TERRORIST ASSETS REPORT
Calendar Year 2015
Twenty-Fourth Annual Report to the Congress on Assets in the United States Relating to Terrorist Countries and International Terrorism Program Designees
The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, DC, continues to hold US$243.5 million blocked assets relating to the Republic of Cuba.
Washington, D.C. - On June 20 - 21, 2016, Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration (SBA) and a member of President Obama's Cabinet will travel to Havana, Cuba to build upon President Obama's successful visit in March 2016.
Contreras-Sweet will convene bilateral meetings regarding entrepreneurship and innovation with senior Cuban government officials and will discuss the potential for entrepreneurship to continue to improve the livelihoods and lives of the Cuban people.
NOTE: Ms. Contreras-Sweet visited the Republic of Cuba in March 2016, accompanying President Barack Obama.
SMALL BUSINESS ACT
(Public Law 85-536, as amended)
The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation. Such security and well-being cannot be realized unless the actual and potential capacity of small business is encouraged and developed.
It is the declared policy of the Congress that the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns in order to preserve free competitive enterprise, to insure that a fair proportion of the total purchases and contracts or subcontracts for property and services for the Government (including but not limited to contracts or subcontracts for maintenance, repair, and construction) be placed with small business enterprises, to insure that a fair proportion of the total sales of Government property be made to such enterprises, and to maintain and strengthen the overall economy of the Nation.
It is the declared policy of the Congress that the Federal Government, through the Administrator of the Small Business Administration, acting through the Associate Administrator for International Trade and in cooperation with the Department of Commerce and other relevant State and Federal agencies, should aid and assist small businesses, as defined under this Act, to increase their ability to compete in international markets by— enhancing their ability to export; facilitating technology transfers; enhancing their ability to compete effectively and efficiently against imports; increasing the access of small businesses to long-term capital for the purchase of new plant and equipment used in the production of goods and services involved in international trade; disseminating information concerning State, Federal, and private programs and initiatives to enhance the ability of small businesses to compete in international markets; and ensuring that the interests of small businesses are adequately represented in bilateral and multilateral trade negotiations.
The Congress recognizes that the Department of Commerce is the principal Federal agency for trade development and export promotion and that the Department of Commerce and the Small Business Administration work together to advance joint interests. It is the purpose of this Act to enhance, not alter, their respective roles.
It is the declared policy of the Congress that the Government, through the Small Business Administration, should aid and assist small business concerns which are engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries; and the financial assistance programs authorized by this Act are also to be used to assist such concerns.
The assistance programs authorized by sections 7(i) and 7(j) of this Act are to be utilized to assist in the establishment, preservation, and strengthening of small business concerns and improve the managerial skills employed in such enterprises, with special attention to small business concerns (1) located in urban or rural areas with high proportions of unemployed or low-income individuals; or (2) owned by low-income individuals; and to mobilize for these objectives private as well as public managerial skills and resources.
20 June 2016: New York, New York- Nestle Nespresso, the worldwide pioneer and reference in premium single-serve coffee, announced today it will bring back Cuban coffee to the United States for the first time in more than 50 years.
Recent regulatory changes in the United States have allowed Nespresso to move forward with its plans, which include making the new Cuban Nespresso Grand Cru, Cafecito de Cuba, available in the United States in the fall of 2016, initially as a limited edition. Over the long term, Nespresso and its partner TechnoServe, a nonprofit development organization, will explore how to work with smallholder coffee farmers in Cuba with the goal ultimately being to support farmers in their production of sustainable coffee and contribute to expanded economic opportunities for them in the long-term.
For more than two centuries, Cuba has produced some of the greatest Arabica coffee in the world. With fertile soil and ideal climate conditions, the country offers an excellent coffee growing environment. Nespresso is purchasing Arabica coffee this year that has been produced by Cuban farmers, and aims to continue purchasing it in the coming years.
“At Nespresso, we always aim to delight consumers through exclusive, unique coffee experiences,” said Guillaume Le Cunff, President Nespresso USA. “Nespresso is thrilled to be the first to bring this rare coffee to the U.S., allowing consumers to rediscover this distinct coffee profile. Over the long-term, we have a view to supporting the development of environmentally sustainable coffee farming practices for smallholder farmers which benefit the farmers themselves and their communities. Ultimately, we want consumers in the U.S. to experience this incredible coffee and to enjoy it now and for years to come.”
The U.S. Department of State in late April updated its list of goods produced by independent Cuban entrepreneurs that can be imported into the United States to include coffee. This change paved the way for Nespresso to offer Cuban coffee to the U.S. market.
Nespresso’s approach to sustainability is embedded in its business practices and focuses on initiatives that preserve the environment for future generations and create shared value for all stakeholders and society. Nespresso has extensive experience working closely with coffee farmers to improve productivity and create attractive income opportunities for them. Through the Nespresso AAA Sustainable Quality™ Program, which was developed with the Rainforest Alliance, Nespresso works with farmers, providing support, training, financing and technical assistance to improve sustainability and productivity while maintaining quality.
Editor's NOTE: According to Nestle Nespresso, Cafecito de Cuba will be 100% Cuban Arabica coffee from the regions of Granma and Santiago de Cuba.
Editor's NOTE: According to the London, United Kingdom-based International Coffee Organization (ICO), in 2015 the Republic of Cuba harvested 100,000 60-kilogram bags of coffee, consumed 200,000 60-kilogram bags of coffee, and exported 8,696 60-kilogram bags of coffee.
Editor's NOTE: Nestle Nespresso is a subsidiary of Vevey, Switzerland-based Nestle SA (2015 revenues approximately US$94 billion). The company has a representative office in the city of Havana. Since the 1990's, Nestle S.A. has been involved with Republic of Cuba government-operated companies to develop the confection industry; has investments in mineral water production and beverage production; and imports products for sale at retail stores.
Editor's NOTE: Nestle Nespresso previously created a Republic of Cuba-focused product; the following is a media release from 2 September 2014:
Nespresso pays tribute to Cuban coffee tradition with Limited Edition Cubanía; Inspired by the passion and intensity of Cuban coffee ritual
Inspired by the warmth of the Cuban way of life and its iconic coffee ritual, Nespresso coffee experts have stretched their mastery of coffee creation to produce Cubanía, the Fall 2014 Limited Edition Grand Cru.
The way of drinking coffee in Cuba – Cubano-style – is a leisurely tradition. It mixes a portion of strong, black coffee with cane sugar until it becomes a thick, creamy paste. Then it combines it with yet more coffee. This distinctive coffee ritual represents the sensual Latin style: a different pace of life with time to savour one another’s company.
Nespresso has captured this spirit in Cubanía, a bold blend of highly roasted Arabicas and Robustas with a dense texture and powerful bouquet without strong bitterness. Breaking the Nespresso record of intensity by going one step beyond the Kazaar Grand Cru, Cubanía reaches level 13.
Mastery of origins and process for unsurpassed intensity
This achievement of unsurpassed intensity draws upon earlier Nespresso creations. It also builds on the mastery of an innovative technique: steaming coffee to change its chemical and physical structure.
A coffee’s intensity is based on the density of the beans and their roasting profile. Choosing which coffee beans can deliver such an intense experience takes Nespresso know-how. For intensity, a high-end Indian Robusta was slowly steamed to allow for greater extractability, while reducing bitterness and enhancing smoothness. Brazilian Robusta Conillon was added to ensure intensity. This was paired with a mild Colombian Arabica used already in 2012 for the Limited Edition Crealto, capable of taking a long roast while delivering smooth and pure coffee flavour. Nespresso coffee experts also selected a mild Arabica to complement the blend.
Enjoying coffee the Latin way
Nespresso seeks to continuously invite Club Members into new ways of understanding, appreciating and experiencing coffee. To enjoy Cubanía in the traditional Cubano style, Nespresso coffee experts recommend adding a 25 ml ristretto to a measure of cane sugar, stirring well until it becomes a creamy, light brown paste. Then, extract a second 25 ml ristretto on top of the mixture and stir. This intense and syrupy black coffee with its tantalizing, dense crema enables coffee aficionados to fully experience Cubanía with Latin flair.
Adding 25 ml of hot milk to a Café Cubano creates a velvety coffee and milk elixir reminiscent of the dessert dulce de leche, with sweet notes of cookie and caramel. The wild, yet complex aromatics of Cubanía are revealed when it is taken black, as a 25 ml ristretto.
USA TODAY
20 June 2016
Cuban coffee to be sold in the U.S.
By Alan Gomez
MIAMI — The next phase of Cuba's changing relationship with the United States will come in the form of coffee.
Switzerland-based Nespresso announced Monday that it will sell Cuban coffee in the U.S. starting this fall. The long-restricted coffee will first be sold as a limited edition, called Cafecito de Cuba, in stores, online and over the phone.
Guillaume Le Cunff, president of Nespresso USA, said it's good to be the first company to provide Cuban coffee to the U.S. market. He stressed that Nespresso is more interested in developing a long-term arrangement to ensure a steady supply of Cuban coffee for U.S. customers and improved living conditions for Cuba's farmers.
"We're not looking at this as a short-term achievement," Le Cunff said Sunday. "It's the starting point of a very long-term initiative. We're very optimistic that we can drive and build this project. Ultimately, we want consumers in the U.S. to experience this incredible coffee and to enjoy it now and for years to come."
Cuba's iconic products — from coffee to rum to the island's fabled cigars — have been off limits to U.S. consumers for more than 50 years because of the economic embargo maintained on the communist country. Opportunities opened after December 2014, when President Obama and Cuban President Raúl Castro announced that the Cold War foes would begin normalizing relations.
The Obama administration has since issued new regulations allowing for more trade and travel between the countries. That included an amended regulation published in April that removed coffee from the list of items barred from being imported from Cuba. Nespresso officials immediately took notice.
The company has already partnered with TechnoServe, a Washington-based non-profit development organization, to assist coffee farmers in Colombia, South Sudan, Kenya and Ethiopia. David Browning, senior vice president for strategic initiatives at TechnoServe, recently visited Cuba to meet with government officials and inspect the small farms where Cuba's coffee is grown.
IMAGE: Cuban workers pile up sacks of coffee at a small warehouse in the Sierra Maestra Mountains, in the eastern province of Santiago de Cuba, on July 26, 2010.
Much of Cuba's agricultural land is managed by cooperatives of small, private farmers. They then sell their products to the Cuban government, which either distributes the goods on the island or exports them around the world. Nespresso will begin its Cuba experiment by buying coffee beans from European importers, roasting the beans, packaging the coffee in pods and selling them in the United States.
Browning said both companies examined the new regulations and saw the opening they needed. "All that was necessary was for the lawyers to make sure they fully understood the U.S. government's intent," he said. "Everything was very clear."
The next phase for Nespresso and TechnoServe will be to help Cuba's private farmers improve their production processes, from helping them secure new agricultural equipment to fine-tuning their planting and harvesting processes. Browning said such guidance has helped farmers in other countries improve their output, which led to more income for the farmers and improved standards of living. "We're really eager to be in listening mode and start to understand the state of industry and how we can be most helpful," he said.
Until then, the two men were eager for U.S. customers to experience the foreign flavor. Browning described Cuba's Arabica coffee beans, grown in the fertile lands in eastern Cuba, as having notes of cedar with a light, caramel finish. And Le Cunff said the exotic, forbidden aspect of the coffee is a lure itself.
"Our customers expect us to bring new coffee experiences, and they expect to be surprised," he said. "We know that with our U.S. customers, there is a high level of curiosity and excitement to have this coffee. So we expect a high level of response."
ECONOMIC EYE ON CUBA©
June 2016
April Food/Ag Exports Increased 57%- 1
-17% Thus Far For 2016 Compared To 2015- 1
Healthcare Product Exports- 2
Humanitarian Donations- 2
U.S. Port Export Data- 13
Blog Post Titles- 15
Updated Speaking Schedule- 16
On 16 June 2016, the government of Vietnam delivered a donation of 5,000 metric tons of rice to the government of the Republic of Cuba.
In May 2016, Bernie, Missouri-based Martin Rice Company donated 20 metric tons (one container with a value of approximately US$18.000.00) of long grain enriched rice sourced from the State of Missouri to Republic of Cuba government-operated Empresa Cubana Importadora Alimentos (Alimport), under the auspice of the Ministry of Foreign Trade of Cuba (MINCEX), for distribution to charities within the Republic of Cuba.
The Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 re-authorized the direct commercial (on a cash basis) export of food products (including branded food products) and agricultural products (commodities) from the United States to the Republic of Cuba, irrespective of purpose.
Since the first exports under TSREEA in December 2001, the government of the Republic of Cuba has purchased more than US$5.2 billion in agricultural commodities and food products from United States-based companies.
Government of Vietnam-operated Vinafood 1 and Vinafood 2 have provided payment terms to Alimport of up to two years to pay for rice (25% to 30% broken). In 2010, rice exports from Vietnam to the Republic of Cuba were 400,000 metric tons and in 2011 were 300,000 metric tons.
United States producers can provide rice (25% to 30% broken); payment terms, however, without the use of United States government export programs, would remain cash-on-delivery to 30 days; and for credit-worthy customers, generally not exceed sixty days to ninety days.
Partial Text of Letter From American Airlines To The United States Department of Transportation:
"Congratulations to JetBlue for identifying a problem with American’s U.S.-Cuba fares that was resolved well before JetBlue’s letter of June 16, 2016 was filed.1 Had JetBlue bothered to check American’s U.S.-Cuba fares at any time on June 16, 2016, they would have noticed that American had loaded and made available a full range of economy fares for MIA-CFG, MIA- CMW, MIA-HOG, MIA-SNU and MIA-VRA, with fares as low as $350 round-trip. American’s fares for its new service to Cuba not only are competitive with fares offered by Silver, they are also lower than most U.S.-Cuba charter fares."
ENGLEWOOD, Colo.--(BUSINESS WIRE)--DISH announced the launch of a new channel, CUBAMAX TV, making it the first and only pay-TV provider to bring original Cuban entertainment to U.S. audiences nationwide. The channel is available today on DishLATINO, the company’s market-leading suite of English and Spanish language programming packages.
“Connecting viewers with their heritage and culture is at the heart of the DishLATINO brand promise, and today marks an important milestone as we deliver movies and TV shows from Cuba that were previously unavailable,” said Alfredo Rodriguez, vice president of DishLATINO. “With an estimated two million Cubans living in the U.S. and many others eager to learn about the island’s rich culture, we’re excited to provide a window into the arts and entertainment world of Cuba.”
Headquartered in Miami, CUBAMAX TV imports, curates and packages the best of Cuban entertainment into one channel for distribution in the U.S.
“CUBAMAX TV includes a range of Cuban entertainment that will appeal to a variety of audiences, from telenovela fans and movie buffs to music lovers and nature enthusiasts,” said Amarilys Nuñez, director of marketing for CUBAMAX TV. “In launching CUBAMAX TV, we looked for a provider with a nationwide reach and a strong connection to U.S. Hispanic audiences. Market-leader DishLATINO is the perfect fit for our channel launch, and we look forward to growing together as we deliver quality Cuban entertainment.”
Programming
The new channel will deliver a broad range of programming for viewers, including novelas, movies, variety shows, children’s programming and music videos. Popular shows airing on CUBAMAX TV include:
Availability
CUBAMAX TV is now available to new and existing DishLATINO customers who subscribe to the following programming packages: Clasico, Plus, Dos, Max and Bonus Pack. To subscribe to CUBAMAX TV through DishLATINO, customers can visit www.dishlatino.com/cubamaxtv.
Additionally, CUBAMAX TV will be available to Sling Latino customers in the coming weeks.
About DishLATINO
DishLATINO is the market-leading suite of English and Spanish language programming packages in the United States. It offers its customers more than 40 Spanish-language news, entertainment, and sports channels in combination with DISH’s broad English-language programming lineup of more than 200 channels. DishLATINO customers can receive the Hopper, the industry’s most awarded DVR, and take advantage of in-language customer service as well as payment options such as FlexTV, a no-term contract, prepaid pay-TV product.
About DISH
DISH Network Corp. (NASDAQ:DISH), through its subsidiaries, provides approximately 13.874 million pay-TV subscribers, as of March 31, 2016, with the highest-quality programming and technology with the most choices at the best value. DISH offers a high definition line-up with more than 200 national HD channels, the most international channels and award-winning HD and DVR technology. DISH Network Corporation is a Fortune 250 company. Visit www.dish.com.
Subscribe to DISH email alerts: http://about.dish.com/alerts
Follow @DISHNews on Twitter: http://www.twitter.com/DISHNews
About CUBAMAX TV
Launched in 2016, CUBAMAX TV is a general entertainment channel featuring shows, movies and cultural content from Cuba. Headquartered in Miami, CUBAMAX TV imports, curates and packages the best of Cuban entertainment into one channel for distribution in the U.S.
Chicago, Illinois-based ADM, which was the first United States-based company to sign a contract and to export an agricultural commodity (corn in December 2001 valued at US$2,327,201.00) to the Republic of Cuba under provisions of the Trade Sanctions Reform & Export Enhancement Act (TSREEA) of 2000, sold 7,600 metric tons of soy oil in June 2016 to Republic of Cuba government-operated Empresa Cubana Importadora Alimentos (Alimport), under the auspice of the Ministry of Foreign Trade of Cuba (MINCEX).
This is the first export of soy oil from the United States to the Republic of Cuba since 2010.
What has the government of Cuba agreed to or done since 17 December 2014:
What has the government of Cuba not (yet) agreed to or done since 17 December 2014:
What has the government of the United States agreed to or done since 17 December 2014:
What has the government of the United States not (yet) agreed to or done since 17 December 2014:
POMPANO BEACH, FLA. (June 14, 2016) – Stonegate Bank (SGBK) announced today the issuance of MasterCard credit cards for use in Cuba. Stonegate is the first bank in the United States to take this important step.
The Obama Administration’s Air Assault On Cuba…. 1.9+ Million Paratroopers… With Cameras, Cell phones, Laptops & Social Media Apps; Almost 61% Of Cuba’s 2015 Visitor Arrivals
Non-Havana
From the United States Department of Transportation: “On June 10, 2016, DOT issued an order authorizing six U.S. airlines to provide scheduled passenger flights between various U.S. cities and cities in Cuba other than Havana. DOT’s order grants the applications of American, Frontier, JetBlue, Silver Airways, Southwest, and Sun Country. These carriers are now authorized to provide various services to Cuban cities other than Havana, from Miami, Chicago, Ft. Lauderdale, Philadelphia, and Minneapolis.”
The routings approved thus far for each airline has a total scheduled daily flights accommodating up to 2,743 passengers from the United States to the Republic of Cuba. This total does not include the limited frequency flight schedules where some airlines have services from one day to five days per week.
The total capacity (including limited frequency flight schedules) of all of the airlines will accommodate up to 19,543 passengers weekly; 1,016,236 on an annual basis. The initial non-Havana airport opportunities were under-subscribed by the airlines.
The Obama Administration will likely use the flights to secondary cities by individuals subject to United States law and individuals subject to United States jurisdiction authorized to visit the Republic of Cuba within the twelve (12) categories of travelers (CACR 515.560) as a means to further expand the operational reach for United States-based companies in the travel & leisure industry. The government of the Republic of Cuba will neither have the infrastructure nor resources in these secondary cities to efficiently provide the standards necessary to maximize the value for visitors from the United States, so additional activity by United States-based companies is imperative.
Havana
From the United States Department of Transportation: “U.S. carriers have collectively applied for nearly 60 flights per day to Havana, exceeding the 20 daily flights made available by the U.S.-Cuba arrangement. DOT is reviewing and analyzing the competing applications and will need to select from among them. We expect to reach a final decision sometime this summer on which carriers, and the markets they propose to serve, will be awarded the authority to conduct scheduled air service to Havana.”
The airlines have thus far included aircraft (Boeing, Airbus, Saab) with capacities of 186, 180, 162, 160, 144, 143, 126, and 34 passengers. Averaging the seat capacities, which is skewed lower by the 34-passenger aircraft, the average aircraft capacity is 122 passengers. Removing the 34-passenger aircraft, the average aircraft capacity increases to 157.
Using 122 passengers per aircraft for twenty (20) daily flights from the United States to Havana, there would be 2,440 minimum seats per day; 17,080 per week; and 888,160 on an annual basis- increasing to 1,142,960 using 157-seat aircraft average.
For the first 52-week period, the total number of available airline seats for the initially-requested routes is 1,904,396- or 2,159,196 using 157-seat aircraft average for Havana.
The first-year total passenger capacity from the United States to the Republic of Cuba represents 54% (to 61%) of the Republic of Cuba’s 3,524,779 tourist arrivals in 2015.
Obama Administration Strategy
The initiatives proposed and implemented by President Obama (some of which were unsuccessfully attempted by predecessors) are designed to tear at the social fabric of the Republic of Cuba; with a goal of recreating a middle class and a professional class abridged by the 1959 Revolution… a challenging landscape today defined by those who have (through earnings or remittances) and those who have not.
The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has licensed Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) to manage three (3) properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton). Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba. Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), which is acquiring Starwood Hotels & Resorts Worldwide, is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.
The Obama Administration is likely to use the combination of [created demand for] regularly-scheduled commercial airline service, the two million available passenger seats, and lack of visitor infrastructure within the Republic of Cuba to further expand management and operational opportunities for United States-based companies in the travel & leisure industry. These opportunities may include additional hotel management contracts, food service operations, vehicle rental (and export), and potentially related authorized Direct Foreign Investment (DFI).
Today, U.S. Department of Health and Human Services Secretary Sylvia M. Burwell signed a Memorandum of Understanding (MOU) with Cuba’s Ministry of Public Health, an important milestone between the two countries since the re-establishment of diplomatic relations in 2015.
The MOU establishes coordination across a broad spectrum of public health issues, including global health security, communicable and non-communicable diseases, research and development, and information technology. The signing also kicks off a two-day visit to HHS from Cuba’s Minister of Health, Dr. Roberto Tomás Morales Ojeda.
“Cuba has made significant contributions to health and science, as evidenced by their contribution to the Ebola response in West Africa and becoming the first country to eliminate mother-to-child HIV transmission. This new collaboration is a historic opportunity for two nations to build on each other’s knowledge and experience, and benefit biomedical research and public health at large,” Secretary Sylvia M. Burwell said.
The U.S. and Cuba share an interest in detecting and responding to emerging infectious diseases such as dengue and chikungunya, serious mosquito-borne viral diseases. Both countries also have an aging population, necessitating an increased focus on responding to the increasing burden of neurodegenerative and non-communicable diseases, including cancer, which is the leading cause of death in Cuba and second in the U.S.
Several U.S. delegations have already traveled to Cuba, and Cuba’s vice minister for Public Health spent a week at HHS in April.
The Obama Administration may reverse-engineer the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 which re-authorized the direct export of agricultural commodities and food products from the United States to the Republic of Cuba on a payment-of-cash-in-advance-only basis.
Since December 2001, the first exports from the United States to the Republic of Cuba under provisions of the TSREEA, the government of the Republic of Cuba has purchased US$5,151,432,158.00 (as of April 2016) in agricultural commodities and food products.
In April 2016, the Obama Administration authorized the importation to the United States, for commercial purposes, of coffee from the Republic of Cuba, with restrictions as to sourcing and production.
There are no statutory impediments to the Obama Administration adding products to the list of eligible products to include sugar, alcohol (rum), tobacco (cigars), tropical fruits, seafood, honey, charcoal and other products (including non-agricultural).
The Obama Administration would need to determine value in maintaining import restrictions based upon the sourcing of the products ("The goods whose import is authorized by Section 515.582 are goods produced by independent Cuban entrepreneurs, as demonstrated by documentary evidence,...") versus accepting that the government of the Republic of Cuba has a dominate role in all export product production, but that, ultimately, there is a benefit to the 11.3 million citizens of the country.
If the Obama Administration wants to further "normalize" the commercial bilateral relationship before 20 January 2017 so as to solidify a post-Obama Administration landscape of activity which may sustain, withstand and potentially expand the 2014-2016 legacy-building efforts, then it will need to move towards the reality of commercial, economic and political structures that currently exist within the Republic of Cuba.
The government of the Republic of Cuba does not have an internationally-recognized organic product certification process or a Fair Trade certification process; and will require both for meaningful export opportunities to the United States:
https://www.ams.usda.gov/services/organic-certification
http://www.fairtrade.net/
If the government of the Republic of Cuba creates a certified organic export marketplace, there would be niche regional and national distribution channels within the United States available for food service and for retail.
However, there will be issues with states that currently produce the same or similar products including, but not limited to, honey (North Dakota/South Dakota/Montana/Florida/California); Charcoal (Missouri); Sugar (Florida/Louisiana/Michigan/Texas/Hawaii); Alcohol (Puerto Rico/Texas/Massachusetts/Colorado/Florida); Tobacco (Connecticut); Seafood (Maine, Massachusetts, Louisiana, Virginia, Washington, Alaska, etc.) and Tropical Fruits (California/Florida).
Members of Congress who are supportive of changing the United States-Republic of Cuba commercial, economic and political landscape may find those efforts strained when confronted by potential import competition for their state-based and district-based companies.
An additional challenge for Members of Congress from states that export agricultural equipment and products is recognizing that the goal of the government of the Republic of Cuba is to develop and sustain an import substitution program so as to grow and process and assemble and manufacture as much food and other related and non-related products as possible.
Thus, a result may be opportunities to export agricultural equipment and products to the Republic of Cuba which will be used to lessen the importation of agricultural commodities and food products from the United States and other countries.
The aspirational view from the United States business community is with increasing visitors to the Republic of Cuba from throughout the world, there will be increase in demand to provide for those visitors. And, the increase in revenues to the Republic of Cuba will result in an increase in the desired and required standard of living for citizens of the Republic of Cuba, which will result in additional imports, even as domestic production of products increase.
The Honorable Alejandro Garcia Padilla (D), Governor of the Commonwealth of Puerto Rico (population 3.5 million), visited the Republic of Cuba to participate (as an observer) in the 4 June 2016 Summit of the Association of Caribbean States (ACS). Governor Garcia Padilla is the first serving governor of Puerto Rico to visit the Republic of Cuba.
During his visit, the Governor reported that the Commonwealth of Puerto Rico was seeking to establish a representative office in the city of Havana, Republic of Cuba, for the purpose of promoting "trade and cultural exchanges."
The Commonwealth of Puerto Rico exported agricultural commodities, food products and healthcare products to the Republic of Cuba valued at US$1,082,168.00 during the period 2003 through 2014 of which US$1,037,563.00 consisted of healthcare products. There were no commercial exports in 2015 or thus far in 2016. During the period 2000 through 2014, product donations from Puerto Rico to the Republic of Cuba were valued at US$1,008,863.00.
The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury "authorizes persons subject to U.S. jurisdiction to may establish and maintain a physical presence in Cuba, such as an office, warehouse, or retail outlet, in Cuba to engage in transactions authorized by or exempt from the CACR in the following categories: entities engaging in non-commercial activities authorized by section 515.574 (Support for the Cuban People); entities engaging in humanitarian projects set forth in section 515.575(b) (Humanitarian projects); private foundations or research or educational institutes engaging in transactions authorized by section 515.576; news bureaus; exporters of certain goods authorized for export or reexport pursuant to 31 CFR §§ 515.533 and 515.559; entities providing mail or parcel transmission services; providers of telecommunications or internet-based services; entities organizing or conducting certain educational activities; religious organizations; and providers of carrier and certain travel services. These persons may employ Cuban nationals in Cuba as well as persons subject to U.S. jurisdiction in Cuba (and such persons may maintain a domicile in Cuba). These persons may open and maintain bank accounts to facilitate authorized transactions. For a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.573. Persons subject to U.S. jurisdiction that do not meet the terms of the general license may apply to OFAC for a specific license. Such applications will be reviewed on a case- by-case basis. Additional authorizations from the Cuban government may also be required."
To establish an office in the Republic of Cuba, the Commonwealth of Puerto Rico, which is severely restrained by financial issues (US$70 billion debt; US$2 billion due 1 July 2016; seeking assistance from the United States Congress) could:
1) Rent office space (US$3,000.00 per month), purchase/import a vehicle (US$30,000.00), have a citizen of Puerto Rico reside in Havana (US$60,000.00), lease an apartment (US$2,000.00 per month) hire a Republic of Cuba national as an assistant (US$10,000.00). The first year cost would be approximately US$160,000.00.
2) Retain (US$3,000.00+ per month) a consultancy/law firm that has a presence within the Republic of Cuba and then have representatives of the Commonwealth of Puerto Rico visit as required (US$10,000.00). The first year cost would be approximately US$46,000.00.
3) Create a reciprocal agreement with the Chamber of Commerce of the Republic of Cuba whereby it would represent the interests of the Commonwealth of Puerto Rico in the Republic of Cuba and the Commonwealth of Puerto Rico would represent the interests of the Chamber of Commerce in Puerto Rico. Each party would contribute its staff and invoice the other party for out-of-pocket expenses. This type of relationship might require a license from the OFAC.
The Honorable Paul Ryan (R- WI)
Speaker of the United States House of Representatives
ACHIEVING U.S. SECURITY THROUGH LEADERSHIP & LIBERTY
9 June 2016
Excerpts….
“The Obama administration took office with the misguided goal of conducting closer engagement with America’s adversaries. They extended an open hand to governments in Cuba, Iran, North Korea, Russia, Syria, and Venezuela, and made damaging concessions often from a position of weakness. In the process, they have emboldened those regimes, alienated our allies, and left America in a more vulnerable strategic position. Now we must take immediate action to repair alliances and partnerships around the globe and to be clear about how the United States treats friends and foes.”
“Finally, in our own backyard we will continue to work with our friends and stem the influence of foes. Our relations with Canada and Mexico are crucial, especially in managing trans-border trade and countering trans-border threats. But we cannot blindly follow the administration’s normalization plan with communist Cuba, a regime that is fundamentally opposed to U.S. policy and that represses an entire population only 90 miles from our coastline. Instead, we will work to restore U.S. leverage, hold the Castro regime accountable, and make sure any further accommodations are met first with real concessions from the Cuban government. A first step should be to ban financial transactions with the Cuban military.”
“Our leverage to promote democracy and human rights should never be squandered. The Obama administration sought to normalize relations with the Castro regime in exchange for the promise of democratic and human rights progress in Cuba. One year into the agreement, which included reopening the American embassy in Havana, the Castro regime is as repressive as ever. In the first two months of 2016 alone, the Cuban Commission for Human Rights registered 2,588 political arrests. Nevertheless, President Obama reneged on his vow to refuse to travel to Cuba until human rights had improved.”
Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton). Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.
Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), which is acquiring Starwood Hotels & Resorts Worldwide, is also in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.
Members of the Board of Directors of Marriott International include:
J.W. Marriott, Jr., Executive Chairman and Chairman of the Board.
From National Public Radio (NPR), 5 April 2012: “Mitt Romney has been far and away the best-funded of the Republicans running for president. In addition to his own campaign chest, he has the wealthiest superPAC backing him, Restore Our Future. Among the donors to Restore Our Future, are hotel tycoons J.W. and Richard Marriott. Each gave $750,000 so far this campaign cycle.”
The Honorable W. Mitt Romney, Former Republican Nominee for President of the United States [Note: Representative Ryan was the Republican Nominee for Vice President of the United States with Governor Romney in 2012], Former Governor of the Commonwealth of Massachusetts
Arne Sorenson, President and Chief Executive Officer; Vice Chairman of the President’s Export Council
United States Department of Commerce
International Trade Administration
Budget Estimates, Fiscal Year 2017
Congressional Submission
Expansion of International Field
The International Field program expansion ($8.2 million of total export expansion) includes 12 Foreign Service Officers (FSOs) and 32 Locally Engaged Staff (LES) located in international markets of U.S. commercial significance to advance U.S. commercial interests, identify opportunities for U.S. exports, clarify local regulations and standards, resolve disputes with foreign local government officials, and counsel companies on the best strategies to succeed in overseas markets.
This initiative will ensure growing support to U.S. companies in core markets. Additionally, it will support the goals of continued increased exports and foreign direct investment attraction; advancement of key regional trade priorities to expand market clusters tied to the Asia Rebalance, such as India and China; Doing Business in Africa, such as South Africa; and opening a presence in Cuba (pending legislative changes that would allow trade promotion engagement). Final staffing allocations will be based on internal analysis and a planning tool developed in partnership with an external consultant.
Additional resources will also help U.S. firms to take more advantage of trade agreements, reductions in barriers to trade, and the growth of the global middle class-creating stability and ongoing market opportunities for U.S. firms. In addition, this will have immediate impacts on the future development of the highly successful U.S.-China Joint Commission on Commerce and Trade (JCCT), the more recently launched U.S.-India Strategic & Commercial Dialogue (S&CD), and the President’s Advisory Council on Doing Business in Africa (PAC-DBIA). These programs are part of GM’s [Global Markets] commercial diplomacy efforts and present medium to long-term market openings. For example, a third party contractor estimated that the maximum possible economic impact of just seven commercial diplomacy Successes in FY 2015 equaled $444 million in increased U.S. exports with an impact on total U.S. economic output of $940 million, which is sufficient to sustain or create 3,539 jobs.
Global Markets will use the additional funding to assist more clients, and serve those clients better through greater industry expertise; more in-depth assistance; and quicker response times. Global Markets succeeds when U.S. companies can compete and win in foreign markets. In FY 2014, 83% of GM clients surveyed reported that they were highly likely to recommend the agency’s services; and 73% reported that the organization’s services and assistance met their objectives.
The United States Department of Agriculture (USDA) has requested an appropriation of US$1.5 million to provide payments for USDA Foreign Agricultural Service (FAS) staffing within the Embassy of the United States in Havana, Republic of Cuba. The request was unanimously approved on 19 May 2016 by the United States Senate Committee on Appropriations; the request requires approval Committee on Appropriations in the United States House of Representatives and then approval by the United States Senate and United States House of Representatives.
From The USDA:
“With the normalization of relations between the United States and Cuba, USDA requires permanent in-country presence there to effectively carry out the USDA mission and advance U.S. agricultural and national security interests. On May 19, the Senate Appropriations Committee unanimously approved a fiscal 2017 appropriations bill that includes $1.5 million to support President Obama’s budget request for USDA staffing in Cuba.”
“In 2017, FAS will conduct its activities and programs through offices in Washington, D.C. and at 94 overseas locations, including Cuba. The overseas offices represent and advocate for U.S. agricultural interests; provide reporting on agricultural policies, production, and trade for more than170 countries; assist U.S. exporters, trade groups, and State export marketing officials in their trade promotion efforts; and help to implement technical assistance and trade capacity building programs that contribute to increased food security. The Budget provides an appropriated funding level of $197 million for FAS activities in 2017, including increased funding for International Cooperative Administrative Support Services, opening an overseas post in Cuba, and pay costs, including for locally employed staff. Agriculture will play an important role as the U.S. and Cuba expand relations, acting as a bridge that can foster cooperation, understanding, and the exchange of ideas. USDA needs an in-country presence in Cuba to cultivate key relationships, gain firsthand knowledge of the country’s agricultural challenges and opportunities, and develop programs of mutual benefit to both countries.”
The USDA has not indicated how the US$1.5 million would be distributed- salaries, housing, transportation, programs, etc.
From The FY 2017 Agriculture Appropriations Bill S. 2956
The Foreign Agricultural Service [FAS] was established March 10, 1953, by Secretary's Memorandum No. 1320, supplement 1. Public Law 83-690, approved August 28, 1954, transferred the agricultural attaches from the Department of State to the Foreign Agricultural Service.
The mission of FAS overseas is to represent U.S. agricultural interests, to promote export of domestic farm products, improve world trade conditions, and report on agricultural production and trade in foreign countries. FAS staff are stationed at 98 offices around the world where they provide expertise in agricultural economics and marketing, as well as provide attache services.
FAS carries out several export assistance programs to counter the adverse effects of unfair trade practices by competitors on U.S. agricultural trade. The Market Access Program [MAP] conducts both generic and brand-identified promotional programs in conjunction with nonprofit agricultural associations and private firms financed through reimbursable CCC payments.
The General Sales Manager was established pursuant to section 5(f) of the charter of the Commodity Credit Corporation and 15 U.S.C. 714-714p. The funds allocated to the General Sales Manager are used for conducting the following programs: (1) CCC Export Credit Guarantee Program (GSM-102), including facilities financing guarantees; (2) Food for Peace; (3) section 416b Overseas Donations Program; (4) Market Access Program; and (5) programs authorized by the Commodity Credit Corporation Charter Act including barter, export sales of most CCC-owned commodities, export payments, and other programs as assigned to encourage and enhance the export of U.S. agricultural commodities.
COMMITTEE RECOMMENDATIONS
The Committee recommends $202,645,000 for the Foreign Agricultural Service, including a direct appropriation of $196,571,000. The Committee recommendation includes $1,500,000, as requested in the budget, to establish an overseas post in Cuba.
U.S. Transportation Secretary Foxx Approves U.S. Airlines To Begin Scheduled Service to Cuba
WASHINGTON – As part of the Obama Administration’s efforts to normalize relations with Cuba, the U.S. Department of Transportation (DOT) has approved six domestic airlines to begin scheduled flights between Miami, Fort Lauderdale, Chicago, Philadelphia, and Minneapolis/St. Paul and Cuba as early as this fall.
“Last year, President Obama announced that it was time to ‘begin a new journey’ with the Cuban people,” said U.S. Transportation Secretary Anthony Foxx. “Today, we are delivering on his promise by re-launching scheduled air service to Cuba after more than half a century.”
On February 16, 2016, Secretary Foxx and Department of State Assistant Secretary for Economic and Business Affairs Charles Rivkin signed a non-legally-binding arrangement to re-establish scheduled air service between the two countries. At the time of the signing, the administration announced that scheduled service would begin later in 2016.
The carriers receiving the awards are American Airlines, Frontier Airlines, JetBlue Airways, Silver Airways, Southwest Airlines, and Sun Country Airlines.
The five U.S. cities that will receive new scheduled service to Cuba are Miami, Fort Lauderdale, Chicago, Minneapolis/St. Paul, and Philadelphia. The nine Cuban cities are Camagüey, Cayo Coco, Cayo Largo, Cienfuegos, Holguín, Manzanillo, Matanzas, Santa Clara, and Santiago de Cuba.
Under the new arrangement, each country has the opportunity to operate up to 10 daily roundtrip flights between the U.S. and each of Cuba’s nine international airports, other than Havana, for a total of 90 daily roundtrips. Longer term, the arrangement also provides for up to 20 daily roundtrip flights between the U.S. and Havana.
Collectively, U.S. carriers have requested nearly 60 flights per day to Havana, thus requiring DOT to select from among the proposals. A decision on the Havana routes will be announced later this summer.
Interested parties may view the DOT’s decision, track the progress of the case, and view the publicly available documents online at regulations.gov, Docket DOT-OST-2016-0021.
Tuesday, June 7, 2016 08:30 AM
Mobile app and online offerings solidify Western Union’s more than 15 years of serving Cuba
ENGLEWOOD, Colo. & HAVANA--(BUSINESS WIRE)-- The Western Union Company (NYSE: WU), a leader in global payments, today pioneered mobile and online money transfers to Cuba via the Western Union app and wu.com in the U.S., paving the way for a new generation of tech-savvy customers to move money into Cuba in minutes.*
The move solidifies Western Union’s more than 15 years of serving Cuba and reflects its commitment to bring access to its global omni-channel strategy to the Cuban diaspora in the United States.
Consumers using wu.com or the mobile app in the U.S. can select the new “Send to Cuba” option to send and track their money transfers, until they are paid out in minutes in local currency (Cuban convertible pesos) at Western Union’s extensive network of 420 Agent locations in Cuba. Western Union is represented across every one of Cuba’s 16 provinces and 168 municipalities through its principal Agent, Fincimex.
“Western Union has been helping Cubans in the U.S. to send money to their loved ones back home for more than 15 years,” said Odilon Almeida, Western Union president of the Americas and European Union. “Pioneering a new way for our U.S. customers to send money into Cuba via wu.com and our mobile application is yet another milestone in servicing this historic island nation.”
“We expedited activation of our digital money transfer convenience for senders in the Cuban diaspora as we know first-hand the value of remittances to the economic security of families and funding of small businesses. Expanding accessibility and moving money in minutes is what underpins our entire omni-channel strategy.”
Western Union’s four-star rated1 mobile app for iOS and Android is fast and free to download. The app’s streamlined design makes transfers easy to make and track to nearly 500,000 agent locations worldwide, including 420 in Cuba. For convenience, contact information can be saved on the app for quick repeat sending.2
Western Union has now enabled consumers in 29 countries to send money transfers to Cuba.
“Digital money transfer is an area of focus across the world for Western Union led strongly by the United States. More than 55 percent of our total wu.com outbound money transfer services now originate via mobile,” Almeida explains.
Speeding up the pace of digital money transfer into Cuba is good news for both senders and receivers. Hispanics are more likely to use their mobile phones more often than non-Hispanics to transfer money to someone else.3 Remittances to Cuba from all countries were estimated at $1.2 billion in 2013 and 2014, according to a February 2015 report by the Inter-American Dialogue. The majority of money transfers to Cuba are from the U.S., where preferences for mobile and online money transfer services are increasing, especially by younger consumers (under 35 years old).4
According to the Economic Commission for Latin America and the Caribbean (ECLAC), remittances currently reach 62 percent of Cuban households, sustain about 90 percent of the retail market and provide thousands of jobs.5 “Remittances [to Cuba] are the major source of capitalization for small businesses catering to the growing visitor demand,” notesGuillermo J. Grenier, Ph.D. Professor of Sociology, Florida International University and principal investigator of the FIU Cuba Poll, which has been measuring the relationships between the Cuban diaspora in Miami and US/Cuba policy since 1991.
Consumers are looking for different options to send money, and Western Union offers fast and easy to use digital platforms to meet their needs. Western Union has been investing in a technology backbone to improve the customer experience and has optimized money transfer systems to link cash and digital to enhance speed, reliability and convenience, so customers can have choices for sending money to Cuba and the rest of the world.
* Date available will be displayed on receipt. Service and funds availability depends on certain factors including the Service selected, the select ion of delayed delivery options, special terms applicable to each Service, amount sent, destination country, currency availability, regulatory issues, consumer protection issues, identification requirements, delivery restrictions, agent location hours, and differences in time zones (collectively, “Restrictions”).
About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31, 2015, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks, and included the capability to send money to over one billion accounts. In 2015, The Western Union Company completed 262 million consumer-to-consumer transactions worldwide, moving $82 billion of principal between consumers, and 508 million business payments. For more information, visit www.westernunion.com.
Established in 1994, the U.S.-Cuba Trade and Economic Council provides an efficient and sustainable educational structure in which the United States business community may access accurate, consistent, and timely information and analysis on matters and issues of interest regarding United States-Republic of Cuba commercial, economic, and political relations.
Economic Eye On Cuba (EEOC)- posts are corrected and revised as new information becomes available
