Two Tweets From US Assistant Secretary Of State Michael Kozak Devoid Of Important Context And Details; He's Done It Before

The Honorable Michael G. Kozak, Acting Assistant Secretary of State for Western Hemisphere Affairs, used Twitter for the following comments:

Michael G. Kozak @WHAAsstSecty
Apr 6
Since 1992, the U.S. has authorized the export of billions of dollars of medicine and medical equipment to #Cuba.

Michael G. Kozak @WHAAsstSecty
Apr 6
These are the facts: The U.S. routinely authorizes the export of humanitarian goods, agricultural products, medicine, and medical equipment to support the Cuban people. In 2019, the U.S. exported millions of dollars of U.S. medical goods to #Cuba.

Michael G. Kozak @WHAAsstSecty
Apr 6
As the world unites in the struggle against #COVID19, some look to divide international efforts through unsourced, unattributed disinformation campaigns. CASTRO’s cronies and ECHO CHAMBER/APOLOGISTS/MOUTHPIECES should know better. #Cuba

Response:

Statements on 6 April 2020 by Assistant Secretary Kozak are misleading; the U.S.-Cuba Trade and Economic Council previously engaged with him in September 2019 when he published statements relating to agricultural commodity and food product exports from the United States to the Republic of Cuba. LINK: https://www.cubatrade.org/blog/2019/9/24/clarification-to-tweet-from-michael-kozak-us-assistant-secretary-of-state-about-us-exports-to-cuba?rq=Michael%20Kozak

Assistant Secretary Kozak’s statement “Since 1992, the U.S. has authorized the export of billions of dollars of medicine and medical equipment to Cuba” should have been afforded due context and his statement “In 2019, the U.S. exported millions of dollars of U.S. medical goods to Cuba” is not accurate because the generally-accepted definition of “exports” is to sell rather than to donate; what was paid and what was donated should have been identified.

The use of the phrase by Assistant Secretary Kozak “to support the Cuban people” is designed to suggest the healthcare products were provided by the United States government- which is not true. The exports are not benevolent gesture by the United States government; they are statutorily authorized.

The export of healthcare products (medical equipment, medical instruments, medical supplies, medicines, pharmaceuticals) are specifically authorized by the Cuban Democracy Act (CDA) of 1992. The export of agricultural commodities and food products are specifically authorized by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

Healthcare product donations in 2019 by the private sector from the United States to the Republic of Cuba were US$2,655,289.00 while private sector exports (meaning that the Republic of Cuba paid for the products) was US$1,096,505.00.

Total reported healthcare product commercial (paid) exports from 2003 through 2020 are US$26,391,326.00.

Through the Clinton Administration, Bush Administration, Obama Administration and thus far through the Trump Administration, United States exporters have been encouraged by the United States Department of Commerce to submit export license requests with gross estimates, often aspirational, so that they would not need to repeatedly seek licenses. Most licenses are valid for two years. The process was initiated at the recommendation of United States exporters to lessen often repetitive paperwork and was enthusiastically accepted by the United States Department of Commerce.

Important to note that the values placed in the license applications often are done without any input from the Cuba-based importer. As a result, the overall authorized values are often aspirational- based upon discussions with Republic of Cuba-based importers.

This is not the first time an administration has misused the data- and previous administrations have corrected the context by which they have used the data. LINK To 5 January 2017 Article From The Miami Herald: https://www.miamiherald.com/news/nation-world/world/americas/cuba/article124707644.html

Exports of healthcare products (medical equipment, medical instruments, medical supplies, medicine, pharmaceuticals) to the Republic of Cuba are subject to provisions of the Cuban Democracy Act (CDA) of 1992, which require end use-verification, but are not subject to cash-in-advance payment requirements. Exports have included: Medicaments (penicillin and insulin); Dentifrices (toothpastes); Laboratory regents; Ultrasonic scanning equipment; Artificial limbs; Medical appliances; Surgical appliances (dental); Opthalmic (eye); Cannulae (tubing) and gelatin capsules.

The primary impediments for United States healthcare product companies exporting to the Republic of Cuba include: 1) The Republic of Cuba’s lack of foreign exchange 2) The Republic of Cuba’s preference to source from companies/countries where there is government/private sector long term credit/financing available 3) the perception by United States companies that the licensing process is complicated and 4) there have been issues where financial institutions are overly cautious relating to any transaction involving the Republic of Cuba.

Healthcare product exports are not subject to cash-in-advance payment terms as required for agricultural commodities and food product exports under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

Cuban Democracy Act

“(c) Exports of medicines and medical supplies. Exports of medicines or medical supplies, instruments, or equipment to Cuba shall not be restricted-- (1) except to the extent such restrictions would be permitted under section 5(m) of the Export Administration Act of 1979 [50 USCS Appx § 2404(m)] or section 203(b)(2) of the International Emergency Economic Powers Act [50 USCS § 1702(b)(2)]; (2) except in a case in which there is a reasonable likelihood that the item to be exported will be used for purposes of torture or other human rights abuses; (3) except in a case in which there is a reasonable likelihood that the item to be exported will be reexported; and (4) except in a case in which the item to be exported could be used in the production of any biotechnological product.”

The end-use verification is within (c) above- 1,2, and 3. Due to the work in the mid-1990’s of the U.S.-Cuba Trade and Economic Council, on behalf of healthcare product member companies, healthcare product companies were permitted to self-verify that exports met the requirements of the CDA.

There has never been an officially reported incident where use of a healthcare product export to the Republic of Cuba under provisions of the CDA have been found by the United States government to be in violation of provisions of the CDA.

HEALTHCARE PRODUCT EXPORTS- Exports of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) to the Republic of Cuba are subject to provisions of the Cuban Democracy Act (CDA) of 1992, which require end use-verification, but are not subject to cash-in-advance payment requirements. Exports have included: Medicaments (penicillin and insulin); Dentifrices (toothpastes); Laboratory regents; Ultrasonic scanning equipment; Artificial limbs; Medical appliances; Surgical appliances (dental); Opthalmic (eye); Cannulae (tubing) and gelatin capsules.

2003-2020 Healthcare Product Exports Under 1992 CDA
2020 US$418,162.00
2019 US$1,096,505.00
2018 US$3,492,553.00
2017 US$5,663,254.00
2016 US$6,121,425.00
2015 US$5,003,169.00
2014 US$879,267.00
2013 US$2,155,024.00
2012 US$234,718.00
2011 US$103,771.00
2010 US$226,563.00
2009 US$85,408.00
2008 US$320,420.00
2007 US$436,773.00
2006 US$814,866.00
2005 US$404,001.00
2004 US$468,485.00
2003 US$9,416.00
Total US$26,391,326.00