Permanent Mission of the United States to the United Nations
New York, New York
23 June 2021

Mr. Rodney Hunter- Minister Counselor Political Affairs

“Every year we authorize billions of dollars’ worth of exports to Cuba, including food and other agricultural commodities, medicines, medical devices, telecommunications equipment, other goods, and other items to support the Cuban people.”

A statement lacking appropriate context such as the one delivered on 23 June 2021 is not unique to the Biden-Harris Administration (2021- ). The theme is familiar to statements delivered during the Trump-Pence Administration (2017-2021), Obama-Biden Administration (2009-2017), Bush-Cheney Administration (2001-2009), and Clinton-Gore Administration (1993-2001).

The use of the phrase “we authorize” is deliberately crafted to suggest an exercise of benevolence by the government of the United States.

The use of the phrase “billions of dollars’ worth of exports to Cuba,” is far more egregious as the goal is to suggest that the Republic of Cuba is a beneficiary of, once again, benevolence by the government of the United States.

During the Bush-Cheney Administration was created the authorization for United States exporters (paid exports and donated exports) to add value to a specific license application or notification- so that the exporters would not continue to seek licenses which would burden the Bureau of Industry and Security (BIS) of the United States Department of Commerce. BIS licenses are generally valid for two years. As a result, license applications and notifications became in part based upon statements by the importer in the Republic of Cuba and in part based upon the inspirational and aspirational belief by United States exporters. This is how an export value can shift from an agreed to US$10,000.00 to what might be hoped for in two years… US$100,000.00. In the same manner, a US$1 million contract could become US$100 million in a license or notification.

For perspective, in any given month, there are generally approximately twelve exporters (often the same throughout the year) with products (paid or donated) delivered from the United States to the Republic of Cuba. With the total 2020 export value of approximately US$172 million, achieving one billion let alone two billion or billions is challenging…

An indisputable fact is “billions of dollars’ worth of exports” on an annual basis do not flow now and have never flowed since 1961 from the United States to the Republic of Cuba- and exports may be defined in this calculation as products sold and products donated.

In fact, the list of products referenced by Mr. Hunter are products statutorily authorized, protected, and commercial in nature by provisions of the Cuban Democracy Act (CDA) of 1992 and the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

TSREEA transactions, CDA transactions, and other authorized transactions are controlled by regulations implemented (1992 to present) by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and BIS.

The TSREEA re-authorized the direct commercial (on a cash-in-advance basis) export of food products (including branded food products) and agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose. The TSREEA does not include healthcare products, which remain authorized and regulated by the CDA.

TSREEA exports in 2019 were US$257,659,479.00, in 2020 were US$163,354,728.00, and thus far in 2021 are US$101,737,122.00. The single year record for TSREEA exports to the Republic of Cuba was US$710,086,323.00 in 2008. During the last twenty years, the average TSREEA year exports was US$319,853,227.00

Products exported from the United States to the Republic of Cuba since the first TSREEA exports in December 2001 were US$6,397,064,546.00 as of 30 April 2021 with payments from the Republic of Cuba to the United States through third countries as the United States government has refused to authorize the full implementation of direct correspondent banking.

Exports of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) and telecommunications equipment to the Republic of Cuba are subject to provisions of the CDA, 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.

CDA exports in 2019 were US$1,096,505.00, in 2020 were US$936,013.00, and thus far in 2021 are US$50,899.00.

Products exported from the United States to the Republic of Cuba using the CDA were US$26,755,590.00 as of 30 April 2021.

In 2015 and 2016, the OFAC and BIS expanded the list of products authorized for export from the United States and from third countries of the Republic of Cuba with a focus upon products (non-durable, durable, and consumable) to entities not affiliated with the government of the Republic of Cuba. The value of exports within these categories since 2015 are approximately US$27 million primarily through four United States-based companies.

Donations from the United States to the Republic of Cuba in 2019 were US$7,150,989.00, in 2020 were US$4,605,055.00, and thus far in 2021 are US$1,118,883.00.

LINK TO JUNE 2021 MONTHLY REPORT ON U.S. EXPORTS TO CUBA

Bush-Cheney Administration Licensing Background

For the first agricultural commodities (corn and poultry) exported (US$4,318,906.00) in December 2001 to the Republic of Cuba, United States companies were required to obtain/have a license/authorization from the Bureau of Export Administration (BXA) of the United States Department of Commerce for the exact value(s) of the product(s) to be exported to the Republic of Cuba. In 2002, the BXA was renamed the Bureau of Industry and Security (BIS).

When the government of the Republic of Cuba continued and then expanded its purchases of agricultural commodities and food products into 2002, despite initial statements that the 2001 purchases were to be a “one off” so United States companies were not to expect further orders, there began discussions between exporters and representatives of the BIS about opportunities to create a more efficient licensing process.

One such decision by the BIS was to permit, and then encourage, United States companies to apply for a license that would attempt to include an estimate of what potentially might be exported by the company; and licenses were to be valid for up to two years. In some instances, the export qualified under the “export exception” provision and would not require certain BIS processes. A goal was to lessen the paperwork for the BIS and the United States companies.

For example, if a United States company wanted to export corn to Republic of Cuba government-operated Empresa Cubana Importadora Alimentos (Alimport), under the auspice of the Ministry of Foreign Trade of the Republic of Cuba (MINCEX), and had a contract or anticipated a contract or wanted to have all documentation necessary so the company could approach Alimport and say they were “ready to go," the BIS encouraged the company to add to the expected or desired quantities and U.S. Dollar values. Simply put, if the reasonable expectation was to export corn valued at US$1 million, the company would use US$5 million or US$10 million or US$100 million… whatever they wanted to use.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

LINK TO RELATED POST:

Let's Put The US$4.3 Billion In 2015 U.S. Commerce Department Licenses In Perspective... Politics Versus Reality [14 March 2016]