of Cuba’s Private Sector

  • Export-related transactions.  OFAC is amending its general license authorizing certain transactions incident to exports and reexports authorized by the BIS to eliminate references to “100% U.S.-origin items.”  This is intended to minimize and clarify the circumstances in which an export or reexport authorized by BIS requires additional licensing by OFAC.
  • Consumer goods for personal use.  BIS will generally authorize exports of certain consumer goods that are sold online or through other means directly to eligible individuals in Cuba for their personal use.
  • Imports of previously exported items.  OFAC is adding an authorization that will allow the importation into the United States or a third country of items that were previously exported or reexported to Cuba pursuant to a BIS or OFAC authorization.  This authorization will also permit persons subject to U.S. jurisdiction to service and repair such items.  Exporting or reexporting replacement items or items that have been repaired or serviced must be separately authorized by OFAC and/or BIS as appropriate.
  • Contingent contracts.  OFAC is adding an expanded general license that will authorize persons subject to U.S. jurisdiction to enter into certain contingent contracts for transactions currently prohibited by the embargo, provided that contract performance is made expressly contingent on prior authorization by OFAC and any other relevant Federal agency, or on authorization no longer being required.  Transactions ordinarily incident to negotiating and entering into such contracts will also be authorized.
  • Financing.  OFAC is making a technical correction to clarify that agricultural items, such as pesticides and tractors, authorized by BIS for export or reexport to Cuba are not subject to restrictions on payment terms.  As required by the Trade Sanctions Reform and Export Enhancement Act, authorized exports and reexports to Cuba of agricultural commodities, such as poultry and corn, remain subject to the limited payment and financing terms of cash in advance or third country financing.
  • Certain vessel transactions.  OFAC is issuing a general license that will waive the restriction prohibiting foreign vessels from entering a U.S. port for purposes of loading or unloading freight for 180 days after calling on a Cuban port for trade purposes if the items the vessel carried to Cuba would, if subject to the EAR, be designated as EAR99 or controlled on the Commerce Control List for anti-terrorism reasons only.

 Transit of cargo.  BIS will generally authorize air cargo to transit Cuba, complementing an existing general authorization for cargo transiting Cuba aboard vessels.

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FLIGHTS TO CUBA FROM THE U.S. COULD START THIS FALL

JEFF MASON and JEFFREY DASTIN

Globe and mail, Reuters, Thursday, Jul. 07, 2016 3:44PM EDT

Original Arcicle: FLIGHTS TO CUBA FROM THE U.S. zzza - Copy

The United States has tentatively approved flights on eight U.S. airlines to Havana as early as this fall, with American Airlines Group Inc. receiving the largest share of the limited routes, the U.S. Transportation Department said Thursday.

The decision, coming about a year after the United States and Cuba re-established diplomatic relations, includes 35 flights per week on American, the biggest U.S. airline in Latin America by flights. Its rival for Caribbean travel, JetBlue Airways Corp., was granted 27.

The department expects to reach a final decision on the routes later this summer after reviewing any objections. It also recommended flights to Havana on Delta Air Lines Inc., United Continental Holdings Inc., Southwest Airlines Co., Alaska Air Group Inc., Spirit Airlines Inc. and Frontier Airlines Inc.

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The flights to Cuba’s capital would be the latest step in bringing the former Cold War foes closer together.

Last month, the Transportation Department gave airlines the green light to schedule flights to other cities in Cuba for the first time in decades. Until now, air travel to the Communist-ruled island has been limited to charter services.

Selecting the carriers for the Havana flights created a challenge for the Obama administration. Airlines applied for nearly triple the 20 daily round-trips that Cuba and the United States agreed to allow.

“The proposed slate of airlines will ensure service to areas of substantial Cuban-American population, as well as to important aviation hub cities,” U.S. Transportation Secretary Anthony Foxx said.

“The department also sought to offer the public a wide array of travel choices in the type of airline such as network, low-cost and ultra low-cost carriers.”

Miami and Fort Lauderdale, Fla. which have the biggest Cuban-American communities in the United States, received the most flights, at 83 a week among six airlines.  American won one-third of flights from south Florida. This may give it a leg up over rivals because it can offer corporate customers more convenient connections through Miami.

“It’s enough to make it a viable business-traveler schedule,” said aviation industry consultant Robert Mann.

Over time, U.S. airlines anticipate a bigger payout from Cuba than is typical for Caribbean destinations.  Strong demand will come from Cuban-Americans visiting relatives and executives travelling in business class to evaluate commercial opportunities, experts said.

“These flights open the door to a new world of travel and opportunities for our customers,” said Oscar Munoz, United’s chief executive officer. United will fly from Newark, N.J., and Houston under the proposal.

Atlanta, Charlotte, N.C., Los Angeles, New York, Orlando and Tampa will also offer non-stop service.

While a ban on tourism to Cuba remains part of U.S. law, President Barack Obama has authorized exceptions. U.S. citizens that meet one of 12 criteria, such as taking part in educational tours, can now visit Cuba.  The U.S. House of Representatives was due to vote as early as Thursday on a spending bill amendment that would essentially lift travel restrictions to Cuba for a year.

American said it hopes to begin Havana service in November.  Its shares rose 3.3 per cent while JetBlue shares added 1.7 per cent. Southwest rose 1.7 per cent and Delta was up 2.2 per cent.

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Cubana de Aviación Ilyushin Il-96-300; What Share of the US Tourism Market for Cubana?

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BACKLASH IN CUBA: OBAMA’S HISTORIC VISIT WAS A SMASH HIT IN HAVANA. FIDEL CASTRO WASN’T GOING TO TAKE THAT LYING DOWN.

By Ann Louise Bardach

Politico Magazine, June 10 2016

Original Article: BACKLASH IN CUBA

HAVANA—These days Fidel Castro doesn’t often leave his comfortable home in Siboney, a leafy suburb west of this city. But on April 19, the 89-year-old Cuban leader emerged, aides at his side, wearing a royal blue Adidas sports jacket over a blue plaid shirt, and was driven two miles to the immense Palacio de Convenciones. Inside he was greeted by a thousand members of the Communist Party, the ruling body that has been Cuba’s sole political party for half a century. They were wrapping up their four-day conference, generally held twice a decade.

Fidel is ailing and officially retired, having incrementally handed the reins of power to his brother Raul over the past decade. But he remains a history buff, a news junkie, and a man keenly concerned with his legacy. And he was not pleased with what he had been hearing.

zzzzzzzzzzzzzzzzzzzzzzzPresident Barack Obama had spent three high-profile days in Havana at the invitation of Raul. And the visit, to Fidel’s dismay, had been an immense public success, generating as much excitement and buzz on the island as the arrival of The Rolling Stones for a free concert a few days later. While state media treated Obama with cautious distance, there was no mistaking the thrill of ordinary Cubans as the president toured local sights, watched a baseball game, and drove through Havana with his family and entourage. They dubbed the president Santo Obama. “He’s more popular than the Pope!” one exultant habanera told me.

If the first state visit by a sitting president in 90 years struck Fidel as an unseemly and undeserved victory lap, there was troubling news as well from the Southern Hemisphere as well. Two of the island’s staunchest allies were fighting for their political lives. Brazilian President Dilma Rousseff was nearing impeachment; Argentina’s former president, Cristina Kirchner, was about to be indicted. Indeed, the entire left-wing coalition of Latin America, methodically cultivated by Fidel for decades, was unraveling. The death of Cuba’s Midas-like patron, Hugo Chavez of Venezuela, had birthed a feeble successor who is unlikely to survive the next year; Ecuador’s leftist president was bowing out, while Castro champion Evo Morales of Bolivia had lost a referendum for another presidential term. Peru and Uruguay had lost their center-left leaders. If not a political tidal wave, a domino effect of sorts was shifting the Southern Hemisphere from left to right.

Fidel Castro, Cuba’s Maximum Leader, understood that something had to be done.

Cuba’s Party Congress sets the economic and political agenda of the island, and many, on and off the island, had anticipated that this year’s conclave would further crack the door open to more reform. As the U.S. and Cuba have navigated their rapprochement, their progress has continuously been buffeted by the alternating agendas of the two brothers: Fidel, the intransigent revolutionary, and Raul, the cautious reformer. Obama hoped that a state visit before the Congress would give a boost to Raul’s reform-minded approach, however modest.

Cubans, too, had their eye on the meeting, and many of them expected that the Party would at least start to retire its octo- and nonagenarian ruling elite, the historicos who came up with Fidel and Raul and have been governing the island since. Raul himself had fueled those hopes by urging an age limit of 70 for senior Party officials.

It did not happen that way. Instead the Party’s elders, with the blessing of Fidel, spent the first three days of the Congress issuing a series of retrograde edicts and re-establishing their hegemony. Rejecting the retirements of the old guard, they went on to quash reforms intended to rescue the country’s moribund economy.

For a finale, Fidel addressed the Congress for the first time since 1997. The date of his appearance, April 19, was not coincidental. It fell on the 55th anniversary of the doomed U.S.-sponsored Bay of Pigs invasion, when Fidel’s army vanquished the CIA’s ill-conceived coup, captured thousands of U.S.-backed rebels, and utterly humiliated the world’s greatest superpower.

The days when Fidel routinely gave furious six-hour orations in olive-drab military garb are long gone. Now with hair white as the sands of Varadero Beach, he did not attempt to stand on his feet. Instead, he was helped to a chair at the center of the dais. “This may be one of the last times I speak in this room,” Fidel somberly told the throng.

Although Fidel spoke with a gravelly rasp, those looking to hear conciliatory words were quickly disabused of that hope. “The ideas of Cuban Communists will remain as proof on this planet,” he insisted, and their achievements “will endure.” And to that end, the firebrand Fidel exhorted those present —charged with setting Cuba’s agenda through 2030—“to fight without truce.”

“Soon, I’ll be 90 years old. Soon I’ll be like all the others,” Castro intoned as if giving his own eulogy. “The time will come for all of us.”

Then the old lion, albeit with a patchy beard and a thinning mane, roared again, one last time: “We must tell our brothers in Latin America—and the world,” he declaimed, “that the Cuban people will be victorious!”

In the closed, hermetic world of Cuban politics, Fidel’s speech marked a pivot in what has arguably been the country’s most remarkable three months since the Missile Crisis of 1962. The ceaseless whiplash includes a ballyhooed U.S. presidential visit, a Party Congress slamming the door on reform, a Fidel valedictory finale, and a series of fresh dramas in the long-running saga of the Brothers Castro.

On June 3, Raul turned 85, to be followed by Fidel’s 90th birthday on August 13, a pair of personal milestones that have the brothers keen to cement their legacies. “The Castros are robust and long-lived,” boasted Raul on his big day; he also chatted with Russia’s Vladimir Putin, who called offering birthday wishes.

As the brinkmanship between the two Castros plays out, it’s likely to shape the course of U.S.-Cuban relations for the next generation. In that respect, it was possible to see the Congress as an episode in the long-running drama between two brothers to whom appearances matter deeply. Raul, the internationalist, got to produce the Obama Show. Fidel, the nationalist, won the right to orchestrate the Party Congress and to deliver his response to President Obama’s proposal of accelerated reform and cooperation with the U.S.

And Fidel’s message was unmistakable: Over my dead body.

This was hardly the step forward the White House had hoped for when it orchestrated its historic, if hastily planned, state visit in March. For Obama, Cuba was his “Nixon in China” moment, a legacy move to close the last chapter of the Cold War in our hemisphere.

It could not have contrasted more clearly with the previous U.S. presidential visit. In 1928, the Republican Calvin Coolidge sailed into Havana Harbor on a battleship. Obama, on the other hand, delivered his first words to the Cuban people before he even debarked from Air Force One. They came, cool, breezy and direct, in the form of a tweet. “¿Que bolá Cuba?” he tweeted, using the island slang for “what’s happening?” “Just touched down here, looking forward to meeting and hearing directly from the Cuban people.”

Cuban officialdom adopted a noticeably stiffer tone. Despite Obama being the single most important head of state to visit since 1959, Raul Castro—who has personally greeted more than one pope and innumerable national leaders upon their arrival—did not appear at the airport to welcome him. Instead, when the First Family touched down amid an insistent gray rain, they were met by Foreign Minister Bruno Rodriguez, who greeted the president on the tarmac with a cordial handshake.

The government-run media gave a similarly cool treatment. On the eve of Obama’s visit, Granma, the organ of the Communist Party, devoted its six thin pages to the arrival two days earlier of President Nicolás Maduro of Venezuela, Cuba’s principal patron since the collapse of the Soviet Union. In Havana, Maduro was robustly feted, even bestowed a new honorific title, with Raul declaiming that “we will never abandon our Bolivarian revolutionary friends.”

Obama’s trip had been something of a rush job, as state visits go, and behind the scenes, the U.S. had been on the back foot from early in the process. The date of the trip hadn’t been finalized until January. One consideration in the timing was to ensure the visit came prior to the Party Congress, with the White House hoping to be a moderating influence when it convened. But the driving force, according to sources at both State and the Vice President’s office, was that the president and first lady very much wanted a family trip, and the March 20-23 dates coincided with spring break at Sidwell Friends School for daughters Malia, who’s been studying Spanish, and Sasha.

The trip planning also augmented tensions between the White House and the State Department that dated back to the historic Cuban deal announced in December 2014. The landmark agreement had effectively ended the Cold War between the countries and began the process of normalization: Cuba agreed to release numerous political prisoners and return imprisoned USAID contractor Alan Gross along with a significant U.S. intelligence asset, Rolando Sarraff, in exchange for the U.S. returning the remaining three of the “Cuban Five” convicted spies. Although negotiations like this would normally be led by the State Department, Obama had deputized his trusted aide and speechwriter, Ben Rhodes, to make a deal with Cuba happen. The 18 months of secret negotiations largely bypassed the State Department; only one State veteran, Cuba policy specialist Ricardo Zuniga, who partnered with Rhodes, was fully trusted by Obama’s innermost circle, to maintain the secrecy demanded by the administration. Likewise, Cuba’s Foreign Ministry, known as MINREX, was exiled from negotiations. The key player on the Cuban side was none other than Colonel Alejandro Castro Espín, Raul’s 50-year-old son, a steely hard-liner widely believed to be his father’s heir apparent.

The rushed trip also gave the Cubans leverage to shape the agenda, or try to: No meetings with human rights activists, they insisted, and they would decide the guest list, including which U.S. reporters made the cut—a loaded issue with Cuba, which has a long history of barring American reporters who report seriously on the island.

Matters were not looking good, and the press around the reconciliation was getting worse, until Secretary of State John Kerry canceled a trip to Havana in protest weeks before the state visit. Kerry’s bluff worked, and from then on, the U.S. got what it wanted. The Cubans reluctantly issued visas for the reporters; the president had meetings with entrepreneurs, dissidents, human rights activists and even held a news conference, all to be recorded by live television coverage.

***

It is nearly impossible to overstate the impact of President Obama’s arrival in Cuba. The shift in outlook was tectonic. In the course of the visit, I heard more than one habanero refer to Obama as “El Negro de Oro”—the Golden Black Man, a flattering pun on “black gold.” It didn’t hurt that to many Cubans, Obama just looks Cuban; his mixed-race background gives him something in common with the half the island’s population that identifies as mulato, black or mestizo today.

The Obama family made the requisite tourist stops, including the city’s grand Cathedral, built in 1777 from blocks of coral; they took a walking tour led by Havana’s remarkable official historian, Eusebio Leal. Despite failing health and being in considerable pain, Leal gamely guided the Obamas through historic Havana in and around the Plaza de Armas.

The buzz of la bola en la calle—Cuban street gossip—was that the visit had prompted previously unimaginable upgrades to parts of the capital. Every building that the Obama entourage passed had been repainted, and every road his limousine traversed had been repaved. Some streets were still being paved and re-striped just hours before his arrival. “Come visit us,” cried out residents of neglected, pot-holed barrios in what became a weeklong running joke, “y llevar el asfalto!” — “and bring the asphalt!”

The culmination of the trip was Obama’s exquisitely crafted speech, delivered in downtown Havana’s Gran Teatro with Raul Castro and the senior Politburo present, along with an array of invitation-only favored Cubans. “I have come here to bury the last remnant of the Cold War in the Americas,” Obama began, thus ending the half century David-and-Goliath face-off that once almost brought the world to its end. The speech, written by Rhodes, hit every note. Millions of Cubans watched, many saying later they were overwhelmed by emotion, as an American president spoke directly to them, not at them.

“I had tears in my eyes,” said Marta Vitorte, who watched the speech in her Vedado apartment. A former official in the Foreign Ministry, Vitorte for the past decade has run one of Havana’s most popular and upscale casa particulars, or private home rentals. “This is the beginning of the future of Cuba,” she gushed.

But for the island’s 11-million-plus inhabitants, an even more jaw-dropping moment had come earlier in the visit. On Day Two, Obama had cajoled Raul into participating in a live news conference, taking unscreened questions from American reporters.

Considering Cuba’s antagonism towards a free press, Raul’s participation was stunning and, no doubt, a spontaneous decision he quickly regretted. The Cuban leader was plainly displeased by a question on human rights by NBC’s Andrea Mitchell, but he was infuriated by CNN’s Jim Acosta who asked, “Why are there Cuban political prisoners in your country?” Raul visibly bristled, having never endured an unfriendly press query. “Give me the list right now of political prisoners to let go of them,” Raul huffed. “Tell me the name or the names … And if there are political prisoners then before night falls, they will be free. There!” (Lists of prisoner names were promptly circulated on social media—none of whom are known to have been released since.)

“Oh my god,” said a former Cuban diplomat. “It made Raul look weak. No one here has ever seen anything like that.” | AP Photo

As the conference streamed live, Cubans watched a flustered Raul lose his cool, then abruptly end the news conference and march over to Obama to raise his arm in a victory salute. A bemused Obama was having none of it, and let his arm dangle. “Oh my god,” said a former Cuban diplomat. “It made Raul look weak. No one here has ever seen anything like that.”

***

Obama’s show-stopping appearances could only have mortified Fidel Castro, a public-relations genius, who was keenly monitoring the visit from his home. “Never abandon propaganda—even for a minute,” he had counseled compatriots in a 1954 letter. “It is the very soul of our struggle.”

Today, for hard-liners of Fidel’s generation, la lucha, the struggle, means just two things: keeping the principles of the Revolution alive in Cuba; and keeping themselves alive and in power.

At the very minimum, Obama had rewritten Fidel’s carefully scripted drama, in which the U.S. plays the rapacious foe. Suddenly, America seemed far less menacing. As the Cuban novelist Wendy Guerra wrote, in the wake of Obama’s visit: “Since you left, we are little more alone, because now we have to find another enemy.”

“The enemy always drove the story,” says Marilu Menendez, a Cuban exile and branding expert who now lives in New York. “It justified all of [Fidel’s] excesses.”

Even before Obama left the island, Fidel let it be known that that he took a dim view of the visit. Just days after Air Force One departed, an article appeared in the state-run Tribuna de la Habana that accused Obama of lording over a racist country and “inciting rebellion” in Cuba by meeting with pro-democracy activists. Its headline, roughly translated, “Black Man, Are You Dumb?” was a firebomb. “Obama came, saw, but unfortunately, with the pretend gesture of lending a hand, tried to conquer,” wrote Elias Argudín, a government loyalist, “choos[ing] to criticize and subtly suggest … incitements to rebellion and disorder, without caring that he was on foreign ground. Without a doubt, Obama overplayed his hand. Minimally, I can say is … ‘black man, are you dumb?’”

Following a wave of blowback, Argudín offered a quasi-apology for “causing offense,” noting that he himself was black. In a typically mysterious Cuban chess maneuver, the story was briefly deleted, then reposted on the paper’s website, while running in the print edition.

The column was only the first public salvo from hard-liners signaling their distress over the American president’s visit. A few days later, Fidel himself published a searing 1,500-word public letter, a full-throated denunciation of the visit and, by implication, Raul, who had hosted it. Entitled “Brother Obama,” it ran on Page 1 of Granma. Obama’s grand speech (which had begun with a famous line from the beatified patriot José Martí) was derided by Fidel as “honey-coated”—merely by listening to it, he warned, Cubans “ran the risk of having a heart attack.” And then Fidel dropped the hammer: “We don’t need El Imperio—The Empire—to give us any presents!”

Though Fidel and Raul’s lives have been anchored in decades of sibling love, collaboration and feuding, Fidel must have known, or quickly learned, that his public harpooning had gone just a bit too far. And so on April 8, a week before the highly anticipated Congress, Fidel made another unusual outing from his home. Wearing a white blousy sports jacket with a black wool scarf tied around his neck, Castro, aided by a cane, spoke briefly at the school named for his late sister-in-law, Vilma Espín.

Espín had been Raul’s wife and compañera in the Revolution from the early 1950s, and had served as Cuba’s de facto first lady. But when she died in 2007, Fidel did not attend her funeral. His own illness served as a reasonable excuse, but as one former Cuban official told me in Havana, none of Fidel’s family—neither his children nor his wife, Dalia—attended either. The snub deeply disappointed the family-centric Raul, who also serves as the Castro clan’s patriarch. Since then, the official said, Raul typically has a weekly family dinner, not with Fidel’s brood, but with his in-laws, the Espíns.

So it was impossible not to interpret Fidel’s tribute as a peace offering to Raul, in advance of the Congress, where it was imperative that the brothers present a unified front. “I’m sure that on a day like today, Vilma would be happy,” Fidel intoned to the schoolchildren in his weakened voice.

Vicki Huddleston, former chief of the U.S. Interests Section in Havana, said the brothers knew they needed to project unity. “They do not want it to appear that there are divisions,” she said. Veteran Cuba negotiator and U.S. ambassador to Mexico, Roberta Jacobson, suggested that the brothers’ brinkmanship was sometimes simply ritual role-playing—a kind of “good cop-bad cop within the Castro family.”

***

The dynamic between the Brothers Castro is of great import to Cubans, of course, and also determines what issues they allow on the table with American negotiators, and at what pace they are willing to address them.

On many issues the brothers are genuinely in lockstep, such as ending the U.S. embargo. While Cuba relentlessly hammers on about “el bloqueo”—the blockade, the hyperbolic term it uses for the embargo—its current prohibitions have been whittled down to a fraction of what they once were. Through executive actions, the Obama administration has lifted an array of trade and investment restrictions. Completely normalized trade and banking will have to wait for Congress to rescind the embargo officially, but whether Hillary Clinton or Donald Trump wins, the Cubans think they will have the requisite votes in Congress to get it done. With GOP Senators Jeff Flake and Rand Paul leading the charge, they expect a vote to come at some point in 2017. But until then, the embargo continues to be useful propaganda about the bully “Empire” to the north.

The embargo can be seen as Cuba’s short game. The longer game is Guantánamo—the territory, not the prison. Even more than the embargo, this 45 square miles of Cuba’s easternmost province has long served as Exhibit A of the crushing foot of El Imperio. As Raul reminded Obama on Day Two of his visit: “It will also be necessary to return the territory illegally occupied by Guantánamo Naval Base.”

While the prisoners held in Gitmo are the issue attracting global attention, for Cuba, they’re simply helpful propaganda in its quest to get its land back. America does have a lease, a 1903 deal stipulating that Guantánamo and its deep-water harbors be used as a “coaling station.” (The rent is $4,085 annually, and the Castros proudly boast that they never cashed a rent check—although they did cash one in 1959.) Cuba now argues that America’s current use of the land is in violation of its lease. “If this was a straight-up landlord-tenant law, the landlord would kick your butt right out,” says Jose Pertierra, a Cuban-born lawyer who shuttles between Havana and Washington.

A former Cuban diplomat told me he expects the Gitmo crusade to get louder and more insistent going forward. “We don’t really care about the prison,” he said, “but [the government] is going to politicize it as a human-rights violation [and] a breach of the lease.” In Havana, I asked Ben Rhodes if the Cubans had put Gitmo on the table as a chip. “There are never discussions in which Guantánamo does not come up,” he answered.

As talks between the countries haltingly advance, it is on domestic economic and political issues where the internal Cuban factions part company. In the 1990s, with the collapse of their Soviet patron, Raul began to see Cuba’s future very differently than his older brother. Raul had studied and visited China and Vietnam, and he liked what he saw: economic powerhouses fueled by competitive capitalism but all under the steely control of the Communist Party.

Fidel, on the other hand, mistrusted any version of capitalism, however dressed up as socialist entrepreneurism. He had railed against perestroika and glasnost and repeatedly warned Mikhail Gorbachev it would be the beginning of the end. (And indeed, it was the end of the Soviets’ billion-dollar patronage of Cuba.)

Unlike his brother, Raul has acknowledged cracks in the pillars of Cuba’s 65-year-old political system; insiders consider them serious. “There is no more discipline within the traditional ranks,” a retired government official told me. “No one wants to belong to the CDR [Committees for the Defense of the Revolution, the neighborhood snitch organs]. No one feels they have to belong to the Communist Party.” He added: “Five years ago, if you didn’t belong to the CDR or the Party, you weren’t going to get a promotion or could get in trouble. But there is no more fear about it.”

Likewise, such bastions of the Revolution as the Federation of Women, the Workers Union, and the Young Communists League are losing members, I was told. All these organs that have buttressed the Revolution are in decline, losing momentum as membership oozes away. “Everybody’s looking down the road about how to be an entrepreneur or a capitalist,” said a man who has turned his home into a casa particular.

For the past two years, Raul has been beseeching allies and trading partners—Russia and much of Europe—to forgive loans and debts incurred over decades, an estimated $51.5 billion, according to Emilio Morales of the Havana Consulting Group. (That figure that doesn’t even include debts owed to Venezuela and Brazil.)

And there is a relatively new reality on the island: corruption. “It’s a daily event,” he said. “If you have money, there’s nothing you cannot get,” then lowering his voice, “even a visa to leave Cuba.“

While Fidel may choose to turn a blind eye to the domestic woes of his country, he is keenly attuned to the fact that there are larger, inexorable forces at work. The Southern Hemisphere is plainly drifting away from Cuba. In 2006, as he lay gravely ill, Fidel could gaze out at Latin America—populated by Lula in Brazil, Evo in Bolivia, the Kirschners in Argentina and his adoring student and patron, Hugo Chavez—and rest serene that fidelismo and Cuba’s future were secure. If Fidel had died that year, as he has said he very nearly did, he would have been one satisfied soul.

But 10 years later, he has lived to confront a radically different picture. Cuba has lost all its patrons, except for the dramatically reduced oil shipments from Venezuela. Both Russia and China have set limits on their future largesse. Meanwhile, the U.S. rapprochement is making it inescapably clear that Cuba’s economic salvation lies, once again, as it did in the first half of the 20th century, in American investment and tourism—meaning ever-deepening ties to Fidel’s lifelong bête noire, the U.S.

So despite the rhetorical saber-rattling, and the alternating star turns of Raul and Fidel, Cuba is going through the only door that, for now, is open: Making friends with Uncle Sam. With no fanfare or pronouncements, U.S. and Cuban negotiators met recently and laid out an agenda for meetings well into the next year covering property claims, trade, environmental concerns and cooperation on narcotics.

In late May, the Cuban government announced that small and medium-size businesses would be legalized. The Party Congress may have repudiated change, but change is happening nonetheless.

Most crucially, there is the daily bonanza of ever-multiplying dollars from U.S. tourism. “More than 94,000 Americans have visited Cuba from Jan-Apr 2016,” proudly tweeted Josefina Vidal, a Cuban official who heads the U.S. division of the Foreign Ministry in May, “a 93% increase with respect to same period 2015.”

Leonardo Padura, Cuba’s most famous living writer, recently tried to explain his country’s contradictions. “If you say [Cuba] is a communist hell or a socialist paradise, you’re missing all the nuances,” he told EFE, the Spanish news agency. “Cuba is a society that apparently has not changed, but it really has.”

That assessment could apply just as well to Raul. Both a “reformer” and a “historico” by definition and personal loyalty—having fought alongside Fidel since 1952 and, since 1959, having run the Cuban Army, the country’s most powerful political organ—Raul has evolved into a pragmatist of necessity over the past 25 years. At the same time, Fidel has doubled down his resolve to resist reform. And like Cuba, the relationship between the deeply bonded brothers apparently has not changed, but it really has.

At his birthday last week, when Raul was toasted by family and friends after hosting a Caribbean summit, there was much to celebrate—replete with historical ironies. Fidel may have rescued Cuba from the clutches of the U.S., but it is Raul who is rescuing Cuba from Fidel.

Ann Louise Bardach is the author of Cuba Confidential (2002) and Without Fidel: A Death Foretold in Miami, Havana and Washington (2009), as well as the editor of The Prison Letters of Fidel Castro and Cuba: A Travelers Literary Companion. She interviewed Fidel Castro in 1993 and 1994 and met Raúl Castro in 1994.

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THE CUBA CAMPAIGN TO DIMINISH OBAMA’S VISIT

May 18, 2016 7:14 PM

Miami Herald: http://www.miamiherald.com/news/nation-world/world/article78499207.html#storylink=cpy

By Franco Ordoñez

Since President Barack Obama left Cuba, the Castro government has carried out a campaign to diminish the importance of the historic visit, according to Cuban human rights activists and U.S. officials.

Obama’s trip to Havana in March – part of ongoing efforts to normalize relations with Cuba –made him the first sitting U.S. president to visit the island in nearly 90 years. Activist Antonio Rodiles described how the Cuban government had launched a media push criticizing the U.S. government and praising communist leadership.

“They were trying to encapsulate – to close or create a bubble – around the visit. And they started to talk about the communist congress party. A lot of articles attacked the president’s position,” Rodiles said Wednesday during a panel discussion in Washington.

The dissident leader said, however, that Obama’s message still had gotten through to the Cuban people. Rodiles joined former Ambassador Roger Noriega, the former assistant secretary of state for Western Hemisphere affairs at the State Department, for a discussion on human rights in Cuba at the American Enterprise Institute research center in Washington.

Rodiles described the situation in Cuba as a fight over the public space in that country. And he doesn’t think Obama demanded enough on human rights, allowing the Cuban government to give the “illusion” of change while it works to transition power to a younger generation of Castros.

“This is something crucial for me and many people who are working on this, to show to the whole international community, to show to the Cuban people, to show to everybody that if the Castro family is there, nothing is going to change,” Rodiles said.

Since embarking on cozier relations with Cuban leader Raúl Castro last year, the Obama administration has been eliminating stiff regulations on travel and commerce. It has expanded opportunities for Americans to visit the island, but the administration has been criticized for not doing enough to fight human rights.

The Cuban Commission for Human Rights and National Reconciliation, a group that tracks human rights and political repression in Cuba, reported more than 8,600 politically motivated detentions in 2015, a 315 percent increase from five years ago. In the first two months of this year, there had already been more than 2,500 arrests.

Rodiles said more people were willing to speak out about their frustrations as they saw an opening for change, but he said it had also given the Cuban government a sense of legitimacy.

It’s important to keep the focus on Cuba while Obama remains in office, Noriega said. Obama placed a bet that this opening will bring about change. Noriega, who has raised concerns about the opening of relations, said momentum was beginning to slow as multinationals reported that there was little investment opportunity.

He pushed Obama to focus more on human rights:

“You can’t separate economic rights and political freedoms, because the pillar of both of them is the rule of law. If you don’t have the rule of law, you’re not going to be able to create the economy they need.”

Rodiles praised parts of the president’s visit. He thanked Obama for spending so much time with opposition leaders. The president’s speech, he said, was the first time in 60 years for many Cubans to hear someone talk about human freedoms.

But he said the United States needed to decide who really were its friends:

“The people are pushing and facing the Cuban regime. We’re the friends of the democracy world. And we’re taking the risk for that. We need your support.”

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CUBA’S FAST-GROWING MARIEL TARGETS TRANSSHIPMENT CARGO

JOC, MAY 19, 2016

Greg Miller

Original Article: http://www.joc.com/port-news/international-ports/cuba-port-plans-be-transshipment-hub-after-us-lifts-embargo_20160518.html

Cuba’s Mariel container terminal has already planned its transformation into a major transshipment hub after theU.S. trade embargo ends, according to TC Mariel General Director Charles Baker.

In an address to the Caribbean Shipping Association Executives’ Conference held near Port Canaveral, Florida, Baker described surging growth at TC Mariel, its short- and long-term expansion plans and strategy to diversify beyond domestic cargo into transshipment.

The PSA International-operated terminal opened in January of 2014. Throughput at Mariel grew 35 percent in 2015, reaching 330,000 twenty-foot-equivalent units, and is up 29 percent year-to-date this year as a result of Cuba’s “booming” tourism trade, Baker said.

The container terminal has four gantry cranes, 2,296 feet of quay and a capacity of roughly 800,000 TEUs annually. In the next two to three years another 984 feet of quay will be added so that two neo-Panamax ships may berth simultaneously. Mariel’s channel, deep enough for Panamaxes at present, will be dredged to neo-Panamax depths by 2017. Over the longer term the terminal will add another 5,577 feet of quay and boost annual capacity to 3 million TEUs. There are also plans to add general cargo, dry bulk and roll-on, roll-off terminals to the port.

Much hinges on Mariel’s location in Cuba’s far northwest.

Skeptics of the port have argued that this location is unsuitable to transshipment because the east-west services that pass through the Caribbean on their way to the U.S. pass by Cuba’s southeast corner, near Guantanamo Bay. They believe the additional transit time to Mariel would be too great.

Baker, however, believes that Mariel can use its location to its advantage.

He said Mariel aims to be the first port of call for neo-Panamax container ships after passing through the Panama Canal to the U.S. East Coast, with feeder services providing direct connections from Mariel to Gulf Coast ports in Tampa, Florida; Mobile, Alabama; New Orleans, Louisiana; Houston, Texas and Altamira, Mexico.

“It will be a challenge to attract the bigger vessels (that will serve the region after Panama Canal expansion) to circle into the U.S. Gulf, because there would not be enough time in their schedules,” he said, explaining why carriers would prefer to use a hub to serve Gulf ports. Dropping cargo off in Mariel and feedering it to Gulf ports would also be more attractive to shippers, given “vastly improved” transit times, he said. “Today, to ship to Mobile, you’ll have to wait for the vessel to sail in and out of Houston and New Orleans before it gets there.

“When we talk to the carriers and the ports, they do recognize (the benefits of) our geography, but they also recognize very clearly that the U.S. embargo stands in the way of the opportunity we have here,” he said.

Although the embargo is the biggest hurdle to Mariel increasing its transshipment business, another issue is current U.S. law, which dictates that a vessel regardless of flag cannot call at a U.S. port within 180 days of calling in Cuba. This effectively prevents transshipment from Mariel because any vessel deployed for feedering would lose the flexibility to call in the United States for an extended period, and more importantly, mainline vessels cannot sail to final destinations in the United States after dropping off transshipment cargo (bound for non-U.S. destinations) in Mariel.

A repeal of that 180-day rule would be “tremendous” for TC Mariel, Baker said. “It would allow us to enter the international transshipment market.” Baker recently traveled to Washington, D.C., to meet with Congressional staffers and push for an end to the rule.

TC Mariel also benefits from its location within the enormous Special Development Zone of Mariel, or ZED Mariel. “This zone is very, very important and very high on the agenda for the Cuban government,” said Baker. “It has a special set of laws and regulations that are very advantageous to investors and it is the first part of Cuba that allows 100 percent foreign ownership. It is 465 square kilometers (180 square miles) in size, which is half the landmass of Singapore. It is probably the largest greenfield industrial development zone in the world — and it really is green. There is literally nothing there today,” he said, noting how rare it is to have a major port adjacent to a huge expanse where logistics, assembly, industrial and warehousing facilities can be developed without space restrictions.

Interest in ZED Mariel continues to grow and more investments are being made.

“There is a lot of European interest now because they have realized that if the embargo disappears, they will be facing intense pressure in a market where they’ve been well protected from U.S. exporters for the last 54 years,” said Baker. “Some of them are realizing that the way to maintain their market share is to plant themselves in Cuba (before the end of the embargo). They also realize that going forward, there will be a wonderful opportunity to export to the world’s largest consumer market, only 90 miles away.”\Mariel Port, Cuba zz zz1

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ALABAMA COMPANY SAYS CUBA NEEDS ITS TRACTORS, BUT APPROVAL POCESS IS SLOW

By Mimi Whitefield, Miami Herald, 26 April 2016

Original Article: Alabama Tractors in Cuba?

An Alabama tractor company angling to become the first American business in more than a half century to set up manufacturing operations in Cuba is about midway through the approval process.

Cleber, based in Paint Rock, Alabama, outside Huntsville, wants to assemble small tractors in Cuba’s Mariel Special Economic Development Zone for use in Cuba and beyond. The simple tractor model that Cleber wants to produce is called Oggún in homage to the Santeria god of iron, tools and weapons, and it’s designed for small-scale farming.

Cleber is the first U.S. company to receive permission from the U.S. Office of Foreign Assets Control and the Commerce Department for a manufacturing project on the island since the Dec. 17, 2014 rapprochement between the two countries.

When President Barack Obama visited Cuba in March, he said that Cleber “will be the first U.S. company to build a factory here in more than 50 years.”

But Saul Berenthal, a Cuban-American who is a co-founder of the company and its chief operating officer, said it’s not a done deal yet. The Cubans still haven’t given final approval for the project. “I’d say we’re in the middle of the process,” Berenthal said. “Nothing is done until the fat lady sings.” I’d say we’re in the middle of the process. Nothing is done until the fat lady sings.

As overtures to Cuba by American businesses have picked up since the thaw, Berenthal said, “There are a lot of people in Cuba who are very busy and that tends to slow things down.” All documents and manuals also must be translated into Spanish, he said, and there’s plenty of other red tape.

But Berenthal, who was in Cuba two weeks ago for more talks, said he’s hopeful Cuban approval could come within the next 90 days. Cleber has been told it will take about six months to get a factory up and running. Initially, Cleber plans to have 10 employees and expects to add two more people annually as production ramps up.

From just serving the Cuban market, Cleber would like to eventually expand and export to other Central American and South American markets covered by Cuban trade agreements.

Berenthal and co-founder Horace Clemmons set up Cleber shortly after the rapprochement was announced with the idea of producing small-scale tractors particularly suited for the Cuban market.

Many Cuban campesinos still use livestock in the fields or aging tractors, Berenthal said. There are about 60,000 tractors in use in Cuba today, but many of them are from the 1980s, and 500 to 1,000 are lost every year because they are cannibalized for parts or simply stop working, he said.

The simple design of the Oggún, which uses parts that are widely available, also is in keeping with more sustainable agriculture.Cuba began a transition to more sustainable agricultural practices in the 1990s because it didn’t have much choice after the collapse of its benefactor, the old Soviet Union. With supplies of pesticides, fertilizers and oil scarce, Cuba began breaking up large state farms and Cuban producers began turning to organic farming techniques. But production has fallen.

Getting food production back on track is a Cuban priority. “Cuba’s mission is to be able to replace $2 billion in agricultural imports,” Berenthal said. “There’s also the pressure for more food from the tourism industry, which is increasing tremendously.”

“Not often in life do we get the opportunity, through simple efforts on our part, to make a difference in the lives of many. This venture represents that opportunity, to show the Cuban people the benefits of expanded commerce opportunities with the United States,” Clemmons said.

Even though new rules by the Obama administration make it easier to trade with and do business with Cuba, the embargo is still in effect and some U.S. projects require special approvals.

“There will be opportunities in Cuba. There are few places in the world with a real white space,” said Maguerite Fitzgerald, a partner at The Boston Consulting Group. But doing business with Cuba, she added, “isn’t a fast game or one that’s played with traditional rules.”

Berenthal said Cleber is prepared to let the Cuban approval process run its course. But if it drags on too long, Cleber plans to begin assembling Oggún tractors in Alabama and taking orders.

“We’re going to build tractors. We’d like to do it in Cuba,” he said. Cleber thinks Cuba’s Special Economic Development Zone, a 180-square-mile complex under development 28 miles west of Havana, is the place to do it. The Mariel zone wants to attract foreign investment in clean, sustainable projects with export potential.

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The New Tractor: Appropriately Small-scale for Small Farms?

 

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UNITED STATES INTERNATIONAL TRADE COMMISSION, OVERVIEW OF CUBAN IMPORTS OF GOODS AND SERVICES AND EFFECTS OF U.S. RESTRICTIONS

March 2016 Publication Number: 4597 Investigation Number: 332-552

Complete document is here:  US Exports to Cuba after the Embargo is Lifted

 

TABLE OF CONTENTS

Executive Summary

Chapter 1 Introduction

Chapter 2 Cuban Imports of Goods and Services

Chapter 3 Current U.S. Restrictions on Trade with and Travel to Cuba and Their Effects on Cuban Imports of U.S. Goods and Services

Chapter 4 Possible Cuban Barriers to U.S. Exports and Investment in the Absence of U.S. Restrictions .

Chapter 5 Agricultural Products

Chapter 6 Manufactured Products

Chapter 7 Services

Chapter 8 Modeling the Effects of U.S. Restrictions and Cuban Barriers on U.S. Exports to Cuba

 Appendix A Request Letters

Appendix B Federal Register Notices

Appendix C Hearing Calendar

Appendix D Written Submissions

Appendix E List of Authorized Cuentapropistas

Appendix F Regulatory and Legislative Framework of the U.S. Restrictions on Trade with and Travel to Cuba

Appendix G Cuban Intellectual Property Laws

Appendix H HS Codes Contained in Each Sector

Appendix I Description of Empirical Methodology

Appendix J Tables to Support Figures

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CUBA CALLS OBAMA VISIT ‘AN ATTACK’ AS COMMUNISTS DEFEND IDEOLOGY

By Frank Jack Daniel and Nelson Acosta

Original Article: Communists Defend Ideology

Reuters, Mon Apr 18, 2016 3:59pm EDT

HAVANA U.S. President Barack Obama’s visit to Communist-led Cuba was an “attack” on its history and culture aimed at misleading a new business class, Foreign Minister Bruno Rodriguez said on Monday, the latest sign of blow-back after the ground-breaking trip last month.

“In this visit, there was a deep attack on our ideas, our history, our culture and our symbols,” Rodriguez said at the Communist Party congress.

Cuban leaders have hardened language against the United States since Obama became the first U.S. president to visit the island in 88 years, with Fidel Castro accusing him of sweet-talking the people.

President Raul Castro referred to the United States as “the enemy” in the opening speech of the party congress over the weekend and told Cubans to be alert to U.S. attempts to weaken the revolution.

The congress, held every five years, must make decisions about the future of Cuba’s elderly leadership and the progress of market-style economic reforms adopted in 2011 that allowed more small businesses.

The measures have been only partially implemented, amid resistance from hard-liners who distrust market economics and fear detente with the United States at a time when Cubans are increasingly vocal about their needs.

“The harsh rhetorical push-back by the ideological wing of the Communist Party suggests their heightened sense of vulnerability,” said Richard Feinberg, a former national security adviser to U.S. President Bill Clinton.

Rodriguez accused Obama of coming to “dazzle” the private sector, highlighting concern U.S. promises to empower Cuban entrepreneurs were aimed at building opposition to the single-party system in office since 1959.

“Socialism and the Cuban revolution are the guarantees that there can be a non-state sector that is not that of big North American companies,” he told state television.

Cuba has struck deals with U.S. companies such as hotel chain Starwood (HOT.N) and is in talks with others including Google-parent Alphabet (GOOGL.O). On May 1, Carnival (CCL.L) is to become the first U.S. cruise company to sail to Cuba, but the trip is in doubt over a ban on Cuban-Americans sailing.

Cuba believes “the interest in the country of 11.3 million and its tourism potential will overshadow any political decisions,” said John Kavulich, head of the U.S.-Cuba Trade and Economic Council, a New York-based non-profit organization.

The United States and Cuba re-established diplomatic relations after Castro and Obama announced in December 2014 the two countries were seeking to normalize ties.

Despite the rhetoric, U.S. musicians Smokey Robinson, Usher and Dave Matthews were in Havana on Monday as part of a delegations representing Obama’s arts and humanities committee. A group of U.S. architects also visited on Monday.

PANAMA-AMERICAS-SUMMIT-CUBA-US-OBAMA-CASTRO

 

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