Thirteen Months Ago, 2020 Democratic Party Platform Approved Position On Cuba. President Biden Has Thus Far Ignored It.

2020 Democratic Party Platform 

The platform was considered by the 2020 Platform Committee at its meeting on July 27, 2020, and was approved by the Democratic National Convention on August 18, 2020. 

Page 87  (2020 Platform)

“Democrats will also move swiftly to reverse Trump Administration policies that have undermined U.S. national interests and harmed the Cuban people and their families in the United States, including its efforts to curtail travel and remittances. Rather than strengthening the regime, we will promote human rights and people-to-people exchanges, and empower the Cuban people to write their own future.”

Page 45 (2016 Platform)

“In Cuba, we will build on President Obama’s historic opening and end the travel ban and embargo. We will also stand by the Cuban people and support their ability to decide their own future and to enjoy the same human rights and freedoms that people everywhere deserve. In Venezuela, we will push the government to respect human rights and respond to the will of its people. And in Haiti, we will support local and international efforts to bolster the country’s democratic institutions and economic development. We will also help more Haitians take advantage of Temporary Protected Status. Finally, we will close the School of the Americas, now known as the Western Hemisphere Institute for Security Cooperation, because we believe that military and police forces should support democracy, not subvert it.”

2016 Republican Party Platform

“We want to welcome the people of Cuba back into our hemispheric family — after their corrupt rulers are forced from power and brought to account for their crimes against humanity. We stand with the Women in White and all the victims of the loathsome regime that clings to power in Havana. We do not say this lightly: They have been betrayed by those who are currently in control of U.S. foreign policy. The current Administration's "opening to Cuba" was a shameful accommodation to the demands of its tyrants. It will only strengthen their military dictatorship. We call on the Congress to uphold current U.S. law which sets conditions for the lifting of sanctions on the island: Legalization of political parties, an independent media, and free and fair internationally-supervised elections. We call for a dedicated platform for the transmission of Radio and TV Martí and for the promotion of internet access and circumvention technology as tools to strength Cuba's pro-democracy movement. We support the work of the Commission for Assistance to a Free Cuba and affirm the principles of the Cuban Adjustment Act of 1966, recognizing the rights of Cubans fleeing Communism…. Internet firewall circumvention and anti-censorship technology must become a national priority in light of the way authoritarian governments such as China, Cuba, and Iran restrict free press and isolate their people limiting political, cultural, and religious freedom.”

Page 30 (2012 Platform)

“In the Americas, we see vibrant democracies in countries from Mexico to Brazil and Costa Rica to Chile. We have also seen historic peaceful transfers of power in places like El Salvador and Uruguay. Yet despite the region's democratic progress, stark inequalities in political and economic power endure. We will continue to press for more transparent and accountable governance. And we will promote greater freedom in Cuba and Venezuela until all their citizens enjoy the universal rights they deserve.”

“In the Americas, we see vibrant democracies in countries from Mexico to Brazil and Costa Rica to Chile. We have also seen historic peaceful transfers of power in places like El Salvador and Uruguay. Yet despite the region's democratic progress, stark inequalities in political and economic power endure. We will continue to press for more transparent and accountable governance. And we will promote greater freedom in Cuba and Venezuela until all their citizens enjoy the universal rights they deserve. Under President Obama, we have undertaken the most significant efforts in decades to engage the Cuban people. We have focused on the importance of the family ties between Cuban Americans and their relatives still living under oppression. Because of steps the President has taken, it is now possible for Cuban Americans to visit and support their families in Cuba, and to send remittances that reduce the Cuban people's dependence on the Cuban state. We have taken additional steps to bolster Cuban civil society, expanding purposeful exchanges that bolster independent religious groups on the island and enhancing the free flow of information to, from, and among the Cuban people. Going forward we will continue to support the Cuban people's desire to freely determine their own future.”

Americas (2020) 

Democrats believe the Western Hemisphere is America’s strategic home base—a region bound together by common values, history, and vision of a more prosperous, democratic, and secure future. When the United States hosts the region’s leaders at next year’s Summit of the Americas—the first to be held here since the 1994 inaugural meeting in Miami—we will turn the page on the Trump Administration’s denigration and extortion of our neighbors, and we will chart a new era of cooperation based on partnership and shared responsibility for the region we all call home. 

Democrats will reaffirm the importance of North America to U.S. global economic competitiveness. We will ensure the USMCA lives up to its commitment to create prosperity for American workers, and we will strictly enforce compliance with its labor and environmental provisions. We will reinvigorate and build upon the North American Plan for Animal and Pandemic Influenza launched under the Obama-Biden Administration and work with our partners to recover from the COVID-19 pandemic, which has caused the biggest economic decline in history across Latin America and the Caribbean. 

Rather than coerce our neighbors into supporting cruel migration policies, we will work with our regional and international partners to address the root causes of migration—violence and insecurity, weak rule of law, lack of educational and economic opportunity, pervasive corruption,

and environmental degradation. Rather than encourage climate denial and environmental devastation, we will rally the world to protect the Amazon from deforestation, protect Indigenous peoples, and help vulnerable nations in the Caribbean and Central America adapt to the impacts of climate change. And rather than imitate populist demagogues, we will link arms with our neighbors to realize our shared aspirations for the region’s future. 

We will reject President Trump’s failed Venezuela policy, which has only served to entrench Nicolás Maduro’s dictatorial regime and exacerbate a human rights and humanitarian crisis. To rise to the occasion of the world’s worst refugee crisis and worst humanitarian crisis outside a warzone in decades, the United States will mobilize its partners across the region and around the world to meet the urgent needs of the people of Venezuela, and grant Temporary Protected Status to Venezuelans in the United States. Democrats believe that the best opportunity to rescue Venezuela’s democracy is through smart pressure and effective diplomacy, not empty, bellicose threats untethered to realistic policy goals and motivated by domestic partisan objectives. 

Democrats will also move swiftly to reverse Trump Administration policies that have undermined U.S. national interests and harmed the Cuban people and their families in the United States, including its efforts to curtail travel and remittances. Rather than strengthening the regime, we will promote human rights and people-to-people exchanges, and empower the Cuban people to write their own future.

LINK TO COMPLETE 2020 Platform In PDF Format

LINK TO COMPLETE 2016 Platform In PDF Format

LINK TO COMPLETE 2012 Platform In PDF Format

Cuba Could Resolve Western Union's Certified Claim By Waiving Four Months Of Electronic Remittance Transfer Fees. Biden Administration Should Support And Negotiate Certified Claims Settlement.

Biden-Harris Administration Can Make Progress Where Obama-Biden Administration And Trump-Pence Administration Failed 

Cuba Received US$20 Million In Annual Fees From Western Union- Which Has A Certified Claim Since 1960 Against Cuba For US$4.3 Million 

Cuba Relinquishes Its Fees Until Western Union Is Fully-Compensated 

In Less Than Four Months, Cuba Could Resolve The US$4.3 Million Certified Claim 

First Certified Claim Would Be Resolved.  Second Resolution Becomes Easier 

Certified Claims Are Foundation For Issues With Cuba 

Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) delivered electronic remittance transfers from the United States and other countries to the Republic of Cuba.  The total estimated annual value of electronic remittance transfers from the United States was approximately US$1.5 billion. 

The government of the Republic of Cuba received on an annual basis approximately US$20 million as fees for the processing and delivery of electronic remittance transfers from the United States to the Republic of Cuba.  The approximately US$20 million represented approximately 2% of the total value of electronic remittance transfers of approximately US$1.5 billion.  The 2% was in line with global norms.   

The approximately US$20 million in fees were divided amongst three Republic of Cuba government-operated entities.  All electronic remittance transfers arriving to the Republic of Cuba are processed by and create benefit to the government of the Republic of Cuba primarily through Revolutionary Armed Forces (FAR) of the Republic of Cuba-connected Republic of Cuba government-operated Banco Financiero Internacional S.A. (BFI), Republic of Cuba government-operated Financiera Cimex (Fincimex) and Republic of Cuba government-operated American International Services (AIS).     

Western Union Company has one claim (CU-2317 in two parts: 135th largest (US$780,631.20) and 365th largest (US$216,286.75) for a total US$939,367.95 against the government of the Republic of Cuba certified on 16 June 1971 by the United States Foreign Claims Settlement Commission (USFCSC).  The USFCSC permits 6% annual interest on the principal, thus as of 2021 the certified claim has a value of approximately US$4,377,454.88.  LINK To Certified Claim Document.  

Eliminate the fee paid by Western Union Company to Republic of Cuba government-operated companies and the certified claim of Western Union Company evaporates.   

Then, the Diaz-Canel-Valdes Mesa Administration (2019- ) could engage directly with the Biden-Harris Administration (2021- ) in settlement negotiations for the remaining 5,912 certified claims. 

Making the process less problematic is the two (2) largest certified claims representing 24% of the total value of all certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

The Negotiator 

Mr. Kenneth Feinberg is a Washington DC-based attorney (www.feinberglawoffices.com) specializing in mediation and alternative dispute resolution, whose service includes Special Master for the September 11th Victim Compensation Fund and TARP Executive Compensation; Administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund; oversaw disbursements for the Penn State settlement and the Aurora victim relief fund; mediated the Foreign Exchange and Benchmark Rates Antitrust Litigation; and was retained to assist in the General Motors recall response and compensation for Volkswagen owners.    

Mr. Feinberg served as Chief of Staff to The Honorable Edward Kennedy (D- Massachusetts) and on the senior staff of the Committee on the Judiciary of the United States Senate. 

Mr. Feinberg, as United States Department of State Special Representative (with rank of Ambassador) For Cuba Negotiations, would bring his known appreciation for deadlines to his tenure.  He would coordinate the day-to-day discussions and negotiations with the Republic of Cuba.  Since 2018, Mr. Feinberg has confirmed his interest in assisting with settlement negotiations.  

His goal would be to conclude during the Biden-Harris Administration (2021- ) what the Trump-Pence  Administration (2017-2021) and Obama-Biden Administration (2009-2017) failed to do- and what eight other previous occupants of The White House failed to deliver on behalf of those 5,913 individuals and companies whose assets were expropriated without compensation by the Republic of Cuba, beginning with an oil refinery owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation. 

LINK: President Biden: A Special Presidential Representative For Cuba Negotiations- With Or Without An Ambassador January 31, 2021 

Certified Claims Background

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).  The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims is approximately US$8,978,394,785.15.  

The first asset (along with 382 enterprises the same day) to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).  

From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959.  Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials.  Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851.  The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.” 

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba.  The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc.  The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust. 

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

Certified Claimants Operating (Or Operating Recently) In Cuba   

Certified claimants with current or recent activity within the Republic of Cuba include New York, New York-based Colgate-Palmolive, Moline, Illinois-based Deere & Company, Atlanta, Georgia-based Delta Air Lines, Boston, Massachusetts-based General Electric, Bethesda, Maryland-based Marriott International, Chicago, Illinois-based University of Chicago, Denver, Colorado-based Western Union and New Haven, Connecticut-based Yale University.    

The combined value of the certified claims by these entities is US$206,707,396.21 (US$938,451,578.64 with interest) representing 10.9% of the value of 5,913 certified claims.  

Colgate-Palmolive (US$14,507,935.04): From New York, New York-based Colgate-Palmolive Company (2020 revenues approximately US$16 billion) on 5 April 2016: “Colgate Palmolive’s Bright Smiles, Bright Futures program provides oral health education and screening to millions of children in more than 80 countries as part of an effort to reduce and prevent cavities among children. The global program, celebrating its 25th anniversary, has reached more than 850 million children around the world with its education curriculum. This award-winning curriculum is translated into 30 languages. Colgate’s well-established partnerships with governments, schools and communities -- combined with a committed network of volunteer dentists and educators -- make the program work.  With government approval, we brought a humanitarian program modeled on Bright Smiles, Bright Futures to Cuba in 2014. In our first year, we ran the program in one municipality of Havana and reached approximately 10,000 children. Additionally, we presented our plan to dentists and representatives from the Ministry of Health at the Cuban Dental Congress in November 2015.  Today, we’re extending our reach in Havana as well as expanding the program to the provinces of Cienfuegos and Pinar del Río in partnership with the Ministry of Health. With this expansion, we expect to reach more than 170,000 children by the end of 2016.”   

Deere & Company (US$267,171.50): In November 2017, and continuing through 2021, Moline, Illinois-based Deere & Company (2019 revenues approximately US$39 billion) delivered more than $800,000.00 in agricultural equipment to the Republic of Cuba for use at its distribution center affiliated with Republic of Cuba government-operated Maquimport, a subsidiary of Republic of Cuba government-operated Gecomex.  Antioch, Tennessee-based Wirtgen America, Inc., a subsidiary of Windhagen, Germany-based Wirtgen Group (2019 revenues approximately US$3 billion), a construction equipment machinery subsidiary (acquired in 2017) of Deere & Company has also delivered products to the Republic of Cuba. John Deere reported that the company would provide financing for equipment purchases by authorized Republic of Cuba entities.  

Delta Air Lines (US$212,396.08): Atlanta, Georgia-based Delta Air Lines (2019 revenues approximately US$47 billion) has operated regularly-scheduled flights between the United States the Republic of Cuba and a ticket office in the city of Havana, Republic of Cuba, managed by Republic of Cuba government-operated Havanatur, a subsidiary of Republic of Cuba government-operated Corporacion Cimex SA which is controlled by Enterprise Administration Group (GAESA) which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).    

General Electric (US$5,870,436.86): Since December 2017, Boston, Massachusetts-based General Electric (GE; 2019 revenues exceeded US$95 billion) delivered from the United States to the Republic of Cuba “parts for steam turbines” valued at more than US$21 million. Some of the parts traveled from Atlanta, Georgia, to Port Everglades, Florida, then to Port Mariel in the Republic of Cuba. GE is the largest (by revenue) United States-based company to have engaged with the Republic of Cuba. Although GE has not issued a media release relating to the project in the Republic of Cuba, in 2017 the government of the Republic of Cuba confirmed in a PowerPoint presentation used by the Embassy of the Republic of Cuba in Washington DC that the company was providing parts and equipment for a power plant. The total value of the project has not been reported. The Obama-Biden Administration first authorized the transactions by GE as primarily advancing benefit to the citizens of the Republic of Cuba rather than to the government of the Republic of Cuba. This type of transaction was and remains licensable (general or specific) through the OFAC and BIS. In November 2015, GE purchased for approximately US$10.6 billion the power and grid division of Paris, France-based Alstom (2018 revenues approximately US$8 billion). In 2016, GE commenced a power generation project in the Republic of Cuba resulting, in part, from a relationship between Alstom and the Republic of Cuba prior to the 2015 acquisition by GE of the power and grid division of Alstom, which had exported products to the Republic of Cuba. On 31 March 1971, GE certified a claim against the Republic of Cuba 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.  

Marriott International (US$181,808,794.14): A subsidiary of Bethesda, Maryland-based Marriott International, Inc. (2019 revenues approximately US$21 billion), Stamford, Connecticut-based Starwood Hotels and Resorts Worldwide LLC, had a series of two-year licenses from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC to manage two (2) properties located in the Republic of Cuba.  Both properties managed by Marriott International (through Starwood Hotels and Resorts Worldwide LLC) are in the city of Havana, Four Points by Sheraton Havana and Hotel Inglaterra (delayed opening without explanation from December 2016 to December 2019) and owned by entities controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).  The OFAC licenses were first issued during the Obama-Biden Administration and renewed during the Trump-Pence Administration, although there was a reported delay by the OFAC in transferring the licenses from Starwood Hotels and Resorts Worldwide LLC to Marriott International.  The certified claim also includes land adjacent to the Jose Marti International Airport (HAV) in Havana, formerly known as Rancho-Boyeros Airport, located in the town of Boyeros, approximately 9 miles from Havana.  HAV handles approximately 25 international airlines and serves approximately 60 destinations in approximately 30 countries.  

University of Chicago (US$2,500,000.00): The Center for Latin American Studies at the Chicago, Illinois-based University of Chicago has offered academic programs in the Republic of Cuba and Alumni Association of the University of Chicago has marketed educational visits to the Republic of Cuba.   

Western Union (US$939,367.20): Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) provided online and app-based money transfer services in the Republic of Cuba through 420 Agent locations in all sixteen provinces and 168 municipalities.  Western Union Company retains an agreement with Republic of Cuba government-operated Fincimex S.A., a subsidiary of Republic of Cuba government-operated Corporacion Cimex SA which is controlled by Enterprise Administration Group (GAESA) which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).  

Yale University (US$601,295.39): The Yale MacMillan Center: Council on Latin American & Iberian Studies at New Haven, Connecticut-based Yale University has offered academic programs in the Republic of Cuba.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Recent Remittance-Related Cuba Analyses

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021  

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021 

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021  

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021  

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021  

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021  

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021  

Cuba Central Bank May Provide Option For Western Union To Continue Services To Cuba: REDSA November 26, 2020  

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020  

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020  

At 6:00 PM Today, Final [For Now] Western Union Transactions With Cuba Are [Temporarily Perhaps] Suspended November 23, 2020  

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020 

Trump Administration Executive Order About China Military Will Impact Biden Administration Decisions About Cuba Military November 17, 2020  

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 16, 2020  

Western Union Preparing To End Money Transfers To Cuba On 22 November 2020.... Will Cuba Permit It? November 13, 2020 

10% Of "Cuban-Americans" In United States Congress Has Announced Retirement; Former President Trump Campaigned Against The Republican Representative From Ohio; Redistricting Could Cost Another 10%

Punchbowl News
Washington DC
17 September 2021

“Our pal Jonathan Martin of the New York Times scooped last night that Rep. Anthony Gonzalez (R-Ohio) was retiring. Recruiting Gonzalez to run for Congress in 2018, as JMart pointed out, was a catch for House Republicans. He’s Cuban American, young and a former Ohio State and NFL football star. House Minority Leader Kevin McCarthy always says you can’t win a House majority without a football star running. We have no idea whether that’s true, but it’s a favorite McCarthy-ism.  However, Gonzalez voted to impeach former President Donald Trump following the deadly Jan. 6 attack on the Capitol. Trump, in turn, has endorsed a primary opponent against Gonzalez. The second-term lawmaker still believed he could win, but for what? “You can fight your butt off and win this thing, but are you really going to be happy? And the answer is, probably not,” told JMart. Gonzalez was running against Max Miller.” 

Background

The Honorable Donald Trump, 45th President of the United States (2017-2021) attended a rally on 26 June 2021 at the Lorain County fairground located in Wellington, Ohio, approximately forty miles southwest of Cleveland, Ohio. The rally was to support the candidacy of Mr. Max Miller, a former staff member at The White House, who is seeking the 2022 nomination of the Republican Party for the 16th District from Ohio in the United States House of Representatives. Former President Trump is supporting Mr. Miller rather than the incumbent, The Honorable Anthony Gonzalez (Ohio; R-16th) who is serving a second term and is of Cuban descent. Representative Gonzalez voted in January 2021 to impeach then-President Trump.

A second “Cuban-American” member of the United States House of Representatives, The Honorable Nicole Malliotakis (New York; R- 11th), may have her district gerrymandered to make re-election challenging.

LINKS To Related Analyses: 

With Rally In Ohio, President Trump Seeking To Extract 10% Of Cuban-American Representation In 118th United States Congress June 26, 2021 

President Trump Seeking To Oust Cuban-American Member Of Congress; Exacting Revenge More Important Than Number Of Cuban-Americans In Congress? March 17, 2021

The current “Cuban-American” representation in the 117th United States Congress:

United States Senate
The Honorable Ted Cruz (R- Texas)
The Honorable Marco Rubio (R- Florida)
The Honorable Robert Menendez (D- New Jersey)

United States House of Representatives
The Honorable Albio Sires (New Jersey; D- 8th)
The Honorable Alex Mooney (West Virginia; R-2nd)
The Honorable Anthony E. González (Ohio; R- 16th)
The Honorable Mario Díaz-Balart (Florida; R-25th)
The Honorable Carlos Gimenez (Florida; R- 26th)
The Honorable Maria Elvira Salazar (Florida; R- 27th)
The Honorable Nicole Malliotakis (New York; R- 11th)

American Airlines Invests In Brazil's GOL Airlines Which Has Interline Agreement With Cubana de Aviacion. OFAC Permits This Type Of Non-Controlling Investment

Fort Worth, Texas-based American Airlines, Inc. (2019 revenues approximately US$45.7 billion) has purchased for US$200 million a 5.2% shareholding in Sao Paulo, Brazil-based GOL Linhas Aereas Inteligentes S.A. (2019 revenues approximately US$2.7 billion). LINK To Media Release   

In December 2015, GOL reported including Jose Marti International Airport (HAV) in the Republic of Cuba among destinations.  HAV is not currently listed among GOL destinations. 

On the Internet site of GOL: 

“Interline: GOL has partnerships with many airlines that can issue your tickets and allow you to make one or more connections without you having to check-in or check your bags again. Learn about the partner airlines with which we have this agreement known as an interline agreement:  

Cubana de Aviacion” 

On 4 March 1994, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC issued an opinion which stated that a United States business or individual subject to United States jurisdiction may make a secondary market investment in a third-country business which has commercial dealings within the Republic of Cuba provided that the investment does not result in control-in-fact of the third-country business by the United States investor and the third-country company does not derive a majority of its revenues from business activity within the Republic of Cuba.  Secondary market investment that falls short of a controlling interest in such a business is not prohibited. 

About GOL Linhas Aéreas Inteligentes S.A.: “GOL serves more than 36 million passengers annually. With Brazil's largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States. GOLLOG’s cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries. SMILES allows over 16 million registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network. Headquartered in São Paulo, GOL has a team of approximately 14,000 highly skilled aviation professionals and operates a fleet of 127 Boeing 737 aircraft, delivering Brazil's top on-time performance and an industry leading 20-year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, www.voegol.com.br/ir.” 

São Paulo, September 15, 2021 - GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), (“GOL” or “Company”), Brazil’s largest airline, has agreed to expand its commercial cooperation with American Airlines Group Inc. (NASDAQ: AAL) (“American”) through an exclusive codeshare agreement (“Agreement”) for the next three years that will deepen the relationship between the two airlines. As part of the Agreement, GOL will receive an equity investment of US$200 million (R$1.05 billion) from American.  

Through its exclusivity, the Agreement expands beyond the terms of the existing codeshare partnership between GOL and American, enhancing the travel opportunities for their passengers, the customer experience and the competitive position of GOL on routes connecting North and South America. In place since February 2020, the existing codeshare already represented the largest route network in the Americas, enabling the Company’s customers to travel seamlessly to more than 30 destinations in the U.S. The partnership flights currently operate in GOL’s hubs in São Paulo (GRU) and Rio de Janeiro (GIG), integrating 34 options of Brazilian and international routes, such as Montevideo, in Uruguay.  

The completion of the Agreement and equity investment is subject to conditions, including the execution and delivery of definitive documentation and other customary closing conditions.  

Exclusive Codeshare  

“The exclusive codeshare agreement between two of the leading airlines in the Americas combines highly complementary route networks to offer customers a superior travel experience, due to the largest number of flights and destinations in North and South America,” said GOL CEO Paulo Kakinoff. “We believe that this will bolster GOL’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders. It adds to our confidence in the Company’s growth as the economy reopens and travel demand increases.”  

GOL’s network services 63 destinations in Brazil as well as 140 international through codeshare agreements. The Company recently confirmed that Cancun (Mexico) and Punta Cana (Dominican Republic) will be its first international routes to reopen since the beginning of the Covid-19 pandemic. GOL will begin to operate flights on those routes by mid-November 2021.  

Over the last 10 years, American has flown more than 14 million passengers between Brazil and the U.S., representing more than twice as much traffic as the next largest U.S. carrier. The combination of GOL’s leading network in Brazil and American’s leadership in the U.S.–Brazil market will maximize revenues through the increased connectivity and improved route options for Customers.  

American Airlines President, Robert Isom, stated: “American has long been the leading U.S. carrier to South America and our exclusive partnership with GOL solidifies that leadership position. Our long-haul network marries seamlessly with GOL’s strong domestic network in Brazil and together, we will be able to offer customers flying to, through and from Brazil, access to the largest network with the lowest fares and the Americas’ biggest and best joint travel loyalty program.”  

GOL’s Smiles and American’s AAdvantage loyalty programs will be partners in the largest frequent flyer program in the Americas with enhanced benefits coming in early 2022. This will include access for loyalty members to several benefits such as priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats on both airlines. Customers may earn and redeem frequent flyer miles on both airlines.

The partnership between GOL and American also enables Customers to purchase connecting flights on both airlines using one reservation, in addition to creating a seamless ticketing, check-in, boarding and baggage check experience throughout an entire journey. 

Equity Investment  

American will invest US$200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the Company’s economic interest at a price of US$9.00 per preferred share (“PN” or “GOLL4”), equivalent to R$47.03 per PN as of 9/14/21 BRL/USD exchange rate. GOLL4’s closing price on 9/14/21 and average trading price during the second semester of 2019 were R$19.28 and R$35.68, respectively.  

Richard Lark, GOL’s CFO added: “The investment represents recognition by a major U.S. airline carrier of the Company’s value as the largest airline in Brazil with the best product. Further, the investment, when combined with the R$2.7 billion of long-term capital raised in 2Q21, brings the total long-term capital raised to over R$3.7 billion in the last six months, including over R$2.0 billion of new equity capital. This additional liquidity further enhances GOL’s financial flexibility while minimizing dilution to shareholders.” 

All holders of the Company’s preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe for a portion of the newly issued shares proportionate to their existing shareholdings.  

The detailed terms and conditions of the capital increase are expected to be approved by the Board of Directors of GOL and disclosed in due course, including the final amount in Brazilian reais of the capital increase, issuance price, the record date, and the periods and procedures for the exercise of preemptive rights by the shareholders of the Company.  

The equity investment described herein is subject to certain terms and conditions set forth in a letter of intent and a term sheet entered into on the date hereof between GOL and American. The right to proportionally subscribe for preferred shares according to the preemptive rights referred to in this release has not been registered with the U.S. Securities and Exchange Commission and will not be offered or extended absent registration or an applicable exemption from registration requirements. 

São Paulo, September 1, 2021 - GOL Linhas Aéreas Inteligentes S.A. (“GOL” or “Company”), (NYSE: GOL and B3: GOLL4), under the Article 12 of CVM Instruction 358/2002, hereby in forms its shareholders as well as the market that Capital International Investors (“CII”), the independent investment division of Capital Research and Management Company, a company under the laws of the USA, headquartered at 333, South Hope Street, Los Angeles, California 90071, United States of America, having JP Morgan SA Distribuidora de Títulos e Valores Mobiliarios, registered under CNPJ/ME nº 33.851.205/0001-30 and Citibank Distribuidora de Títulos e Valores Mobiliários S.A, registered under CNPJ/ME nº 33.868.597/0001-40, as legal representatives in Brazil, has increased its interest in preferred shares ("PN Shares") and American Depositary Receipts ("ADRs") representing PN Shares issued by the Company.  CII held 15,390,994 of the Company's PN Shares, corresponding to 4.90% and now it holds 17,500,994 of the Company's PN Shares and ADRs, equivalent to 5.57%. This is a minority investment that does not change the capital stock of the Company's control or management structure. The original release is available on the following address: www.voegol.com.br/ir.

Biden Administration Lists 21 Countries (17 In Western Hemisphere) As "Major Drug Transit Or Major Illicit Drug Producing" And Cuba Is Not On The List

The White House
Washington DC
15 September 2021

Presidential Determination No. 2021-13

MEMORANDUM FOR THE SECRETARY OF STATE

SUBJECT: Presidential Determination on Major Drug Transit or Major Illicit Drug Producing Countries for Fiscal Year 2022

By the authority vested in me as President by the Constitution and the laws of the United States, including section 706(1) of the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107-228) (FRAA), I hereby identify the following countries as major drug transit or major illicit drug producing countries: Afghanistan, The Bahamas, Belize, Bolivia, Burma, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, India, Jamaica, Laos, Mexico, Nicaragua, Pakistan, Panama, Peru, and Venezuela.

A country's presence on the foregoing list is neither a reflection of its government's counterdrug efforts nor level of cooperation with the United States. Consistent with the statutory definition of a major drug transit or major illicit drug producing country set forth in section 481(e)(2) and (5) of the Foreign Assistance Act of 1961, as amended (Public Law 87-195) (FAA), the reason countries are placed on the list is the combination of geographic, commercial, and economic factors that allow drugs to be transited or produced, even if a government has engaged in robust and diligent narcotics control and law enforcement measures.

Pursuant to section 706(2)(A) of the FRAA, I hereby designate Bolivia and Venezuela as having failed demonstrably to make substantial efforts during the previous 12 months to both adhere to their obligations under international counternarcotics agreements and to take the measures required by section 489(a)(1) of the FAA. Included with this determination are justifications for the designations of Bolivia and Venezuela, as required by section 706(2)(B) of the FRAA. I have also determined, in accordance with provisions of section 706(3)(A) of the FRAA, that United States programs that support Bolivia and Venezuela are vital to the national interests of the United States.

The ongoing drug addiction and overdose epidemic in the United States is one of the foremost public health priorities of my Administration, and addressing this epidemic will require both new domestic investments and greater cooperation with foreign partners to target illicit drug suppliers and the criminal organizations that profit from them. While creating our first-year drug policy priorities, my Administration outlined a strategy that includes expanding access to prevention, treatment, evidence-based harm reduction, and recovery support services in order to curb the drug addiction and overdose epidemic. The American Rescue Plan Act of 2021 is an investment in these priorities, committing nearly $4 billion to support behavioral health and substance use disorder programs.

My Administration's Fiscal Year 2022 Budget request itemizes $10.7 billion to support research, prevention, treatment, evidence-based harm reduction, and recovery support services, with targeted investments to meet the needs of populations at greatest risk for overdose and substance use disorder. The Budget request also includes significant investments to reduce the supply of illicit drugs originating from beyond our borders.

The United States is committed to working together with the countries of the Western Hemisphere as neighbors and partners to meet our shared challenges of drug trafficking and use. My Administration will seek to expand cooperation with key partners, such as Mexico and Colombia, to shape a collective and comprehensive response and expand efforts to address the production and trafficking of dangerous synthetic drugs that are responsible for many of our overdose deaths, particularly fentanyl, fentanyl analogues, and methamphetamine. In Mexico, we must continue to work together to intensify efforts to dismantle transnational criminal organizations and their networks, increase prosecutions of criminal leaders and facilitators, and strengthen efforts to seize illicit assets. In Bolivia, I encourage the government to take additional steps to safeguard the country's licit coca markets from criminal exploitation and reduce illicit coca cultivation that continues to exceed legal limits under Bolivia's domestic laws for medicinal and traditional use. In addition, the United States will look to expand cooperation with China, India, and other chemical source countries in order to disrupt the global flow of synthetic drugs and their precursor chemicals.

You are authorized and directed to submit this designation, with the Bolivia and Venezuela memoranda of justification, under section 706 of the FRAA, to the Congress, and to publish this determination in the Federal Register.

JOSEPH R. BIDEN JR.

Another Liebherr Of Switzerland Crane On Way To Cuba; Addition To Rental Fleet For Womy Equipment Of The Netherlands. More Competition For Caterpillar & Deere

From LinkedIn Post: “Behind the scenes, the Womy team has been busy acquiring new equipment for our rental fleet in Cuba! One of these editions is the Liebherr LRT 1090-2.1. Our brand new crane is already on its way to Cuba! Many thanks to Liebherr_nederland B.V. and Martijn Esveldt for always assisting us! #Liebherr #Womy” LINK To Womy Office In ZED Mariel In Cuba

Womy Equipment (Rental and Supply) is part of [Hoogvliet, The Netherlands-based] Mobilift International [subsidiary of Hoogvliet, The Netherlands-based Peinemann Mobilift Groep B.V.; 2019 revenue approximately US$220 million; office in Spring, Texas].

Bulle, Switzerland-based Liebherr-International AG (2019 revenues approxiamtely US$13 billion) is a global manufacturer of “earthmoving, mining, mobile cranes, tower cranes, concrete technology, maritime cranes, aerospace, and transportation systems, machine tools and automation systems, domestic appliances, and components.” The company has fourteen offices in the United States.

LINK To Liebherr LRT 1090 2.1 Description: https://www.liebherr.com/en/usa/products/mobile-and-crawler-cranes/mobile-cranes/liebherr-rough-terrain-cranes/lrt-1090-2.1.html

From Womy Equipment: “We have continued expanding our activities since our foundation in 1996. We now specialise in the rental, sale and service of all kinds of equipment. All over the world you can find public transport, lift trucks, warehouse trucks, mobile cranes, aerial platforms, container handling equipment, earthmoving and construction equipment which bears our signature. Expanding our potential and capabilities within the diversity of this trade, has allowed to participate and undertake far-reaching and complex projects around the world. Our main office is located in the port of Moerdijk, close to the ports of Rotterdam, Amsterdam and Antwerp. The 20.000m² area offers warehousing, a construction and maintenance site, offices and stock parking. Our group owns companies in Cuba, Ivory Coast, Portugal, Poland, Romania, Oman, Ghana, Turkey and Liberia. Working on an international scale implies showing respect for the cultures we work with. It also means investing in a partnership with local authorities and companies to help them achieve their goals. Merely supplying goods isn’t enough. We are a full service company which believes in cooperation.”

LINK To Related Post: Liebherr Of Austria, Womy of Germany, Peinemann Of The Netherlands, Bouygues Of France Link For Hotel Construction Equipment To Cuba. Competition For Caterpillar And Deere. 27 April 2021

Port Of Moerdijk, The Netherlands-Base Womy Equipment Supply: “We have continued expanding our activities since our foundation in 1996. We now specialise in the rental, sale and service of all kinds of equipment. All over the world you can find public transport, lift trucks, warehouse trucks, mobile cranes, aerial platforms, container handling equipment, earthmoving and construction equipment which bears our signature. Expanding our potential and capabilities within the diversity of this trade, has allowed to participate and undertake far-reaching and complex projects around the world. Our main office is located in the port of Moerdijk, close to the ports of Rotterdam, Amsterdam and Antwerp. The 20.000m² area offers warehousing, a construction and maintenance site, offices and stock parking. Our group owns companies in Cuba, Ivory Coast, Portugal, Poland, Romania, Oman, Ghana, Turkey and Liberia.  Working on an international scale implies showing respect for the cultures we work with. It also means investing in a partnership with local authorities and companies to help them achieve their goals. Merely supplying goods isn’t enough. We are a full service company which believes in cooperation. 

The opening of Womy Equipment Rental in ZED Mariel: “[Mariel, Cuba] Tuesday 31st October 2017: Womy Equipment Rental [https://www.womy.cu/en/], the extension of the already existing Womy Equipment Supply B.V. (2016), has officially opened the doors of their 1st facility in ZED Mariel Cuba.  Womy Equipment Supply has been around in Cuba for quite some time. With over 26 years of experience in providing all sorts of transport, lifting and after sales solutions, the company expands their current course of actions with a rental company.” LINK To ZED Mariel 

“Womy Equipment Supply has already been involved with renting equipment in Cuba before. Womy Equipment Supply won the tender of changing the flares at Havana's refinery in cooperation with Cubiza. All the meetings, the discussions and studies regarding the possibilities of the execution, in combination with the opportunity offered by ZED Mariel, enlightened the spark for Womy to start a company only involved with the rental of equipment, Womy Equipment Rental.” 

“Womy Equipment (Rental and Supply) is part of [Hoogvliet, The Netherlands-based] Mobilift International [subsidiary of Hoogvliet, The Netherlands-based Peinemann Mobilift Groep B.V.; 2019 revenue approximately US$220 million; office in Spring, Texas] Mobilift International is known for its huge equipment rental operations throughout the Netherlands, especially in the harbour of Rotterdam. However, Mobilift's focus is internationally active as well. With offices in multiple parts of Europe, West-Africa, the Middle East and now their second office in Cuba, the group is becoming a global player in the horizontal- and vertical transport industry.” 

“A lot of experience, knowledge and expertise is a result of clustering all offices within Mobilift International. With combining all forces of the offices together, a strong foundation has been built for Womy Equipment Rental in Mariel. The office will be the centre point for the support in construction, logistics, renewable energy, and repair industry in Cuba.” 

Caterpillar And Deere & Company In Cuba 

In 2017, Deere & Company (2019 revenues approximately US$39.26 billion) established a distribution center in the Republic of Cuba, joining San Juan, Puerto Rico-based RIMCO, the Republic of Cuba distributor for Peoria, Illinois-based Caterpillar Inc. (2019 revenues approximately US$53.8 billion) established the same year.  At the time, neither Deere & Company nor Caterpillar issued media releases or posted information on their respective Internet sites.  

Since November 2017, Deere & Company delivered more than US$800,000.00 in agricultural equipment to the Republic of Cuba for use at its distribution center. Antioch, Tennessee-based Wirtgen America, Inc., a subsidiary of Windhagen, Germany-based Wirtgen Group (2020 revenues approximately US$3 billion), a construction equipment machinery subsidiary (acquired in 2017) of Deere & Company has also delivered products to the Republic of Cuba.  RIMCO continues to deliver equipment for use at its distribution center in the Republic of Cuba, including excavators, backhoes, graders, scrapers, bulldozers, railway fixtures, and signaling equipment, valued at more than US$4 million since December 2018.  

John Deere Financial Services was to provide payment terms/financing for the exports, primarily Series 5000 (price range US$25,000.00 to US$80,000.00) with a limited quantity of Series 7000 (price range US$219,000.00 to US$280,000.00).  According to the company, several hundred tractors, parts and accessories may be exported from the United States to the Republic of Cuba during the next four years, with the first deliveries (for testing and evaluation) scheduled for mid-November 2017.  The potential value of the several hundred products exported from the United States to the Republic of Cuba that would be financed could range from US$9 million to US$30 million.  John Deere Financial Services has not commented as to whether the product sales goals have been achieved or if there have been issues relating to the receipt of payments.  Caterpillar has not disclosed if the company has provided payment terms for its products exported to the Republic of Cuba. 

Cuba Central Bank- Cellular Minutes May Not Be Converted To Bank Balances

Cuba Standard
Sarasota, Florida
13 September 2021

CUBA STANDARD — Phone minutes, which have emerged as a sort of alternative currency for remittances since the U.S. government blocked most remittance channels, cannot be converted into bank balances, the Cuban Central Bank announced.

Reverting previous regulations, Resolution 216, published in the Gaceta Oficial Sept. 3, prohibits the conversion of phone recharges from abroad into bank balances, independent news site El Toque first reported.

In March, the Central Bank allowed state telecom ETECSA to facilitate financial transactions through the Transfermóvil platform’s mobile wallet. Under that previous regulation, Cuban customers were able to transfer their phone top-up balance into hard-currency (MLC) bank accounts that could then be withdrawn in cash at ATMs.

The new resolution clarifies that bank cards are the only way to deposit funds in mobile wallets, and that the money cannot be withdrawn in the form of cash but may be transferred between bank accounts and wallets. ETECSA is not authorized to act as a remittance channel. The Central Bank also announced an increase in the maximum mobile wallet balance to 15,000 CUP and transaction amounts to 7,500 CUP.

China's Support For Cuba Has Limitations When Exports Of Cellular Devices To United States Impacts Xiaomi Corporation

Despite the commercial, economic, and political support provided to the Republic of Cuba by the People’s Republic of China, including the provision of equipment to develop the 800-mile long archipelago’s cellular network for use by its 11.3 million citizens, the ability of and desire by People’s Republic of China-based companies to export to the United States continues to impact exports to the Republic of Cuba.  Every relationship has its limitations…

“14. Exportation: 14.2 The Contract and all Products sold are subject to applicable export control laws, including but not limited to the export control laws of. the US and Buyer’s own jurisdiction. The Buyer will not export any product purchased from the Seller to any country or territory or anywhere if the export control laws forbid it. Prohibited countries and territories include Cuba, Iran, Syria, North Korea, Sudan, and the Crimea region. If the Buyer plans to export any Products purchased from the Seller to another country, the Buyer you must obtain the required export licenses (or other government approvals) before doing so.” 

From The Company 

“[Beijing, China-based] Xiaomi Corporation [2020 revenues approximately US$38 billion] was founded in April 2010 and listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018 (1810.HK).  Xiaomi is a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core.  Embracing our vision of “Make friends with users and be the coolest company in the users’ hearts”, Xiaomi continuously pursues innovations, high-quality user experience and operational efficiency. The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology.”

“Xiaomi is one of the world's leading smartphone companies. The company’s market share in terms of smartphone shipments ranked no. 2 globally in the second quarter of 2021. The company has also established the world’s leading consumer AIoT (AI+IoT) platform, with 374.5 million smart devices connected to its platform (excluding smartphones and laptops) as of June 30, 2021, excluding smartphones and laptops.  Xiaomi products are present in more than 100 countries and regions around the world.  In August 2021, the company made the Fortune Global 500 list for the third time, ranking 338th, up 84 places compared to 2020.  Xiaomi is a constituent of the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index and Hang Seng China 50 Index.” 

Global Times
Beijing, China
12 September 2021

Xiaomi's reported move to lock smartphones in Cuba, Iran, North Korea, Crimea not targeting any specific market: company

Xiaomi's reported move to lock smartphones in countries and regions including Cuba, Iran, Syria, North Korea, Sudan and Crimea is "not targeting any specific market," and it is a cross-regional governance that aims to prevent smuggling through the grey market and protect user data security, the company's spokesperson told the Global Times on Sunday.

The statement comes after some media reported that the Chinese handset-maker blocked its smartphones in the countries and regions mentioned earlier, where the company has not set up an official presence.  Xiaomi's export policy does not allow its customers to export any products to those banned countries and regions. However, according to media reports, a grey market has been expanding in recent years and it has been quite common for customers to buy Xiaomi devices in one region and use them in another.

Some media have attributed Xiaomi's recent move to lock its handsets to the US' "long-arm jurisdiction," speculating that Washington is exerting pressure on the Chinese company to block phones used in those sanctioned countries and regions.  In response, Xiaomi said that it "temporarily" locked some smartphones to prevent and investigate potential smuggling that hurt users' information security and consumers' rights. "The investigation has achieved significant results, and the affected devices can be unlocked now," Xiaomi's spokesperson said.  

In the Q2 of 2021, shipment of Xiaomi smartphones ranked second in the global market for the first time, buoyed by a rapid growth in overseas markets, according to a report issued by Gartner.  Xiaomi also accounts for about 15 percent of the market share in Cuba, according to data by research firm Statcounter. 

Priceworms.com 

Xiaomi has quickly climbed the ladder up the mobile manufacturing industry to become one of the world’s most renowned brand. Xiaomi is a Chinese based privately owned business that is known for manufacturing of smartphones, consumer electronics, TVs, fitness tracers and other electronic accessories. The smartphone manufacturer is known for its low-cost high-end smartphones, competing some of the biggest names in industry.  Xiaomi mobiles hasn’t got the fame and acceptability in American smartphone market like it has over some of the other markets in the world. Still, it is fast becoming a popular brand in many major Cuba's cities including Havana, Holguin, Santa Clara, Trinidad, and Varadero etc. The mobile phone manufacturer relies heavily of flash sales and digital marketing concepts that helps its cause to save on traditional marketing costs; consequently, offering cheaper product than most competitors.  The company has recently launched its latest high-end MI Mix2 smartphone in Cuba. The smartphone is quickly gaining attention of large Cuba mobile market segment for its premium bezel-less design, ultra-high features, and low cost. The average cost of Xiaomi mobiles in Cuba range CUC200 to CUC450.  Though the mobile isn’t available with any major Cuba carrier services, still keeping the low cost of products in mind, the smartphone is definitely a catch for people looking for high-end features at some seriously low prices.

Irony? In 1994, Minnesota-Based Carlson Companies Led U.S. Businesses In Interest Towards Cuba. In 2021, Its CWT- European Parliament Brussels (EPB) Refuses To Provide Travel Services To Cuba

“This clearly raises the question of how the European Parliament could have chosen an agency, which is restricted in its activities by foreign legislation…. With regard to the current contract with CWT, the delegation wishes to examine whether a culpa in eligendo (negligence in choice of contractor) was committed.” (9/9/2021) 

EUobserver
Brussels, Belgium
13 September 2021

MEPs' Cuba trip foiled by US embargo 

European Parliament's in-house travel agency is paid a monthly management fee of €157,082, according to 2018 budget report  

By Nikolaj Nielsen  

The European Parliament's in-house travel agency, CWT Global, is a US owned-company and therefore will not be able to book MEP flights to Cuba - because of the American embargo against Havana.  [Since 2017, CWT has served the European Parliament.].  This clearly raises the question of how the European Parliament could have chosen an agency, which is restricted in its activities by foreign legislation," said Tilly Metz, a Green MEP from Luxembourg, in a recent letter sent to European Parliament president David Sassoli.  The letter comes comes ahead of a European Parliament resolution on Cuba this week, and amid a wider discussion on EU strategic autonomy on the global stage.  Metz chairs the European Parliament's delegation to Central America (DCAM), which had over the summer requested a September mission to Cuba.  But CWT then refused to book the flights, citing US sanctions, says Metz.  The letter came as leaders of the parliament's political groups, known as the Conference of Presidents, approved the delegation's mission to Cuba.  The issue came to light after the delegation's secretariat had asked CWT to provide quotes for flights to Cuba. [Link To Letter].

"To our surprise however, the travel agency could not provide a quote because, as a US-owned company, it has to respect the US embargo against Cuba," said Metz, in her letter.  She says the US embargo also apply to other countries like Iran - tossing a possible spanner into other future MEP visits. Metz said CWT had to instead outsource the flights to another agency, leading to delays.  CWT Global itself has yet to respond for a comment.  It won a travel agency tender for both the European Parliament and the European Ombudsman.  A 2018 European Parliament budget report says the firm is paid a monthly management fee of €157,082 and employed 37 staff.  For its part, the EU opposes the US blockade of Cuba but also condemned Havana's crackdown against July protests.  DCAM's vice-chairs are German centre-right MEP Jens Gieseke and Spanish liberal Javier Nart.  Both are said to be unhappy about the US sanctions on the travel agency and had agreed to have DCAM send the letter to Sassoli. 

USA TODAY
27 December 1994
Arlington, Virginia

CUBA SEEKS PARTNERS- U.S. firms ready to tap opportunity 

By Micheline Maynard 

CUBA: OPEN FOR BUSINESS; See info boxes at end of text; See related stories: 02B, 06B 

(excerpts) HAVANA - Carlson, the Radisson hotel/restaurant powerhouse, wants to open a TGI Friday's restaurant in Havana, restore a historic hotel and build a lavish resort on one of Cuba's 300 pristine beaches… Peter Blyth, executive vice president of Minneapolis-based Carlson, thinks Cuba will quickly become U.S. travelers' top destination in the Caribbean once the embargo is lifted…  Blyth, who has lobbied on Capitol Hill for the USA to open trade with Cuba, says the time is right. "There is tremendous potential out there," he says. “And there's nobody in a better position than (U.S. companies) to take advantage of it.” 

Minnetonka, Minnesota-based CWT US, LLC (formerly Carlson Wagonlit Travel, Inc.) (2020 revenues approximately US$1.5 billion).  Founded as Gold Bond Stamps in 1938, the company became Carlson Companies in 1973.  Diemen, Netherlands-based CWT Global B.V. (2020 transaction volume approximately US$24.4 billion) was created in 2006.   

• 1994- Carlson Companies, Inc. of Minneapolis and the Paris-based Accor Group combine the business travel interests of their respective companies, Carlson Travel Network and Wagonlit Travel, under the name Carlson Wagonlit Travel.

• 1997- Carlson Travel Network in the United States and Wagonlit Travel in Europe merge to form the Carlson Wagonlit Travel network for business travel.

• 2006- A change in CWT's shareholding structure also occurs in August: Carlson and One Equity Partners (OEP) acquire Accor's 50% stake in CWT. Carlson becomes majority shareholder with 55% of CWT shares, while OEP holds the remaining 45%.

• 2014- In June, Carlson enters into a definitive agreement with JP MorganChase to acquire full ownership of CWT. 

“CWT is a Business-to-Business-for-Employees (B2B4E) travel management platform. Companies and governments rely on us to keep their people connected – anywhere, anytime, anyhow. Across six continents, we provide their employees with innovative technology and an efficient, safe and secure travel experience backed by our three core promises: to simplify corporate travel, to connect to unlock possibilities, and to move forward, together.” 

From Moody’s Investors Service: “Formed in 1997, Carlson Travel is a leading global business travel management company (TMC), serving corporations of all sizes as well as government institutions around the world. In 2019 CWT reported net revenues of $1.5 billion. Carlson Travel operates in nearly 145 countries and territories worldwide, with around 16,000 employees in its wholly owned operations. The company provides the following services: (i) Corporate Traveler Services, providing both online and full-service offline travel bookings for corporate and government clients; (ii) Meetings & Events Services, assisting clients to create and manage meetings and events on a cost effective basis; and (iii) Roomit hotel distribution services, providing a comprehensive hotel inventory and booking solution for clients and their business travelers, as well as distribution platform for over 800,000 hotels.”

LINK To Complete Analysis In PDF Format

The 46th President Of The United States Continues What The 28th President Of The United States Signed Into Law: Trading With The Enemy Act. Since 1960, Cuba Has Remained A Target

The White House
Washington DC
7 September 2021

Presidential Determination
No. 2021-12

MEMORANDUM FOR THE SECRETARY OF STATE, THE SECRETARY OF THE TREASURY

SUBJECT: Continuation of the Exercise of Certain Authorities Under the Trading With the Enemy Act

Under section 101(b) of Public Law 95-223 (91 Stat. 1625; 50 U.S.C. 4305 note), and a previous determination on September 9, 2020 (85 FR 57075, September 14, 2020), the exercise of certain authorities under the Trading With the Enemy Act is scheduled to expire on September 14, 2021.

I hereby determine that the continuation of the exercise of those authorities with respect to Cuba for 1 year is in the national interest of the United States.

Therefore, consistent with the authority vested in me by section 101(b) of Public Law 95-223, I continue for 1 year, until September 14, 2022, the exercise of those authorities with respect to Cuba, as implemented by the Cuban Assets Control Regulations, 31 C.F.R. Part 515.

The Secretary of the Treasury is authorized and directed to publish this determination in the Federal Register.

JOSEPH R. BIDEN JR.

LINK To Federal Register Document

U.S. Agricultural Commodity And Food Product Exports To Cuba Increased 54.8% In July 2021; And Increased 88.0% Year-To-Year

ECONOMIC EYE ON CUBA©
September 2021

July 2021 Food/Ag Exports To Cuba Increase 54.8%- 1
57th Of 222 July 2021 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 88.0%- 2
Cuba Ranked 52nd Of 222 U.S. Ag/Food Export Markets- 2
July 2021 Healthcare Product Exports US$142,548.00- 2
July 2021 Humanitarian Donations US$340,950.00- 3
2021 Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

JULY 2021 FOOD/AG EXPORTS TO CUBA INCREASE 54.8%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in July 2021 were US$19,832,195.00 compared to US$12,809,286.00 in July 2020 and US$31,176,621.00 in July 2019. 

July 2021 Exports Included: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Corn; Coffee; Dog and Cat food; Blood; Wood (Hickory). Poultry represented 90.9% of exports and corn represented 8.5% of exports.

January 2021 through July 2021 exports were US$178,774,363.00 compared to US$95,045,548.00 for the period January 2020 through July 2020.

Since December 2001, agricultural commodity and food product exports reported from the United States to the Republic of Cuba is US$6,475,001,787.00.

This report contains information on exports from the United States to the Republic of Cuba- products within the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, Cuban Democracy Act (CDA) of 1992, and regulations implemented (1992 to present) for other products by 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.

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

COMPLETE REPORT IN PDF FORMAT

Did U.S. Department Of Justice “Intervene” And Tip The Scale In A Libertad Act Title III Cuba Lawsuit On Behalf Of United Kingdom-Based Company? Defendants Hope So.

Has United States Department Of Justice “Intervened” On The Constitutionality Of A Libertad Act Title III Cuba Lawsuit On Behalf Of United Kingdom-Based Company?

A Good Day For Defendants.

Legally, What DOJ Did Might Not Be Defined As Intervening. From A Layperson Perspective Seems Just That.

DOJ Filed With Court Statement That May Not Have Been Required To Be Filed. Though Statement Is Not Binding, It Is Influential.

Thumb On The Scale? For Whose Interest? Impact Of Sixty-Day Clock? Poisoning Of The Well?

Could DOJ Could Have Filed Statement Without Referencing Three Other Lawsuits?

Is The Statement “Too Cute By Half”?

On 31 August 2021, the United States Department of Justice (DOJ) in Washington DC filed its first “Statement of Interest of the United States” (SOIOTUS) in a Libertad Act Title III lawsuit. The lawsuit was filed in the United States District Court for the Southern District of Florida.

The Trump Administration on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.

A defendant in the lawsuit is headquartered in the United Kingdom. Bristol, United Kingdom-based Imperial Brands plc (2020 revenues approximately US$45 billion) is listed among the thirty-largest companies in the United Kingdom. Prior to the United Kingdom existing the EU on 31 January 2020, the defendant, Imperial Brands plc (formerly Imperial Tobacco plc) was subject to decisions of the Brussels, Belgium-based European Commission (EC), the governing entity for the now twenty-seven member Brussels, Belgium-based European Union (EU). From Imperial Brands: “Our Imperial Tobacco subsidiaries manufacture and market a range of cigarettes, fine cut and smokeless tobacco products, mass market cigars, and tobacco accessories such as papers and tubes…. Key Imperial Tobacco subsidiaries include Reemtsma in Germany, Altadis in Spain and Seita in France as well as our Imperial Tobacco businesses in the UK, Australia, Poland, Russia and Ukraine.”

Questions abound.

• Why did the DOJ select this lawsuit? No defendant in other Libertad Act Title III lawsuits served notice to the DOJ, but DOJ may weigh-in on any lawsuit.

• Why did the DOJ respond? The statute (28 U.S.C. Section 517) does seem to require the DOJ to respond. The statute includes “may” not “must”

• Is the DOJ seeking to “tip the scale” in favor of the defendant(s) and telegraphing Biden-Harris Administration (2021- ) thinking that Title III is unconstitutional or thinking about basis to suspend Title III? The Clinton-Gore Administration (1993-2001), Bush-Cheney Administration (2001-2009), Obama-Biden Administration (2009-2017), and until 2019 Trump-Pence Administration (2017-2021) did suspend Title III in six-month increments as permitted by the Libertad Act.

• Is there a political consideration directed to The Honorable Boris Johnson, Prime Minister of the United Kingdom (UK)?

• Why did not the DOJ file a SOFOTUS in any of the Libertad Act Title III lawsuits that include defendants with headquarters in the EU?

Since 2 May 2019, forty-one (41) Libertad Act Title III lawsuits have been filed in United States District Courts throughout the United States. One lawsuit is reported settled out-of-court. Some of the lawsuits have been dismissed, some have been consolidated, some have been appealed, and some have been withdrawn.

Since the first Libertad Act Title III lawsuit was filed, ten (10) defendants are headquartered within the twenty-seven member countries of the EU and twenty (20) defendants are headquartered in non-EU-member countries.

LUIS MANUEL RODRIGUEZ, MARIA TERESA RODRIGUEZ, a/k/a MARIA TERESA LANDA, ALFREDO RAMON FORNS, RAMON ALBERTO RODRIGUEZ, RAUL LORENZO RODRIGUEZ, CHRISTINA CONROY, and FRANCISCO RAMON RODRIGUEZ, Plaintiffs, v. IMPERIAL BRANDS PLC, CORPORACIÓN HABANOS, S.A., WPP PLC, YOUNG & RUBICAM LLC, and BCW LLC, a/k/a BURSON COHN & WOLFE LLC [1:20-cv-23287; Southern Florida District].

Berenthal & Associates (plaintiff)
Rodriguez Tramont & Nunez (plaintiff)
Nelson Mullins (defendant)
Allen & Overy (defendant)
Wilmer Cutler Pickering Hale and Dorr (defendant)
Broad & Cassel (defendant)
Akerman (defendant)
Trenam, Kemker, Scharf, Barkin, Frye, O’Neill & Mullis (defendant)
Rabinowitz, Boudin, Standard, Krinsky & Lieberman (defendant)

Link To Statement Of Interest Of The United States (8/31/21)
Link To 28 U.S.C. Sec. 517
Link To 28 U.S.C. Rule 5.1
Link To Defendant Corporación Habanos, S.A.’S Notice Of Constitutional Question (4/29/21)
Link To Memorandum Of Law In Support Of Defendant Imperial Brands Plc’s Motion To Dismiss The Amended Complaint- Claim Of Unconstitutionality (4/28/21)
Link To Defendant Imperial Brands Plc’s Notice Of Constitutional Question (4/28/21)
Link To Defendants’ Supplemental Briefing In Further Support Of Their Motion To Dismiss The Amended Complaint (8/18/21)
Link To Libertad Act Title III Lawsuit Filing Statistics

Excerpts From Statement Of Interest

“The United States of America, by and through undersigned counsel, respectfully submits this Statement of Interest pursuant to 28 U.S.C. § 5171 to set forth the interests of the United States (the “Government”) as they relate to the above-captioned lawsuit. The Government is not a party to this matter and takes no position on the merits of Plaintiffs’ claims. However, the Government received a notice, pursuant to Federal Rule of Civil Procedure 5.1,2 that Defendants Imperial Brands PLC (“Imperial”) and Corporación Habanos, S.A. (“Habanos”) have challenged the constitutionality of Title III of the Cuban Liberty and Democratic Solidarity (Libertad) Act, 22 U.S.C. §§ 6081–6085 (“Title III”) in their pending motions to dismiss.

The Government became aware of the constitutional challenge to Title III in April 2021 after Imperial and Habanos served notices of constitutional questions on the Attorney General of the United States pursuant to Rule 5.1. ECF Nos. 92, 94; see Fed. R. Civ. P. 5.1(a). As framed by Imperial, “[t]he constitutional question raised is: does the Due Process Clause of the Fifth Amendment to the United States Constitution prohibit the extraterritorial application of Title III to Imperial’s concededly ‘non-U.S.’ Cuban-cigar business under the circumstances alleged in the Complaint due to lack of legislative jurisdiction.”

The Court has not yet certified the constitutional challenge. See Fed. R. Civ. P. 5.1(b) (“The court must, under 28 U.S.C. § 2403, certify to the appropriate attorney general that a statute has been questioned.”). Nonetheless, the Government files this Statement of Interest upon the completion of the parties’ briefing on the Motions, including supplemental briefing filed on August 18, 2021, see ECF Nos. 123–24, to respectfully request that the Court decide the personal jurisdiction issues before reaching the constitutional question and, only if the Court finds it necessary to reach and certify the constitutional question, to respectfully request that the Court provide the Government an opportunity to participate at that stage.

The Government has reviewed the parties’ arguments on the Motions and notes that Imperial and Habanos raise several arguments in support of dismissal that do not depend on the constitutionality of Title III or other Title III issues. In particular, the Government believes that the defendants’ arguments concerning lack of personal jurisdiction raise substantial questions, similar to those that three courts in this district have already addressed.

See Iglesias v. Pernod Ricard, No. 20-20157-CIV, 2021 WL 3083063, at *3 (S.D. Fla. June 17, 2021) (no personal jurisdiction over French company with French principle place of business even where subsidiary did business in Florida); Herederos de Roberto Gomez Cabrera, LLC v. Teck Res. Ltd., No. 20-21630-CIV, 2021 WL 1648222, at *3–4 (S.D. Fla. Apr. 27, 2021) (no personal jurisdiction over foreign defendant with foreign principle place of business in Title III action where plaintiff “fail[ed] to explain how its claim for unlawful trafficking in Cuba is related to [the plaintiff’s] activities in Florida”), reconsideration denied, No. 20-21630-CIV, 2021 WL 3054908 (S.D. Fla. Jul. 20, 2021); Del Valle v. Trivago GmbH, No. 19-22619-CIV, 2020 WL 2733729, at *2–4 (S.D. Fla. May 26, 2020) (same), appeal filed, 20-12407 (11th Cir. Jun. 24, 2020).

The Government therefore declines to intervene at this stage of the litigation but will continue to actively follow developments in this case as it progresses, particularly regarding the constitutional question concerning Title III, should the Court decide not to dismiss this matter on other grounds. If the Court does find it necessary to address the constitutional question, the Government requests a further opportunity to consider whether to provide its views at that time. The Government thanks the Court for its consideration of the Government’s views at this stage.”

From Imperial Brands

“Our Imperial Tobacco subsidiaries manufacture and market a range of cigarettes, fine cut and smokeless tobacco products, mass market cigars, and tobacco accessories such as papers and tubes…. Key Imperial Tobacco subsidiaries include Reemtsma in Germany, Altadis in Spain and Seita in France as well as our Imperial Tobacco businesses in the UK, Australia, Poland, Russia and Ukraine.”

27 Apr 2020- Imperial Brands PLC agrees sale of Worldwide Premium Cigar Business for €1,225 million with proceeds to be used to reduce debt

Background on Premium Cigars: The business comprises assets purchased as part of Imperial’s acquisition of Altadis in 2008, and the disposal consists of two transaction perimeters: Premium Cigar US: Tabacalera USA, which is responsible for the business’ premium cigar operations in the US, the world’s largest premium cigar market, including: The assets and other property of Altadis USA, which is responsible for the distribution of premium cigars in the US; Leading online retail platforms, including JR Cigar, cigar.com and Serious Cigars; A specialist brick-and-mortar retailer, Casa de Montecristo, with 28 stores across the USA. Premium Cigar RoW: Cuban premium cigar interests, including: A 50 per cent stake in Habanos S.A., which exports hand-made cigars from Cuba and is responsible for international marketing activities. Habanos products include world-renowned Cuban brands such as Cohiba, Montecristo and Romeo y Julieta. A 50 per cent stake in Altabana S.L., which is responsible for the distribution of Cuban cigars worldwide through its network of over 20 subsidiary distributors. A 50 per cent stake in Internacional Cubana de Tabaco, S.A., which is responsible for the manufacturing of Cuban premium machine-made cigars. A 50 per cent stake in Promotora de Cigarros, S.L., which manages the distribution of the Cuban premium machine-made cigar portfolio worldwide. Other sales of premium cigar products through Tabacalera SA including: Exclusive distribution of Cuban handmade cigars in Spain; Non-Cuban premium handmade cigar sales operations outside the US, including Vegafina, the bestselling non-Cuban brand outside the US.

26 February 2013- Investor Day Presentation. “Firstly, I would like to put it in the context of the Total Cigar market. Premium cigars only account for around 3% of the units of the total traditional cigar market, but have a much more relevant participation in value and margin terms. It’s a niche but high value oriented business. USA is the largest Premium Cigar market with more than 60% of total sales. Adding Western Europe both represent around 85% of total consumption. In the rest of the world, mainly emerging markets, where 90% of the population lives, the knowledge of Premium cigar culture is very limited and sales per capita are still low. With the increasing purchasing power for many living in these countries and western lifestyle becoming more popular, there is significant growth potential for Premium cigars. Cuba, Dominican Republic, Nicaragua and Honduras are the main production origins. Cuban origin cigars have more than 70% of market share excluding the USA where these products are forbidden. In this category, Imperial enjoys a solid global leadership position with around 40% of market share in units thanks to: Our partnership with Cuba in Habanos, the global leader and marketer of the prestigious Cuban brands; Our strong presence in the USA; and The increasing international development of our brands, complementing the Cuban offer. During last fiscal year we’ve achieved double digit growth in our main indicators, 11% in units and 10% in sales value, with sales going up across all our operations. Our Cuban business showed a very good dynamism in emerging markets where our sales increased by 17% in line with the increasing demand of luxury products in these territories. Countries like China (+13%), Russia (+38%), Brazil (+15%) and areas like Middle East (+19%) are becoming increasingly important for us. In the USA, we had a very positive performance, mainly driven by a stronger focus on our key strategic brands, underpinned by innovative product initiatives. We are covering all price segments with our core assets: our Cuban heritage brands Montecristo and Romeo y Julieta in the high end, VegaFina in the mid-price and Casa de Garcia in the low end, all made in our Dominican and Honduran factories. And finally, our international business, complementing our Cuban offer, grew significantly, driven by VegaFina expansion, in line with our commitment to develop this brand as our non-Cuban global Premium brand.”

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

By Today, State Department And Treasury Department Were To Deliver Remittance Recommendations To President Biden. Did They? When Will Decisions(s) Be Announced? Implemented?

UPDATE: Received from the United States Department of State at 3:15 pm on 1 September 2021: "The Administration formed a U.S. governmental Remittance Working Group to review available options for remittance channels so the Cuban people receive the maximum benefit from remittances their families in the United States send. We can confirm that the Remittance Working Group, co-led by the Department of State and the Department of the Treasury, delivered its recommendations to the White House on August 30."

Taken Collectively, Commercial And Economic Decisions By Cuba During In 2021 Are Openings For Biden-Harris Administration Remittance Re-Engagement To Support Re-Emerging Private Sectors. 

The White House
Washington DC
30 July 2021

President Joe Biden: “And the direct State- and I’ve directed the State Department and the Treasury Department to provide me, within one month, recommendations of how to maximize the flow of remittances to the Cuban people, without the Cuban military taking their cut. And we’re working to increase U.S. staffing at our embassy while prioritizing the safety of our personnel.”

Tuesday, 31 July 2021, is “within one month,” and the [Cuba] Remittance Working Group (RWG) recommendations will be presented to President Biden. 

By today, the RWG will, if not already, present to President Biden its recommendations for financial re-engagement with the Republic of Cuba.  

Unknown is when President Biden will review the recommendations and then determine which, if any, of the recommendations he will implement. 

Issues relating to decision-making about withdrawals from Afghanistan, the recurring multi-country impact of “Havana Syndrome” upon employees of the United States government, and social media-related regulations issued by the government of the Republic of Cuba will permeate negatively the decision-making process.   

The Biden-Harris Administration (2021- ) will attempt the impossible- wanting not to be perceived as providing value to the Diaz-Canel-Valdes Mesa Administration (2019- ) in Havana.  The focus will shift from wanting to provide nothing to limiting what is provided and conditioning where possible what is provided. 

There exists an influential constituency within the Biden-Harris Administration and outside of the Biden-Harris Administration who support United States regulations and policies remaining as they are despite hardship inflicted upon the 11.3 million citizens of the Republic of Cuba, with the goal to force more promptly further commercial, economic, and political change within the Republic of Cuba.  The constituency’s baseline is from evaluating decisions taken by the Diaz-Canel-Vales Mesa Administration particularly during the last three months- since the protests of 11 July 2021, but collectively since 1 January 2021- and reasonably expecting that the dire financial condition within the 800-mile archipelago will continue, may become worse, and result in a further lessening of control by the government.   

Thus, the goals of the Biden-Harris Administration will include balancing perceived and actual value to the government of the Republic of Cuba with perceived and actual value to the 11.3 million citizens of the Republic of Cuba.  There will be an emphasis upon support for the re-emerging private sectors in the Republic of Cuba which continue to represent the most efficient means of further separating control by the state with self-determination. 

During the last nearing nine months, and increasing in frequency during the last three months, the Diaz-Canel-Valdes Mesa Administration has provided foundational assistance to the Biden-Harris Administration by publishing regulations (and publishing intentions to publish regulations) that directly impact commercial and economic sectors.  While there remain questions as to how the regulations will be implemented, the expectation is with the government of the Republic of Cuba deeply in debt to importers, exporters, and service providers- and with the situation unlikely to improve quickly, the words in published regulations that are or seem now to be constrictive will eventually be expansive later.   

The last ninety days for the Republic of Cuba have, from a commercial perspective, been astonishing in swiftness and depth.  Some of what has been approved: Duties and fees eliminated on certain imports; Regulation of cryptocurrency; Postal service to provide financial services; Financing for purchases; Private sector increases access to suppliers, foreign currency; Suspension of tariffs and fees for residential solar systems; Regulations for micro, small, and medium-size enterprises (MSMEs); and Adoption of the LLC as an ownership format. 

Since 1 January 2021, the government of the Republic of Cuba merged its two operational currencies, the Convertible Peso (CUC- 1 to US$1.00) and the Cuban Peso (CUP- 24 to US$1.00) leaving the CUP.  The CUP remains overvalued (“street” value is 60-70 to US$1.00).  Further official devaluation is expected perhaps by the end of 2021.  There has been decentralization within the commercial sectors, though there remain opportunities for additional changes.  Expanded use by private companies of Republic of Cuba government-operated Fincimex-created American International Services (AIS) card cards issued by Republic of Cuba government-operated Banco Metropolitano.  Expanded use of Moneda Libremente Convertible (MLC) for transactions.  Republic of Cuba government-operated companies and private sector companies may retain from 80% to 100% of revenues from exports. 

For the Biden-Harris Administration there now exists opportunities to be practically proactive rather than reactive absent of practical operational considerations.   

Authorizing transactions (direct investment, direct financing, direct correspondent banking, U-turn transactions, electronic remittance transfers) that directly (not through third countries) and immediately provide value to the re-emerging private sectors.   

Because the government of the Republic of Cuba has yet to authorize something is not a reason for the government of the United States to wait until they do so.

The White House
Washington DC
30 July 2021

President Joe Biden: “And the direct State- and I’ve directed the State Department and the Treasury Department to provide me, within one month, recommendations of how to maximize the flow of remittances to the Cuban people, without the Cuban military taking their cut. And we’re working to increase U.S. staffing at our embassy while prioritizing the safety of our personnel.”

Tuesday, 31 July 2021, will be “within one month,” and the Remittance Working Group [RWG] recommendations are due to be presented to The President.

From a United States Department of State spokesperson: "The Administration has formed a U.S. governmental Remittance Working Group to review available options to establish remittance channels so that the Cuban people receive the maximum benefit from remittances their families send. At the President’s direction the State Department and the Treasury Department will provide recommendations to the President for how to maximize remittances to the Cuban people, while minimizing or eliminating the Cuban military’s ability to take a cut." 

The White House
Washington DC
15 July 2021

President Joe Biden: “Cuba is a -- unfortunately, a failed state and repressing their citizens. There are a number of things that we would consider doing to help the people of Cuba, but it would require a different circumstance or a guarantee that they would not be taken advantage of by the government -- for example, the ability to send remittances to -- back to Cuba. I would not do that now because the fact is it’s highly likely that the regime would confiscate those remittances or big chunks of it.” 

LINK To Complete Analysis In PDF Format

LINKS To Recent Remittance-Related Analyses  

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically August 19, 2021

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective August 12, 2021

Cuba Adopting LLC Structure For Private Sector Is A Message To Biden-Harris Administration- Even If That Was Not [Primary] Intention. Familiarity For Sources Of Investment And Financing. August 30, 2021

Cuba Issues 175 Pages Of Regulations For Micro, Small And Medium-Sized Enterprises (MSME's) August 20, 2021

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. August 07, 2021

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad August 06, 2021

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access August 05, 2021

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. July 30, 2021

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021

Cuba Central Bank Authorizes Cuba's Postal Service To Provide Financial Services. Continuing Expansion For Receiving And Spending Funds Assists Private Sector Aug 27, 2021

Cuba Central Bank Moving Nearer To Regulations For Cryptocurrencies- Another Signal To United States That Cuba Is Changing. Private Sectors Are Expanding- Though Government Remains Reluctant August 27, 2021

Cuba Adopting LLC Structure For Private Sector Is A Message To Biden-Harris Administration- Even If That Was Not [Primary] Intention. Familiarity For Sources Of Investment And Financing.

For companies, investment platforms, and individuals subject to United States jurisdiction, the 175-pages published in the Gaceta Oficial by the Ministry of Justice of the Republic of Cuba on 19 August 2021 were profound in that by their existence they conveyed deficiencies and provided opportunities within the commercial environment of the Republic of Cuba.  LINK To Document 

The private sector in the Republic of Cuba as currently structured is not sufficient, the private sector as structured is devoid of capital, the private sector as structured is unable to preserve existing societal demands nor create opportunities required by current and future generations of Republic of Cuba nationals.   

Doubtful that ideological acolytes, purists of the Partido Comunista de Cuba (PCC) believe in the inherent value of private enterprise let alone crafting and implementing a legal structure create it, to protect it, and then to nurture it.   

Within the PCC, pragmatists, however, seek inspiration, and thus survival from commercial, economic, and political models of the People’s Republic of China and Socialist Republic of Vietnam rather than Democratic People’s Republic of Korea. 

Most striking in the 175-pages were the letters in Chapter II, Constitution of MPIYMES [micro, small, and medium-sized enterprises], Section On, Generalities:  

• Article 11. MIPYMES are constituted as commercial companies, which adopt the form of a limited liability company, hereinafter SRL, by deed public, which is registered in the Mercantile Registry and with its registration acquire personality legal.

• Article 12. The form of LLC implies the existence of a commercial company, with own legal personality, whose capital is divided into social shares and is composed of the contributions of all the partners, who do not respond personally of social debts.

• Article 13. MIPYMES can be made up of one or more partners.

• Article 14.1. The name of the MSMEs necessarily includes the indication "Limited Liability Company" or its abbreviation "S.R.L." 

The government of the Republic of Cuba was adopting, legalizing, the Limited Liability Company, known as the LLC.   

The definitions and regulations thus far adopted by the government of the Republic of Cuba do not mirror precisely those found amongst the fifty states of the United States, although there are remarkable similarities- and those similarities will over time shift increasingly toward United States norms.  LINK To State of Florida LLC Requirements  

While some observers may dismiss the decision as insignificant, as a gesture absent substance, as a morbid joke, careful- and artful analysis belies any concern about appearance.  True, the sixty-two years of the Revolution is littered with initiatives created and implemented only to be reformulated or abandoned once a particular need has been achieved- a crisis averted or survived.   

Could the same operational trajectory curtail the LLC?  Yes, it could.  Is it likely?  No, it is not.  Why?  The Republic of Cuba no longer has the commercial, economic, and political elasticity to retake, and not replace, what has been given.  There are no countries today which will support the Republic of Cuba so that it might remain an “amusement park of decay” at the expense of taxpayers in another country or countries. 

Why would the government of the Republic of Cuba adopt a business structure that while rooted in the German Empire during 1892 as Gesellschaft mit beschränkter Haftung (GmbH), has for decades been widely adopted throughout the United States?

Perhaps… Because the LLC is familiar.  The LLC is explainable.  The LLC is relatable.  The LLC creates increased commonality and functionality when a company or individual subject to United States (or other country) jurisdiction is contemplating providing direct investment to and direct financing for an individual or group in the Republic of Cuba who want to start a business or who have a business and want it to grow. 

For the Biden-Harris Administration, the adoption of the LLC by the government of the Republic of Cuba provides another reason for the establishment of direct correspondent banking, the re-authorization of U-turn transactions, and an operationally efficient direct means for electronic remittance transfers to support direct investment to and direct financing for the re-emerging private sectors. Implementing each will in the near term overwhelm the financial infrastructure of the Republic of Cuba, but that consequence is nothing compared to the eventual benefit. 

Now is opportune to provide the re-emerging private sector, and the entrepreneurs who are their foundation, with the most efficient means for engagement with companies and individuals subject to United States jurisdiction. 

The government of the Republic of Cuba may not have adopted the LLC because it would send a message to the government of the United States.  However, the adoption of the LLC is a message- delivered directly or indirectly.  The message is helpful rather than an additional obstacle. 

The definitions of the LLC as outlined in the 175-pages published in the Gaceta Oficial on 19 August 2021 are not the final definitions and regulations.  They are vague in some instances.  They are contradictory in other instances.  They require clarification in other instances.  The role of individuals not subject to Republic of Cuba jurisdiction remains unresolved.  However, the definitions and regulations exist and that is important.  They didn’t on 18 August 2021.  

Salient points:  First, the process for defining the LLC was not one where the PCC was an energetic participant for an expansive result.  Second, as LLCs are created and begin to operate the regulations will evolve.  There will be pushback from some members of the PCC.  The unfolding process will be confrontational.  There will be investigations to ensure “ideological integrity” of individuals owning and managing LLCs- and this will likely be particularly acute for those with more than 100 employees.  The LLC will survive.  With support from the Biden-Harris Administration, the LLC will thrive. 

While the United States business community would prefer the government of the Republic of Cuba embrace a holistic and expansive approach for changes to the commercial and economic infrastructure, there are opportunities for engagement within the incremental model deployed currently in the Republic of Cuba. 

The last ninety days for the Republic of Cuba have, from a commercial perspective, been astonishing in swiftness and depth.  Some of what has been approved: 

• Duties and fees eliminated on certain imports

• Regulation of cryptocurrency

• Postal service to provide financial services

• Financing for purchases

• Private sector increases access to suppliers, foreign currency

• Suspension of tariffs and fees for residential solar systems

• Regulations for micro, small, and medium-size enterprises

• Adoption of the LLC as an ownership format 

Since 1 January 2021, the government of the Republic of Cuba merged its two operational currencies, the Convertible Peso (CUC- 1 to US$1.00) and the Cuban Peso (CUP- 24 to US$1.00) leaving the CUP.  The CUP remains overvalued (“street” value is 60-70 to US$1.00).  Further official devaluation is expected perhaps by the end of 2021.  There has been decentralization within the commercial sectors, though there remain opportunities for additional changes.  Expanded use by private companies of Republic of Cuba government-operated Fincimex-created American International Services (AIS) card cards issued by Republic of Cuba government-operated Banco Metropolitano.  Expanded use of Moneda Libremente Convertible (MLC) for transactions.  Republic of Cuba government-operated companies and private sector companies may retain from 80% to 100% of revenues from exports. 

Changes within the Republic of Cuba have never been about a moment, but rather a series of moments.  Commercially and economically, 19 August 2021 was an important moment- and more will come because the government of the Republic of Cuba has no other option.      

The Diaz-Canel-Valdes Mesa Administration will not collapse.  It will adapt.  As did its predecessors Raul Castro Administration (2008-2019) and Fidel Castro Administration (1959/1976-2008).  For the Biden-Harris Administration to influence the behavior of current management in the city of Havana, Republic of Cuba, it too must adapt to the realities on the ground.  

LLC Background 

From the Internal Revenue Service (IRS): “A Limited Liability Company (LLC) is a business structure allowed by state statute.  Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.  A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LLCs.  Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.” 

Investopedia: A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. 

From dummies: The limited liability company (LLC) didn’t come out of nowhere. Business entities with the same characteristics as LLCs have been around for many years. The origin of LLCs can be traced back to the Germans. In 1892, German law enacted what was called the Gesellschaft mit beschränkter Haftung (GmbH) — a modern-day variation of the English private limited company.  After Germany established the GmbH, the concept soon spread throughout Europe and Central and South America. By the 1940s, in France especially, the concept of the limited liability company was becoming more popular than the traditional corporation.  Not that Germany can take all of the credit. In 1874, Pennsylvania authorized the use of a Limited Partnership Association. By 1875, Michigan, New Jersey, Ohio, and Virginia had enacted similar legislation after seeing how the entity type was gaining popularity in Pennsylvania. Unfortunately, the laws of the time required that the company headquarters remain in one of those five states. Because those states weren’t huge epicenters of American commerce, the new legislation began to lose popularity.  In 1977, Wyoming decided to spearhead an effort to build upon the antiquated Limited Partnership Association and enacted the first true LLC act. The legislature modeled the act after the German GmbH and the successful Panama version of the LLC. Because of Wyoming, the modern-day LLC protects all partners from the liability of the business and has a double layer of liability protection that protects the business from your personal creditors.  After Wyoming, Florida followed suit in 1982. However, LLCs weren’t popular entities. Because they were hybrid entities — between a corporation and a partnership — the IRS had yet to decide how it was going to tax the LLC. After all, would you really want to form a business entity without knowing what sort of tax structure would be imposed on you?  Finally, in 1988, the IRS ruling came: LLCs would be taxed as partnerships. The business’s profits and losses would flow through to the owners, and the LLC wouldn’t be recognized as a separate entity for tax purposes. After this ruling occurred, states began to form their own versions of LLC law. 

LINK To Complete Analysis In PDF Format

LINKS To Recent Remittance-Related Analyses  

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically August 19, 2021 

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective August 12, 2021 

Cuba Issues 175 Pages Of Regulations For Micro, Small And Medium-Sized Enterprises (MSME's) August 20, 2021 

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. August 07, 2021 

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad August 06, 2021 

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access August 05, 2021 

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. July 30, 2021 

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021 

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021 

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021 

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021 

Cuba Central Bank Authorizes Cuba's Postal Service To Provide Financial Services. Continuing Expansion For Receiving And Spending Funds Assists Private Sector August 27, 2021 

Cuba Central Bank Moving Nearer To Regulations For Cryptocurrencies- Another Signal To United States That Cuba Is Changing. Private Sectors Are Expanding- Though Government Remains Reluctant August 27, 2021

White House Press Secretary References Issues With Providing COVID-19 Vaccines To Cuba

The White House
Washington DC
27 August 2021

Briefing by Press Secretary Jen Psaki

Q Understood. And can I ask about -- the U.S. has donated over 3 million COVID vaccines to Afghanistan. The U.N. put out a report this week saying that the number of vaccinations in Afghanistan has significantly dropped since the Taliban took over. Does the White House or does the U.S. government have any indication of what’s happened to those vaccines? Are they in the hands of the Taliban, and are they still being distributed? Or is there a concern that the Taliban might try to sell those doses?

MS. PSAKI: Well, we have not worked with the Taliban as a -- as the government. Right? And a lot of these assistance is often distributed through humanitarian organizations or others who work through COVAX. I would have to check and see what the implementation and mechanisms are, but we are quite careful and very focused on vaccines not -- getting into the right hands. And for individual -- for countries we work with -- and remember, this was an issue with Cuba, right? -- we need to have mechanisms to ensure that they are getting out to the populations who need to get access to the vaccines.

Cuba Central Bank Authorizes Cuba's Postal Service To Provide Financial Services. Continuing Expansion For Receiving And Spending Funds Assists Private Sector

From CUBA STANDARD (8/27/21)- In an apparent response to the U.S. blacklisting of Fincimex — the Cuban counterpart of U.S. remittance companies — and of Banco Financiero Internacional (BFI), the Central Bank empowered Cuba’s postal system to provide financial services.

With Resolution 208, published Aug. 26 in the Gaceta Oficial, the central bank authorizes Grupo Empresarial Correos de Cuba to “act as a non-financial support entity for financial institutions on national territory”. The postal service will now be able to receive international bank transfers and money orders and deposit them in consumers’ hard-currency bank accounts in Cuba. Consumers will now be able to use post offices to effect transactions with magnetic cards connected to those accounts and make deposits and cash withdrawals in Cuban pesos.

LINK To Gaceta Oficial Resolucion 208 Banco Central de Cuba (8/26/21)

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Cuba Central Bank Moving Nearer To Regulations For Cryptocurrencies- Another Signal To United States That Cuba Is Changing. Private Sectors Are Expanding- Though Government Remains Reluctant August 27, 2021

Cuba Central Bank Moving Nearer To Regulations For Cryptocurrencies- Another Signal To United States That Cuba Is Changing. Private Sectors Are Expanding- Though Government Remains Reluctant

LINK To Gaceta Oficial Resolution 215 (26 August 2021)

From Bitcoin Magazine (8/27/21) excerpts

On Thursday Cuba’s government said it would “recognize and regulate” Bitcoin and other cryptocurrencies for payments on the island, Bloomberg reported.  The local Cuban Official Gazette has published a resolution which stated that the central bank will create rules for Bitcoin and other crypto assets to determine licensing laws for providers of crypto services on the island. 

The resolution stated the central bank has power to authorize the use of Bitcoin and other crypto for “reasons of socio-economic interest,” according to the report. The resolution also said the state will act as a check over the bank’s operations, preventing the use of Bitcoin for “illegal activities”. 

Because of tough embargo rules in Cuba it has become difficult to use dollars, and as a result the popularity of Bitcoin has grown among Cuba’s technologically savvy.  A local programmer told Bloomberg that some Cubans are already using crypto in tandem with gift cards to make online purchases.  The announcement comes just 10 days before El Salvador is to become the first country to make Bitcoin legal currency as a way to remove the fees and dangers of sending cash remittances, a staple of both economies. 

It remains unknown how the central bank of Cuba will choose to regulate Bitcoin, as the only real controls it can put on the permissionless, immutable, unstoppable currency are through regulating exchanges and making it more difficult, though not impossible, for citizens to get access to its common on ramps and off ramps.  Bitcoin regulation may come as a result of the government’s realization that people are using the currency to evade U.S. restrictions on sending money to Cuba.  

From CUBA STANDARD (8/27/21) excerpts 

Resolution 215, published Aug. 26 in the Gaceta Oficial, sets the norms how the central bank will regulate cyber currencies, and states that the central bank will license commercial providers, but spells out few details.  “It will be important for the government to regulate and maintain sovereignty over the financial system”, said Eduardo Sánchez, a Cuban blockchain expert. “The Cuban context shares the same risk with any other crypto markets in the world — the volatility, security, capital flight, financing for criminal activities.” 

The official recognition of cyber currencies follows a boomlet in Cuba prompted by the U.S. government’s shutdown of most legal channels for U.S.-Cuba remittances in late 2019.  A more aggressive U.S. sanctions regime against Cuba in recent years has led international banks and companies to avoid transactions involving the island, and prompted remittance giant Western Union to pull out of Cuba. And most recently, travel restrictions imposed in response to the COVID-19 pandemic have been affecting informal remittance channels.  In September 2019, the Central Bank – together with the University of Havana – began to study whether the country should introduce its own cryptocurrency, following the lead of Venezuela. There has been no announcement whether the partners have come to any conclusion. 

The central bank resolution is a far cry from an enthusiastic embrace. Showing official Cuba’s skepticism regarding the soundness of cyber currencies, the resolution says the central bank will warn consumers about the risks of virtual money. In a final disclaimer, the text clarifies that “natural persons assume the risks and responsibilities … of operating with virtual assets and virtual asset service providers that function at the margins of the banking and financial system, even if virtual-asset transactions between said persons are not prohibited”. 

State banks and enterprises will only be allowed to use cyber currencies with the express permission of the central bank.  The new rule clarifies that all cyber currency service providers will have to seek a license from the central bank. The resolution defines as cyber currency service providers “any natural or judicial person that as business or business activity dedicates itself to the exchange between virtual assets and legal currencies; the exchange between one or more forms of virtual assets; the transfer of virtual assets; the custody or administration of virtual assets or instruments that allow control over virtual assets; and the participation in the provision of financial services related to the offer of an emission or sale of a virtual asset”. 

In Cuba, a tech-savvy younger generation has increasingly adopted cyber currencies, thanks to the spread of mobile Internet use, and due to a weak local currency that makes it harder to get dollars, and U.S. sanctions complicating money transfers. Crypto currencies offer a parallel financial infrastructure, allowing users to bypass the U.S.-controlled SWIFT messaging service that banks use to communicate payment instructions. 

A fairly high percentage of Cubans seem to have become familiar with — or even use — crypto currency. Cubans have used virtual currencies to get paid for jobs, receive remittances from the United States, and to invest in crypto assets. Along the way, Cuba has joined the world’s most active markets with crypto currency. According to Fintech Times, Cuba in late 2020 was the No. 1 country for crypto inquiries as a percentage of all inquiries on TradingView, a platform that keeps tabs on stocks, bonds, regular currencies and cryptocurrencies. 

Qbita, a bitcoin exchange platform launched in 2019, leads the field of virtual currency service providers in Cuba, with 13,000 users and a volume of US$354,771 in transactions in 2020. Qbita facilitates the exchange between bitcoin and Cuban pesos, US dollars, and other cryptocurrencies. Other startups, such as Fusyona and Bitremesas, and more recently QvaPay, are not only transmitting remittances, but provide business solutions to Cuban entrepreneurs through the use of crypto assets. 

Investment platforms such as Trust Investing and QubitTech manage crypto assets and offer investment plans to Cubans. Tulip Research, a financial forensics firm focusing on blockchain, defined both as Ponzi schemes, and the national exchange commissions of Spain and Panama issued a warning in 2020 against Trust Investing. But that has so far not stopped their rising popularity in Cuba.  Meanwhile, crypto mining — the “production” of virtual money — is difficult to do in Cuba. Unlike in oil-rich countries such as Iran or Venezuela, where government subsidies lower the cost of electricity needed for computers to process cryptocurrencies, Cuban “miners” face material limitations. 

Says Eduardo Sánchez: “There could be an entrepreneurship boom connected to crypto assets in the next couple of years in Cuba. There is potential and talent for that. But it all depends on the relationship with the U.S. and the success of domestic reforms.” 

Recently, the U.S. Treasury has been catching up, in what seems to be a systematic crackdown against U.S. companies engaging in cryptocurrency transactions involving sanctioned countries.  In late December, the Office of Foreign Assets Control (OFAC) fined BitGo, a Palo Alto, Cal.-based crypto wallet and custodian, for allowing users from Ukraine, Cuba, Iran, Sudan and Syria to access its crypto wallet. Six weeks later, OFAC announced it fined BitPay Inc., after it alleged that consumers in sanctioned countries had used the Atlanta-based company’s cybercurrency merchant payment solution. Both companies settled the allegations by paying a fine and agreeing to block customers in sanctioned countries. OFAC has also added individuals and hosts of cryptocurrency addresses, such as Zcash and Dash, to the Specially Designated Nationals (SDN) list, over crimes ranging from wire fraud to election interference.

Recent Related Analyses  

Healthcare Crisis In Cuba Provides Additional Questions And Opportunities For Biden-Harris Administration To Address Electronic Remittance Transfers... And Do So Practically August 19, 2021

Binary: Electronic Remittance Transfer Decision For Biden Administration And Diaz-Canel Administration; And Putting US$20 Million Into Perspective August 12, 2021

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Goldwind Turbine Of China Libertad Act Lawsuit Dismissed (In Part) By Court, But Plaintiffs May Refile- And Likely Will- Court Confirmed They Have Standing

NORTH AMERICAN SUGAR INDUSTRIES INC., V. XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD., GOLDWIND INTERNATIONAL HOLDINGS (HK) LTD., DSV AIR & SEA INC., BBC CHARTERING USA, LLC, and BBC CHARTERING SINGAPORE PTE LTD., [1:20-cv-22471; Southern Florida District].

Gibson, Dunn & Crutcher (plaintiff)
Mandel & Mandel (plaintiff)
Morgan, Lewis & Bochius (defendant)
Akerman (defendant)
Hogan Lovells LLP (defendant)

LINK To Order (8/24/21)

LINK To Libertad Act Lawsuit Filing Statistics

Excerpts:

The Cuban government is constructing a large-scale wind power project (the “Project”) located in the Cuban province of Las Tunas, about 15 miles from Puerto Carupano. [ECF No. 1 ¶ 82].2 The Project will house 54 wind turbines and is expected to significantly increase Cuba’s renewable energy capacity. Id. at ¶ 85. Equipment for the Project is imported through Puerto Carupano. Id. at ¶ 82.

Goldwind International contracted with Cuba’s Ministry of Energy and Mining to supply the Project with wind turbines and other equipment. Id. at ¶ 88. Goldwind International and Goldwind Science worked with shipping carriers DSV, BBC USA, and BBC Singapore to transport equipment to Cuba for the Project.

In their Motion, Defendants allege that on April 1, 2019, Plaintiff, Plaintiff’s parent companies, and thirteen additional co-debtors (collectively, the “Hexion Debtors”) filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq. (the “Bankruptcy Proceeding”). [ECF No. 54].4 According to Defendants, Plaintiff did not mention the Certified Claim or any Act related claims in its filings for the Bankruptcy Proceeding. Id. On June 25, 2019, the bankruptcy court confirmed the Hexion Debtors’ Reorganization Plan, which became effective on July 1, 2019.

Defendants argue that Plaintiff’s failure to disclose its Certified Claim or Act-related claims in the Bankruptcy Proceeding bars this action. The Court finds that it is premature to address these issues.

As set forth in detail above, Plaintiff has adequately alleged standing under Article III of the constitution to bring these claims.

Though Plaintiff has adequately alleged Article III standing, the Complaint must be dismissed as a shotgun pleading.

Here, the Complaint improperly incorporates all the factual allegations into each count, without properly tying each of those factual allegations to the claims raised. See Innova Inv. Grp., LLC v. Village of Key Biscayne, No. 19-CIV-22540, 2020 WL 6781821, at *5 (S.D. Fla. Nov. 18, 2020). In addition, each count adopts the allegations of all preceding counts. Weiland, 792 F.3d at 1321. As a result of these pleading deficiencies, the Court is unable to ascertain which facts support which claims and whether Plaintiff has stated any claims upon which relief can be granted. Therefore, the Complaint shall be dismissed without prejudice.

Based on the foregoing, it is ORDERED AND ADJUDGED as follows: 1. Defendants’ Motion to Dismiss Complaint, [ECF No. 54], is GRANTED in PART. The Complaint is dismissed without prejudice. 2. Defendants’ Motions to Dismiss for Lack of Personal Jurisdiction, [ECF Nos. 48, 52, 53, & 107], are DENIED as MOOT as there is no longer an operative complaint. Defendants may refile their respective motions based on lack of personal jurisdiction, supplemented by the facts obtained during jurisdictional discovery, upon the filing of an amended complaint.

Cuba Continues Progress From Analog Television To Digital Television

Advanced Television
East Sussex, United Kingdom
27 July 2021

Cuba delays full digital TV until 2024
By Chris Forrester

Cuba has delayed its digital switchover. Cuba’s deputy minister of communications, Ana Julia Marine Lopez, confirmed in an interview with a local newspaper that the nation has put off a complete switch to DTT until 2024. She blamed the delay on costs and the ongoing financial problems the nation is facing. According to Marine Lopez, Cuba’s government has approved the financing that allowed to boost the production of set-top boxes and is expected to deliver 318,000 units this year. From 2013 to today Cuba has sold 2.7 million DTT STBs. However, some progress is being made; The first switch-over to DTT will start later this year in Cuba’s western provinces, followed in 2022 in the region from Villa Clara to Camagüey. The final phase, she said, would take place in 2023 in the eastern portion of the nation.

Xinhua News Agency
Beijing, China
24 May 2021

China supports development of Cuba's digital TV platform
By Yosley Carrero

HAVANA, May 23 (Xinhua) -- Lazaro Campos, who works as a supervisor at Havana-based Camilo Cienfuegos electronics company, has changed his daily routine over the past few weeks as the island started manufacturing set-top boxes to meet local demand."Cuba is moving from analog (TV) to digital TV. That is why we want to make sure people get access to the necessary equipment," he said. Campos told Xinhua that components used in the production process were imported from China, which is the island's second largest commercial partner and a main technical assistance provider. "We have received training from Chinese experts who have very much contributed to improving the quality of our work," he added.So far, technicians from the Cuban electronics company have already manufactured 90,000 of the 318,000 converter boxes expected to be produced by the end of the year. In parallel, over 32,000 TV sets will be manufactured by the company in 2021 to supply the country's stores as well as to support Cuba's education and tourism industries.Sitting on a black chair, Nayta Perez checked the quality of sound and image of 32-inch and 43-inch hybrid TV sets before they were packaged and sent to a warehouse. "It is a very time-consuming process, but very important," she said. "We have to guarantee the product meets all the requirements for people to have a comfortable digital TV viewing experience at home."The state-run electronic company is also boosting innovation and research on digital TV at a laboratory donated by China. "We have gained some expertise with analog TV, but the digital era has changed almost everything," said 48-year-old Camilo Varona, who has been working in the company since 1994. "China and Cuba have built a win-win relationship."Digital television rollout in the Caribbean country kicked off in 2013, with converter boxes donated by the Chinese government being part of the first test in the capital city of Havana. At present, more than 40 municipal, provincial and national TV channels in Cuba broadcast via analog and digital signals. According to local media, new digital television transmitters would be spotted at various corners of the country this year.Edel Gomez, director of the electronics company, told Xinhua that Cuba uses renewable energy sources and environmentally friendly technologies to produce set-top boxes and hybrid TV sets. "The outcome of joint work between Chinese companies and Cuba has been very positive. The digital TV with Chinese standards has shown its high quality of signal reception, sound, and image resolution," he said. "Things are going well."

Advanced Television
East Sussex, United Kingdom
28 May 2013

Cuba to start DTT in June
By Chris Forrester

Cuba will start testing its Chinese version of digital terrestrial TV in June, Cuba has adopted China’s Digital Terrestrial Multimedia Broadcast standard (DTMB) and will start testing in “real conditions” around Havana, the capital. As part of the tests the Communications Ministry will be distributing set-top box decoders to various neighbourhoods to ensure adequate transmissions are being made. The Chinese government has donated much of the equipment needed. The test receiver boxes can be bought be residents at a price 7.35 Cuban Pesos (about US 33 cents) probably the lowest cost – to consumers – of a box anywhere on the planet.

Advanced Television
East Sussex, United Kingdom
22 March 2013

Cuba adopts Chinese TV standard
By Chris Forrester

It may not be the largest TV market on the planet but China must be pleased that it will be providing equipment for Cuba’s adoption of digital terrestrial TV, just 90 miles from the Florida coast. China’s DTMB standard (Digital Terrestrial Multimedia Broadcast) is used throughout China, Hong Kong, Macau and Laos. Other countries using it, although often in trial modes only, include Iraq, Jordan, Syria and Lebanon. The advantages are that the system permits reception by handheld devices, and embraces HD, standard definition digital and delivery to multimedia devices.