Compare The Statements..... US Gives Far Less Information; What Does That Mean?

From The United States Department of State:

United States and Cuba Held Third Regulatory Dialogue

Media Note
Office of the Spokesperson
Washington, DC
July 13, 2016

The third U.S.-Cuba Regulatory Dialogue took place in Havana July 12-13, 2016. The U.S. delegation included officials from the Departments of Commerce, the Treasury, and State, and continued discussions from previous dialogues held in October 2015 and February 2016.

U.S. officials described regulatory changes that were announced on March 16 related to Cuba-related travel, commerce, and financial transactions. The delegations addressed ways the two nations can work together within existing U.S. laws and regulations.

From The Ministry Of Foreign Affairs Of The Republic Of Cuba:

CUBA, July 13, 2016.- Representatives of Cuba and the United States held, on 12 and 13 July in Havana, the third meeting of the Dialogue on Regulatory Issues, a mechanism established in October 2015 between government entities of both countries to assess the extent and impact of the changes introduced by the Government of the United States in implementing some aspects of the embargo on economic, trade and financial linkages, constraints and remaining obstacles to its implementation, as well as regulations force in Cuba for trade and financial relations.

The opening of the meeting was led by Cuban Deputy Minister of Foreign Trade and Foreign Investment, Ileana Nunez Mordoche, and Coordinator of the Office of Cuban Affairs, Department of State, Mark Wells.  In the two-day exchange included officials of the Ministry of Foreign Trade and Foreign Investment, and the Central Bank of Cuba, as well as, the Ministries of Foreign Affairs, and Economy and Finance and Prices.  For the United States were present officials of the Departments of Treasury, Commerce and State. (Cubaminrex)

United States, Cuba, and Mexico: Resolving Maritime Boundaries; US Refuses To Name Participants

United States, Cuba, and Mexico: Resolving Maritime Boundaries

Media Note
Office of the Spokesperson
Washington, DC
July 7, 2016

Delegations from the United States, Cuba, and Mexico met, July 5-7, in Mexico City to discuss unresolved maritime boundaries in the eastern Gulf of Mexico, commonly referred to as the “Eastern Gap.” Government representatives discussed delimiting maritime boundaries in areas of the continental shelf that are more than 200 nautical miles from each country’s shore. The multilateral meeting added to previous bilateral efforts between the United States and both Mexico and Cuba to promote maritime safety.

Since re-establishing diplomatic relations on July 20, 2015, the United States and Cuba have cooperated on several environmental issues, including releasing a joint statement on environmental protection cooperation and sharing hydrographic information for nautical charting.

NOTE: The United States Department of State has refused to provide the names of the departments and agencies of the United States government that participated in the meetings.

Cuba- Last Week’s Mistakes By Members Of Congress/Advocates Could Hurt U.S. Companies

Cuba- Last Week’s Mistakes By Members Of Congress/Advocates Could Hurt U.S. Companies

Cuba Advocacy & Lobbying Can Be Effective…. Usually Ensuring More Next Year

Failure Now Creates Revenue Opportunities For Advocates & Lobbyists

192 Days Remaining….

12 July 2016

"There is real momentum," said The Honorable Mark Sanford (R- South Carolina), a member of the United States House of Representatives, last week.  He then had no mention of the events of last week on his www.house.gov page as of 9 July 2016.

“…a proper path forward and we agreed to find a solution that does a number of things,” said The Honorable Rick Crawford (R- Arkansas), a member of the United States House of Representatives, last week.  He also shared “a long-term solution,” “thorough examination,” and “deliberative process across each relevant committee of jurisdiction.”  Representative Crawford then had no mention of the events of last week on his www.house.gov page as of 9 July 2016. 

“… a historic compromise” and “major step forward,” said Washington, DC-based EngageCuba, adding “reached an agreement to find a long-term solution to provide credit for the export of agricultural commodities to Cuba.” 

And, the organization’s president, Mr. James Williams, offered this to those who have opposed his efforts, “their position is no longer tenable.”  Is this a winning-votes strategy by a grass-roots organizer or a self-professed effective advocate/consultant/lobbyist?

“…redouble its efforts with this Congress,” said Ms. Devry Vorwerk of the Washington, DC-based U.S. Agriculture Coalition for Cuba.  Would this be the 114th Congress about to recess for the upcoming elections, with few remaining legislative days before formally adjourning in December 2016? 

The government of the Republic of Cuba could not have been enthusiastic when their advocates engineered not one, but two, legislative failures within twenty-four (24) hours. 

The result all but assures no legislation in the 114th Congress and simultaneously harms the foundations for advocacy in the 115th Congress- during which issues relating to the Republic of Cuba will again not be a priority for the leadership in either the United States House of Representatives or the United States Senate; or probably the next president.

Why are advocates focusing upon legislation when regulation and policy change are more efficient mechanisms by which to expand the commercial, economic and political relationship between the United States the Republic of Cuba during the remaining 192 days of the Obama Administration? 

One reason, jobs- their own that is.  Did the Members of Congress coordinate their efforts with the self-appointed Republic of Cuba policy advocates?  If so, how should responsibility for the failures be apportioned?

COMPLETE REPORT IN PDF FORMAT

Western Union Supporting Entrepreneurship Program For Young Cubans

Cuban entrepreneurs return to the island with ideas, connections and new possibilities

Cuban Research Institute
Florida International University
InCubando@FIU Program

8 July 2016

Western Union, a global leader of payments, is a lead financial sponsor of the program and contributed to the curriculum by hosting seminars on leadership, compliance, operations, sales and marketing at its Miami based regional headquarters.

Western Union has a 15-year track record of moving money into Cuba. The company has enabled consumers in more than 30 countries to send money transfers to Cuba, and recently pioneered digital money transfer services into Cuba from the U.S.

“Western Union is proud to be associated with the InCubando@FIU program, which aims to ground these entrepreneurs with global business skills while nurturing their innovative spirit and enthusiasm,” said Odilon Almeida, Western Union president of the Americas and European Union. “I was honored to welcome and share Western Union’s culture and our way of operations while also sharing some personal leadership values.”

At the end of this week a group of Cuban entrepreneurs will be returning to the island after completing the InCubando@FIU summer program. Over the last six weeks, the participants have taken basic business and intensive English classes on campus. They also have had an opportunity to spend time with local business leaders who have served as mentors during their time in Miami.

“InCubando has been a great experience for me; it has allowed me to identify the stage in which my business finds itself at this moment, and to learn the strategies I need to continue to grow it,” said Marta Deus, InCubando participant and owner of Deus Expertos Contables. “As soon as I arrive in Cuba, I will start implementing the skills I have learned here and expect to see them pay off in the next six months.”

The InCubando@FIU Fellows, all under the age of 40, were selected from a pool of more than a hundred applicants from all over the island. They represent a broad spectrum of the micro-enterprises that have sprouted in Cuba in the last few years, in the spaces of media, fashion design, apparel manufacturing, financial services and hospitality.

“This program was designed specifically to meet the needs of entrepreneurs who have not had the support or the instruction and yet are running very promising enterprises under difficult conditions in Cuba,” said Director of the FIU Cuban Research Institute Jorge Duany, one of the organizers of the program. “At FIU and in Miami we have resources and know how that can be instrumental in supporting Cubans on the island as they make their way in this new environment.”InCubando@FIU is funded through private donations and a partnership with StartUp Cuba, a project of Roots of Hope, a Miami organization dedicated to connecting with and empowering Cuban youth on and off the island.

“Entrepreneurs have always been at the center of life in Cuba, even in the most challenging times. We’re excited to help build bridges between entrepreneurs on both sides of the Florida Straits,” said Raúl Moas, executive director of Roots of Hope, the nonprofit sponsor of StartUp Cuba. “It is an opportunity for us to support young Cuban entrepreneurs who are already carrying out a real transformation of Cuba.”

US Food/Ag Exports To Cuba In May Decrease By 27%; And By 24% For First Five Months Of 2016

MAY FOOD/AG EXPORTS DECREASED 27%- Exports of food products & agricultural products from the United States to the Republic of Cuba in May 2016 were US$19,384,881.00 compared to US$26,420,677.00 in May 2015.  For the period January-May 2016 compared to January-May 2015, exports decreased by 24%.  

The Trade Sanctions Reform and Export Enhancement Act of 2000 (TSREEA) 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.  The TSREEA does not include healthcare products, which remain authorized by CDA.

The data represents the U.S. Dollar value of product exported in April 2016 from the United States to the Republic of Cuba under the TSREEA.  The data does not include transportation charges, bank charges, or other costs associated with exports; the government of the Republic of Cuba reports unverifiable data that includes transportation charges, bank charges, and other costs.    

The primary reasons for the cumulative reduction in United States exports to the Republic of Cuba 1) lack of foreign exchange due to commercial and economic decisions of the government of the Republic of Cuba which lessen its ability to earn foreign exchange.  2) financial largess of the government of Venezuela lessens the interest of the government of the Republic of Cuba to purchase products from the United States, regardless of cost, quality, or delivery considerations.  3) financial largess of the government of the People’s Republic of China lessens the interest of the government of the Republic of Cuba to purchase products from the United States, regardless of cost, quality, or delivery considerations.  4) re-emergence and/or continuation of import relationships (barter, substantial credits, political motivation) with the governments of Brazil, Argentina, Vietnam, Mexico, Spain, Mexico, Canada, Russia, Iran, New Zealand, and France amongst other countries.  5) preference to purchase products from government-controlled entities, which provide more favorable payment terms and less publicity when payment terms are not honored, which is expected given the lack of foreign exchange of government of the Republic of Cuba.  6) efforts (which had been successful, but had lessened in their effectiveness) by the government of the Republic of Cuba to increase the motivation of United States-based companies, organizations; state and local government representatives; and Members of the United States Congress to be more visible in their lobbying efforts for changes in United States policy, law, and regulations.   

Government of Vietnam-operated Vinafood 1 and Vinafood 2 have provided payment terms to Republic of Cuba government-operated Empresa Cubana Importadora Alimentos (Alimport), under the auspice of the Ministry of Foreign Trade of Cuba (MINCEX), of up to two years to pay for rice (25% to 30% broken).  United States producers can provide this product; payment terms, however, without the use of government programs, would be cash-on-delivery to 30 days; and for credit-worthy customers, generally not exceed sixty days to ninety days.

The reduction in exports from the United States to the Republic of Cuba is not the result of changes in payment regulations implemented by the OFAC during later years of the Bush Administration, which had permitted an expansive definition of payment terms.  The payment regulations were again made expansive in January 2015.

Cuba Trade Amendment Withdrawn As House Leaders Promise Path Forward

Inside US Trade
Daily News
Cuba Trade Amendment Withdrawn As House Leaders Promise Path Forward

7 July 2016

Supporters on July 6 withdrew their proposed amendment to the House financial services appropriations bill allowing private credit to be issued to Cuba for the purchase of U.S. agricultural products, with a promise in hand from the House GOP leadership that there will be a separate path forward through a committee markup for a separate stand-alone bill.

Rep. Rick Crawford (R-AR) said he would not offer his amendment to the appropriations bill after he secured commitments that include a meeting with Florida lawmakers who oppose the amendment. The goal is to work on a solution that removes market access barriers U.S. farmers face when selling their products in Cuba.

“Until today, there seemed to be no path forward for an agreement,” Crawford said on the House floor. “But we've gotten commitments from leadership and my friends from Florida that there will be a proper path forward and we agreed to find a solution that does a number of things.”

A Crawford spokesman said the commitments include a path forward for the lawmaker's original bill, H.R. 3687, which was introduced on Oct. 6, 2015. The bill was referred to the Agriculture Committee, where it has remained ever since.

Crawford prefers moving H.R. 3687 since that will be a permanent way to improve access to Cuba for U.S. agricultural products as opposed to an appropriations bill amendment that needs to be approved annually, the spokesman said.

The bill has been promised a path forward in either the agriculture, financial services or foreign affairs committees, the spokesman said. Crawford hopes to move the bill by the end of the year, potentially during the lame-duck session.

In his response to Crawford, Rep. Mario Diaz-Balart (R-FL) said the government should help U.S. farmers sell their products throughout the world, but took issue with policies that support the Castro regime. Diaz-Balart is one of the Florida lawmakers who will meet with Crawford.

“[W]e cannot at the same time help a communist regime that harbors and supports terrorists and fugitives from U.S. law, the largest confiscator of U.S. property in history, fails to pay its debt, is one of the worst violators of human rights and religious freedom in the western hemisphere, is a top counterintelligence threat to the United States and a threat to democracy in Latin America,” Diaz-Balart said.

A similar Cuba amendment is still included in the Senate version of the financial services appropriations bill, which awaits floor action.

Similar language was also tacked onto a Senate appropriations bill last year, but was removed from the final version during House-Senate negotiations. Congressional and other sources said a similar outcome could happen this year with several key lawmakers opposed to ending the Cuban embargo.

House Speaker Paul Ryan (R-WI) has repeatedly criticized President Barack Obama's push to normalize relations with Cuba without securing various commitments in return, sources following the Cuba embargo have said. Those sources added that Senate Majority Leader Mitch McConnell (R-KY) is focused on preserving the Republican majority in the Senate and is unlikely to spend his time on Cuba, especially with several key members opposed -- including three senators of Cuban descent who have criticized Obama's actions on Cuba: Marco Rubio (R-FL), Ted Cruz (R-TX) and Robert Menendez (D-NJ).

Questions also remain on whether U.S. companies want to lend to Cuba because of its poor credit history and whether those companies will offer terms competitive with government-backed credits from Canada, the European Union, China and Vietnam. Many governmental financial terms offer longer repayments than private lenders, sources said.

US Visitor Arrivals To Cuba Could Exceed 301,000 For 2016; US$660 Million Economic Impact In Cuba

In 2015, the Ministry of Tourism of the Republic of Cuba reported 161,233 visitors from the United States; this number excluded individuals of Cuban descent (with or without Republic of Cuba-issued passports) who visited the country.

The Ministry of Tourism of the Republic of Cuba reported that for the period January 2016 through June 2016, visitors from the United States increased by 84%.

For calendar year 2016, visitors from the United States to the Republic of Cuba could exceed 301,000 with the introduction of regularly-scheduled commercial flights which will increase frequency, destinations, and lower pricing and continuation of cruise ship operations (which are expected to increase).

The gross economic impact to the Republic of Cuba by the 301,000 visitors would exceed US$660 million (landing fees, cruise ship fees, baggage fees, visa fees, ground transportation, hotels, meals, tours, sundries, gifts, gratuities, etc.).

The Ministry of the Republic of Cuba reported 3,524,779 tourist arrivals in 2015 compared to 3,002,745 tourist arrivals in 2014.

There Are 20 Routes; US Airlines Wanted 70 US; Requested 3.4 Million Seats; DOT Authorized 1.2 Million Seats Cuba Has 64,000 Hotel Rooms With 80% Occupancy Rates

There Are 20 Routes; US Airlines Wanted 70
US Airlines Requested 3.4 Million Seats; DOT Authorizing 1.2 Million Seats
Cuba Has 64,000 Hotel Rooms With 80% Occupancy Rates

Today, the United States Department of Transportation (DOT) awarded twenty (20) daily nonstop routes between the United States and Jose Marti International Airport (HAV) in Havana, Republic of Cuba.  

Eight (8) United States air carriers were awarded twenty US-HAV non-stop routes; United States air carriers sought US-HAV non-stop routes from twenty (20) airports; the DOT awarded routes from eleven (11) airports.  Which United States air carrier received the most of what it sought?

Alaska Airlines received 100% of its application
American Airlines received 40% of its application
Delta Air Lines received 75% of its application
Frontier Airlines received 50% of its application
JetBlue Airways received 50% of its application
Southwest Airlines received 66% of its application
Spirit Airlines received 100% of its application
United Airlines received 40% of its application

There are fifteen (15) aircraft seating configurations included in the daily non-stop US-HAV route applications (280, 200, 199, 186, 181, 180, 175, 162, 160, 154, 145, 144, 143, 126, 34).   

The average seat capacity of the aircraft to be used for daily flights (per the applications) is 164.60 (which is skewed lower due to the use of Saab 340B 34-seat aircraft by Silver Airways).  

Thus, for the twenty (20) awarded routes, there will be 3,418 seats available per day; 23,899 seats available per week, and 1,242,748 seats available per year.

Twelve (12) United States air carriers have applied for forty-five (45) daily non-stop US-HAV routes and thirty-five (35) non-stop US-HAV routes that would not operate daily- once per week, twice per week, three times per week, four times per week, and five times per week).  A total of seventy (70) flights per week.

The twelve air carriers have applied for non-stop US-HAV routes from a total of twenty (20) United States airports:

For the forty-five (45) US-HAV routes, daily seating capacity would be 8,640; weekly seating capacity would be 60,480; and yearly seating capacity would be 3,144,960.

For the thirty-five (35) non-daily US-HAV routes, United States air carriers are seeking a total of 5,068 seats per week; for a yearly seating capacity of 263,536.

United States air carriers are seeking eighty (80) US-HAV routes with a combined yearly seating capacity of 3,408,496.

The following are the route US-HAV route applications submitted by United States air carriers to the DOT:

FOR COMPLETE ANALYSIS CLICK HERE

U.S. Transportation Secretary Foxx Proposes U.S. Airlines and Cities for New Scheduled Service to Havana

WASHINGTON – As part of the Obama Administration’s historic effort to normalize relations with Cuba, the U.S. Department of Transportation (DOT) today proposed to select eight U.S. airlines to begin scheduled flights between Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami, Newark, New York City, Orlando, and Tampa and Havana as early as this fall.  Today’s proposal comes nearly one year after the United States and Cuba reestablished diplomatic relations in July 2015.

“Today we take another important step toward delivering on President Obama’s promise to reengage Cuba,” said U.S. Transportation Secretary Anthony Foxx.  “Restoring regular air service holds tremendous potential to reunite Cuban American families and foster education and opportunities for American businesses of all sizes.”

A dozen U.S. airlines applied for the chance to operate scheduled passenger and cargo service to Havana.  Collectively, the airlines applied for nearly 60 flights per day to Havana, exceeding the 20 daily flights made available by arrangement between the two governments.  The Department’s principal objective in making its proposed selections was to maximize public benefits, including choosing airlines that offered and could maintain the best ongoing service between the U.S. and Havana.

The airlines receiving the tentative awards are Alaska Airlines, American Airlines, Delta Air Lines, Frontier Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, and United Airlines. 

DOT’s proposal allocates nonstop Havana service to areas of substantial Cuban-American population, as well as to important aviation hub cities. 

The Department’s process of selecting carriers offers an opportunity to present the public with a wide array of travel choices in the type of airline (network, low-cost, ultra-low-cost); choices of airport; and choices of non-stop or connecting service.  The DOT’s proposed selections would simultaneously address service needs while promoting competition.

On February 16, 2016, Secretary Foxx and Department of State Assistant Secretary for Economic and Business Affairs Charles Rivkin signed an arrangement with their Cuban counterparts opening the way for scheduled air service between the two countries to resume after more than 50 years.  This new arrangement will facilitate visits for travelers that fall under one of 12 categories authorized by the U.S. Department of the Treasury’s Office of Foreign Assets Control.  At the time of the signing, the administration announced that scheduled service would begin later in 2016.

Under the arrangement, each country may operate up to 20 daily roundtrip flights between the U.S. and Havana.  The arrangement also provides each country with 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.  DOT announced the approval of six U.S. airlines’ applications to serve cities other than Havana on June 10.

Objections to the DOT’s tentative decision are due by July 22.  If objections are filed, answers to objections will be due by July 29.  The DOT expects to reach a final decision later this summer.  The tentative decision and other documents in the case are available online at regulations.gov, docket DOT-OST-2016-0021.

COMPLETE DOT ORDER

Lt. Governor Of Washington Leading 18-Member Delegation To Cuba In September 2016; Including Amazon Executive

From 4 September 2016 to 10 September 2016, a eighteen (18) member delegation led by Lieutenant Governor Brad Owen (D) will visit the Republic of Cuba.  In office since 1997, Mr. Owen is the longest currently serving lieutenant governor in the United States.  The governor of Washington is Mr. Jay Inslee (D).  

The trade mission was conceived by State Senator Karen Keiser (D- 33rd District; Kent), who approached the Lieutenant Governor.  

From Governor Inslee’s office:

“Washington state looks forward to developing trade relations with Cuba.  As home to many of the best known international brands ranging from Boeing to Amazon and Microsoft to Starbucks we know Washington companies will be successful in the Cuban market place. We are particularly looking forward to exporting our world renown agricultural products and wines to the country. We also expect that many of our state’s smaller and medium sized businesses will find Cuba to be an attractive market for trade. 

This trade mission is arranged independently by the Lt. Governor’s office. Due to schedule conflicts, Gov. Inslee was not able to make a trip to the area at this time.” 

Although the visit is contextually defined as a trade mission, the focus of the visit, thus far, is healthcare systems, not export or import of products or services.  There are no representatives yet from product Boeing, Microsoft or Starbucks (coffee from the Republic of Cuba is permitted to be imported to the United States for commercial use).   

According to the Lieutenant Governor’s office, the Washington State Department of Agriculture was not interested in having a representative(s) participate in the visit as the Republic of Cuba is not “a viable market yet, shipping would be too expensive and the fact that the Pacific Rim market is really strong right now.” 

According to the Lieutenant Governor, the purpose of the “mission is to walk through the entire healthcare system, from the Minister of Public Health to medical universities to local clinics… plan to visit some pharma agriculture sites…. We will walk through the entire healthcare system, from the Ministry of Public Health to local clinics.” 

The cost per person is US$4,000.00, a portion of which will be used to underwrite the costs for the Lieutenant Governor and Mr. Ken Stamp, his Chief of Staff.   

Unknown if legislators participating in the visit will be using state funds, campaign funds or personal funds for payment for themselves, staff and spouse.  Unknown if representatives from Washington State University and Washington State Department of Health will be using state funds for payment.  Unknown if the former member of the State Senate will be using campaign funds or personal funds for payment. 

The Delegation 

Lt. Governor Brad Owen (D)

State Senator Karen Keiser (D) 

State Senator Steve Conway (D) 

State Senator Don Benton (R) 

State Senator John McCoy (D) and Mrs. Janet McCoy

Ms. Lisa Brown, Chancellor, Washington State University/ Elson S. Floyd College of Medicine

Ms. Paj Nandi, Director of Community Relations- Washington State Department of Health

Mr. Dan Dixon, Senior Executive & Vice President of Public Affairs- Providence (Catholic) Health & Services and President of Board of Directors for Global to Local

Mr. Adam Taylor, Executive Director- Global to Local

Dr. Erika Bliss, Chief Executive Officer- Qliance Management Inc. 

Ms. Lisa Thatcher, (Lobbyist- Lisa Thatcher, Inc.)- Qliance Management Inc. 

Ms. Cassie Sauer, Executive Vice President- Washington State Hospital Association

Ms. Cindy Gamble, Member- Partnerships for Native Health (Washington State University) 

Mr. Babk Parviz, Vice President- Amazon.com, Inc. 

Mr. Ken Camp, Chief of Staff- Lieutenant Governor Owen

Ms. Kimberlie Lelli, Legislative Assistant- State Senator Conway

Ms. Cheryl Pflug (R), Former State Senator

PDF Format Text

“Hecho En Cuba” Begins To Mean Something…. Is The Obama Administration Complying With Its Regulations?

On 26 June 2016, New York, New York-based Nestle Nespresso USA, Inc., a subsidiary of Vevey, Switzerland-based Nestle SA (2015 revenues approximately US$94 billion), placed a full-page color advertisement (see below) featuring its new Cafecito de Cuba capsule on page 24 (the back of the first section) in the national edition of The New York Times.  The cost was approximately US$175,110.54 to reach an audited circulation of 1,140,015 readers.

Significant that the advertisement placed in The New York Times was not to promote a service, it was to promote a product.  The date of 26 June 2016 commenced a re-branding of the Republic of Cuba- from primarily a visitor destination to an origin of consumer products.

For any United States-based company, the words "Hecho en Cuba" (Made in Cuba) will have greater perceived marketing value due to the marketing expenditures in the United States by Nestle Nespresso USA, Inc.

Nestle Multi-Product Strategy

Is this a "one-off" marketing effort?  Doubtful.  Nestle SA is positioning itself to be an importer to the United States of confections, ice cream, beverages, and other consumables sourced in the Republic of Cuba.  

Nestle SA has a multi-decade interest in the Republic of Cuba.  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 bottled water production (Ciego Montero) and beverage production; and imports products for sale at retail stores.  In 2014, Nestle Nespresso released “Limited Edition Cubanía; Inspired by the passion and intensity of Cuban coffee ritual” that did not contain coffee from the Republic of Cuba.

Not lost on management of United States-based companies is a preference by the government of the Republic of Cuba to permit a non-United States-based company to do what the Obama Administration has authorized a United States-based company to do with respect to the direct importation of agricultural commodities (thus far only coffee) from the Republic of Cuba.

To be eligible for import into the United States, a listed 515.582 product (in this case coffee) must be “produced by independent Cuban entrepreneurs, as demonstrated by documentary evidence.”  From the United States Department of State: “Persons subject to US jurisdiction engaging in import transactions involving goods produced by an independent Cuban entrepreneur pursuant to 515.582 must obtain documentary evidence that demonstrates the entrepreneur's independent status, such as a copy of a license to be self-employed issued by the Cuban government, or in the case of an entity, evidence that demonstrates that the entity is a private entity that is not owned or controlled by the Cuban government.”

On 5 May 2016, the National Bureau of Small Farmers Association (ANAP) of the Republic of Cuba, which represents farmers throughout the country, responded to the 22 April 2016 decision by the Obama Administration to authorize the direct export to the United States of coffee sourced from "independent" entities.  According to statements from the ANAP, "no one can think that a small agricultural producer can export directly to the United States... To make this possible, Cuban foreign trade companies [Republic of Cuba government-operated entities] have to take part in the process and financial transactions in dollars have to be conducted, and this has not yet been secured."

The 20 June 2016 media release (compete text follows later in this analysis) by Nestle Nespresso USA, Inc., included “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.”

Is There Compliance?

Executives of United States-based companies and two (2) former attorneys with the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, which issued a license to Nestle Nespresso USA, Inc., remain uncertain as to conditions a license was issued based upon the regulations.  One comment, “… there is no evidence Nestle [Nespresso USA, Inc.] abided by the regulation - instead it seems to have procured a specific license authorizing it to import a non-compliant product into the US in direct contradiction to the published rules; hopefully this is not accurate.”

The media release by Nestle Nespresso USA, Inc., did not provide evidence of compliance with United States Department of State requirements- those requirements are about what is and not what will be- the present tense; they require existence, not intention to develop.  The media release is absent on 1) the type of farm/plantation(s) that is the source and will in the future be the source for the coffee; are there potential land claims under provisions of the Libertad Act of 1996?  If it were an artisan-produced coffee, it would assist with product marketing, as well as, legal compliance to confirm and 2) evidence that independent coffee production (as required by the regulations) is possible in the Republic of Cuba- the available proof is to the contrary.

As for the requirement that independent entrepreneurs must “produce” the product: the coffee has already and will be exported to Europe, a Europe-based company will process (roast) and package the coffee for distribution.  An argument could be made, less evidence to the contrary, that the product to be imported to the United States may be at least as much a product of Switzerland as it is a product of “independent Cuban entrepreneurs.”

Not yet disclosed are financial details of the transaction.  How much were the farmers paid- in CUC’s or Cuban Pesos or Convertible Currency?  Laboring wages, or do they receive payment for coffee beans?  How much of the total payment is directed to the government of the Republic of Cuba- in CUC’s or Cuban Pesos or Convertible Currency?  What role does the government of the Republic of Cuba have in the production of the coffee (planting, tending, harvesting, processing, packing, transportation, etc.)?

The Obama Administration has been expansive with respect to contorting/creating a regulatory definition narrative which accepts the status quo in the Republic of Cuba rather than adhering to written policy declarations.  The goal is to seek any means to authorize a component of President Obama’s legacy initiatives.  Which transitions to a question: Why is the Obama Administration creating sometimes constrictive regulations if known the regulations will likely be supplanted during the licensing process?

Reward & Message

For the government of the Republic of Cuba, engaging with Nestle S.A. is a reward for its commercial relationship with the Republic of Cuba and provides a message to non-United States-based companies with commercial relationships with the Republic of Cuba that they will not be forgotten in the rush by United States-based companies who seek commercial opportunities with Republic of Cuba government-operated companies.  The government of the Republic of Cuba may or may not have considered this message in the decision-making process relating to Nestle S.A.

Representatives of the government of the Republic of Cuba knew Nestle Nespresso USA, Inc., was seeking a license from the OFAC while at the same time they were receiving interest by United States-based companies; the government of the Republic of Cuba gave no hint or felt compelled to provide a benefit to the United States-based companies.

10,000 miles versus 93-600 miles

Rather than contract with a United States-based company to directly import green (unroasted), roasted bulk or roasted packaged (ground and unground), a container distance of ninety-three miles (Florida) to six hundred miles (Alabama), the government of the Republic of Cuba preferred to initially export green (unroasted) coffee beans to companies located on the European continent, a distance of approximately 5,000 miles, have the beans roasted and then packaged by Nestle Nespresso before being transported 5,000 miles to the United States for distribution (e-commerce, food service, and 3,740 retail outlets and 37 boutiques) through Nestle Nespresso USA Inc.

By contracting with a non-United States-based company, the government of the Republic of Cuba positions itself to interact with a global company (Nestle S.A.), provides revenues to companies in Europe (transportation; roasters), more efficiently receives payment for its product (direct correspondent banking), complies with United States regulations (OFAC), and creates branding opportunities in the United States.   

Interest From The United Kingdom

“20 June 2016- London, United Kingdom-listed Cuban specialist investment company Leni Gas Cuba Limited has acquired a 10% interest in The Cuba Mountain Coffee Company for an investment of £27,300 (approximately US$40,000.00).  CMC is an English company founded in 2013 to promote, on a worldwide basis, single-origin gourmet coffee from Cuba's famous Guantanamo Region, both as green beans and also via CMC's own bespoke coffee brand, ‘Alma de Cuba.’ CMC signed a Letter of Intent in April 2015 and an International Economic Association Contract has been discussed and is going through the various stages of Cuban government approval with Grupo Agro Forrestal and Empresa Procesadora de Café Asdrúbal López Vazquez for green bean coffee supplies.  AL is a part of the Ministry of Agriculture/Grupo Agro Forrestal, which controls the majority of the green coffee processing in Cuba.  CMC is working towards formalising a definitive ten-year (extendable) IEA with AL in the Guantanamo Province that will provide, over a five-year period, capital and equipment to improve the processing and quality of green beans from the region. In return, CMC will obtain the rights to an increasing proportion of this production for global marketing. CMC is working towards finalising the definitive IEA by the end of this year.  LGC executive chairman David Lenigas said: “The Cuban Coffee Industry will benefit from the latest agricultural techniques and expertise that CMC can bring to improve this famous agricultural sector. Although there is still a lot of work to be done to formalise the contractual relationships between Cuba Mountain Coffee and the Government, we are look forward to being a valued contributor to CMC's efforts in boosting Cuba's coffee production and exporting this valuable premium product to the world.””

Cuba Mountain Coffee Co. Project in Guantanamo, Cuba
6 July 2016

The Cuba Mountain Coffee Co (CMC) has achieved a milestone in its negotiations with the Cuban authorities and is now hopeful that its coffee project in the Cuban province of Guantanamo will begin in 2017
 
A visit to Guantanamo by CMC directors in June resulted in agreement on the principal  terms for co-operation with the Asdrubal Lopez coffee processing plant in Guantanamo, CMC's counter-party in Cuba. Crucial approvals have already been achieved and the project is now in its final negotiating stage before ministerial presentation, expected before January 2017
 
In April 2016, CMC also signed a Memorandum of Understanding with Nestlé Nespresso with the ambition to explore how to work together with the non-profit organization, TechnoServe, to boost production and quality in some of the Guantanamo micro-regions for the benefit of Cuban farmers and the protection of their environment, subject to the approval of the Cuban authorities and compliance with applicable laws

Obama Administration Strategy

The Obama Administration determined that generating the first license from the OFAC to a United States-based subsidiary of one of the fifty (50) largest companies in the world (30th largest company in Europe) will result in a ginning up of interest (and advocacy) for greater market access to the Republic of Cuba for United States-based companies.  The calculation was correct.  

United States-based companies have had and are interested in discussions with the Ministry of Foreign Affairs of the Republic of Cuba, Ministry of Foreign Trade of the Republic of Cuba and Ministry of Agriculture of the Republic of Cuba to obtain coffee and other agricultural products for direct import to the United States; neither the companies nor their discussions with the government of the Republic of Cuba moved as swiftly as did Nestle Nespresso’s discussions.  

This is, perhaps, a cautionary narrative to those representatives of United States-based companies who believe they possess a “special relationship” with senior-level or mid-level individuals within ministries of the government of the Republic of Cuba.   

United States-based companies will, however, continue to be used as bait by the government of the Republic of Cuba to attract the interest of non-United States-based companies, including those with United States-based subsidiaries.

Nestle Nespresso Media Release
 20 June 2016

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.

About the Nespresso AAA Sustainable Quality™ Program

The Nespresso AAA Sustainable Quality™ Program, launched in 2003 in collaboration with the NGO The Rainforest Alliance, supports coffee communities by investing in community infrastructures, paying cash premiums for superior coffee and best agricultural practices, and providing training, financing and technical assistance to continuously improve quality, sustainability and productivity- the three pillars represented by the “triple As”in the program’s name. This approach drives improvements in social, environmental and economic conditions for coffee farmers and farming communities.

About TechnoServe

TechnoServeis a nonprofit organisation that works with coffee communities around the world. It works in 30 developing countries to support competitive farms, businesses and industries. For nine straight years, TechnoServe has earned a 4-star rating from Charity Navigator, placing it in the top 1 percent of all rated nonprofits.

Editor's NOTE: According to Nestle Nespresso USA, Inc., Cafecito de Cuba will be 100% Cuban Arabica coffee from the regions of Granma and Santiago de Cuba.  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.  Nestle Nespresso previously created a Republic of Cuba-themed product:

Nestle Nespresso Media Release
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
Arlington, Virginia
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.

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."

Complete Analysis With Image Of Advertisement In PDF Format

The First 100 Days Of The Next President Will Not Include Cuba

Mr. Patrick Healy, a reporter for The New York Times, has written two front-page articles focusing upon what the first one hundred (100) days of the successor to President Obama would likely entail.  Day one is Friday, 20 January 2017.

From Wikipedia: The first hundred days is a sample of the first 100 days of a first term presidency of a president of the United States.  It is used to measure the successes and accomplishments of a president during the time that their power and influence is at its greatest.  The term was coined in a July 24, 1933, radio address by U.S. President Franklin D. Roosevelt, although he was referring to the 100 day session of the 73rd United States Congress between March 9 and June 17, rather than the first 100 days of his administration.

On 4 July 2016, Mr. Healy focused upon Mrs. Hillary Clinton, the presumptive presidential nominee of the Democratic Party, in an article "A Second President Clinton? Mapping Out Her First 100 Days."

On 4 May 2016, Mr. Healy focused upon Mr. Donald Trump, the presumptive presidential nominee of the Republican Party, in an article "'President Trump?' Here's How He Says It Would Look"

Mr. Healy has not written about Mr. Gary Johnson, the presidential nominee of the Libertarian Party; or Mr. William Kreml and Ms. Jill Stein, who are seeking the presidential nomination of the Green Party.

In neither article published thus far does Mr. Healy reference the Republic of Cuba directly, indirectly, or by those quoted in the respective articles.

For those advocating further statutory changes to United States law and further regulatory changes to United States regulations, there are 200 days remaining for the Obama Administration.  There are unlikely to be statutory changes; there will continue to be regulatory changes.  

The Obama Administration is seeking from United States companies suggestions for further regulatory changes (both new and refinement to existing).  

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the United States Department of Commerce have issued to companies expansively-worded licenses (and policy guidance); some licenses have not been publicized, some licenses have been confirmed by companies and some licenses have been implemented by companies.  Further meaningful licensing announcements by companies are forthcoming.

Commercial, economic and political relations with the Republic of Cuba will not be a priority for the next president of the United States.

If United States-based companies have an interest in the Republic of Cuba, they are advised to swiftly seek a license from the OFAC and/or BIS where required.  With the decision-making process of the government of the Republic of Cuba continuing to be lengthy and problematic, companies are advised to create the commercial, economic and political justification for any import, export, or service offering and submit to the OFAC and/or BIS in advance of discussions with representatives of the government of the Republic of Cuba.  In this way, the company is in a position to promptly implement the offering upon approval by the government of the Republic of Cuba as a license expiration (if included) will generally survive through the next Administration.

Will US Government Employees Need To Avoid The Four Points By Sheraton Havana Due To Its Affiliation With FAR?

While there are neither United States statutes nor United States regulations prohibiting employees of the United States government from directly or indirectly providing payments to entities controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR), might political considerations result in an avoidance of the Four Points By Sheraton Havana?

Section 515.337 of the Cuban Assets Control Regulations (CACR) "Prohibited officials of the Government of Cuba" for the purpose of certain transactions (remittances, etc.) states:

"For purposes of this part, the term prohibited officials of the Government of Cuba means Ministers and Vice-ministers, members of the Council of State and the Council of Ministers; members and employees of the National Assembly of People's Power; members of any provincial assembly; local sector chiefs of the Committees for the Defense of the Revolution; Director Generals and sub-Director Generals and higher of all Cuban ministries and state agencies; employees of the Ministry of the Interior (MININT); employees of the Ministry of Defense (MINFAR); secretaries and first secretaries of the Confederation of Labor of Cuba (CTC) and its component unions; chief editors, editors, and deputy editors of Cuban state-run media organizations and programs, including newspapers, television, and radio; and members and employees of the Supreme Court (Tribuno Supremo Nacional)."

From The United States Department of State: "Foreign Per Diem rates are established monthly by the Office of Allowances as maximum U.S. dollar rates for reimbursement of U.S. Government civilians traveling on official business in foreign areas. Lodging and M&IE (Meals & Incidental Expenses) are reported separately followed by a combined daily rate.  For regulations pertaining to these rates, see the Federal Travel Regulation (FTR) established by the General Services Administration and implementing regulations established by Federal Agencies."

For Havana: Maximum Per Diem Rate is US$316.00- Maximum Lodging Rate US$205.00; Meal & Incidental Rate US$111.00 (Breakfast US$17.00, Lunch US$28.00, Dinner US$44.00, Incidentals US$22.00).

The published rates for Four Points By Sheraton Havana are US$190.00 (SGP- Starwood Guest Program Member Exclusive); US$200.00 including breakfast; US$600.00 Rack Rate; 20,000 Starpoints.

In 2016, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury granted a license(s) to Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) to manage properties owned by Republic of Cuba government-operated entities located in the city of Havana, Republic of Cuba.  

The properties are Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded as Four Points by Sheraton Havana).  The Hotel Quinta Avenida is owned by Republic of Cuba government-operated Gaviota SA, which is controlled by the FAR.

The Four Points By Sheraton Havana commenced operations on 27 June 2016; the following statement is on its reservations portal:

“Reservations for this hotel are prepaid and there are NO REFUNDS for changes or cancellation. Additional charges at the Hotel are NOT payable with US credit cards and must be paid in CASH or with non US issued credit cards.”

According to Starwood Hotels & Resorts Worldwide, "The current reservation policies are the result of Starwood’s assessment of market conditions.  We are conscious of the issues resulting from cash requirements and the limitations on payment methods. Thus, we are working to accept as many payment methods as possible based on what has been made available under the current regulatory framework.  We expect to be able to offer additional options in the near future."

When making a reservation at a property located within the Republic of Cuba using the online portal of the management company, for example Spain-based Melia Hotels International (2015 revenues exceeded US$2 billion) and France-based AccorHotels (2015 revenues exceeded US$5 billion), a reservation may be changed or cancelled and may be prepaid using a non-United States-based financial institution-issued credit/debit card, but may not (yet) be prepaid using a credit card/debit card issued by a United States-based financial institution.

Are the Four Points by Sheraton Havana payment policies a reflection of requirements by Republic of Cuba government-operated Gaviota SA, the Central Bank of the Republic of Cuba, the Ministry of Tourism of the Republic of Cuba?

Regulations Do Not Require

There are no regulations issued by the OFAC that prevent prepayment or require prepayment, that prevent refunds for changes or cancellation.  The OFAC has authorized credit cards and debit cards issued by United States-based financial institutions (including American Express, VISA, MasterCard, Discover, Diners Club, etc.) for use in the Republic of Cuba.

Pompano Beach,Florida-based Stonegate Bank is authorized by the OFAC and Central Bank of the Republic of Cuba to have its MasterCard credit/debit card valid for use in the Republic of Cuba.  San Juan, Puerto Rico-based Banco Popular of Puerto Rico has announced plans to have its MasterCard credit/debit card valid for use in the Republic of Cuba.

Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) is acquiring Starwood Hotels & Resorts Worldwide and confirms its discussions with Republic of Cuba government-operated companies to identify property-management opportunities within the Republic of Cuba.

Why Did Starwood Initiate A Reservations Policy More Restrictive Than French & Spanish Competitors In Cuba?

For the Four Points By Sheraton Havana property, which commenced operations on 27 June 2016, the following statement is on its reservations portal:

http://www.starwoodhotels.com/fourpoints/property/overview/index.html?language=en_US&propertyID=4531

“Reservations for this hotel are prepaid and there are NO REFUNDS for changes or cancellation. Additional charges at the Hotel are NOT payable with US credit cards and must be paid in CASH or with non US issued credit cards.”

According to Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion), "The current reservation policies are the result of Starwood’s assessment of market conditions.  We are conscious of the issues resulting from cash requirements and the limitations on payment methods. Thus, we are working to accept as many payment methods as possible based on what has been made available under the current regulatory framework.  We expect to be able to offer additional options in the near future."

When making a reservation at a property located within the Republic of Cuba using the online portal of the management company, for example Spain-based Melia Hotels International (2015 revenues exceeded US$2 billion) and France-based AccorHotels (2015 revenues exceeded US$5 billion), a reservation may be changed or cancelled and may be prepaid using a non-United States-based financial institution-issued credit/debit card, but may not (yet) be prepaid using a credit card/debit card issued by a United States-based financial institution.

Regulations Do Not Require

There are no regulations issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury that prevent prepayment or require prepayment, that prevent refunds for changes or cancellation.  The OFAC has authorized credit cards and debit cards issued by United States-based financial institutions (including American Express, VISA, MasterCard, Discover, Diners Club, etc.) for use in the Republic of Cuba.

Are the Four Points by Sheraton Havana payment policies a reflection of requirements by Republic of Cuba government-operated Gaviota (controlled by the Revolutionary Armed Forces of the Republic of Cuba), the Central Bank of the Republic of Cuba, the Ministry of Tourism of the Republic of Cuba?

Pompano Beach,Florida-based Stonegate Bank is authorized by the OFAC and Central Bank of the Republic of Cuba to have its MasterCard credit/debit card valid for use in the Republic of Cuba.  San Juan, Puerto Rico-based Banco Popular of Puerto Rico has announced plans to have its MasterCard credit/debit card valid for use in the Republic of Cuba.

In 2016, the OFAC granted a license(s) to Starwood Hotels & Resorts Worldwide to manage properties owned by Republic of Cuba government-operated entities located in the city of Havana, Republic of Cuba.  The properties are Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded as Four Points by Sheraton Havana). 

Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) is acquiring Starwood Hotels & Resorts Worldwide and confirms its discussions with Republic of Cuba government-operated companies to identify property-management opportunities within the Republic of Cuba

527 Days Later... Is NY Governor Andrew Cuomo Ahead Of "The [Agricultural] Curve"?

From The Associated Press on 18 January 2015...

Cuomo: Cuba visit will prompt 'agricultural exchange'

Governor Andrew Cuomo confirmed he will lead a trade mission to Cuba later this year, saying he'd like to develop “agricultural exchange” with the Communist island as the federal government removes economic restrictions first imposed in the 1960s.  

“We think Cuba would be an available market and I think it's advantageous to be one of the first states to get there, to introduce yourself … and I want to take advantage of it,” Cuomo, a Democrat starting his second term, told reporters on Sunday.

“There's a lot of possible agricultural exchange. Again, Upstate New York is one of the markets that we'll try to develop. But, any of New York's main products, I think, has a possible market in Cuba. Whoever gets their first is ahead of the curve, and I want to be ahead of the curve.”

The Honorable Andrew Cuomo (D), Governor of the State of New York, visited the Republic of Cuba from 20 April 2015 to 21 April 2015.  

He traveled with representatives of seven (7) New York-based companies and fifteen (15) members of his staff- seven (7) of whom had a focus upon relations with the media; none from the New York State Department of Agriculture and Markets.  

Two of the companies were agriculturally-focused.  Neither company has reported any exports to the Republic of Cuba.  

Cayuga Milk Ingredients, despite numerous efforts to follow-up directly with Republic of Cuba government-operated entities and to obtain assistance from Governor Cuomo (through Empire State Development Corporation), has received neither replies nor orders for product. 

Food products and agricultural commodities have been eligible for export to the Republic of Cuba since 2000 under the Trade Sanctions Reform and Export Enhancement Act (TSREEA).  

Since December 2001 (the first purchases), the government of the Republic of Cuba has purchased approximately US$5.2 billion in eligible products on a cash basis, as required by the TSREEA.  The Republic of Cuba from 2004 to 2008 imported from the United States US$81,149,466.00 in powered milk; none since that time.  

Although agricultural commodities have been the majority of products exported from the United States to the Republic of Cuba since 2001, a representative from the New York State Department of Agriculture and Markets was not included by Governor Cuomo in the delegation; other governors have included in their delegations a representative of their respective agricultural-focused departments/agencies.  Wine and apples have been exported from New York to the Republic of Cuba.  

Chobani Greek Yogurt reports no exports to the Republic of Cuba. 

Banco Popular De Puerto Rico Preparing MasterCard For Use In Cuba

San Juan, Puerto Rico-based Banco Popular de Puerto Rico (2015 assets exceeded US$35 billion) is entering the Republic of Cuba marketplace through its MasterCard branded credit cards.

Pompano Beach, Florida-based Stonegate Bank (2015 assets exceeded US$2.5 billion) has its MasterCard credit/debit cards operational within the Republic of Cuba.

"Banco Popular de Puerto Rico is sharing that the Bank’s main interest is to offer banking services to travelers whose destination is Cuba and who want to use their cards there.

Banco Popular de Puerto Rico is currently in the process of completing the necessary internal systems and controls to manage and authorize the use of Mastercard Credit Card transactions with the Central Bank of  Cuba,  of individuals subject to U.S. jurisdiction to travel to Cuba pursuant to one of the General Licenses 12 authorized categories by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) /Cuban Assets Control (CACR) amended regulations.

Currently, Banco Popular de Puerto Rico is following and working with the necessary protocols to establish special criteria for the use of these cards under current federal regulations.

MasterCard can only be used for activities permitted for travel to Cuba as stated by the issuing of general licenses through the OFAC.

As soon as these credit card services are available on the island of Cuba, we will inform our customers, general public and media."

About Popular, Inc.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular provides retail, mortgage and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey and Florida under the name of Popular Community Bank.

Four Points By Sheraton Havana Media Release

Starwood Hotels & Resorts Makes Historic Debut with the Opening of Four Points Havana

June 29, 2016

Marks First U.S. Based Hospitality Company to Enter Cuba in Nearly 60 Years

STAMFORD, Conn.--(BUSINESS WIRE)-- POINT 1: Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced a historic milestone with the opening of Four Points Havana—the company’s first hotel in Cuba—representing a watershed moment for the fast-growing Four Points brand. The opening comes on the heels of the groundbreaking deals signed by Starwood in Cuba earlier this year, which established Starwood as the first U.S. based hospitality company to enter the market in nearly 60 years. Four Points Havana, owned by Grupo Hotelero Gaviotaand managed by Starwood Hotels & Resorts, caters to the global traveler with an emphasis on approachable design and stylish comfort.

POINT 2: Four Points Havana offers 186 spacious guest rooms, 1,000 square feet of market-leading meeting facilities, full-service dining at Don Quixote, breakfast and lunch service at El Olivo, and poolside light bites. Amenities include a 24-hour fitness center, a business facility and a fully equipped spa, offering a variety of massage treatments and a sauna and steam bath. The hotel features the brand’s signature Best Brews offering refreshing local beers Cristal and Bucanero at the hotel’s lobby bar. It also offers Wi-Fi throughout the hotel. The new Four Points is located in Havana’s Miramar district—a business and financial center which houses many international embassies.

POINT 3: “We are thrilled to once again be pioneers with our groundbreaking entry into Cuba, offering our guests a way to stay with Starwood in this sought after destination,” said Jorge Giannattasio, Starwood’s Senior Vice President and Chief of Latin America Operations. “As one of the most successful brands in the Latin America region, the Four Points brand’s aggressive footprint—18 hotels in 9 countries—caters to business travelers from around the world. We are confident that it will be a perfect fit for this dynamic market.”

“The opening of Four Points Havana marks a monumental moment for not only the Four Points brand, but for Starwood Hotels & Resorts, solidifying its innovative, first-mover spirit,” said Brian McGuinness, Senior Vice President of Specialty Select Brands for Starwood. “With its uncomplicated comfort and reinvented travel experience, Four Points Havana will be the ideal choice for global travelers as they experience Havana’s colorful history, rich architecture and unparalleled culture.”

POINT 4: With over 200 hotels in nearly 40 countries around the world, Four Points boasts Starwood’s largest pipeline and continues to penetrate new markets, globally. The brand is on track to expand its portfolio of rooms by more than 60% in the next five years.

Since the agreement was signed, Starwood has made significant life & safety upgrades to the property to ensure that it meets the company’s global standards. As of today, reservations at the property can be made through the company’s booking channels globally and SPG members may earn points for staying at the hotel and redeem points to stay. Travelers from the United States must meet all of the travel requirements established by the U.S. government. Four Points by Sheraton Havana will continue to undergo upgrades and improvements over the next few months, as we seek to deliver the best in business experiences to which our guests are accustomed.

About Four Points

Four Points is travel reinvented. With over 200 hotels in nearly 40 countries, Four Points meets the needs of the everyday traveler and offers guests exactly what they need on the road. Four Points combines timeless style and comfort and an authentic sense of the local as well as genuine, always-approachable service, all around the world.

US Airlines & Cruise Ships Can Transport Foreign Passengers To Cuba; Can Starwood Accept Foreign Guests & Tourists? The Answer Is Yes.

Excerpts......

The question: Did the Obama Administration authorize by regulation a United States company to earn revenues from an activity that is prohibited by law for United States persons?

If the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) which is being acquired by Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) to accept payment from persons who are not within the twelve (12) categories of travelers defined by the OFAC, those persons could be defined as engaging in “tourist activities” within provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, and thus be transactions prohibited by statute, not subject to regulatory interpretation.

If the OFAC authorized Starwood Hotels & Resorts Worldwide to earn revenues from “tourist activities,” United States-based airlines may have a means to dispute restrictions placed upon them by the OFAC and United States Department of Transportation (DOT).

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Five Members Of The U.S. House Of Representatives Reportedly Refused Visas To Visit Cuba

Five (5) members of the United States House of Representatives reported they did not receive visas from the Ministry of Foreign Affairs of the Republic of Cuba for a visit to the Republic of Cuba scheduled from 24 June 2016 to 26 June 2016. 

The delegation are members of the Committee on Homeland Security of the United States House of Representatives:

Michael McCaul (R- Texas)- Visa Not Approved
John Katko ( R- New York)- Visa Not Approved
Martha McSally (R- Arizona)- Visa Not Approved
Richard Hudson (R- North Carolina)- Visa Not Approved
Henry Cuellar (D- Texas)- Visa Not Approved

The Honorable Michael McCaul is the chairman of the Committee on Homeland Security; Representative Katko is the chairman of the Subcommittee on Transportation Security of the Committee on Homeland Security.  

The stated purpose of the visit was to inspect civil aviation security and passenger screening procedures at airports including Jose Marti International Airport in the city of Havana, Republic of Cuba.

In June 2016, the United States Department of Transportation issued the first round of regularly-scheduled commercial flight routes for the Republic of Cuba.  

For the first 52-week period, the total number of authorized airline seats for the regularly-scheduled commercial routes is 1,904,396 (or 2,159,196 using 157-seat aircraft average for Havana).

The fifty-two week total regularly-scheduled commercial airline 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.