U.S. Companies Won’t Like It; Government of Cuba Will Hate It… But It’s Likely (Short-To-Medium Term) Reality

U.S. Companies Won’t Like It; Government of Cuba Will Hate It…
But It’s Likely (Short-To-Medium Term) Reality

The United States business community must move swiftly beyond whether it will accept what the Trump Administration may do relating to the Republic of Cuba and prepare for what the Trump Administration may do relating to the Republic of Cuba.

There may be extremes- rescission of policies and regulations; revocation of licenses.  What had been authorized by a general license may now require a license.  There may be amendments to existing licenses- require that United States companies (hotels & airlines, etc.) make payments directly to Republic of Cuba nationals whom are currently contracted through Republic of Cuba government-operated entities… and make payments at a 1:1 ratio.  There may be no changes- only threats to implement changes, knowing that threats can be dissuasive.  There may be an expansive approach- overwhelm the government of the Republic of Cuba with viable and valuable potential opportunities, but withhold implementation until there is an agreement to settle the certified claims- with a target date of 24 February 2018.

Telephone calls, emails, and facsimiles, may no longer be responded to by career employees within departments and agencies; and meetings may no longer be offered or accommodated… at least until political appointees are in place and have provided policy guidance.  

Policy towards the Republic of Cuba may not be created, but will be coordinated from the West Wing and Eisenhower Executive Office Building (EEOB), not necessarily from Foggy Bottom.  

Advocates supporting the Obama Administration initiatives will no longer maintain a favored and often undisclosed and selective Pre-Check Lane into 1600 Pennsylvania Avenue, NW.  

Members of the United States Congress who opposed Mr. Donald J. Trump during the primary process and through the general election are unlikely to gain traction with the Trump Administration without considerable effort when seeking support for Republic of Cuba-related legislation.

Representatives of the government of the Republic of Cuba may find officials and diplomats whose doors were open during the last twenty-four (24) months are now unavailable in Washington DC and in Havana.  

A challenge for the United States business community is how to address a government of the Republic of Cuba that will recoil from adjectives and adverbs the use of which may be necessary for United States companies to create opportunities for and/or maintain exports, imports and the provision of services.

United States-based companies need to anticipate a return to the “civil society” and “support for the Cuban people” overt advocacy framed during the presidencies of The Honorable William J. Clinton (1993-2001) and The Honorable George W. Bush (2001-2009), which is detested by the government of the Republic of Cuba.

Meaning, if the granting and implementation of a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce will in some measure be demonstrative and reinforce failures of the commercial, economic and political systems in the Republic of Cuba, the license application will have a better chance of approval by the OFAC, BIS or through the Inter-Agency Review Process.

Simply put- If the government of the Republic of Cuba is likely not to want the implementation of the license, then the license likely will be granted.

This is a check-list for United States companies to consider when seeking licenses after 20 January 2017 from the OFAC and/or BIS.  It’s not pretty, will be offensive to many, but may be reality:

• Will implementation of the license Embarrass the government of the Republic of Cuba
• Will implementation of the license Humiliate the government of the Republic of Cuba
• Will implementation of the license show Limitations of Current Systems in the Republic of Cuba
• Will implementation of the license create Inspiration for the 11.3 million citizens of the Republic of Cuba
• Will implementation of the license create Aspiration for the 11.3 million citizens of the Republic of Cuba
• Will implementation of the license create and increase Transparency within the Republic of Cuba
• Will implementation of the license increase Accountability by the government of the Republic of Cuba to its 11.3 million citizens
• How will implementation of the license create Employment in the United States
• Will the United States company be Transparent rather than Translucent in terms of what is being done in the Republic of Cuba?  Provide details of the transaction- value, payments, location, etc.  (The disclosures by Mountain View, California-based Alphabet Inc. subsidiary Google relating to the installation of servers are an example of what not to do).

Important to remember that any license issued by the OFAC/BIS may be rescinded at any time if the OFAC/BIS believe (or are instructed to do so by The White House) that the implementation of the license is no longer in the interest of United States policy- just as a license application may be denied if its issuance would not be in the interest of United States policy.

The Trump Administration will view policies, regulations, and OFAC/BIS licenses and license applications through a prism as to how they focus toward a resolution of the certified claims.

The Trump Administration will focus upon the resolution of the certified claims as it provides the legislative foundation to revise and rescind the Cuban Assets Control Regulations (CACR), the Cuban Democracy Act (CDA) of 1992, the Libertad Act (“Helms-Burton”) of 1996, and the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.    

There were 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95, have been certified by the United States Foreign Claims Settlement Commission (USFCSC) at the United States Department of Justice.  

Of these claims, thirty (30) United States-based companies hold 56.85% of the total value.  The USFCSC permitted interest to be accrued in the amount of 6% per annum; with the current value ranging from US$6 billion to US$9 billion.

Significant to note that no United States-based company who has engaged with the Republic of Cuba since 17 December 2014- exports, imports, provision of services, and who has a certified claim(s) against the government of the Republic of Cuba has reported a repudiation of its filing(s) with the USFCSC.

Why is the United States business community in this place?  Because the Obama Administration was so excited at starting, it forgot about finishing.  President Barack Obama (and his staff) lacked a vision beyond the optics.  President Raul Castro focused on preserving the status quo and feared changes that would be irreversible.  The most consequential moment in fifty-seven years was bilaterally mismanaged.

National Bankers Association Does Not Respond To Inquiry About Cuba; Joins ABA Without Cuba Banking Position

The Washington, DC-based National Bankers Association has not responded to inquiries as to the organization's position relating to the authorization of Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions for correspondent activities.

"The National Bankers Association was founded in 1927. Today, it is the most recognized trade association for the nation's 177 minority and women-owned banks (MWOBs). Our members include banks owned by African-Americans, Native-Americans, American-Indians, East-Indians, Hispanic-Americans, Asian-Americans and Women.

Approximately 22% of MWOB's are NBA members. They are located in 29 states and 2 territories spanning 60 cities and the District of Columbia. They employ over 15,000. In the aggregate, MWOBs have assets in excess of 181 billion dollars and service over 3 million depositors. Collectively, the individuals who serve on the boards of directors of our member banks represent some of the most influential leaders in minority communities and urban centers across the country. Since 1980, the NBA has formed a successful partnership with Treasury representatives of several Fortune 500 corporations.

MWOBs, with few exceptions, serve distressed communities plagued by many social and economic problems. Our institutions are deeply committed to providing employment opportunities, entrepreneurial capital and economic revitalization in neighborhoods which often have little or no access to alternative financial services."

ABA Has No "Formal Position" About Cuban Banks Having Accounts With US Banks
November 08, 2016

Today, the Washington, DC-based American Bankers Association (ABA), stated that the organization does not have a formal position relating to the authorization of Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions for correspondent activities.  The ABA did not provide a reason(s).

"The American Bankers Association is the united voice of America’s hometown bankers- small, regional and large banks that together employ more than 2 million people, hold more than $16 trillion in assets, safeguard $12 trillion in deposits and extend more than $8 trillion in loans.

ABA believes that government policies should recognize the industry’s diversity. Laws and regulations should be tailored to correspond to a bank’s charter, business model, hometown markets and risk profile. This policymaking approach avoids the negative economic consequences of burdensome, unsuitable and inefficient bank regulation.

Through a broad array of information, training, staff expertise and other resources, ABA supports America’s hometown bankers as they perform their critical role as drivers of America’s economic growth and job creation."

For reference:

http://www.cubatrade.org/blog/2016/10/16/has-the-obama-administration-called-it-quits-leaving-united-states-companies-with-more-than-was-expected-but-far-less-than-was-needed?rq=Direct%20Correspondent%20Banking

http://www.cubatrade.org/blog/2016/11/23/discover-card-joins-wells-fargo-citibank-aba-with-unsettling-statements-about-cuba-transactions?rq=wells%20fargo

Chanel Places Advertisement On Page 2A Of The New York Times To Promote Cuba-Themed Handbags

1/9th page (2 X 9) black & white advertisement in the upper left hand corner of page A2 of the 30 December 2016 National Edition of The New York Times has an estimated cost of US$6,000.00.

Boy Chanel Flap Bag
Canvas, Sequins & Gold Metal
White, Blue & Red
6.9 X 11 X 3 IN (CM)
US$5,500.00

Governor Edwards Of Louisiana Spent US$150,134.00 On Visit To Cuba

The Times-Picayune
New Orleans, Louisiana
29 December 2016

http://www.nola.com/politics/index.ssf/2016/12/john_bel_edwards_cuba_1.html

Louisiana Politics & Government
Louisiana state government spent more than $150,000 on Cuba trip

ByJulia O'Donoghue

The Louisiana state government spent at least $150,134 on a five-day trade mission in October to Cuba for Gov. John Bel Edwards, Agriculture Commissioner Mike Strain and 20 other state workers, according to public records obtained by  NOLA.com | The Times-Picayune. Of the total expense, over 23 percent was for the governor's security personnel.

Article In PDF Format

Memorandum For A Governor Planning A Visit To Cuba

Seeking Better ROI, Cuba Hospitality Companies To Become Landlords Rather Than Managers

During the next two years, Republic of Cuba government-operated companies that currently manage properties under their brand names (Gran Caribe, Gaviota, Cubanacan, Hoteles Habaguanex, etc.) will sign management agreements with non-Republic of Cuba government-operated companies.  

The Republic of Cuba government-operated companies will become landlords rather than property managers.  Currently, the hospitality sector is under the auspice of entities affiliated with the Revolutionary Armed Forces of the Republic of Cuba (FAR).

There will likely be opportunities for Republic of Cuba nationals to either purchase, lease, or obtain management contracts for smaller properties in less-populated locations and where the property requires extensive renovation investment.

The reason for the transition is Republic of Cuba government-operated companies lack the resources to properly and globally manage, market, and maintain properties to international hospitality standards.  

Properties rated five-stars in the Republic of Cuba generally equate with two-star to three-star properties in the United States.

There are no properties in the Republic of Cuba that would achieve a AAA Five Diamond Award from the Heathrow, Florida-based AAA (formerly American Automobile Association) or a Five-Star Rating from the Atlanta, Georgia-based Forbes Travel Guide.  

The government of the Republic of Cuba will increase net income even with payment to third-party managers, due to expansion and increased quality of the customer experience.

Some of the companies expected to continue management contracts and those which may obtain management contracts include, but are not limited to:

Accor Hotels
Barcelo Hotels & Resorts
Best Western Hotels
Blau Hotels & Resorts
Blue Diamond Hotels & Resorts
Carlson Rezidor Hotel Group
Choice Hotels
Four Seasons Hotels & Resorts
Hilton Worldwide
Hyatt Hotels & Resorts
Iberostar
InterContinental Hotels Group
Kempinski Hotels
Marriott International
Melia Hotels International
NH Hotels
Occidental Hotels & Resorts
Paradisus
RIU Hotels
Starwood Hotels & Resorts Worldwide
SuperClubs
Wyndham Worldwide

Haier Of China Increases Technology Transfers & Production In Cuba

Qingdao, People's Republic of Cuba-based Haier Group Corporation (2016 revenues approximately US$30 billion) has provided technology, parts, assembly equipment and workforce training for a first-ever facility to assemble computer tablets and computer laptops in the city of Havana, Republic of Cuba.  The facility has an annual production capacity of 120,000 units per year.

The facility is owned by Republic of Cuba government-operated Industrial Company of Informatics, Communications and Electronics.

The facility is assembling sixth-generation laptops with i3 & i5 Celeron cores; and 8-inch and 10-inch tablets.

The Republic of Cuba government-operated University of Computer Science is assisting with the design and construction of operating systems and applications.

Haier Group Corporation products include air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions.  The Haier brand has the world's largest market share in white goods (appliances), with approximately 10% of the retail volume market share.

January 2016, Fairfield, Connecticut-based General Electric Corporation (2016 revenues exceeded US$140 billion) agreed to sell its appliance division to Haier Group Corporation for US$5.4 billion.

In 2014, Haier Group Corporation was accused by Germany-based media entities of delivering smartphones and tablets with pre-installed malware.

Presidents Obama & Castro: Their Greatest Mistake? Miscounting By 43 Days

The most significant error in judgement by the Obama Administration and the government of the Republic of Cuba: believing the time-frame for opportunity was 17 December 2014 to 20 January 2017 (inauguration day) rather than 17 December 2014 to 8 November 2016 (election day).

The government of the Republic of Cuba did not believe that Donald Trump would win.  The Obama Administration did not believe that Hillary Clinton would lose.  They each planned poorly.

The governments have focused upon what was easy rather than what was difficult in part because each believed there would be continuity. 

During the last twenty-four months, there have been opportunities missed, abandoned, and mishandled.  The difficult issues have been avoided by both governments- and the United States business community has suffered for it. 

Why Has Obama Administration Authorized Only One Agricultural Commodity To Be Imported To The US From Cuba?

Since 20 January 2009

Since 17 December 2014

The Obama Administration has authorized one (1) agricultural commodity to be directly exported from the Republic of Cuba to the United States for commercial distribution.... A bean.  A coffee bean.

Why?  The Obama Administration refuses to say...

Thirty (30) days to change this...

Iberostar Of Spain To Manage Hotel Riviera; Will Compliment Hotel Parque Central

Palma de Mallocra, Spain-based Grupo Iberostar (2015 revenues approximately US$2 billion) from 100 properties in twenty-seven (27) countries, will add management of the iconic 23-floor, 352-room Hotel Riviera (completed at a cost of US$8 million on 10 December 1957) to its management portfolio.  The company also manages the 427-room Hotel Parque Central in Havana, Republic of Cuba, providing the company with the majority of four-star (based upon United States service standards) hotel rooms in Havana.  The Hotel Riviera is owned by Republic of Cuba government-operated Gran Caribe, which is under the auspice of the Revolutionary Armed Forces of the Republic of Cuba (FAR).

The Hotel Parque Central is the most desired property for authorized travelers from the United States, especially business travelers.

Iberostar To Take Over Management Of Havana’s Landmark Hotel Riviera

The IBEROSTAR Riviera will be IBEROSTAR’s twelfth hotel in Cuba, further establishing the Majorcan chain’s commitment to this rapidly growing tourist destination.

Palma de Mallorca -- In January 2017, IBEROSTAR will be taking over management of the landmark HOTEL RIVIERA - its twelfth establishment in Cuba and second in Havana. On completion of the renovation work, the hotel will acquire 5* status and offer all the amenities and services associated with the company's Premium Gold category.

Standing on the Cuban capital's famous Malecón seafront esplanade and built in the style of when it first opened in 1957, the HOTEL RIVIERA will soon undergo extensive renovations. When finished, the hotel will feature 352 fully refurnished rooms. The project also includes work on communal areas, and will bring the range of products and services available at the hotel in line with the company's standards. The hotel will still be home to the legendary Cabaret Copa Room, a large venue for shows and live music and one of the most well-known spots for Havana nightlife.

The new hotel is a key milestone for IBEROSTAR and reinforces its commitment to Cuba as a top destination in the hotel chain's portfolio.

Enric Noguer, CEO America at GRUPO Iberostar stated: "IBEROSTAR Riviera is an historically important property with an outstanding reputation, and represents a major step forward in expanding our presence in Havana and Cuba. Cuba is a tremendously important destination for Iberostar and we remain committed to our objective of offering top quality and highly competitive accommodation options in this country."

The future Iberostar Riviera will be the chain's second hotel in Havana, joining the IBEROSTAR Parque Central. IBEROSTAR Hotels & Resorts currently has another eleven hotels in Cuba. In 2017, Iberostar will add its thirteenth hotel to its Cuban portfolio, the IBEROSTAR Bella Vista Varadero, a 5 star establishment in Varadero with 827 rooms.

About IBEROSTAR Hotels & Resorts

IBEROSTAR Hotels & Resorts is a resort hotel chain based in Palma de Mallorca (Balearic Islands, Spain), founded by the Fluxà family in 1986.  IBEROSTAR Hotels & Resorts is an integral part of GRUPO IBEROSTAR, one of the main Spanish tourist companies with over 60 years of experience, which currently has more than 100 hotels of 4 and 5 stars in 16 countries around the world.

As It Looks Today

As It Looks Today

Artist rendering

Artist rendering

Hotel Parque Central in Havana

Airbnb Impact Could Cost Government Of Cuba US$56 Million In 2016

PBS Newshour

17 December 2016

Arlington, Virginia

AMY GUTTMAN: Though the Cuban government has announced plans to double the island’s hotel capacity by 2020, the current shortage of rooms is a boon for another American-run company, Airbnb. The online platform for homestay bookings has listings in more than a hundred countries. But it says Cuba has become its fastest growing market, as measured by listings.

BRIAN CHESKY: “We estimate now that 20-percent of all Americans that are staying in Cuba are staying in a home with a Cuba host.”

In October 2016, San Francisco, California-based Airbnb, Inc., reported 10,000+ residences in its Republic of Cuba-based portfolio. 

http://www.cubatrade.org/blog/2016/10/6/an-update-from-airbnb-about-its-operations-in-cuba?rq=Airbnb

There approximately 19,000 private residences registered with and licensed by the government of the Republic of Cuba to provide accommodations for paying guests.

The government of the Republic of Cuba is likely to increase scrutiny upon residences because the construction and renovation of hotels does not equate with the increase in number of visitors to the country- and residences are increasing their share of visitor revenues.

Visitors using residences may also avoid dining at Republic of Cuba government-operated restaurants and taking Republic of Cuba government-operated tours; opting to dine at the residence or at a privately-operated restaurant (paladare) or take a tour with an individual using their vehicle or create a self-guided tour.

Without the 10,000 residences in the Airbnb portfolio and the 19,000 total registered residences, some visitors would not visit or delay their visit to the Republic of Cuba due to budgetary constraints.

For 2016, the government of the Republic of Cuba has projected that 300,000+ (could be 370,000) individuals subject to United States law and 200,000+ individuals of Cuban descent will visit the country.

If 20% of most of these visitors (some individuals of Cuban descent will stay with relatives) used residences charging US$20.00 to US$80.00 per night rather than hotels within which the government of the Republic of Cuba has an interest charging US$120.00 to US$300.00 per night, the loss in revenues to government of the Republic of Cuba could more than US$56 million.

There is, however substantial public relations value to the government of the Republic of Cuba from permitting Republic of Cuba nationals to earn income from the hospitality sector. 

And, employment opportunities are increasing for those engaged in the renovation of residences and creation of paladares and restoration of vehicles which does lessen pressure upon Republic of Cuba government-operated enterprises.

And where is a primary source of funding for renovating the residences, creating the paladares, and restoring the vehicles? The United States.

Guerlain Of Paris Returns To Its Store In Havana

Levallois-Perret, France-based Guerlain (2015 revenues exceeded US$450 million), a subsidiary of Paris, France-based LVMH (2015 revenues exceeded US$40 billion), has re-established a presence in the city of Havana, Republic of Cuba.  LVMH brands also include Louis Vuitton, Sephora, Christian Dior SE, and Hennessy among others.

Havana, Dec 16 (Prensa Latina) "French perfume house, Guerlain, has reopened today in Havana in the same street where it first opened in 1917, after a deal between Cuban tourism company Habaguanex and Saint Remy Trading S.A., from France.

Located at 157 Paseo del Prado or Marti St., between Refugio St. and Colon St., this house is now ready to please the most demanding customer, especially Europeans who are visiting the Cuban capital.

Saint Remy's brand manager, Susel Ferran, said during the reopening ceremony that the facility will soon turn 100 years since Guerlain was opened in Cuba as a sign of the glamorous French and European market.

The perfume house is now located in the same place, thanks to the efforts by Havana historian, Eusebio Leal, unequaled animator of many of the emblematic projects in Old Havana.

At the beginning, Guerlain aimed at expanding to other horizons and for that purpose, it chose Latin America and a small market as Cuba.

Pierre-François Pascal Guerlain founded in 1828 the first perfumes business that bears his name in a small place close to the center of Paris.

There are currently only seven boutiques in Paris, as well as other exclusive boutiques in Frankfurt, Milan, Hong Kong, Singapore and now one in Havana. Its fragrances are sold in Europe, the United States, Asia and Oceania, Africa and the Middle East."

24 Months- What To Make Of The Obama Administration “Initiatives”? Both Governments Failed

What To Make Of The Obama Administration “Initiatives”

17 December 2014 through 17 December 2016

Has the United States business community gained value from the actions of the Obama Administration?  Yes, it has.

Has the United States business community gained value from the actions of the government of the Republic of Cuba?  Yes, it has.

However, because each government has created value does not mean that each government has created success… has not maximized the opportunity.  They have not…. yet.  LINK 

When President Barack Obama addressed the nation on 17 December 2014, he wore a dark suit, stood at a podium, and used 2,283 words to share with specificity what he wanted to do to, with, and for the citizens of the Republic of Cuba. 

When President Raul Castro addressed his nation the same day, he wore a military uniform, sat at a desk, and used 682 words to convey his thoughts. 

During the last twenty-four months, there have been opportunities missed, abandoned, and mishandled.  The difficult issues have been avoided by both governments- and the United States business community has suffered for it. 

The most significant error in judgement by each country: believing the time-frame for opportunity was 17 December 2014 to 20 January 2017 (inauguration day) rather than 17 December 2014 to 8 November 2016 (election day).

The governments have focused upon what was easy rather than what was difficult in part because each believed there would be continuity. 

The government of the Republic of Cuba did not believe that Donald Trump would win.  The Obama Administration did not believe that Hillary Clinton would lose.  They each planned poorly.

For the Obama Administration, there would be a Clinton Administration to pitch the issues that would not need be a part of the twenty-four-month “legacy-defining” effort.  For the government of the Republic of Cuba, there would be a Clinton Administration- so no requirement to give too much too soon.

The unilateral component of the Obama Administration “initiatives” could (should) have commenced in January 2009- when the United States Congress was controlled by the President’s political party; legislative remedies would have likely discovered a pathway to enactment.

Regardless, the Obama Administration retained substantial regulatory latitude from which to create a nearly impervious-to-change commercial, economic and political landscape; leaving only statutes to be addressed by a successor.  The President failed to use this power to its capacity and, as a result, failed to truly define a “legacy.”  Legacy is about doing what is hard, not what is easy.

Senior-level officials of the Obama Administration high-five and fist-pump “successes” from “negotiation” with the government of the Republic of Cuba.  The Obama Administration extracted nothing that the government of the Republic of Cuba believed was essential to retain.

There have been negotiated eleven (11) non-binging agreements (including memoranda of understanding) between the government of the United States and government of the Republic of Cuba, with six (6) more expected by 20 January 2017.  “Non-binding” is noteworthy.  But, it’s better that they exist.

The Obama Administration “initiatives” added one (1) item to the list of agricultural commodities eligible for importation to the United States… coffee.  One item in twenty-four months.  This was not a serious effort.

The Obama Administration “initiatives” include the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury refusing to authorize Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions.  The result, more than US$180 million in third-party fees paid to financial institutions located in Panama and other countries.  Those funds could have been used to purchase more products from the United States.  For perspective, United States agricultural commodity/food product exports to the Republic of Cuba in 2015 were US$170,551,329.00- about the same as the banking fees.

The Obama Administration “initiatives” failed to meaningfully impact creating a resolution to the issue of the 5,913 claims valued at US$1,902,202,284.95 and certified by the United States Foreign Settlement Claims Commission USFCSC).  The foundation of the “embargo” is the expropriation of assets.  It should have been the primary focus.  There have been two meetings in two years- and a second meeting was not scheduled after the first meeting and a third meeting was not scheduled after the second meeting.  The Obama Administration referred to the meetings as “negotiations” while the government of the Republic of Cuba referred to the meetings as “discussions.”  That’s a problem.

The United States Secretary of Commerce and United States Secretary of Agriculture said that they were prohibited by United States law from having representatives of United States-based companies participate in their visits to the Republic of Cuba in 2015.  The United States Department of State included representatives of United States-based companies (and United States-based subsidiaries of non-United States-based companies) in an official delegation to the Republic of Cuba in 2016.  The United States Secretary of Transportation and, separately, his deputy, traveled aboard, respectively, a Jet Blue Airways aircraft and an American Airlines aircraft on inaugural flights from the United States to the Republic of Cuba this year.  So much for consistency.

The United States Department of Agriculture (USDA) requests US$1.5 million for staff to be dispatched to the Republic of Cuba and ensconced in the United States Embassy in Havana, Republic of Cuba.  However, the USDA refuses to provide details about the US$1.5 million- they simply refuse to provide the data.  Astonishing.  It’s not classified.

The Obama Administration has been secretive about who has visited the Republic of Cuba and for what purpose the visit was scheduled.  This information, especially available in advance, would have provided United States-based companies with opportunities to provide valuable insight that is often absent from public sector representatives. 

The United States Trade Representative (USTR) visits the Republic of Cuba and no one believes advance notification of this visit would be of interest to the United States business community?

The government of the Republic of Cuba often provides a level of detail about discussions that exceed that espoused by the Obama Administration.

The Obama Administration has often been punitive, secretive, selective, insular, churlish, and devoid of transparency relating to its Republic of Cuba-focused “initiatives.”

As often with representatives of the government of the Republic of Cuba, the Obama Administration has too often embraced a 100%-with-us or 100%-against-us conversational framework.

The Obama Administration has been dishonest with the use of data.  On 14 December 2016, The Honorable Josh Earnest, Assistant to the President and Press Secretary, shared at a daily press briefing: “More than $6 billion in trade has been initiated between Cuba and the United States since then, which obviously has an important economic benefit here in the United States.”  During the last twenty-four months, the total value of United States exports (not donations) to the Republic of Cuba is approximately US$370,807,660.00.  The term “trade” connotes exports and imports- what is the value of the imports?   

The following day, a representative of Mr. Earnest shared when asked about the genesis of the statement “The Department of Commerce will be best to answer this question, as it is based on their data on authorized exports.”  Authorized exports are different than actual exports; and making the statement that the “trade” has been “initiated” and “has an important economic benefit here in the United States” is clearly intended to imply far more than is reality.  Noting aspiration is important; defining aspiration as fact is wrong.       

Of the thirty-four (34) United States-based companies with an announced presence in the Republic of Cuba, including those donating products/services, twenty-six (26) focus upon hospitality- transporting, funding, communicating, and lodging for visitors.  They are sources of revenue for the Republic of Cuba.

From June 2016 through the end of calendar year 2017, travel-related revenues to United States-based companies could be as high as US$720 million- airlines (US$300 million), cruise ships (US$300 million), hotels (US$40 million), tour operators/travel agents (US$80 million).  The potential value to the Republic of Cuba could be US$1 billion.  Blog Post: http://www.cubatrade.org/blog/2016/5/1/the-commercial-political-impact-of-cruise-ships-from-the-us-to-cuba?rq=carnival  Blog Post: http://www.cubatrade.org/blog/2016/7/7/there-are-20-routes-us-airlines-want-70-us-airlines-request-34-million-seats-dot-will-authorize-11-million-seats-cuba-has-64000-hotel-rooms-with-80-occupancy-rates?rq=airlines

If the Trump Administration does not impede travel to the Republic of Cuba by individuals subject to United States jurisdiction, more than 400,000 could visit in 2017, not including hundreds of thousands of individuals of Cuban-descent visiting family.

The Obama Administration “initiatives” and the (limited) acceptance by the government of the Republic of Cuba of those “initiatives” have represented potentially US$12 billion in value to the Republic of Cuba since 17 December 2014.  Blog Post: http://www.cubatrade.org/blog/2016/11/18/were-obama-administration-initiatives-worth-us12-billion-to-cuba-during-last-23-months-trump-administration-impact?rq=US%2412%20billion

Of the thirty-four (34) United States-based companies with an announced presence in the Republic of Cuba, including those donating products/services, there has been one (1) reported purchase by a Republic of Cuba government-operated entity of a durable product (valued at approximately US$125,000.00) from a United States-based company. 

The government of the Republic of Cuba has not permitted United States-based companies to directly engage with independent entities (businesses or individuals), has not permitted United States-based companies to establish offices (other than airlines), and has not permitted United States-based companies to create and participate in a wholesale marketplace.

For the government of the Republic of Cuba, the goals are to remove what has crumbled, repair what is crumbling, and construct the future.  

As of 12:00 pm on 20 January 2017, they will now have to do so with a new “initiator-in-chief.” 

All the opportunities that could have been, but were not easily digestible during the last twenty-four months, will soon look far more appetizing, but also now unavailable at a palatable cost.

COMPLETE ANALYSIS IN PDF FORMAT

WH Press Secretary On Cuba; US$6 Billion Is Misleading, He Knows It, And Not The First Time Administration Officials Have Said It

The White House Reports US$6 Billion; They are short US$5,629,086,137.00

This is not the first time that an official of the Obama Administration has exaggerated the value of commercial activity between the United States and the Republic of Cuba.  The Honorable Penny Pritzker, United States Secretary of Commerce did so in March 2016:

http://www.cubatrade.org/blog/2016/3/13/nidtwnqhvdtl3nmkj8s9l3w7it6xb1?rq=United%20States%20Department%20of%20Commerce

A Senior-Level Official of the Bureau of Industry and Security (BIS) of the United States Department of Commerce did so in October 2016:

http://www.cubatrade.org/blog/2016/10/16/has-the-obama-administration-called-it-quits-leaving-united-states-companies-with-more-than-was-expected-but-far-less-than-was-needed?rq=US%246%20billion

There is a substantial political component, which commenced during the Bush Administration and has continued through the Obama Administration- increase the value of licenses so as to emphasize 1) The White House was authorizing/encouraging commercial activity 2) Demonstrate that United States companies were eager to engage with the Republic of Cuba and 3) Reinforce the narrative that the government of the Republic of Cuba was not engaging to the level that United States companies were desiring.

Aggressively marketing aspirational license values can create an unsustainable and, more significantly, an unattainable commercial landscape.  Important to neither oversell the Republic of Cuba nor undersell the Republic of Cuba.  Sell it for what it is and be reasonable and honest about the potential.  This will provide value to United States companies.

Creating a narrative within which the government of the Republic of Cuba is unlikely to have the capacity to participate is unproductive and potentially harmful.

Since the enactment of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, the total value of agricultural commodity/food products exported from the United States to the Republic of Cuba is US$5,273,721,859.00.

Since 2003, the total value of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) under provisions of the Cuban Democracy Act (CDA) of 1992 is US$14,758,950.00

For the period 17 December 2014 through 31 October 2016, the total value of TSREEA and CDA exports from the United States to the Republic of Cuba is US$370,663,863.00.  Add to this value approximately US$250,000.00 in products exported from the United States to the Republic of Cuba regularly-scheduled airline operations, hotel management contracts, and other Obama Administration-related initiatives (that are not donations).

So what does the remaining US$5,629,086,137.00 represent?

If this value represents real and potential exports, all of the funds received as payment(s) would need to be transferred through third country financial institutions because the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury will not permit Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions.  As a result, there is no direct correspondent banking so more than US$180 million in fees are paid to financial institutions domiciled in other countries.

THE WHITE HOUSE
Office of the Press Secretary
December 14, 2016
PRESS BRIEFING BY PRESS SECRETARY JOSH EARNEST
James S. Brady Press Briefing Room
12:20 P.M. EST

Q    Last, I'd like to get your sort of expanded comments on something Ben Rhodes talked about, and that is the continued relations between the United States and Cuba, and the importance moving forward.  What is the President's message?  And will he reach out directly to the President-elect about the importance of maintaining that relationship and some of the pitfalls that come along with that, given their lack of human rights and other concerns that many people around this country have?

     MR. EARNEST:  Yeah.  Well, listen, Kevin, we've got concerns about the human rights situation in a lot of countries around the world, including some countries like China and Russia that we've already spent a lot of time talking about today.  The question really is, how do we shape those relationships so the United States benefits from them?  How can we shape those relationships so that we can put pressure on those countries to improve the human rights situation inside their country while at the same time giving the American people the opportunity and our country the opportunity to benefit from those relationships?  

     So when it comes to Cuba, the United States had had a policy in place for more than five decades that attempted to isolate Cuba in an effort to pressure them to improve their respect for human rights.  That policy failed.  That policy was in place for more than 50 years and it didn't have the desired outcome.  So President Obama decided to try something new.

     And in just two years since the President decided to try a new approach that would seek to normalize relations between our two countries, we've made a lot of important progress.  More than $6 billion in trade has been initiated between Cuba and the United States since then [emphasis added], which obviously has an important economic benefit here in the United States.  More Cuban Americans are able to send more money and travel more frequently to Cuba to visit their family members who remain in that country.  Other Americans who are interested in visiting Cuba for cultural or educational reasons can have the benefit of learning more about the island and essentially deepening relations between our two countries.  Those Americans are also allowed to bring back as much Cuban rum and Cuban cigars as they'd like for their own personal use.  So there are a variety of benefits, you might say, that the American people can enjoy as a result of this policy change.

     Just as importantly, the Cuban people are benefitting too.  And we're seeing the Cuban economy -- particularly when it comes to entrepreneurs in that country -- benefit from more interactions with Americans who are traveling to their country.

     Q    But would that lead to a change in their human rights posture at all?  I mean, because on the one hand you said, listen, the old policy didn't work as far as human rights were concerned.  Now this new policy seems to be working perhaps economically, certainly for them, and I think, from a social perspective, perhaps even for the American and Cuban relations.  But is that changing the paradigm on human rights?

     MR. EARNEST:  Well, it certainly is ramping up pressure on the Cuban regime.  And earlier this year, many of you had the opportunity to travel to Cuba with the President where the Cuban President was asked directly and put in the international spotlight around a question about whether or not his government takes political prisoners.  

That’s increasing pressure on the Cuban government in a way that, frankly, they’re not used to seeing.  That was a rather remarkable, extraordinary event, those of you who saw it may recall.  There were two different times in which an aide came onstage to whisper in the ear of the Cuban President about how best to answer this question because they understood they were facing more public pressure than ever before about their respect for human rights; certainly more pressure than they faced when they were under an embargo for more than 50 years.  And that pressure was only existent -- only existed because of the President’s trip down there and his commitment to the pursuit of this approach.

I think the last thing is, if we’re actually interested in trying to protect and advance the interests of the Cuban people, if we actually care about their plight, then we might consider what their view is of the policy.  And all the public data that I’ve seen is that, in some cases, more than 90 percent of Cubans actually believe that this policy has been good for them.

So this is a policy that has only been in place for two years, and the President is hopeful that as this policy remains in place, we’ll have more benefits to show from it.  But of course, the next incoming President will have something to say about that.

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Why GE Is Good For U.S. Companies, Good For Cuba & Not Bad For Trump Administration

Recently-departed from Fairfield, Connecticut, and now Boston, Massachusetts-based General Electric (GE), 2015 revenues exceeded US$140 billion, is soon to announce an agreement with Republic of Cuba government-operated Ferrocarriles Nacionales de Cuba in conjunction with the Ministry of Foreign Trade of the Republic of Cuba (MINCEX) for the export of passenger train locomotives as a part of a five-year program by the government of the Republic of Cuba to update its passenger and freight systems. 

GE has not reported on the provision of license(s) from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce.  Transparency will be important- providing data relating to what to be delivered, when it will be delivered, where will it be manufactured, what is the cost, and what are the terms of the transaction.

Companies from the Russian Federation and People’s Republic of China are participating- and are receiving substantial financing from their respective governments.

GE is also discussing opportunities relating to the production and use of renewable energy, including biofuels, healthcare, and other product and service offerings. 

In November 2016, Republic of Cuba government-operated Cuban Union Railways (UFC) signed a contract (with long-term financing from the Export Insurance Agency of Russia) for sixty-eight (68) long-distance passenger rail cars from Russian Federation-based Transmashholding.

In July 2016, the UFC signed a contract (with long-term financing from the Export Insurance Agency of Russia) with Lyudinovo Locomotive Works (LTZ) for seventy-five (75) locomotives (TGM8KM Series) with the first to be delivered in May 2017; and spare parts for existing locomotives delivered in November 2016.  All locomotives are scheduled to be delivered by the end of 2021.  Yekaterinburg, Russia-based Sinara Transport Machines (STM), an engineering company, reported managing projects valued at US$246 million in the Republic of Cuba.

In November 2015, UFC signed an agreement for the purchase of 240 passenger rail coaches from the People’s Republic of China.  The funding for the purchase was obtained in February 2016 from the Exim Bank of the People’s Republic of China.

UFC reported that it hauls sixteen (16) million metric tons of freight per year for the Republic of Cuba's sugar industry.

GE is among an increasing number of United States-based companies that have evaluated the use of credit programs offered by countries within which are located foreign subsidiaries.  Blog Post-http://www.cubatrade.org/blog/2016/10/11/foreign-subsidiaries?rq=canada

On 31 March 1971, GE certified a claim in the amount of US$5,870,436.86 through the United States Foreign Claims Settlement Commission (USFCSC) within the United States Department of Justice.  Interest accrued at 6% per annum from the respective date(s) of loss to the date of settlement.  [Click Here For Claim Document].

GE is the second United States-based company with a certified claim to engage (place assets) within the Republic of Cuba. 

In 2016, Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion), which is a subsidiary of Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), was granted a license by the OFAC to manage properties in the city of Havana owned by Republic of Cuba government-operated entities. 

As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide. [Click Here For Claim Document].

The Libertad Act (“Helms-Burton”) of 1996 includes a provision authorizing certified claimants to directly negotiate a settlement with the government of the Republic of Cuba, independent of the USFCSC process.

Neither GE nor Starwood Hotels & Resorts Worldwide have reported that the companies settled, are negotiating or have relinquished their respective certified claims.

That GE will have its brand again visible in the Republic of Cuba is good for United States-based companies.

That GE is providing for the 11.4 million citizens of the Republic of Cuba what the government of the Republic of Cuba chooses not to should not be considered detrimental by the incoming Trump Administration as GE will be a highly-visible example of the limitations inflicted by the commercial, economic and political systems of the Republic of Cuba.

The cautionary element, as in many transactions involving the Republic of Cuba, is the government of the Republic of Cuba uses little of its currency- it’s on the receiving end of largess which does not robustly encourage commercial, economic or political change.

The government of the Republic of Cuba does not feel it needs to provide precious foreign exchange for virtually any project- whether those with United States-based companies or non-United States-based companies. 

There is a belief that the Republic of Cuba is owed by governments of countries; that the island stood firmly and at great cost against capitalism, for communism, and against the United States…. and should be rewarded, compensated, and supported to continue that effort and thus not create an economy which is based upon what it can afford, but rather one that others make payment to maintain the prototype.      

With respect to commercial transactions with United States-based companies, the government of the Republic of Cuba believes that whatever is received provides recompense for harm inflicted by the United States not since 1959, but since 1898.

As President-Elect Donald J. Trump is expected to embrace a transactional presidency, with most domestic and foreign policies birthed within the West Wing of The White House.  How those policies will be implemented may be intensely swayed by Departments and Agencies, along with Members of the United States Congress.

The Republic of Cuba will find peril in defining a transactional relationship with the Trump Administration as “you give, we take.”  Playing a game of “chicken” with the Obama Administration was relatively easy to win because of predictability; the government of the Republic of Cuba shouldn’t expect that with the Trump Administration.  

GE is the 11th largest company, by revenue, in the United States and the 68th largest company, by revenue in the world.  From the company: “(NYSE:GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry.”

TEXT IN PDF FORMAT

US Department Of State: U.S.-Cuba Renewable Energy and Energy Efficiency Working Group Meeting

U.S. - Cuba Renewable Energy and Energy Efficiency Working Group

Media Note
Office of the Spokesperson
Washington, DC
December 14, 2016

Today, the United States Departments of State and Energy co-chaired the first U.S.-Cuba Renewable Energy and Energy Efficiency Working Group in Washington, D.C. Participants discussed regional developments related to clean energy, including renewable energy and energy efficiency, and exchanged ideas and information on how the United States and Cuba can move forward on this shared interest.

The Renewable Energy and Energy Efficiency Working Group participants also shared information about domestic and international energy policies and established a meeting framework for future collaboration. The working group was jointly proposed and agreed to at the U.S.-Cuba Economic Dialogue on September 12 in Washington, D.C.

The Renewable Energy and Energy Efficiency Working Group is made up of officials from the United States Department of State and Department of Energy and officials from Cuba’s Ministry of Energy and Mines, Ministry of Foreign Relations, Ministry of Science, Technology and Environment, Ministry of Foreign Trade and Investment, and Ministry of Industry.

Google's Lack Of Transparency Harms US-Cuba Commercial Relationship

The refusal by Mountain View, California-based Google (a subsidiary of Alphabet, Inc.; 2015 revenues exceeded US$74 billion) to provide the following information about its transaction with the government of the Republic of Cuba harms the United States-Republic of Cuba commercial relationship- and opportunities for its expansion and support by the soon-to-be Trump Administration.

1) When will the servers be installed?

2) How many servers will be installed? (reportedly four)

3) What is the cost of the servers?

4) Where will the servers be located?

5) Is the government of the Republic of Cuba making any payment(s) for the servers?

The secrecy creates a narrative for politics to continue its invasion into the commercial process.  When United States-based companies engage with the Republic of Cuba it is important for the transaction(s) to be transparent. 

This is especially true for announcements during the final 37 days of the Obama Administration when a magnified focus will be upon any commercial, economic and political decision. 

The goal should be to inoculate commercial engagement from scrutiny, not create an attention-getting virus. 

If not, questions by media and Members of Congress may metastasize to focus upon the negative- that the secrecy relating to seemingly basic transactional data is due to the United States-based company having received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce to engage in a transaction(s) that if made public would encounter criticism, skepticism, antagonism or hearings.

The Honorable Susan Molinari is Vice President for Public Policy at Google.  Ms. Molinari is a former (1990-1997) member of the United States House of Representatives from New York State.

From Google (12/13/16)

Making Google products work better in Cuba

“Google and Cuba’s national telecom provider ETECSA have signed an agreement to deploy the Google Global Cache service to help improve the online experience for Cubans who are using Google products. This deal allows ETECSA to use our technology to reduce latency by caching some of our most popular high-bandwidth content like YouTube videos at a local level. This in turn means Cubans who already have access to the internet and want to use our services can expect to see an improvement in terms of quality of service and reduced latency for cached content. Our involvement with Cuba dates back to 2014, when we first launched a number of products that included Google Chrome, Google Play and Google Analytics. Just a couple of months ago we followed that up by making hundreds of thousands of free extensions and themes available on the Chrome Web Store to let Cuban users personalize their experience browsing the web with Chrome. Taken together, all these projects are tied to Google’s core values to make the world’s information useful and accessible to everyone regardless of cost, connectivity, and language barriers. Signed by Marian Croak, VP Access Strategy & Emerging Markets, and Brett Perlmutter, Head of Strategy & Operations, Google Cuba.”

CLICK FOR PDF FORMAT TEXT

Google Expands Presence In Cuba- No Payment By Cuba

GOOGLE

Making Google products work better in Cuba

From Google: “Google and Cuba’s national telecom provider ETECSA have signed an agreement to deploy the Google Global Cache service to help improve the online experience for Cubans who are using Google products. This deal allows ETECSA to use our technology to reduce latency by caching some of our most popular high-bandwidth content like YouTube videos at a local level. This in turn means Cubans who already have access to the internet and want to use our services can expect to see an improvement in terms of quality of service and reduced latency for cached content. Our involvement with Cuba dates back to 2014, when we first launched a number of products that included Google Chrome, Google Play and Google Analytics. Just a couple of months ago we followed that up by making hundreds of thousands of free extensions and themes available on the Chrome Web Store to let Cuban users personalize their experience browsing the web with Chrome. Taken together, all these projects are tied to Google’s core values to make the world’s information useful and accessible to everyone regardless of cost, connectivity, and language barriers. Signed by Marian Croak, VP Access Strategy & Emerging Markets, and Brett Perlmutter, Head of Strategy & Operations, Google Cuba.”

From Associated Press: “Under the terms, Cuba would have access to the Google Global Cache, a network of servers that accelerates internet speeds [ten times faster than current speeds in the Republic of Cuba] for Google products, like search and YouTube, said the person, who asked not to be identified because the plans haven’t been announced. The initiative was driven by a unit of Google called Next Billion Users whose purpose is to spread its services in developing countries. Eric Schmidt, chairman of Google parent Alphabet Inc., is expected to sign the deal next week in Havana, the person said.  Google opened a technology center in the capital city earlier this year as part of a White House initiative to expand internet access to Cuba.  A Google representative didn’t return a request for comment.”

From Associated Press: “Google is installing multiple servers in Cuba that will host much of the company's most popular content, the person said on condition of anonymity because the deal had not yet been made public. The agreement was being announced by Google chairman Eric Schmidt Monday morning in Havana.  Storing Google data in Cuba eliminates the long distances that signals must travel from the island through Venezuela to the nearest Google server. The U.S. has no direct data link to the island, contributing to painfully slow internet speeds that make sites like YouTube virtually impossible to use for many.”

From Google: “Our edge nodes (called Google Global Cache, or GGC) represent the tier of Google's infrastructure closest to our users. With our edge nodes, network operators and internet service providers deploy Google-supplied servers inside their network.  Static content that is very popular with the local host's user base, including YouTube and Google Play, is temporarily cached on edge nodes. Google's traffic management systems direct user requests to an edge node that will provide the best experience.  In some locations, we also use our edge nodes to support the delivery of other Google services, such as Google Search, by proxying traffic where it will deliver improved end-to-end performance for the end user.”

The offer from Mountain View, California-based Google does not mean the Republic of Cuba will avail itself to everything that Google makes possible for consumers.  However, further connectivity is good- especially for visitors (including tourists) and is particularly welcomed for business interests- where efficient Internet goes, commerce will follow.

What is to be celebrated.  The interest by United States companies in engagement with the Republic of Cuba or the Republic of Cuba’s continued willingness to accept donations of products and services and focus upon what brings it revenue rather than what requires expenditure?

The government of the Republic of Cuba would not choose to make payment for the services to be provided by Google; and the government of the Republic of Cuba would be unable to afford to invest in the technologies provided by Google.  

For the government of the Republic of Cuba, it will not allocate scarce resources to make payments to a United States-based company whose mission is to expand the unfettered global reach of individuals when the government of the Republic of Cuba is not (yet) prepared to accept, let alone embrace and permit to thrive a communicative network amongst its 11.4 million citizens that is challenging to control.  Currency equates with Risk.

People’s Republic of China-based companies have and continue to provide (either at no cost or with long-term favorable financing backed by the government of the People’s Republic of China) telecommunications and communications infrastructure and consumer communication devices to the Republic of Cuba.     

For the soon-to-be Trump Administration, the efforts by Google should not require an antacid; while Google is not being compensated, the company will be a catalyst, not the catalyst, in further reducing the communicative constraints imposed by the government of the Republic of Cuba.

http://www.cubatrade.org/blog/2016/3/21/njhpnlptgxnffjb44hfi74z42x9g6v?rq=google

Google Opens Technology Center In Havana... High Speed Internet For 40 At A Time
April 05, 2016

California-based Google has opened is technology center in the city of Havana, Republic of Cuba.  The facility has twenty Chrome notebooks, one hundred Google cardboard virtual reality visors, and two cameras for transmitting video to YouTube, owned by Google.

Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) is providing the facility with high-speed Internet, which is not available to the public.  The facility will be open five days a week and can accommodate forty customers (limited to one hour per session).

Reportedly, the partner in the Republic of Cuba is paying approximately US$900.00 per month to ETEC SA for high-speed Internet access- which provides the users of Chrome notebooks with a connection approximately seventy-times that of existing Wi-Fi locations throughout the Republic of Cuba.

According to ETEC SA, as of March 2016, an average of 200,000 people per day access the Internet from eighty-five (85) public Wi-Fi hotspots located throughout the country; in December 2015, the number was 150,000 users per day.  ETEC SA plans to create an additional sixty (60) wi-fi hot spots and establish one hundred (100) Internet cafes in 2016.  As of 31 December 2015, there were three hundred and forty-five (345) Internet cafes with a combined 11,187 computers.  The Republic of Cuba has 11.3 million citizens.

The Republic of Cuba accesses the Internet through an undersea fiber-optic cable connected to Venezuela in 2011, which became fully-operational in 2013.

From Google on 21 March 2016:

"¡Adelante! We’re thrilled to partner with the Museo Orgánico Romerillo in Havana, Cuba, which is showcasing the work of local artist Kcho. It will also feature some of the latest Google products including Cardboard and Chromebooks, connected to local carrier ETECSA’s Internet network. We hope this installation will enable people for whom Internet access is scarce to browse the web and find information.

We’re excited that Cuban children will be able to try out virtual reality to explore sites from around the world -- from Stonehenge to Port Hercule -- the same way that children in other countries do. These efforts, which are all led by our Access team, are just a start, but an important one. They demonstrate what might be possible in the future.

They come as other US technology firms and other companies increase their efforts in Cuba to bring a variety of services to the island -- including potentially WiFi and broadband providers as well. We’re also exploring additional possibilities around increasing and improving internet access, but they’re at early stages. We’ve always been very open about the fact that we want to make available as many of our products as possible throughout the world, because we believe that access to information and technology can improve lives.

In 2014, we launched Google Chrome, Google Play for Free Apps, and Google Analytics in Cuba. Later, after steps were taken toward normalizing relations between Cuba and the US, we introduced Toolbar in Cuba in January 2015 to help people search the web more easily.

We know, from the experience of many countries around the world, that new technologies and improved internet access can help people in their daily lives, provide new information and experiences, and help harness a country’s creativity and ingenuity. We hope to have the chance to offer more services to the Cuban people in the future."

http://www.cubatrade.org/blog/2016/10/17/google-to-support-chrome-cuba-focused-developers?rq=google

Google To Support Chrome Cuba-Focused Developers
October 17, 2016

Google has informed registered Chrome developers that the company will support free extensions, themes, and apps will be extended to the Republic of Cuba commencing on 19 October 2016.

Chrome Apps

"The default language for the Cuban Chrome Store and any content with multi-language support published there will be Spanish, and any app, theme, or extension currently published to "All Regions" will be automatically published to Cuba's Chrome Web Store.

If content is not marked for All Regions it will be excluded from the Cuban store by default. Developers are encouraged to check and adjust their publishing settings as needed, as well as internationalize their store listings if they intend to distribute to multiple regions or with multiple language options.

Relaxation of U.S. export controls and sanctions towards Cuba allowed Google to distribute Chrome in late 2014, and as relations continue to improve between the two countries we should see more companies providing their services for the people of Cuba as public internet access continues to grow."

US Exports Increase 64% For Month; 20% Thus Far For Year

ECONOMIC EYE ON CUBA©
December 2016

October Food/Ag Exports Increased 64%-
20% Increase For First Ten Months Of 2016-
First Yearly Increase Since 2011/2012-
Healthcare Product Exports-
Humanitarian Donations-
Obama Administration Initiatives Product Exports-
U.S. Port Export Data-

OCTOBER FOOD/AG EXPORTS INCREASE 64%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in October 2016 were US$21,994,945.00 compared to US$13,407,640.00 in October 2015 and US$16,511,913.00 in October 2014.  

2016- US$191,477,151.00
2015- US$170,551,329.00
2014- US$291,258,881.00
2013- US$348,747,293.00
2012- US$457,318,357.00
2011- US$358,457,389.00

COMPLETE REPORT IN PDF FORMAT

Cuba's Port Representatives To Visit US In January 2017; Was Scheduled For Sept/Oct 2016

Representatives of Republic of Cuba government-operated entities, those responsible for port operations, plan to visit the United States in January 2017; the visit had been anticipated for September 2016 or October 2016 for a tour of port facilities.  The delegation will begin its visit to Tampa, Florida.

If your port facility is interesting in hosting a meeting with the representatives of the Republic of Cuba, you are advised to directly contact Mr. Ruben Ramos Arrieta, Minister Counselor (Commercial) at the Embassy of the Republic of Cuba in Washington, DC.

Embassy of the Republic of Cuba
2630 16th Street, NW
Washington, DC20009

Telephone: (202) 797-8518/19/20
Facsimile: (202) 797-8521
Email: recepcion@sicuw.org
Email: cubaseccion@igc.apc.org
Email: secretaria@sicuw.org
Email: traduccion@sicuw.org
comercial@usadc.embacuba.cu
Internet: http://www.cubadiplomatica.cu/sicw/EN/Home.aspx

His Excellency
Jose Ramon Cabanas Rodriguez
Ambassador

Mr. Ruben Ramos Arrieta
Minister Counselor (Commercial)
Economic and Trade Office