Despite Nickel Prices At Seven-Year High, Cuba Owes Sherritt Approximately CA$156 Million; Sherritt "continues to be in discussion with its Cuban partners to expedite payment of overdue receivables."

Sherritt International Corporation
Toronto, Canada
10 February 2022

“Sherritt is a world leader in the mining and refining of nickel and cobalt -- metals essential for the growing adoption of electric vehicles. Its Technologies Group creates innovative, proprietary solutions for oil and mining companies around the world to improve environmental performance and increase economic value.  Sherritt is also the largest independent energy producer in Cuba.” 

LINK To Review of Financial and Operational Results
LINK To 2021 Fourth Quarter Report (2021 Annual Report)

Q4 Earnings Call- Review of Financial and Operational Results 

Excerpts (emphasis added): 

Cash and cash equivalents at December 31, 2021 were $145.6 million, down from $163.4 million at September 30, 2021. During the quarter, the Moa JV deferred distributions to its partners as it assessed the impact of delays in customer deliveries caused by flooding in B.C. and congestion at the Vancouver port on its expected cash needs. Subsequent to the year end, Sherritt received $8.1 million as its share of Moa JV distributions. 

During the quarter, the Corporation received US$6.5 million in Cuban energy payments, which were offset by the interest payment of $14.8 million on the second lien notes and sustaining capital expenditures of $2.9 million. 

During 2021, Sherritt received a total of $52.8 million in direct and re-directed distributions from the Moa JV and its partner, General Nickel Company S.A. (GNC). 

Received US$6.5 million in Cuban energy payments. Sherritt anticipates continued variability in the timing of collections into 2022, and is working with its Cuban partners to ensure timely receipts. 

Total overdue scheduled receivables at December 31, 2021 were US$156 million, up from US$152.5 million at September 30, 2021. Subsequent to year end, Sherritt received US$2.2 million in Cuban energy payments. Collections on overdue amounts from Sherritt’s Cuban energy partners continue to be adversely impacted by Cuba’s access to foreign currency as a result of ongoing U.S. sanctions and the global pandemic. While Sherritt anticipates improved economic conditions in Cuba in 2022, it continues to anticipate variability in the timing and the amount of energy payments in the near term, and continues to work with its Cuban partners to ensure timely receipt of energy payments. 

Of the $145.6 million of cash and cash equivalents, $64.2 million was held in Canada, down from $82.1 million at September 30, 2021 and $78.9 million was held at Energas, up from $76.7 million at September 30, 2021. The remaining amounts were held in Cuba and other countries. 

Nickel prices hit a seven-year high in Q4 2021, climbing to US$9.59/lb on November 24. The price increase was driven by improving market fundamentals, including strong demand from across multiple industries, consumer stockpiling, reduced inventory levels, and ongoing supply disruptions caused by COVID-19. Rising nickel prices and favourable market conditions were jolted by the rapid spread of the Omicron variant and concerns of its impact on the global economy in early December, causing prices to soften slightly through to the end of the quarter. Nickel prices closed the year at US$9.49/lb, representing a 27% increase for 2021 relative to the closing price of 2020 of US$7.50/lb. 

Since the start of 2022, nickel prices have sustained their recent momentum, reaching US$10.89/lb on January 21, the highest price in more than 10 years. It is anticipated that nickel prices will maintain their current robustness through the end of 2022 based on forecasts provided by industry analysts. 

Strong nickel demand in Q4 was reflected by the continued decrease in inventory levels since the start of 2021. In Q4, nickel inventory levels on the London Metals Exchange (LME) fell by 35% from 157,062 tonnes at the start of the period to 101,886 tonnes on December 31. Similarly, inventory levels on the Shanghai Futures Exchange fell 35% to 2,406 tonnes, down from 3,728 tonnes at the start of the quarter. 

Industry analysts, including Wood Mackenzie and S&P Global, have forecast continued strong demand and market tightness through to the end of the 2022. LME nickel inventories continued to decline in 2022, falling below 100,000 tonnes on January 10, reaching 85,644 tonnes on February 9, the lowest level since November 2019. 

Visibility of market fundamentals, including inventory levels, in the mid-term is limited given the economic uncertainty caused by the pandemic and news from Indonesia suggesting that the country, one of the world’s largest suppliers of nickel, plans to curtail exports in an effort to support a domestic refining and processing activities. 

The long-term outlook for nickel remains bullish on account of the strong demand expected from the stainless steel sector, the largest market for nickel, and the electric vehicle battery market. Some market observers, such as Wood Mackenzie, have forecast a prolonged nickel supply deficit beginning in 2025 due to recent developments in the electric vehicle market and insufficient nickel production coming on stream in the near term. 

Over the past year, multiple automakers and governments have announced plans for significant investments to expand electric vehicle production capacity to meet growing demand as well as more aggressive timelines to phase out the sale of internal combustion engines. In 2021, more than 6.5 million plug-in electric vehicles were sold despite the global pandemic. Industry observers estimate that the number of electric vehicles sold in 2022 will grow to 8.6 million units. CRU has forecast that electric vehicles sales will grow to 17.4 million units by 2025. 

As a result of its unique properties, high-nickel cathode formulations remain the dominant choice for long-range electric vehicles manufactured by automakers with Class 1 nickel being an essential feedstock in the battery supply chain. Sherritt is particularly well positioned given our Class 1 production capabilities and the fact that Cuba possesses the world’s fourth largest nickel reserves. 

Cobalt prices rose steadily in Q4 2021, closing on December 31 at US$33.78/lb, up 30% from US$25.88/lb at the start of the quarter according to data collected by Fastmarkets MB. 

Higher cobalt prices in Q4 2021 were primarily driven by increased buying from electric vehicle battery manufacturers. Cobalt is a key component of rechargeable batteries providing energy stability. Higher cobalt prices in Q4 2021 were also impacted by increased stockpiling by consumers and ongoing supply logistics disruptions in South Africa, where cobalt produced in the Democratic Republic of Congo, the source of almost two-thirds of the world’s supply, is sent before being shipped internationally. 

Industry observers, such as CRU, expect cobalt prices to continue to be robust in the near term as limited new sources of supply have been announced to fill expected demand over the next five years. 

The outlook for cobalt over the long term remains bullish as demand is expected to grow to approximately 280,000 tonnes by 2025, representing a compound annual growth rate of 13.5% according to CRU. 

Sherritt continues to be in discussion with its Cuban partners to expedite payment of overdue receivables, increase availability of natural gas needed for power production activities, and extend the power generation agreement with Energas, which is currently slated to expire in March 2023. In Q4 2021, Sherritt received approval from the Energas board for a feasibility study extending the Power agreement, and submitted a formal application for the extension to the Cuban government. 

Forward-Looking Statements 

These risks, uncertainties and other factors include, but are not limited to, the impact of infectious diseases (including the COVID-19 pandemic), changes in the global price for nickel, cobalt, fertilizer, oil, gas, or certain other commodities; security market fluctuations and price volatility; level of liquidity; access to capital; access to financing; the risk to Sherritt’s entitlements to future distributions from the Moa Joint Venture; uncertainty about the pace of technological advancements required in relation to achieving ESG targets; identification and management of growth opportunities risk of future non-compliance with debt restrictions and covenants; Sherritt’s ability to replace depleted mineral reserves; risks associated with the Corporation’s joint venture partners; variability in production at Sherritt’s operations in Cuba; risks related to Sherritt’s operations in Cuba; risks related to the U.S. government policy toward Cuba, including the U.S. embargo on Cuba and the Helms-Burton legislation; potential interruptions in transportation;

U.S. Department Of State Appoints "Chief Sustainability Officer"- Mandate Text Includes Focus On "Electrifying Fleet" And "Host Partners" Does This Mean EVs For Cuba? President Biden Supports?

The White House
Washington DC
9 February 2022

Remarks by President Biden at a Roundtable with CEOs of Electric Utilities to Discuss His Build Back Better Agenda

State Dining Room: “I asked the question for a selfish reason. Because when I said -- this is going to generate jobs well beyond your site. And -- and so, there are going to be people manufacturing those battery storage facilities. People man- -- I mean -- so I mean, this has such a ripple effect that -- God willing. And what's going to happen is, I predict -- you know, right now, in some cases, China is ahead of us, but I think we're going to end up having a significant export market as well that's going to create thousands of good-paying jobs here in the United States.  It's going to be in our interests to have this, you know, move around the world.” 

United States Department of State
Washington DC
9 February 2022

Designation of Under Secretary for Management John R. Bass as Chief Sustainability Officer

Antony J. Blinken, Secretary of State

With a footprint in nearly every country, the Department of State has seen firsthand the impacts of a changing climate on our operations.  From drought to worsening air quality, the climate crisis has not only had implications for our personnel and their families, but also our host country partners around the world.  The years ahead will be critical to slowing the pace of global temperature rise and preventing the worst impacts of climate change.  The Department of State is mobilizing on all fronts to tackle the climate crisis, including changing the way we operate at home and abroad to curb emissions, improve sustainability, and adapt to climate hazards. 

There has never been a more urgent moment.  That is why I have designated Under Secretary for Management John R. Bass as the Department’s Chief Sustainability Officer.  In this role, he will lead the Department’s efforts to advance the rigorous federal climate and sustainability ambitions and priorities set by the Administration under Executive orders 14008 and 14057.   

Under Secretary Bass will set the vision for and oversee implementation of the Department’s sustainability, adaptation, and resilience goals. He will be supported by the Deputy Chief Sustainability Officer who leads the Greening Diplomacy Initiative within the Office of Management Strategy and Solutions, as well as the Climate and Sustainability Working Group comprising multiple Department bureaus and offices.

The Department is building on more than a decade of climate actions that have curbed emissions, enhanced climate adaptation, and made our operations more sustainable.  We are proud to be the premier federal agency in terms of harnessing renewable energy in our domestic operations and are working to electrify our fleet at home and abroad.  Our embassies and consulates are built to be U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) Silver certified or better, so we can ensure our facilities are resilient and highlight innovative U.S. technologies.  We are also advancing sustainability and resilience in our overseas operations through actions like installing rainwater harvesting systems in drought-stricken areas and installing on-site renewable energy. There is a lot more to be done, however.  I have full confidence that Under Secretary Bass will take our efforts to the next level and demonstrate the Department’s full commitment to leading by example in tackling the climate crisis. 

Biography 

John Bass was confirmed by the U.S. Senate on December 17, 2021, as the Under Secretary for Management.  A career Senior Foreign Service officer, he served as Senior Advisor at the Foreign Service Institute from 2020-2021, U.S. Ambassador to Afghanistan 2017-2020, U.S. Ambassador to Turkey from 2014 to 2017, Executive Secretary of the State Department from 2012 to 2014, and U.S. Ambassador to Georgia from 2009 to 2012. He began his diplomatic career in 1988 and has also served in positions in U.S. missions in Iraq, Italy, Belgium, and Chad.  In Washington, Ambassador Bass’s assignments have included service on Vice President Cheney’s staff, as Chief of Staff and advisor to Deputy Secretary of State Strobe Talbott, as Director of the State Department’s Operations Center and in several assignments focused on European security issues. He has received numerous State Department performance awards.  The son of a public servant and a U.S. Air Force officer, Bass was born and raised in upstate New York. A graduate of Syracuse University, he speaks Italian and French. He is married to U.S. diplomat Holly Holzer Bass.

Ministry of Transport of the Republic of Cuba (MINTRANS): Before 2030, MINTRANS plans for 45% of the total number of vehicles owned by Republic of Cuba government-operated companies will be electric vehicles.  A goal is to introduce more than 56,000 electric vehicles of which about 36,000 will be imported while 17,000 will be retrofitted from existing combustion engine vehicles.  A goal is to install 38,000 charging stations throughout the country with 16,000 fast charging stations and the remainder slow or semi-fast charging stations.  An additional 2,000 slow and fast charging stations will in public places while 180 50KV fast charging stations will be located to supply public services.  The first Cuban company to utilize electric vehicles in the Republic of Cuba was Republic of Cuba government-operated Aguas de la Habana.  The company operates a twenty-two Nissan e-NV200 vehicles.  LINK To YouTube Video: https://www.youtube.com/watch?v=uNhxN0aevXc

Has Cuba Provided An Opportunity For Biden-Harris Administration To Renew Electronic Remittance Services? Orbit S.A. In Cuba Now Permitted To Engage. Can It Meet U.S. Conditions? A False-Flag?

Associated Press
New York, New York
8 February 2022

By Andrea Rodriguez 

Cuba authorized a new financial institution to manage remittances and carry out other transfer operations after Washington blacklisted Fincimex, for 20 years a counterpart of Western Union, the main money transfer company from the United States.  

The Official Gazette published the resolution signed by the president of the Central Bank of Cuba (BCC), Martha Sabina Wilson, accepting Orbit SA's request to "manage and process international transfers from abroad to Cuba" and "provide payment services from abroad through its infrastructure.  Until November 2020, remittances were operated by Western Union with Fincimex, but in the framework of the tightening of United States sanctions on the island, in October of that year the government of then President Donald Trump canceled the permit for the company of his country and included Fincimex in a list of restricted companies, arguing that the Cuban counterpart was part of a conglomerate under military administration. 

The origin of the firm Orbit SA is unknown except for the fact that the BCC resolution indicated in its considerations that it was incorporated on "February 3, 2020 with headquarters in Havana." Nor if Western Union will resume its agreement with the island. with this new financial institution or when the income of remittances will become effective.  

[According to the regulations, the BCC may cancel or modify the license at the request of Orbit S.A. in the event of non-compliance by the entity with the applicable legal provisions in force. The Official Gazette indicates that Orbit S.A., was incorporated by Notarial Deed No. 54, of February 3, 2020, with headquarters in Havana, but no other precise information appears, such as members of the company or corporate purpose.] 

Trump promoted the greatest adjustment of the measures against the Caribbean nation in decades with the aim of pressuring a change in the political model. In addition to the restrictions on remittances, he eliminated the permissions for U.S. travel to the island, issued provisions to suspend cruise ships, and increased persecution of third-country companies operating in Cuba. It also paralyzed consulate and embassy activity.  His successor, Democrat Joe Biden, promised in his electoral campaign r adopt the policy of rapprochement promoted by Barack Obama, but to date has deepened Trump's policy with new sanctions on the grounds that Havana repressed protests in July. Meanwhile, Cuba is going through a severe economic crisis exacerbated by the COVID-19 pandemic with shortages of food and medicine and lack of fuel. The embargo against Cuba turned 60 last week and was imposed in the framework of the Cold War after the revolution that had triumphed in 1959 with Fidel Castro at the head deepened.  

Last week, a State Department spokesman said the Biden administration was exploring options to facilitate remittances to Cuba while partially reopening the consulate to facilitate obtaining some categories of visas for which Cubans are currently required. travel to Guyana to process them.  

Although the Cuban government never reported the number of remittances entering the country in 2020 – when the pandemic broke out – experts estimated the transfers that emigrants sent to their families on the island at around 3.5 billion dollars. Western Union used to do some 240,000 transactions a month for annual amounts between $900 million and $1.5 billion at its more than 400 branches. Other amounts traveled through banks or through mules or currency dealers. 

LINK TO Gaceta Oficial 4 February 2022

English Translation (Google) 

GOC-2022-122-O13 RESOLUTION 11/2022 WHEREAS: ORBIT S.A. constituted by Notarial Deed No. 54, of 3 February 2020, based in Havana, has requested a license from the Central Bank of Cuba to establish within the national territory a non-banking financial institution, specialized in managing and processing international transfers, as well as providing payment services for goods and services through its infrastructure, in both cases from abroad.  

WHEREAS: Decree-Law 362, “Of the Institutions of the Banking System and Financiero”, of September 14, 2018, in its Article 7.1, establishes that the Bank Central de Cuba, depending on the type of institution to be created, issues the license that corresponds and defines the scope and class of operations to be carried out, as well as any other provisions of mandatory compliance in the exercise of the business of financial intermediation.  

THEREFORE: In the exercise of the powers and attributions conferred in Article 25, subsection d), of Decree-Law 361 "Of the Central Bank of Cuba", of September 14, 2018, I RESOLVE  

FIRST: Grant License in favor of ORBIT S.A. based in Havana, to engage in non-banking financial activity in the Republic of Cuba, under the terms arranged below: 1. Manage and process international transfers from abroad to Cuba. 2. Provide payment services from abroad, through its infrastructure, by goods and services duly authorized, according to current legislation.  

SECOND: ORBIT S.A. applies intensified due diligence to these operations and complies as an obligated subject all the provisions of Decree-Law 317 "On the prevention and combating money laundering, financing of terrorism and proliferation of weapons of mass destruction”, of December 7, 2013 and its legal provisions complementary. February 4, 2022 OFFICIAL GAZETTE 339  

THIRD PARTY: ORBIT S.A. You will not be able to carry out operations in which you commit with its assets to advance financing to any counterparty, as well as carry out operations reserved exclusively for banks, unless expressly authorized by the Central Bank of Cuba. FOURTH: ORBIT S.A. will request the registration of the License in the Registry of Financial Institutions and Non-Financial Entities attached to the Central Bank of Cuba, within fifteen business days following the notification of this license, in compliance with the provisions of Article 20.2 of Decree-Law 362 of 2018.  

FIFTH: ORBIT S.A. within thirty business days of notification of this Resolution, carries out all the legal procedures that proceed to adapt its legal documentation to what is authorized in this license, and communicates to the Secretary of the Central Bank of Cuba the changes that have taken place.  

SIXTH: The Central Bank of Cuba can cancel or modify this License upon request of ORBIT S.A. or when the provisions of this LICENSE are breached, or in the Decree-Law 362 of September 14, 2018, or other current legal provisions applicable. BE PUBLISHED in the Official Gazette of the Republic of Cuba. FILE the original in the Secretariat of the Central Bank of Cuba. GIVEN in Havana, on the thirty-first day of January, two thousand and twenty-two.   Marta Sabina Wilson Gonzalez Minister

United States Department of State
Washington DC
4 February 2022

QUESTION: Yeah, thank you. Thank you for having me. Yesterday, secretary (inaudible) announced that the United States is considering reestablishing remittances to Cuba. My question is: Does the Biden administration really believe that it would be helping to the Cuban people and not the Miguel Diaz-Canel government? Can you tell us about the measures that the Washington will take to restore remittance to Cuba? Thank you.

MS PORTER: Thanks for your question, Luis. So broadly speaking, our policy towards Cuba focuses first and foremost for the support of the Cuban people, and that would include their political and economic well-being, and that would also include human rights. So that means that we’re committed to promoting accountability for Cuban Government officials involved in any human rights abuses.

I’d also say that, following the July 2021 protests, that the Biden-Harris administration created a remittance working group to explore options to facilitate remittances to Cuba that would go to benefit the Cuban people, and that would allow Cuban families to support one another, and also minimize or eliminate benefits to the – both the Cuban regime and its military.

Also, in August of 2021, the remittance working group shared its analysis, including additional options, with other members of the administration, and the administration continues to consider these options, as well as explore innovative solutions, and that also includes digital payments as a part of these solutions. Outside of that, we don’t have a specific timetable to share at this time.

LINKS To Remittance-Related Analyses 

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. September 17, 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 

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

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

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  

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 17, 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 

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

Cuba Says Western Union's 407 Distribution Points Will Close; Western Union Not Giving Up- 2016 Seems So Long Ago... October 28, 2020 

Western Union Receives A Message From OFAC- Don't Work With Generals, Work With Civilians October 24, 2020 

Western Union May Cease Money Transfers From Outside Of The United States To Cuba February 18, 2020 

Delta Air Lines & Western Union Plus US$1.15 Million Could Be Keys To Resolving Certified Claims June 04, 2019 

Western Union Supporting Entrepreneurship Program For Young Cubans July 09, 2016 

Western Union Expands Operations In Cuba June 07, 2016 

Western Union Expands Remittance Services To Cuba March 21, 2016

Despite Nearing 70% Decrease In Visitor Arrivals, Cuba Increased 2021 Food/Ag Imports From United States By 86.5%- Ranking Cuba 53rd Of 2021 U.S. Food/Ag Export Markets.

Given the Republic of Cuba's chronic shortage of foreign exchange, inability to remain current on sovereign debt, and routinely unable to pay as per contracted terms commercial debt owed by Republic of Cuba government-operated companies, there are an increasingly decreasing number of sources for credit.  As a result, the Republic of Cuba has been forced to increase the percentage of purchases made with cash.  Imports of agricultural commodities and food products from the United States are required by United States law to be paid for in cash; and shipping from the United States to the Republic of Cuba is from one to three days.  For the Republic of Cuba, no longer is paying more for commodities solely due to the receipt of extended payment terms always a viable option- because the option is not available.  At present, the less credit available to the Republic of Cuba inversely increases the value of exports from the United States to the Republic of Cuba, despite, for the Republic of Cuba, its dislike of the commercial, economic, and political laws, regulations, and policies of the United States.  The current landscape is for United States companies neither viable nor preferred for the long term.

ECONOMIC EYE ON CUBA©
February 2022

December 2021 Food/Ag Exports To Cuba Increase 98.5%- 1
53rd Of 213 December 2021 U.S. Food/Ag Export Markets- 2
2020-To-2021 Exports Increase 86.5%- 2
For 2021 Cuba Ranked 53rd Of 2021 U.S. Ag/Food Export Markets- 2
December 2021 Healthcare Product Exports US$0.00- 2
December 2021 Humanitarian Donations US$1,242,356.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16


DECEMBER 2021 FOOD/AG EXPORTS TO CUBA INCREASE 98.5%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in December 2021 were US$28,091,304 compared to US$14,145,158.00 in December 2020 and US$4,371,126.00 in December 2019.

December 2021 Exports Included: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Swine Meat; Woodpulp; Fruit Juices; Baby Food; Mixed Spices; Non-Alcoholic Beverages; Cream (10% Fat).

2021 exports were US$304,774,413.00 compared to 2020 exports of US$163,354,728.00.

Since December 2001, agricultural commodity and food product exports reported from the United States to the Republic of Cuba is US$6,601,001,837.00.

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.

Click here for a list of agricultural commodities eligible for export to Cuba under Section 902(1) of the Trade Sanctions Reform and Export Enhancement Act of 2000

LINK To Report In PDF Format

While Promoting EV Use In The United States, Biden-Harris Administration Refuses To Permit Exports Of EVs To Cuba For Use By Re-Emerging Private Sector- And U.S. Embassy In Havana Does Not Want One.

The White House
Washington DC
8 February 2022

FACT SHEET: Biden-Harris Administration Ensuring Future is Made in America

Tritium Announces EV Charger Manufacturing Facility in Tennessee; To Produce Up To 30,000 Buy America-Compliant Chargers Per Year, Create 500 Jobs

Since his first day in office, President Biden relentlessly focused on an industrial strategy to revitalize our manufacturing base, strengthen critical supply chains, drive down prices, and position U.S. workers and businesses to compete and lead globally in the 21 st century. This whole-of-government effort is leading to a historic recovery in domestic manufacturing. During President Biden’s first year in office, the economy added 367,000 manufacturing jobs – the most in nearly 30 years. The U.S. economy grew at the fastest pace in nearly 40 years in 2021, and manufacturing as a share of U.S. GDP has returned to pre-pandemic levels. Manufacturing activity has seen a significant expansion every month that President Biden has been in office, consistently above pre-pandemic levels.

The Build America, Buy America Act in the Bipartisan Infrastructure Law expands on the Biden-Harris Administration’s work to ensure that the future is made in America by American workers by strengthening and expanding Buy America rules to all taxpayer-funded infrastructure and public works projects.

Today, President Biden and Jane Hunter, CEO of Tritium, will announce that Tritium will break ground on its first U.S. manufacturing facility in Lebanon, Tennessee. This facility will house six production lines that will produce up to 30,000 Buy America-compliant DC Fast Chargers per year at peak production and create 500 local jobs.

This is the latest of announcements in recent weeks by major companies announcing investments in U.S. manufacturing and jobs, including Intel, General Motors, and Boeing, and more than $200 billion in investments in domestic manufacturing of semiconductors, electric vehicles, aircraft, and batteries announced since 2021.

In addition to Tritium, EV charging manufacturers large and small are investing and expanding U.S. operations, driven by the Administration’s economic strategy, Made in America policies, and the Bipartisan Infrastructure Law:

Siemens, which is investing and expanding its U.S. manufacturing operations to support electric vehicle infrastructure in America, will produce 1 million EV chargers by 2025. This investment, spurred by the passage of the Bipartisan Infrastructure Law, is the latest in the company’s strategic plan to meet accelerating electric vehicle charging demand, and expand its U.S. manufacturing capabilities.

ABB, which currently manufactures Buy America-compliant transit bus chargers in the U.S., will expand its US EV charging manufacturing operations, including Level 2 and DC Fast Chargers, over the coming five years, employing hundreds of Americans and producing thousands of EV chargers each year.

FreeWire Technologies, based in Oakland, California, currently manufactures Buy America-compliant battery-integrated EV charging equipment, and recently announced groundbreaking on a research, manufacturing, and testing facility in Newark, California. FreeWire currently employs and plans to add more than 200 jobs in electrification and clean energy in and around disadvantaged communities this year.

Dunamis Clean Energy Partners, a Black- and woman-owned EV charger manufacturer based in Detroit, Michigan, will manufacture Level 2 EV chargers and charging connectors in a new production facility in Detroit beginning this summer. Dunamis’ training and workforce development efforts will focus on underrepresented, economically disadvantaged communities most impacted by greenhouse gas emissions.

The future of the auto industry is electric, and America can own that future by building more here at home, creating good-paying jobs in the process. In August, President Biden set an ambitious target and roadmap to get to 50% of electric vehicle (EV) sale shares in the U.S. by 2030. The Bipartisan Infrastructure Law included a down payment on the EV future, with more than $7 billion in funding to secure an American EV supply chain, from materials processing to battery manufacturing and recycling, along with $7.5 billion to build out the first-ever nationwide public EV charging network.

This charging network will provide a convenient, reliable, affordable and equitable charging experience, with a focus on serving national highway corridors, rural areas, and underserved communities. It will also accelerate the adoption of electric vehicles, fight the climate crisis, and support domestic manufacturing jobs.

Later this week, Department of Transportation Secretary Buttigieg and Department of Energy Secretary Granholm will announce the state allocations and guidance for the Bipartisan Infrastructure Law’s National Electric Vehicle Infrastructure Formula Program, which will provide $5 billion over five years to help states create a network of EV charging stations along designated Alternative Fuel Corridors on the Interstate Highway System.

The Biden-Harris Administration has already taken action to prepare for the build-out of the nationwide public EV charging network.  

In December, Vice President Harris announced the EV Charging Action Plan to outline the steps the Administration is taking to accelerate the EV charging investments in the Bipartisan Infrastructure Law.   

In December, the Department of Energy and the Department of Transportation announced the creation of the Joint Office of Energy and Transportation, which will support and accelerate deployment of the national EV charging network, including by providing technical assistance to states as they develop their comprehensive EV charging plans.  

Last week, the Department of Transportation released an EV Rural Charging Toolkit, a one-stop resource for rural communities to plan and implement EV charging infrastructure projects. 

Ministry of Transport of the Republic of Cuba (MINTRANS): Before 2030, MINTRANS plans for 45% of the total number of vehicles owned by Republic of Cuba government-operated companies will be electric vehicles.  A goal is to introduce more than 56,000 electric vehicles of which about 36,000 will be imported while 17,000 will be retrofitted from existing combustion engine vehicles.  A goal is to install 38,000 charging stations throughout the country with 16,000 fast charging stations and the remainder slow or semi-fast charging stations.  An additional 2,000 slow and fast charging stations will in public places while 180 50KV fast charging stations will be located to supply public services.  The first Cuban company to utilize electric vehicles in the Republic of Cuba was Republic of Cuba government-operated Aguas de la Habana.  The company operates a twenty-two Nissan e-NV200 vehicles.  LINK To YouTube Video: https://www.youtube.com/watch?v=uNhxN0aevXc

Vice President of the United States Kamala Harris charging an electric vehicle while visiting Maryland.

"The Patissier By Ricardo Velez" In Madrid: Dark Red Cherries Infused In Havana Club 7 Year Rum

The Patissier by Ricardo Velez
C. de Columela, 9
28001 Madrid, Spain

A 3-min walk from the Puerta de Alcalá… 

Dark red cherries in Havana Club 7 Year Rum with sugar and almond oil. 

Editor Note: Over ice cream- a delicious experience.

Minister Admits Issues With Outside Capital- Preserving What Investors Don't Want. Removing Incentives For Private Sector Employees Unhelpful. Private Sector Can't Be "Laboratory Experiment."

H.E. Rodrigo Malmierca Díaz Minister of Foreign Trade and Foreign Investment of the Republic of Cuba.

Excerpts From Interview With Bohemia Magazine:

“Then we have other problems associated with the risk rating to do any business. In other words, Cuba is an indebted country, with certain difficulties today to be able to meet its external financial commitments. If the interested party is guided by the criteria of international risk rating agencies, it is not an attractive country to invest in”.

“These are internal decisions. The hiring of personnel through an employing agency responds to its own policies. We have been very careful to try to prevent people who work with foreign capital investments, simply for that reason, and perhaps doing the same thing as another in a state company, from earning much more.

“And that is something that we have tried to preserve through the employing agencies, although foreign investors do not like it. There are also other things they don't like, and we're not going to change them for that. For example, land ownership is State property, it is endorsed in the Constitution.

“Many foreigners want to buy the land where the hotels are going to be built. Here we do not sell it, we give it in usufruct, and it can be long-term. In other places it is sold. This sometimes makes it difficult for investors to come to Cuba.

“Now, beyond these objective obstacles, we have other subjective problems, related to deficiencies and internal failures. For example, the delays in the negotiation processes, the poor or deficient preparation of the projects and the negotiating groups. People say: 'there is a lot of bureaucracy'. Actually that is not the cause of the arrears. In the process of final approval by the Government there are no great delays, but in the companies. The required priority is not given to the IE, and these delays sometimes last for years. Of years".

Bohemia
Havana, Republic of Cuba
27 January 2022

Economy: when investment is pressing

Of external obstacles, internal obstacles, successes and dissatisfactions with foreign investment; controversies about the state monopoly, among other topics, BOHEMIA dialogues exclusively with Rodrigo Malmierca Díaz, Minister of Foreign Trade and Foreign Investment

Beyond the objective limitations, if the negotiating processes are assumed with greater efficiency, the benefits for the country would be greater, values ​​Rodrigo Malmierca Díaz, head of the Mincex. (Photo: Yasset Llerena Alfonso).

After a nosedive, the economy begins to emerge slowly, upwards. Many plans and dreams on the Caribbean Island depend on keeping the invisible enemy at bay, the mutant of covid-19, which is turning the planet upside down again. Reaching them will not be easy. Nor impossible. That is why now, perhaps more clearly than ever, it is a question of attracting –almost falling in love– foreign investors, despite the Goliath of the North.

Cuba pursues a desired prosperity, through many sacrifices and resistance. The greatest of his riches is in the town, cheerful, enterprising, educated... However, there is still a lot of fallen leaves to sweep along the way.

Just at two in the afternoon, Rodrigo Malmierca Díaz, head of the Ministry of Foreign Trade and Foreign Investment (Mincex), enters the large meeting room impassively. After greeting us with the knuckles of the hands, we thank him for the courtesy of receiving us, despite his busy schedule.

While we taste an aromatic coffee, I review in my memory the last intervention that the Minister made before the Cuban legislators. His affirmation in the plenary: “the results with foreign investment are insufficient”, flutters in my mind.

— What problems slow down or limit the expected impact of foreign investment (EI) in the Cuban economy?

—EI is something relatively new in the Revolution. Before the triumph of January 1959, the country was practically sold to foreign capital, especially the United States. The first steps were to nationalize all those properties, the best lands, the electricity and telephone companies, the sugar mills, and rescue them for the people.

“So we spent almost 30 years of the revolutionary period without going to the IE as something we wanted. Later, at the end of the 1980s, the first attempts were made to attract foreign capital to support the economic and social development plans of the Revolution. I would say that when the first Law 77 was approved in 1995, the attempts we made to attract foreign capital were still very limited. Because we considered it a necessary evil.

“That norm was restrictive in the sense of preserving much national sovereignty – until now that interest is maintained. The same as the majority in all those businesses outside of the Cuban part, at that time few were 50 to 50. Some sectors of the economy were not open to foreign capital, for example, the sugar industry and agriculture itself. A few years ago we started promoting them.

“In the VI Party Congress in 2011, if you look at the Guidelines, EI is still spoken of as a complement to the national effort for the development of the country, and it was not considered an important element. That changes when the policies are approved, at the end of 2013, prior to the new law in June 2014.

“Already in the VII and VIII party congress, the Guidelines speak of the importance of EI as something strategic for the development of the current stage. We began to give it a more relevant role. Now, one could ask: why doesn't foreign capital come en masse to invest in Cuba?

“There are several factors. First, due to the economic, financial and commercial blockade of the United States Government, which has also intensified in recent times. Capital transfers have become very difficult, everything related to the financial sector, banks are threatened with sanctions.

“They activated Title III of the Helms-Burton Act, which allows citizens or companies to sue any company, Cuban or foreign, in the courts of the United States. All of these are real, objective obstacles that create a lot of fear.

“Then we have other problems associated with the risk rating to do any business. In other words, Cuba is an indebted country, with certain difficulties today to be able to meet its external financial commitments. If the interested party is guided by the criteria of international risk rating agencies, it is not an attractive country to invest in”.

—You referred in Parliament to investor complaints, for example, the issue of staff recruitment.

“These are internal decisions. The hiring of personnel through an employing agency responds to its own policies. We have been very careful to try to prevent people who work with foreign capital investments, simply for that reason, and perhaps doing the same thing as another in a state company, from earning much more.

“And that is something that we have tried to preserve through the employing agencies, although foreign investors do not like it. There are also other things they don't like, and we're not going to change them for that. For example, land ownership is State property, it is endorsed in the Constitution.

“Many foreigners want to buy the land where the hotels are going to be built. Here we do not sell it, we give it in usufruct, and it can be long-term. In other places it is sold. This sometimes makes it difficult for investors to come to Cuba.

“Now, beyond these objective obstacles, we have other subjective problems, related to deficiencies and internal failures. For example, the delays in the negotiation processes, the poor or deficient preparation of the projects and the negotiating groups. People say: 'there is a lot of bureaucracy'. Actually that is not the cause of the arrears. In the process of final approval by the Government there are no great delays, but in the companies. The required priority is not given to the IE, and these delays sometimes last for years. Of years".

— Is it a mentality problem?

—Prejudice influences this, because it is true that we spent more than 30 years thinking that EI was a bad thing, and we didn't want it. Some people still have that stuck in their heads. And since December 2016, the army general in a closing of the National Assembly of People's Power, spoke about this, and made a call to banish those prejudices.

“However, it is easier to say it, than for people to really change their mentality. They are subjective, transversal problems in the economy and we have to solve them”.

— Is there a lack of company culture?

—In Cuba we have problems with investments in general. The processes are slow. Feasibility studies do not always comply with what was initially projected. You say, I'm going to do this, I'm going to have a percentage rate of return on investment, and in three or five years I'll pay back the financing. And that in the end is not fulfilled. Neither with foreign investment, nor with the national one.

“With foreign capital we have the challenge that the foreign investor feels attracted to do the business. The attractions that we put at his disposal are not enough, that the staff is prepared and can quickly take on new technologies, the country's stable environment, the tax incentives granted by law. All of that helps. But if the man says: 'I'm going to go to Cuba, and in addition to defying the pressures of the US government, it turns out that they don't give me prompt attention.' Whoever has capital is going to invest it with the aim of making money. If you have to spend a year negotiating, of course that is not attractive.

Economy: when investments are urgent.

The financial measures imposed by the Trump administration were designed – with macabre precision – to strangle the Cuban economy. (Photo: Martha Vecino Ulloa).

“That is why we say, despite all the problems, the blockade, Cuba's risk rating, that we do not have the liquidity to meet our obligations, if we were more efficient when dealing with these negotiation processes, we would have better results.

“That is a battle that we have to fight from the Mincex, because we are the rectors of this activity, and we are called to win it in all sectors of the economy. Because that is where the companies are, the negotiating groups that interact with foreign capital.”

— How much do EI contribute to the national economy?

—Since Law 118 was approved, until today, there are deals agreed for more than 7,000 million dollars. It's not little.

— Is that capital already operational?

—Not everything is operational, because that is another problem. Sometimes we approve the business, and the capital cannot come because the banks do not transfer it. We have this type of difficulties that are closely linked to the US government's blockade.

“If you look at, for example, Cuban exports of rum, tobacco, nickel, telecommunications, they are mainly carried out by businesses with foreign capital. The millions of dollars that Cuba exports, thanks to these associations, add up to many. This is a sample of what the Party and the Government maintain, we need EI, it is good for the economy and we have to promote it”.

Economy: when investments are urgent.

—In Parliament, the deputy prime minister, and head of Economy and Planning, Alejandro Gil Fernández, criticized the EI. What changes result from this?

—At another time there was a lot of foreign capital invested in the substitution of imports, production and services for the Cuban population. Then they collected those cucs, went to the bank and exchanged them for dollars. Now they cannot do that, because there is a very strict exchange control. Today the country has no liquidity.

“We agree with the deputy prime minister. Today the new IE that we create must be sustainable from the point of view of liquidity in foreign currency, export, or sell in the Mariel Special Development Zone (ZEDM), which operates in foreign currency.

“Many businesses from previous times, from the 90s, had failures in the time of agreement, and we have dissolved them. Some, because they did not meet the intended objective. For example, some said: we are going to build four hotels here. So, time passed, but they didn't do any.

“Today businesses are established with a pattern of performance. You have six months to start the investment, and if you can't, you must tell us, so we can evaluate if we dissolve it, or what we do. That cannot be eternal. There are others that we have renewed, they are maintained, and they work well.

“Law 118 on Foreign Investment has a key idea: all businesses with foreign capital are approved by the Government on a case-by-case basis. In the rest of the world this is not the case. But in Cuba that is the guarantee that this EI pays taxes to the economic and social development plans, we do not sacrifice sovereignty, the financing has a legal source, and the future is not mortgaged”.

— What are the possibilities for the new economic actors (Mipymes, CNA) to open up to EI?

—In order to have access to the IE, it is mandatory for the Cuban party to be a legal entity, as established by Law 118. Mipymes are already companies and achieve that legal status. The latest adjustments we made to the policy give the possibility for a Mipyme, or a CNA, to do business with foreign capital.

“What doesn't change? What I just explained. That is approved by the Government, it is not for free enterprise. They go through the same procedures as the state company. Same. Without differentiated treatment for one or the other”.

— How many foreign trade MSMEs have already been approved? The last data is three.

-Yes. There are several, but they have the objective of dedicating themselves fundamentally to foreign trade of non-state forms of management. They are not formed to associate with foreign capital, although they could do so eventually.

“In Cuba, wholesale trade is really very limited, and that creates problems for the non-state sector. That's why when you want to import things, perfect, you can do it through the specialized companies that are state-owned. In the Eighth Congress of the Party, in the Central Report, the army general reiterated that foreign trade will continue to be a State monopoly”.

island rocking

From the academy there are repeated controversies related to the monopoly of foreign trade in Cuba. Not with an eye on private management, but on strengthening the socialist state company.

The practice, criterion of truth, reaffirms that the entities approved to carry out these activities directly have improved their management and income. Like from night to day. In the last Round Table carried out by BOHEMIA, the results and arguments of the Shrimp Company were very eloquent.

- What do you think?

“We have to look at this with an open mind. In our country there are thousands of companies, if each one did foreign trade, I doubt very much that they would do it efficiently. This activity has certain conditions, you have to prepare very well to exercise it. About seven or eight years ago we did something that we call concentration of purchases.

"What was that? The products of widespread use, such as tires or fertilizers, we said: we are going to import them centrally. Why? Because the more volumes we imported, the cheaper it was, and the more conditions we had to organize distribution, according to the economic plan. In practice, this showed very good results for the country. Saved tens of millions of dollars.

“In the current conditions, what are we doing? Giving more value to consignments. What is a consignment? It is a warehouse, which is here, the foreign supplier pays for the warehouse and the risk of having those goods there until they are purchased. Although of course, the consignment tire is more expensive. But what is the attraction? Well, I go and buy it today. I don't have to wait a month for the boat with the tires. This has to be balanced.

“We want, above all, exporting companies to bring them the benefits for this concept. In this sense, we have given many entities, even small ones, the power to carry out foreign trade. But they have to learn to do it right. Something similar happens in the world, not all companies do this activity, only the specialized ones. The others are supplied by the wholesalers who buy these goods”.

—Of course, in an environment of strong competition. Because there it does not happen that for a piece of paper, or a stamp, a management is delayed.

-Of course. That kind of thing can't happen. I am very aware of this because the companies rightly tell us: 'I need the raw material, they said it would arrive this month, and it will not arrive until next month'. When you go deeper into that, the contract was made late, because there was no money; or the supplier, with whom you already had a debt, cut off the supplies, waiting for the previous payment.

“The same thing happens, when they had everything ready, they couldn't ship the container because there are many problems with transportation and associated delays. We have containers stranded in various places. Due to covid-19 there is a very difficult situation, the price of freight has tripled. With money in hand, sometimes you can't bring things either. There are many factors that influence that. It is not, with all due respect to academics, that you can or cannot do foreign trade directly”.

— With the transition to financial planning, will the possibilities of further decentralizing foreign trade be more expeditious?

“That has associated complications. It is not just about the actual activity of foreign trade. It has to do with planning, wholesale trade. They are different factors.

Bohemia
Havana, Republic of Cuba
27 January 2022

Economía: cuando apremian las inversiones

De obstáculos externos, trabas internas, aciertos e insatisfacciones con la inversión extranjera; polémicas sobre el monopolio estatal, entre otros temas, dialoga BOHEMIA en exclusiva con Rodrigo Malmierca Díaz, ministro de Comercio Exterior y la Inversión Extranjera

Más allá de las limitaciones objetivas, si se asumen los procesos negociadores con mayor eficiencia, los beneficios para el país serían superiores, valora Rodrigo Malmierca Díaz, titular del Mincex. (Foto: Yasset Llerena Alfonso).

Luego de una caída en picada, la economía comienza a emerger de manera lenta, ascendente. De mantener a raya al enemigo invisible, mutante de la covid-19, que vuelve a virar al revés el planeta, dependen muchos planes y sueños en la Isla caribeña. Alcanzarlos no será fácil. Tampoco imposible. Por eso ahora, quizás con mayor claridad que nunca, se trata de atraer –casi enamorar– a los inversores foráneos, a pesar del Goliat del Norte.

Cuba persigue una prosperidad anhelada, a golpe de muchos sacrificios y resistencias. La mayor de sus riquezas está en el pueblo, alegre, emprendedor, instruido… Sin embargo, todavía queda mucha hojarasca que barrer en el camino.

Justo a la dos de la tarde entra, impasible, al amplio salón de reuniones, Rodrigo Malmierca Díaz, titular del Ministerio de Comercio Exterior y la Inversión Extranjera (Mincex). Luego de saludarnos con los nudillos de las manos, le agradecemos por la gentileza de recibirnos, a pesar de su abultada agenda.

Mientras degustamos un aromático café, repaso en la memoria la última intervención que hiciera el Ministro ante los legisladores cubanos. Su afirmación en el plenario: “los resultados con la inversión extranjera son insuficientes”, revolotea en mi mente.

— ¿Qué problemas frenan o limitan el impacto esperado de la inversión extranjera (IE) en la economía cubana?

—La IE es algo relativamente nuevo en la Revolución. Antes del triunfo de enero de 1959, el país estaba vendido prácticamente al capital extranjero, sobre todo, a los Estados Unidos. Los primeros pasos fueron nacionalizar todas esas propiedades, las mejores tierras, las compañías de electricidad y teléfono, los centrales azucareros, y rescatarlos para el pueblo.

“Así nos pasamos casi 30 años del período revolucionario sin acudir a la IE como algo que deseáramos. Después, a finales de los años 80, se comenzaron a hacer los primeros intentos de atraer el capital extranjero para apoyar los planes de desarrollo económico y social de la Revolución. Diría que cuando se aprobó la primera Ley 77 en 1995, todavía eran muy limitados los intentos que hacíamos para atraer al capital extranjero. Porque lo considerábamos como un mal necesario.

“Aquella norma era restrictiva en el sentido de preservar mucho la soberanía nacional –hasta ahora se mantiene ese interés. Igual, que la mayoría en todos esos negocios fuera de la parte cubana, en esa época pocos eran 50 a 50. Algunos sectores de la economía no estaban abiertos al capital externo, por ejemplo, la industria azucarera y la propia agricultura. Hace pocos años fue que comenzamos a promoverlos.

“En el VI Congreso del Partido en 2011, si revisa en los Lineamientos, todavía se habla de la IE como un complemento del esfuerzo nacional por el desarrollo del país, y no se consideraba un elemento importante. Eso cambia cuando se aprueban las políticas, a finales de 2013, previo a la nueva ley en junio de 2014.

“Ya en el VII y VIII congreso partidista, los Lineamientos hablan de la importancia de la IE como algo estratégico para el desarrollo de la actual etapa. Empezamos a darle un papel más relevante. Ahora, uno pudiera preguntar: ¿por qué el capital extranjero no viene masivamente a invertir en Cuba?

“Son varios factores. Primero, por el bloqueo económico, financiero y comercial del Gobierno de los Estados Unidos que además se ha recrudecido en los últimos tiempos. Se han hecho muy difíciles las transferencias de capital, todo lo relacionado con el sector financiero, los bancos están amenazados de sanciones.

“Activaron el Título III de la Ley Helms-Burton, que le permite a ciudadanos o empresas demandar en los tribunales de los Estados Unidos a cualquier empresa, cubana o extranjera. Todo eso son obstáculos reales, objetivos, que crean mucho temor.

“Después tenemos otros problemas asociados a la calificación de riesgo para hacer cualquier negocio. O sea, Cuba es un país endeudado, con determinadas dificultades hoy para poder cumplir con sus compromisos financieros externos. Si el interesado se guía por los criterios de las calificadoras de riesgo internacionales, no es un país atractivo para invertir”.

—Usted se refirió en el Parlamento a quejas de los inversores, por ejemplo, el tema de la contratación del personal.

—Estas son decisiones internas. La contratación del personal a través de una agencia empleadora responde a políticas propias. Hemos sido muy cuidadosos en tratar de evitar que las personas que trabajan con inversiones de capital extranjero, simplemente por esa razón, y a lo mejor haciendo lo mismo que otra en una empresa estatal, gane mucho más.

“Y eso es algo que hemos tratado de preservar por las vías de las agencias empleadoras, aunque no les gusta a los inversionistas foráneos. También hay otras cosas que no les gusta, y no por ello vamos a cambiarlas. Por ejemplo, la propiedad de la tierra es patrimonio del Estado, está refrendado en la Constitución.

“Muchos extranjeros quieren comprar el terreno donde se van a construir los hoteles. Aquí no lo vendemos, lo cedemos en usufructo, y puede ser a largo plazo. En otros lugares sí se vende. Esto a veces dificulta que los inversores vengan a Cuba.

“Ahora, más allá de estos obstáculos objetivos, tenemos otros problemas subjetivos, relacionados con deficiencias y fallas internas. Por ejemplo, las demoras de los procesos de negociación, la mala o deficiente preparación que tienen los proyectos y los grupos negociadores. La gente dice: ‘hay mucha burocracia’. En realidad esa no es la causa de los atrasos. En el proceso de aprobación final por parte del Gobierno no están las grandes dilaciones, sino en las empresas. No se le da la prioridad requerida a la IE, y esas tardanzas, a veces, son de años. De años”.

— ¿Es un problema de mentalidad?

—En esto influyen los prejuicios, porque es verdad que nos pasamos más de 30 años pensando que la IE era algo malo, y no la queríamos. Alguna gente todavía tiene eso metido en la cabeza. Y desde diciembre de 2016, el general de ejército en una clausura de la Asamblea Nacional del Poder Popular, habló de esto, e hizo un llamado a desterrar esos prejuicios.

“No obstante es más fácil decirlo, a que las personas de verdad cambien la mentalidad. Son problemas subjetivos, transversales en la economía y tenemos que resolverlos”.

— ¿Falta cultura empresarial?

—En Cuba tenemos problemas con las inversiones en general. Los procesos son lentos. Los estudios de factibilidad no siempre cumplen con lo que se proyectó inicialmente. Usted dice, voy a hacer esto, tendré una tasa de retorno de la inversión de tanto por ciento, y en tres o cinco años recupero el financiamiento. Y eso al final no se cumple. Ni con la inversión extranjera, ni con la nacional.

“Con el capital extranjero tenemos el desafío de que el inversionista foráneo se sienta atraído a hacer el negocio. No basta con los atractivos que ponemos a su disposición, de que el personal esté preparado y pueda asumir las nuevas tecnologías de manera rápida, el ambiente de estabilidad del país, los incentivos fiscales que concede la ley. Todo eso ayuda. Pero si el hombre dice: ‘voy a ir a Cuba, y además de desafiar las presiones del Gobierno norteamericano, resulta que no me dan una atención rápida’. Quien tiene capital lo va a invertir con el objetivo de ganar dinero. Si se tiene que meter un año negociando, por supuesto que eso no es atractivo.

Economía: cuando apremian las inversiones.

Las medidas financieras impuestas por la administración Trump fueron diseñadas –con macabra precisión– para estrangular la economía cubana. (Foto: Martha Vecino Ulloa).

“Por eso decimos, a pesar de todos los problemas, del bloqueo, de la calificación de riesgos de Cuba, que no tenemos liquidez para cumplir las obligaciones, si fuéramos más eficientes a la hora de enfrentar estos procesos de negociación, tendríamos mejores resultados.

“Esa es una batalla que tenemos que echar desde el Mincex, porque somos los rectores de esta actividad, y estamos llamados a ganarla en todos los sectores de la economía. Porque ahí es donde están las empresas, los grupos negociadores que interactúan con el capital extranjero”.

— ¿A cuánto ascienden los aportes de la IE a la economía nacional?

—Desde que se aprobó la Ley 118, hasta la actualidad, hay negocios pactados por más de 7 000 millones de dólares. No es poco.

— ¿Ese capital ya está operativo?

—No todo está operativo, porque ese es otro problema. A veces aprobamos el negocio, y el capital no puede venir porque los bancos no lo transfieren. Tenemos ese tipo de dificultades que están muy vinculadas al bloqueo del Gobierno norteamericano.

“Si se miran, por ejemplo, las exportaciones cubanas de ron, tabaco, níquel, telecomunicaciones, son principalmente realizadas por negocios con capital extranjero. Suman muchos los millones de dólares que Cuba exporta, gracias a esas asociaciones. Ello es una muestra de lo que sostienen el Partido y el Gobierno, la IE nos hace falta, es bueno para la economía y tenemos que impulsarla”.

Economía: cuando apremian las inversiones.

—En el Parlamento, el viceprimer ministro, y titular de Economía y Planificación, Alejandro Gil Fernández, hizo críticas a la IE. ¿Qué cambios se derivan de esto?

—En otro momento había mucho capital extranjero invertido de cara a la sustitución de importaciones, las producciones y servicios para la población cubana. Entonces ellos cobraban esos cuc, iban al banco y los cambiaban por dólares. Ahora no pueden hacer eso, porque hay un control de cambio muy estricto. Hoy el país no tiene liquidez.

“Coincidimos con el viceprimer ministro. Hoy la nueva IE que hagamos debe tener sostenibilidad desde el punto de vista de la liquidez en divisa, exportar, o vender en la Zona Especial de Desarrollo Mariel (ZEDM), que opera en divisas.

“Muchos negocios de épocas anteriores, de los años 90, tenían fallas en el tiempo de concertación, y los hemos disuelto. Algunos, porque no cumplieron con el objetivo previsto. Por ejemplo, unos decían: vamos a hacer aquí cuatro hoteles. Entonces, pasaba el tiempo, pero no hacían ninguno.

Silence… 48 Hours And Nothing From Cuban-American Members Of U.S. Congress After Biden-Harris Administration 507-Word Statement Abandons Cuba’s Private Sector.  Cuba Policy Review Completion?

Silence… 48 Hours And Nothing From Cuban-American Members Of U.S. Congress After Biden-Harris Administration 507-Word Statement Abandons Cuba’s Private Sector.  Cuba Policy Review Completion In Doubt.  Does Anyone Care?  Seems Not. 

“Addressing the situation in Cuba is a top priority for the Biden-Harris Administration.”   United States Department of State (31 January 2022) 

The normal response time is calculated in minutes rather than hours for members of the United States Congress to respond to statements relating to the Republic of Cuba that originate from the Biden-Harris Administration (2021- ). 

Since Monday, 31 January 2022, when the United States Department of State released its 507-word policy statement, there have been no official statements from any of the ten members of the United States Congress who identify as “Cuban-American.”  No Tweets.  No posts to Facebook.  No YouTube videos.   

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 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). 

Probable relief for The White House (National Security Council- NSC), Bureau of Industry and Security (BIS) of the United States Department of State, United States Department of Commerce, and Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury.  No pressure means to need to decide.  Thus, no reason to complete and publish a Cuba Policy Review- that has been in process since 28 January 2021. 

What has since 20 January 2021 the Biden-Harris Administration done to provide support for entrepreneurs, self-employed, micro, small & medium-size enterprises (MSME’s) in the Republic of Cuba? 

Authorized direct investment in a MSME? No.
Authorized direct financing to a MSME? No.
Authorized direct export of electric vehicles to an MSME? No.
Authorized direct correspondent banking permitting funds to efficiently move directly from the United States to an MSME in the Republic of Cuba and move directly from an MSME in the Republic of Cuba to the United States? No.

Comments From Biden, Blinken, Obama 

“But Cuba is not represented solely by its leadership. There are many different sectors that we can and should work with to support progress in Cuba- including entrepreneurs, religious groups, universities, young people and human rights defenders.”  Joseph Biden, Candidate for Democratic Party Nomination for President of the United States 

“Which is why I’m proud to say: If you look at my presidency so far, it’s a jobs presidency and it’s a small business presidency.”  Joseph Biden, President of the United States 

The United States recommits to accompanying the Cuban people in your quest to determine your own future.  We will support those improving the lives of families and workers, cuentapropistas who have forged their own economic paths, and all who are building a better Cuba- and a better tomorrow for themselves in Cuba.”  Antony Blinken, United States Secretary of State  

“Addressing the situation in Cuba is a top priority for the Biden-Harris Administration.”   United States Department of State 

In a global economy, powered by ideas and information, a country's greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas...And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we’ve seen how cuentapropistas can succeed while sustaining a distinctly Cuban spirit.”  Barack Obama, President of the United States (when there was a Vice President Joseph Biden) 

The Biden-Harris Administration is politically constipated with respect to the decision-making process for its policies toward the Republic of Cuba.  The Biden-Harris Administration needs to locate promptly a political laxative. 

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Related Analyses Links 

U.S. Department Of State Points To The White House For Answer About Completion Of Cuba Policy Review. They Don't Know? Why Don't They Know? Can't Say? Why Not? January 31, 2022  

507-Word New Statement: U.S. Department Of State Responds To Question About Status of Cuba Policy Review. Ignores Cuba’s Re-Emerging Private Sector- The Self-Employed, MSMEs. Why? January 31, 2022  

United States Department Of State Responds To Question From Reporter About Status Of "Cuba Policy Review" Commenced In January 2021: "... we'd be happy to get you more information." January 28, 2022  

Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action. January 27, 2022 

Cuba Advocates Take Note: U.S. Department Of State Reiterates Importance Of Working With U.S. Congress "on the landing but also at takeoff, also mid-air"  April 09, 2021 

U.S. Secretary Of State Blinken Reminds & Emphasizes To Congress That Biden Administration Has Not Yet Made Changes To Trump Administration Cuba Policies- And Congress Will Be Consulted  March 10, 2021 

What Did U.S. Secretary Of State-Designate Antony Blinken Say About Cuba During His Confirmation Hearing? "Objectives... Makes Very Good Sense To Me"  January 20, 2021

U.S. Department Of Justice Requests And Is Granted Until 11 March 2022 To Decide Whether To Submit Answers To Six Questions To Court Of Appeals

“ORDER: The motion filed by the United States for an extension of time, up to and including April 11, 2022, to file the amicus brief is GRANTED. The motion for an extension to March 11, 2022, to notify the Court that the United States elects not to file an amicus brief is GRANTED.” 

Appearance of Counsel Form (1/25/22)
Extension of Time (1/19/22)
Amended Motion By The United States Regarding Amicus Participation (1/13/22)
Motion By The United States Regarding Amicus Participation (1/13/22)
Appearance Of Counsel Form (1/13/22)

MARIO DEL VALLE, ENRIQUE FALLA, MARIO ECHEVARRIA V. EXPEDIA, INC., HOTELS.COM L.P., HOTELS.COM GP, ORBITZ, LLC, BOOKING.COM B.V., BOOKING HOLDINGS INC. Initial defendants were: TRIVAGO GMBH, BOOKING.COM B.V., GRUPO HOTELERO GRAN CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE I-5, AND MARIELA ROE 1-5, [1:19-cv-22619 Southern Florida District; 20-12407 11th Circuit Court of Appeals]

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Baker & McKenzie, LLP (defendant)
Scott Douglass & McConnico (defendant)
Akerman (defendant)

JAVIER GARCIA-BENGOCHEA V. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINE, A FOREIGN CORPORATION [1:19-cv-21725 Southern Florida District; 20-12960 11th Circuit Court of Appeals]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Creed & Gowdy (plaintiff- appellate)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

JAVIER GARCIA-BENGOCHEA VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23592; Southern Florida District; 20-14251 11th Circuit Court of Appeals]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Creed & Gowdy, P.A. (plaintiff)
Holland & Knight (defendant) 

MARIO DEL VALLE, ENRIQUE FALLA, ANGELO POU, Plaintiffs - Appellants, versus TRIVAGO GMBH, a German Limited Liability Company, BOOKING.COM B.V., a Dutch Limited Liability Company, GRUPO HOTELERO CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE 1-5, MARIELA ROE 1-5, EXPEDIA, INC., et al., Defendants - Appellees. No. 20-12407-DD. 

JAVIER GARCIA-BENGOCHEA, Plaintiff - Appellant, versus CARNIVAL CORPORATION, a foreign corporation d.b.a. Carnival Cruise Lines, Defendant - Appellee. No. 20-12960-BB. 

JAVIER GARCIA-BENGOCHEA, Plaintiff - Appellant, versus ROYAL CARIBBEAN CRUISES, LTD., Defendant - Appellee. No. 20-14251-BB. 

On Appeal from the United States District Court for the Southern District of Florida 

BEFORE: JORDAN, NEWSOM, and BURKE,* District Judge.
ORDER: The Court invites the United States – through the Attorney General, the Solicitor General, and/or the Office of the Legal Adviser to the State Department –to file an amicus brief in Mario Del Valle, et al., v. Trivago GMBH, et al., No.20-12407 (argued Oct. 4, 2021), Javier Garcia-Bengochea v. Carnival Corporation, No. 20-12960 (argued Oct. 4, 2021), and Javier Garcia-Bengochea v. Royal Caribbean Cruises, LTD., No. 20-14251 (argued Oct. 4, 2021), pursuant to Fed.R.App.P. 29(a)....The Court invites the United States to address the following questions concerning the Helms-Burton Act, 22 U.S.C. § 6082:...The court asks that the U.S. file its amicus brief by 2/25/22... AJ, KCN and LCB (See attached order for complete text) [20-12407, 20-12960, 20-14251] [Entered: 12/20/2021 04:48 PM]

The Court invites the United States to address the following questions concerning the Helms-Burton Act, 22 U.S.C. § 6082:

1. Does the term “United States national” in 22 U.S.C. §§ 6082(a)(4)(B) and 6082(a)(4)(C) refer to the plaintiff bringing the action, or the original claimant to the confiscated property, or both?

2. What does the word “acquire[ ]” in 22 U.S.C. § 6082(a)(4)(B) mean? Is inheritance encompassed in the term “acquire[ ]?” And if “acquire[ ]” does include inheritance, at what point is a claim “acquire[d]” by an heir within the meaning of the statute?

3. How, if at all, does the phrase “assignment for value” in 22 U.S.C. §6082(a)(4)(C) affect the pool of eligible claimants compared to the pool of eligible claimants under 22 U.S.C. §6082(a)(4)(B)?

4. What effect, if any, does the President’s ability to suspend Title III pursuant to 22 U.S.C. § 6085(b) have on defining the class of eligible claimants who can bring an action under 22 U.S.C. § 6082(a)(4)? Does the President’s ability to suspend Title III imply that the statute was drafted to allow the heirs of American citizens – whose property was unlawfully confiscated and “trafficked” by third parties – to bring claims under 22 U.S.C. § 6082(a)(4)?

5. What effect, if any, does the lawful travel exception, 22 U.S.C. §6023(13)(B)(iii), have on the plaintiffs’ claims? What effect, if any, does the possibility that the Office of Foreign Assets Control (OFAC) can change the permissible reasons for travel to Cuba have on the lawful travel exception?

6. What does the phrase “incident to lawful travel” in 22 U.S.C. §6023(13)(B)(iii) mean? Who or what defines “lawful travel” (e.g. OFAC)? What guidance should persons and entities look to in determining whether their activities are “incident to lawful travel?”


The Court asks that the United States file its amicus brief by February 25, 2022, at which time the parties in the cases will be permitted to respond. Should the United States elect not to file an amicus brief, it should so notify the Court by January 25, 2022.

U.S. ATTORNEY GENERAL
UNITED STATES SOLICITOR GENERAL
OFFICE OF THE LEGAL ADVISER, U.S. DEPARTMENT OF STATE
UNITED STATES OF AMERICA (Southern District Attorneys)

LINKS 

Court Of Appeals "Invites" Biden-Harris Administration To Answer Six Questions In Libertad Act Lawsuits That May Impact More Than Cuba Lawsuits. Will They Answer? Due By 25 January 2022.  December 31, 2021 

American Airlines Libertad Title III Lawsuit Becomes First To Seek Review By United States Supreme Court. Twenty-Nine Months From District Court To SCOTUS Is Fast.  December 20, 2021 

LINK To Libertad Act Title III Lawsuit Statistics

507-Word New Statement: U.S. Department Of State Responds To Question About Status of Cuba Policy Review. Ignores Cuba’s Re-Emerging Private Sector- The Self-Employed, MSMEs. Why?

28 January 2022 

Question to the United States Department of State:  

Today is one-year since the Cuba Policy Review was announced by The White House.  What is the status of the Cuba Policy Review?  Why has the process required one year?  What components of the review remain incomplete? 

Answer: 

United States Department of State
Washington DC
31 January 2022

State Department spokesperson:   

Addressing the situation in Cuba is a top priority for the Biden-Harris Administration.  Our policy toward Cuba focuses first and foremost on support for the Cuban people, including their political and economic well-being, and human rights. This means we are committed to promoting accountability for Cuban government officials involved in human rights abuses.      

In response to directives from President Biden, the United States remains committed to policies that will advance the democratic aspirations of the Cuban people and takes concerted action to bolster the cause of the Cuban people.  

The President and Secretary Blinken condemned the Cuban government’s brutal crackdown on July 11 protestors, and we continue to highlight the egregious nature of these detentions, such as decades-long sentences handed down to demonstrators, including minors.     

Treasury imposed four rounds of sanctions under the Global Magnitsky program on Cuban officials and elements of the military and security services in connection with serious human rights abuse against peaceful protestors.  The Department of State announced actions to impose visa restrictions on 17 Cuban officials.  Those officials were implicated in attempts to silence the voices of the Cuban people through repression.     

We’ve brought to bear the strength of our diplomacy, rallying nations to speak out and increase pressure on the Cuban government.  We engage regularly with our global partners to urge Cuba to release political prisoners unconditionally and protect and respect the human rights and fundamental freedoms of individuals in Cuba.   

On July 26, 2021, the United States joined 20 democracies around the world to support the Cuban people in a joint statement calling on the Cuban government to respect Cubans’ demands for human rights.  

On December 17, 2021, the OAS and the European Parliament made statements demanding the release of political prisoners and decrying prison conditions in Cuba.    

The Administration consults daily with Cubans on the island and with the worldwide Cuban diaspora which represent many diverse opinions.  We speak to leaders in the Cuban American community from across the political spectrum, including discussing the current human rights environment but also ways that we can address the worsening humanitarian crisis on the island.  

We continue to review U.S. policy on remittances to Cuba.  The Administration is considering options that facilitate remittances to Cuba that would give maximum benefit directly to the Cuban people and minimize any benefit to the Cuban government and its military that would aid in the repression of Cuban citizens.    

The Administration works closely with U.S. tech companies and other stakeholders to make the Internet more accessible to the Cuban people.   

We also work to increase humanitarian support flows to the Cuban people under the embargo’s existing authorizations and exemptions.  The U.S. government engages with non-governmental organizations and faith-based groups to facilitate private donations and other exports of medical and health-related equipment, staple food items, and basic toiletries and hygiene products to the Cuban people.  

The State Department is exploring options to augment staffing of U.S. Embassy Havana to facilitate diplomatic and civil society engagement and the provision of consular services, while maintaining an appropriate security posture.  

Follow-up Question To U.S. Department Of State:

"However, and this is my follow-up, the answer does not address the specific question as to the status of the Cuba Policy Review. Specifically, when is expected the completion of the Cuba Policy Review? What components remain incomplete?"

Answer: "We’d refer you to the White House on this follow up question.”

LINK To Related Posts 

United States Department Of State Responds To Question From Reporter About Status Of "Cuba Policy Review" Commenced In January 2021: "... we'd be happy to get you more information."  January 28, 2022 

Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action.  January 27, 2022

London Delivers High Wattage Political Appointee As UK Ambassador To Cuba. Since 1931, Only Third “Sir” To Serve. Issues: UK-Connected Libertad Act Lawsuit & China-Connected Bank Lawsuits.

London Delivers High Wattage Political Appointee As UK Ambassador To Cuba. Washington Should Do The Same.
Since 1931, Only Third “Sir” To Serve As UK Ambassador To Cuba.
Big Issues For New Ambassador: One UK-Connected Libertad Act Title III Lawsuit And Three China-Connected Bank Lawsuits.
Will Sir George Be The Needed Example For The United States?
Might He Be The On-The-Ground Political Catalyst Required For Canada, United Kingdom, and United States Forge A Common Strategy?

On 27 January 2022, Sir George Michael Edward Hollingbery will replace The Honorable Antony Stokes LVO OBE, who has served since 2016 as Ambassador of the United Kingdom to the Republic of Cuba.  Sir George’s appointment was announced [https://www.gov.uk/government/news/change-of-her-majestys-ambassador-to-cuba-sir-george-hollingbery-kcmg] in January 2021. 

The tenure of Ambassador Stokes [https://www.gov.uk/government/people/antony-stokes], who is highly-valued by his peers in the Republic of Cuba and by United Kingdom-based commercial interests, has been successful despite a challenging commercial, economic, and political environment.   

Sir George is a former Member of Parliament (Conservative Party), Minister of State for Trade Policy, Lord Commissioner Of Her Majesty’s Treasury, Parliament Private Secretary to the Home Secretary and later to the Prime Minister. 

Perhaps most intriguing is his wife, Janette, was born in the United States.  They have three children.  Sir George is a horticulture hobbyist; his garden has been featured on the television programme Gardeners' World.  

Wikipedia 

George Michael Edward Hollingbery was born on 12 October 1963.  He was educated at Radley College before studying at Lady Margaret Hall, Oxford for a BA in human sciences which he was awarded by the University of Oxford in 1985.  He then gained an MBA from the Wharton School, University of Pennsylvania, US. 

Hollingbery's earlier career was spent investing in and starting up businesses, the best known of which was veterinary chain Companion Care, sold to Pets at Home in 2002. In 2005, he began a property investment business, run from his Alresford home.  Hollingbery was elected to Winchester City Council in 1999, becoming deputy leader in 2006. Hollingbery stood in Winchester in the 2005 general election, having managed the previous candidate's campaign in 2001, but was defeated by Liberal Democrat Mark Oaten.  

In the 2010 general election, Hollingbery contested the new constituency of Meon Valley in Hampshire, created as a result of boundary changes. He was elected with a majority of 12,125. He was re-elected in 2015 and 2017 with majorities of 23,913 and 25,692 respectively.  Hollingbery subsequently served on the Speaker's Advisory Committee on Works of Art and the Communities and Local Government Committee.  In parliament, Hollingbery was a close ally of Maidenhead MP Theresa May.  He supported her candidature in the 2016 Conservative Party leadership election. He also served twice as her Parliamentary Private Secretary, first in her role as Home Secretary from 2012 to 2015 and then as Prime Minister from 2016 to 2018.  Hollingbery was interviewed for the 2017 documentary Theresa vs. Boris: How May Became PM, in which he was also portrayed by Daniel Casey in dramatisations.  Hollingbery was appointed a Knight Commander of the Order of St Michael and St George (KCMG) in Theresa May's resignation honours on 10 September 2019.  On 7 November 2019, Hollingbery announced he would not contest the 2019 general election.  He added he supported Boris Johnson's Brexit deal but wanted to pursue career opportunities outside parliament.  He was succeeded as MP for Meon Valley by Flick Drummond.

LINK To Sir George Video Interview: https://www.youtube.com/watch?v=JW_rc84kIQI 

LinkedIn
Antony Stokes
British Ambassador to Cuba at Foreign, Commonwealth and Development Office
22 December 2021

An end to red tape? The Cuban government has announced that embassies may send formal documents electronically. Previously an embassy driver would take papers requesting meetings, goods imports, official travel and much else to the ministry. Known as Notes Verbales, each had to be stamped and signed.  An ambassador told me that in his farewell call on the Foreign Minister he had appreciated the professionalism of Cuban diplomats but joked of acquiring repetitive strain injury. “It’s all those formal notes you made me sign.”  We do not know whether we must print them to be stamped and initialed, then scan them back in. With luck an electronic signature is acceptable. We have one lethargic printer (maintenance is complicated). Paper is short (so much so that no ration books will be distributed in January).  Today we submitted a series of meeting requests. We are hoping our printer holds out: the new policy is in effect from 5 January.  Image (by the author): happiness in the form of beer arrives at the embassy in the “combo”, 22 December (see previous posts).  British brands not currently available.  

LINKS To Related Analyses 

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

15 Candidates For President-elect Biden: U.S. Ambassador To Cuba. Job Description Requirement: Negotiator. December 20, 2020 

President Biden Should Appoint An Ambassador To Cuba- Not As Reward, But As Weapon. December 17, 2020 

LINKS To UK-Connected Lawsuits 

China-Owned Bank In London Sues Cuba Central Bank And Government Of Cuba. Either Sue For Custodian Account Holders Or Be Sued By Them? Embarrassing For Cuba To Be Sued By "Good Friend."  December 21, 2021 

Gibson Dunn & Crutcher (London) Represented Plaintiff In US$100 Million Lawsuit Against Cuba. Firm Represents Plaintiff In Libertad Act Lawsuits In Florida, New Jersey, Texas. China A Defendant.  December 07, 2021 

UK Lawsuit Seeks US$100+ Million From Central Bank Of Cuba & Government Of Cuba. Four Countries. Three Banks. Questions- Defining A "Loan" And Capacity To Contract. Read The 14 Court Filings.  December 06, 2021 

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)
Strook & Strook & Lavan (defendant)

Lawsuit Against Imperial Brands (UK), Habanos (Cuba), WPP (UK), Young & Rubicam (US), BCW (US) To Receive Second Amended Complaint. 206 New Pages Filed.  December 22, 2021

LINK TO COMPLETE POST IN PDF FORMAT

In Ode To Importance Of Relationship With Russia, Russians In Tourist Groups Not Required To Present COVID-19 Vaccination Cards Upon Arrival, But Must Do So Online In Advance Of Arrival. 

Cuba relaxes COVID requirements for Russian tourists arriving in groups.  Cuba’s embassy in Moscow told that the entry regulations had been relaxed for Russian travelers due to an improving epidemiological situation in the country. TASS 

The largest sources of visitors in 2021 to the Republic of Cuba: Russia (146,151), Canada (68,944), Cuban diaspora (52,804). LINK To Cuba Government Report

MOSCOW, January 22 [2022]. /TASS/. Cuba has changed the requirements for Russian nationals arriving in tourist groups, so Russian travelers are not required to present their COVID vaccination certificates as well as negative results of their PCR tests when crossing into the country, the Association of Tour Operators Russia (ATOR) said on Saturday.  "When entering Cuba, Russian tourists will no longer be required to have any documents confirming that they do not have COVID. In addition, there will be no tests at hotels to check in or during the holiday," ATOR said.  Cuba’s embassy in Moscow told ATOR that the entry regulations had been relaxed for Russian travelers due to an improving epidemiological situation in the country and a high level of the vaccinated local population (90%).  Nevertheless, ATOR added that filling in the online questionnaire D’Viajeros remains a mandatory requirement for travel to Cuba.  D'VIAJEROS [https://www.dviajeros.mitrans.gob.cu/inicio] is a process that facilitates and improves the experience of travelers in their transit through the Republic of Cuba, it can provide advanced information to speed up procedures at the different points of entry. It is mandatory for each passenger to truthfully complete the information provided to the Directorate of Identification, Immigration and Foreigners, the Custom General of the Republic and the Ministry of Public Health

Prensa Latina News Agency
Havana, Republic of Cuba
31 December 2021

Excerpt: “This year, Russia became Cuba’s main tourism market, with around 170,000 tourists up to the end of November, according to Cuban Tourism Minister Juan Carlos Garcia, at an event in recent days.  Tt present, companies such as Aeroflot, Azur Air and Nordwind operate flights to Cuba, while another airline has permission to do so, but has not started them, Mgeladze said and added that an increase in the frequency of trips is expected as of the new year.  The diplomat pointed out that the opening of borders and the increase in the tourist flow is mainly due to the fact that this nation has vaccinated almost all its population as from two years of age, which turned it into a safe scenario for world travelers.”

Prensa Latina News Agency
Havana, Republic of Cuba
30 November 2021

Excerpt: “It also indicated that it will operate the route with Airbus A350 aircraft and has already started selling tickets to the main Cuban city. At present, Aeroflot operates three weekly flights to Varadero, Cuba’n resort.  Juan Carlos Escalona, Tourism Counselor of the Cuban Embassy in Russia, explained to Prensa Latina that the other novelty in the links between both countries are the flights of the Azur Air line between St. Petersburg and Varadero.  He indicated that these will begin on December 26 every 10 days.  Russia will resume flights to Cuba, Mexico, Argentina, Brazil and Costa Rica as from December 1, according to the approval of the national general staff for the fight against the SARS-CoV-2 coronavirus.  At the meeting held on November 16, Russian Deputy Prime Minister Tatiana Golikova said that the suspension of restrictions was authorized after an individual examination of the epidemiological situation of each nation.” 

As of 12 January 2022, the Moscow, Russian Federation-based Gamaleya Research Institute of Epidemiology and Microbiology developed Sputnik-V COVID-19 vaccine has not obtained Emergency Use Listing (EUL) from Geneva, Switzerland-based World Health Organization (WHO)- LINK to https://en.wikipedia.org/wiki/List_of_COVID-19_vaccine_authorizations 

The Pfizer/BioNTech Comirnaty vaccine, 31 December 2020.

The SII/COVISHIELD and AstraZeneca/AZD1222 vaccines, 16 February 2021.

The Janssen/Ad26.COV 2.S vaccine developed by Johnson & Johnson, 12 March 2021.

The Moderna COVID-19 vaccine (mRNA 1273), 30 April 2021.

The Sinopharm COVID-19 vaccine, 7 May 2021.

The Sinovac-CoronaVac vaccine, 1 June 2021.

The Bharat Biotech BBV152 COVAXIN vaccine, 3 November 2021. 

The Covovax (NVX-CoV2373) vaccine, 17 December 2021.

The Nuvaxovid (NVX-CoV2373) vaccine, 20 December 2021 

Link to WHO COVID-19 Landscape Of Novel Coronavirus Candidate Vaccine Development Wordwide 

LINK to COVID-19 Vaccines With WHO EUL Issued  

Washington Post
Washington DC
27 September 2021

Excerpt: “The new U.S. plan requires that most noncitizens seeking entry to the United States are vaccinated with shots approved for emergency use either by the U.S. Food and Drug Administration or the World Health Organization. That includes vaccines made by Pfizer and Moderna, as well as shots developed by Chinese firms such as Sinopharm and Sinovac.  But Sputnik V, an adenovirus vaccine developed by the Moscow-based Gamaleya Research Institute of Epidemiology and Microbiology, has yet to be approved by the WHO. The global health agency this week said that it suspended its review process of the vaccine, citing concerns over the manufacturing practices at production plants inside Russia and whether the vaccine can be consistently produced to the necessary standard.” 

Centers For Disease Control and Prevention
Atlanta, Georgia
29 January 2022

Excerpt: “If you are a non-U.S. citizen who is a nonimmigrant (not a U.S. citizen, U.S. national, lawful permanent resident, or traveling to the United States on an immigrant visa), you will need to show proof of being fully vaccinated against COVID-19 before you travel by air to the United States from a foreign country.” LINK To Accepted COVID-19 Vaccines 

LINK To Related Analysis 

How Much Might Russia Spend To Return To Cuba? How Many Personnel? Annual Economic Impact And Fee To Cuba. January 13, 2022

United States Department Of State Responds To Question From Reporter About Status Of "Cuba Policy Review" Commenced In January 2021: "... we'd be happy to get you more information."

United States Department of State Press Briefing
Washington DC
28 January 2022

Jalina Porter, Principal Deputy Spokesperson

QUESTION:… And on a different note, if I’m not mistaken this is one year since the administration announced a review of Cuba policy. Is that policy review still underway? Do you have any updates on that? When do you expect it to conclude if it hasn't been concluded? Thanks.

MS PORTER: When it comes to your question on Cuba policy, I don't have anything to offer at this time, but I imagine we'll have more to say at a later time and we'd be happy to get you more information.

LINK: Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action. Jan 27, 2022

Not Yet… “Cuba Policy Review” 365 Days Since Announcement. Is The Biden-Harris Administration Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba? No- All Words. No Action.

“Cuba Policy Review” 365 Days Since Announcement.
Biden-Harris Administration Not Committed To Entrepreneurs, Self-Employed, MSME’s In Cuba.

OFAC Unresponsive To License Applications And Guidance Requests.
BIS Focusing Upon No Rather Than Yes. With Thus Far One-Half Surprise.
OLA Engagement In Title IV Outreach- No Letters Reported.
State Department Deferring To NSC?
NSC General Policy Of Denial To Everything.
Is Anyone In Charge?
Waiting For Godot?

“The Biden administration will review U.S. policy on Cuba, the White House said on Thursday [Reuters- 28 January 2021], after former President Donald Trump rolled back a historic Obama-era detente with Havana.  “Our Cuba policy is governed by two principles.  First, support for democracy and human rights - that will be at the core of our efforts.  Second is Americans, especially Cuban Americans, are the best ambassadors for freedom in Cuba.  So, we’ll review the Trump administration policies.”  Jen Psaki, White House Press Secretary  

“But Cuba is not represented solely by its leadership. There are many different sectors that we can and should work with to support progress in Cuba- including entrepreneurs, religious groups, universities, young people and human rights defenders.”  Joseph Biden, Candidate for Democratic Party Nomination for President of the United States 

“Which is why I’m proud to say: If you look at my presidency so far, it’s a jobs presidency and it’s a small business presidency.”  Joseph Biden, President of the United States 

In a global economy, powered by ideas and information, a country's greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas...And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we’ve seen how cuentapropistas can succeed while sustaining a distinctly Cuban spirit.”  Barack Obama, President of the United States 

The United States recommits to accompanying the Cuban people in your quest to determine your own future.  We will support those improving the lives of families and workers, cuentapropistas who have forged their own economic paths, and all who are building a better Cuba- and a better tomorrow for themselves in Cuba.”  Antony Blinken, United States Secretary of State  

Rather than fertilize with inspiration the Republic of Cuba private sector garden, the Biden-Harris Administration (2021- ) has starved the very roots of those whose aspiration is to gain more control of their livelihood- and about whom the Biden-Harris Administration continues to claim connectivity.  365 days and counting that connectivity remains imaginary and an illusion. 

Despite a lack of demonstratable interest from the Biden-Harris Administration, the self-employed and owners of micro, small and medium-sized enterprises (MSMEs) in the Republic of Cuba have persevered despite obstacles created by their government designed to impair and constrain rather than benefit and create widespread success; and despite a government-mandated ideological construct which belies conflict with a successful private sector. 

Engagement and re-engagement by a government can be likened to an artist painting a landscape.  If a color is not working, the artist tries another color, and another, and another until one color, or combination of colors, works.  The Biden-Harris Administration fancies itself too as an artist, a political one, but tragically remains in a gravitational pull towards and adhering to paint-by-number rather than freehand creativity.   

Where is the Biden-Harris Administration and its Cuba Policy Review?  365 days and yet the collective interaction, inter-agency review process of The White House (National Security Council- NSC), United States Department of State, United States Department of the Treasury, United States Department of Commerce, United States Department of Defense, and United States Department of Justice remains a ghost.  They are focused upon questions rather than crafting answers.  Not only are they risk-adverse, but they are also risk-centric which only serves to reinforce doing nothing.  Doing nothing re-confirms weakness.  Doing nothing is not an indicator of muscularity. 

Summit of the Americas Participation 

Why would not the Biden-Harris Administration and in particularly the United States Department of State be enthusiastic to provide the foundation for a delegation of management from MSMEs in the Republic of Cuba to attend the Summit of the Americas from 6 June 2022 to 10 June 2022 in Los Angeles, California? 

Imagine if each of these MSMEs had direct investment from United States-based individuals and companies.  Imagine if each of these MSMEs had direct financing from United States-based individuals and companies and arrived to Los Angeles in the company of their United States-based investors and sourcing of financing.  That would be a powerful message- demonstrating connectivity. 

Background Press Call by Senior Administration Officials at The White House (20 January 2022): So with that said, look, the summit, I'll say, will focus on -- our theme for the summit is: “Building a Sustainable, Resilient, and Equitable Future.” 

Is not a sustainable, resilient, and equitable future connected with a sustainable, resilient, and equitable private sector? 

No Movement 

After one year the Biden-Harris Administration has yet to determine how to engage and re-engage with the re-emerging private sector in the Republic of Cuba without providing a benefit to the government of the Republic of Cuba.  Well, shock here.  Within current commercial, economic, and political construct of the 780-mile-long archipelago upon which 11.3 million citizens reside, there is no means to engage and re-engage with the private sector without benefit provided to the government of the Republic of Cuba. 

With this fact indisputable, the Biden-Harris Administration defaults to waiting until “realities on the ground” change.  With this predicate, there will be no engagement and re-engagement by the Biden-Harris Administration with the private sector in the Republic of Cuba.  The Biden-Harris Administration legacy will be one of supervision from afar of a private sector petrified forest of decay. 

  • What has since 20 January 2021 the Biden-Harris Administration done to provide support for entrepreneurs, self-employed, micro, small & medium-size enterprises (MSME’s) in the Republic of Cuba? 

  • Authorized direct investment in a MSME? No.

  • Authorized direct financing to a MSME? No.

  • Authorized direct export of electric vehicles to an MSME? No.

  • Authorized direct correspondent banking permitting funds to efficiently move directly from the United States to an MSME in the Republic of Cuba and move directly from an MSME in the Republic of Cuba to the United States? No. 

A flawed strategy, yet one embraced by bureaucracy, is to await changes to the commercial, economic, and political infrastructures within a country prior to the creation of private sector-focused incentives. 

A dynamic strategy, one predicated upon strength of commitment rather than fear of consequences, is to authorize a free-as-possible from restrictions engagement by United States-based investors and financiers with Republic of Cuba nationals who are self-employed and who own and manage MSME’s. 

For a dynamic strategy to be successful, the Biden-Harris Administration needs to shift from mouthing that it has confidence in the decision-making prowess of United States-based investors and financiers to demonstrating that it has confidence in the prowess of United States-based investors.  

If authorized by the Biden-Harris Administration, United States-based investors and financiers will as a direct consequence of “Seeking Alpha” require changes to the self-employed landscape in the Republic of Cuba.  This means changes to the banking system, more efficiency, and more transparency.  This means changes to product and service import and export authorizations. 

Critical for the Biden-Harris Administration not to default to “when the Cuban government makes changes, we will respond.” 

Current Policy Impacting Investors And Financiers 

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has delayed processing of license applications- some submitted nearing one year ago; and refused to provide guidance as to applicability of existing regulations (for example, whether direct financing to the self-employed and to MSMEs is authorized).  Waiting For Godot? 

The Bureau of Industry and Security (BIS) of the United States Department of Commerce which has traditionally been an advocate for United States-based exporters and sought to guide United States-based exporters through the licensing process, is now focused upon how to deny an application rather than how to approve an application.  The Biden-Harris Administration has renewed a BIS license first issued during the Trump-Pence Administration (2017-2021) for the export of vehicles (including electric) to embassies located in the Republic of Cuba, including to the United States Embassy in the city of Havana, Republic of Cuba, but the license does not authorize exports to the self-employed and MSMEs.  Also, Waiting for Godot? 

The Office of Legal Adviser (OLA) at the United States Department of State has engaged with plaintiffs and potential plaintiffs with preparing and delivering Title IV letters as provided for within the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  Title IV restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims.  Thus far, there is no publicly-reported Title IV letter issued by the Biden-Harris Administration.  One Canada-based company and one Mexico-based companies each sanctioned during the Clinton-Gore Administration (1993-2001) and one Spain-based company sanctioned during the Trump-Pence Administration are subject to this provision based upon a certified claim and non-certified claim.  Title III, implemented in 2019 by the Trump-Pence Administration, 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.   

Statements By Biden, Blinken, Obama 

On 18 July 2020 to The Washington Post by Joseph Biden, then candidate for the presidential nomination of the Democratic Party: “I have no illusions about the situation in Cuba, and it’s deeply concerning that the Cuban government continues to assert strong political and economic control while failing to respect press freedom and the freedom of assembly,” … “But Cuba is not represented solely by its leadership. There are many different sectors that we can and should work with to support progress in Cuba- including entrepreneurs, religious groups, universities, young people and human rights defenders.” 

“Which is why I’m proud to say: If you look at my presidency so far, it’s a jobs presidency and it’s a small business presidency.”  Joseph Biden (20 November 2021) 

In a press statement on Cuba’s Independence Day, directed to the 11.3 million citizens of the 800-mile-long archipelago, The Honorable Antony Blinken, United States Secretary of State (who in the Obama-Biden Administration (2009-2017) served as Deputy Secretary of State from 2015-2017 and Deputy National Security Advisor from 2013-2015), expressed United States support for Cuba entrepreneurs: “The United States recommits to accompanying the Cuban people in your quest to determine your own future.  We will support those improving the lives of families and workers, cuentapropistas who have forged their own economic paths, and all who are building a better Cuba- and a better tomorrow for themselves in Cuba.”  

Secretary of State Blinken was, in his remarks, reiterating the bipartisan conviction of every United States president from Obama-to-Trump-to-Biden that the United States should “support the development of private business and [the] operation of economic activity in the non-state sector by self-employed individuals,” as that language is codified at 31 CFR § 515.570(g)(3). 

Such a position would accord with the Biden-Harris Administration’s reiteration of support for cuentapropistas, as articulated by Secretary Blinken on 20 May 2021, and previously espoused by then-United States President Barack Obama (when now President Biden was then Vice President Biden) when he said in the Gran Teatro de la Habana on 22 March 2016: “In a global economy,  

powered by ideas and information, a country's greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas...And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we’ve seen how cuentapropistas can succeed while sustaining a distinctly Cuban spirit.”

 LINK TO COMPLETE ANALYSIS IN PDF FORMAT 

LINKS To Self-Employed, Micro, Small & Medium-Size Enterprise (MSME) Analyses 

Surprise Decision: Biden-Harris Administration Renews Trump-Pence Administration License To Export EVs To Embassies In Cuba. Company Offers To Donate EV Chargers To U.S. Embassy/Ambassador Residence  January 25, 2022 

Cuba Updates Status Of Micro, Small & Medium-Sized Enterprises  January 19, 2022 

Why Is National Security Council (NSC) In The White House Refusing To Permit U.S.-Based Investors/Financiers To Directly Support Women-Owned (Or Men-Owned) Businesses In Cuba? State Dept. Complicit?  January 06, 2022 

Embassy Of Italy: V International Workshop of Women Entrepreneurs In Cuba: "The Talent Of Women. Art, Crafts & Design"  January 06, 2022 

President Biden Rejects BIS License Application To Export Electric Vehicles/Chargers To Cuba's Self-Employed, MSME's. Reversal Of "General Policy Of Approval." President Trump Authorized EV Exports.  December 20, 2021 

Cuba Again Expanding MSME Authorizations To Include Accessing Foreign Capital, Foreign Bank Accounts, Local Development Projects QualifyDecember 02, 2021 

Why Won't Biden Administration Permit U.S. Entities To Invest/Finance MSMEs? In December, Cuba’s FIMELSA Begins Convertible Currency-Equivalent Loans At 6.5% For 120 Days; Lower For CUP.  November 25, 2021 

Update: More Than 700 Micro, Small And Medium-Sized Enterprises Approved In Cuba  November 25, 2021 

OFAC & BIS To 107 Tech Companies? Cuba. Yes, You Can Go There, But We Dare You. "Encourage & Enable" Not The Same As "Access & Use." Memo: Donilon, Klain, Ricchetti, Richmond, Sullivan.  November 23, 2021 

Will President Biden's Statement That His Is "a small business presidency” Extend To Supporting Small Businesses In Cuba?  November 22, 2021 

Update On Registration Of Micro, Small & Medium-Size Enterprises In Cuba. Now More Than 600.  November 21, 2021 

Cuba Continues To Report On Activity Of MSME's- The Numbers Increase.  November 06, 2021 

Joint Venture Between Banco de Sabadell Of Spain And Banco International de Comercio In Cuba Will Provide Financing In Foreign Currency To MSMEs & Non-Agricultural Cooperatives  November 05, 2021 

Beginning Today Residents Of Cuba May Purchase And Install Residential Solar Systems. Cost 55,000.00 Pesos (US$2,300.00). Call 7833-3333.  November 04, 2021  

Bormey srl Among The First 35 Newly-Constituted Medium-Sized Enterprises In Cuba, Exported 5,000 Peanut Bars To Italy. Is United States Next? U.S. Department Of State Regulations Would Approve.  October 26, 2021 

Cuba Approves First 35 MIPYME Applications- Confirms No Application Thus Far Denied. Many More Applications Expected. Result Beneficial For Biden Administration Goal To Support SME's.  September 30, 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 

ProLimp Cleaning In Cuba Precisely Type Of Entrepreneurship Biden Administration Should Support. Will Cuba Permit U.S. Venture Capitalists?  March 08, 2021 

Cuba To Unify Currencies; Result Could Present Opportunities For Biden Administration And U.S. Companies  December 11, 2020 

Florida Company Receives License To Export Electric Vehicles To Cuba; Charging Stations From New Jersey-Based CompanyJanuary 25, 2017 

Restriction On Sale Of Premium Gasoline May Benefit Electric Vehicles & Solar Panels; Embassies ConcernedApril 07, 2017

Four Cruise Lines In Libertad Act Lawsuit Oppose Plaintiff Jury Trial Demand. Trial Scheduled For May 2022. More Motions Expected.

Excerpts: 

Defendants Norwegian Cruise Line Holdings Ltd. (“Norwegian”), Carnival Corporation d/b/a Carnival Cruise Line (“Carnival”), MSC Cruises S.A., MSC Cruises SA Co., and MSC Cruises (USA) Inc. (collectively, “MSC Cruises”), and Royal Caribbean Cruises Ltd. (“Royal Caribbean”) (collectively, “Defendants”) hereby respectfully object to the Magistrate Judge’s report and recommendation that the Court deny Defendants’ motion to strike Plaintiff’s Jury Trial Demand (“Report”) (ECF No. 343).1  Both the parties and the Magistrate Judge agree that the Helms-Burton Act, 22 U.S.C. §6021 et seq. (the “Act”), does not confer a statutory right to a jury trial through explicit grant in the plain language of the statute or through its legislative history. Report at 7. Thus, the Court must consider whether Title III comprises the type of claim protected by the Seventh Amendment.  The Supreme Court has instructed that the analysis this Court must conduct is to first, “compare the statutory action to 18th-century actions brought in the courts of England prior to the merger of the courts of law and equity” and, second, “examine the remedy sought and determine whether it is legal or equitable in nature.” Granfinanciera, S.A., v. Nordberg, 492 U.S. 33, 42 (1989) (citing Tull v. United States, 481 U.S. 412, 417-418 (1987)). The Supreme Court has held that “[t]he second stage of this analysis is more important than the first.” Id.  Defendants’ Motion to Strike Plaintiff’s Jury Demand should be granted, because under both prongs of the Granfinanciera analysis, the Seventh Amendment does not confer Plaintiff a right to a jury trial under Title III of the Helms-Burton Act (the “Act”). 

LINKS TO FILINGS 

Norwegian Cruise Line Holdings Ltd. Defendants’ Objection To Report And Recommendation On Defendants’ Motion To Strike Plaintiff’s Jury Trial Demand (1/25/22) 

Royal Caribbean Cruises Ltd.’S Notice Of Adoption Of Defendants’ Objection To Report And Recommendation On Defendants’ Motion To Strike Plaintiff’s Jury Trial Demand (1/25/22) 

MSC Cruises’ Notice Of Adoption Of Defendants’ Objection To Report And Recommendation On Defendants’ Motion To Strike Plaintiff’s Jury Trial Demand (1/25/22) 

Carnival Corporation’s Notice Of Adoption Of Defendants’ Objection To Report And Recommendation On Defendants’ Motion To Strike Plaintiff’s Jury Trial Demand (1/25/22) 

Libertad Act Title III Lawsuit Filing Statistics

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

"Daubert Hearing" For Libertad Act Lawsuit Against Cruise Lines- Challenging Expert Opinions And Valuing Damages

On 25 January 2022 there was a “Daubert Hearing” before a Federal Magistrate in HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES.  The primary question was for the Federal Magistrate (a judge who is appointed for an eight-year term by vote of the District Court Justices) to determine if experts used by the plaintiff and the defendant met the “Daubert Standard.” 

There are two Federal Magistrates for the four Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) filed by Havana Docks Corporation.  The reason is one Federal Magistrate had a conflict with connectivity to a law firm participating in the four lawsuits. 

The Federal Magistrate presides at the hearing, listens to the arguments, asks questions, reads the filings, and then writes a report and submits recommendations to the presiding District Court Judge who will then enter a decision.  Plaintiff and Defendant may appeal the decision of the District Court Judge. 

The District Court Judge has yet to rule on a Defendant Motion for Summary Judgement.  Plaintiffs are seeking a trial by jury.  The trial is scheduled for May 2022.  

Daubert Standard 

West Law: This is the standard used by a trial judge to assess whether an expert witness’s scientific testimony is based on scientifically valid reasoning that which can properly be applied to the facts at issue.  This standard comes from the Supreme Court case, Daubert v. Merrell Dow Pharmaceuticals Inc., 509 U.S. 579 (1993).  Under the Daubert standard, the factors that may be considered in determining whether the methodology is valid are: (1) whether the theory or technique in question can be and has been tested; (2) whether it has been subjected to peer review and publication; (3) its known or potential error rate; (4)the existence and maintenance of standards controlling its operation; and (5) whether it has attracted widespread acceptance within a relevant scientific community.  The Daubert standard is the test currently used in the federal courts and some state courts.  In the federal court system, it replaced the Frye standard, which is still used in some states.   

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

Court Filing Document Links: 

Notice Of Filing Defendants’ Omnibus Daubert Hearing Presentation

International Claims Settlement Act of 1949 

“The Chorzow Factory case is a first of its kind dispute that arose between Germany and Poland before the erstwhile Permanent Court of International Justice that involved the issue of paying reparation by Poland to Germany for having breached an agreement entered between them. After the first world war, a bipartite agreement was entered wherein the control of Upper Silesia area was transferred by Germany to Poland on the condition that Poland would not forfeit any property of Germany. However, Poland in breach of the agreement sold two German factories located in
that area.”  LINK

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District] 

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

Libertad Act Title III Lawsuit Filing Statistics

Surprise Decision: Biden-Harris Administration Renews Trump-Pence Administration License To Export EVs To Embassies In Cuba. Company Offers To Donate EV Chargers To U.S. Embassy/Ambassador Residence

In Surprise Decision, Biden-Harris Administration Renews Trump-Pence Administration License To Export Electric Vehicles To Embassies In Cuba- Including U.S. Embassy.  Company Offers To Donate Electric Vehicle Chargers To U.S. Embassy And Ambassador’s Residence 

To Date, The Biden-Harris Administration Has Refused To Issue Republic Of Cuba Commerce-Related Licenses  

Colombia, Maryland-based Premier Automotive Export, Ltd., which also has an office in Miami, Florida, received on 24 January 2022 a renewal of its license from the Bureau of Industry and Security (BIS) of the United States Department of Commerce to export gasoline-powered vehicles, electric-powered vehicles, and hybrid vehicles from the United States to the Republic of Cuba.  The authorized purchasers are diplomatic missions located in the Republic of Cuba, including the Embassy of the United States in the city of Havana, Republic of Cuba.  

On 3 December 2021, a spokesperson of the United States Department of State was quoted: “The Biden Administration has clearly articulated the United States’ goal to accelerate and deploy electric vehicles and charging stations, create good-paying, union jobs, and enable a clean transportation future to combat climate change. However, the United States Embassy in Cuba does not operate any electric vehicles nor has any solar power charging stations at our Embassy compound or residences in Havana. At this time, it would be unlikely that the United States Embassy consider importing one or more electric vehicles for use in Cuba in the near future due to impediments in the electrical infrastructure and lack of trained mechanics on the island to service electric vehicles.”   

This is the fourth license from the BIS issued to Premier Automotive Export, Ltd.  The first license was issued during the Obama-Biden Administration (2009-2017).  The second license and third licenses were issued during the Trump-Pence Administration (2017-2021).  The fourth license was issued during the Biden-Harris Administration (2021- ).  

BIS License (D1267261) 24 January 2022- 31 January 2026.  For the export of automobiles to diplomatic missions: gasoline-powered; pickup trucks with ICE, electric or hybrid engines. Options to include 4x4, 2 or 4 door cab. 

BIS License (D1166163) 3 July 2019- 31 July 2023.  For the export of automobile parts to diplomatic missions. 

BIS License (D1102235) 13 October 2017- 31 October 2021.  For the export to automobiles to diplomatic missions: gasoline-powered, electric-powered, hybrid vehicles including sedans, pick-up trucks, sport utility vehicles, hatchbacks, coupes, trucks, minivans, golf carts, motorcycles, scooters. 

BIS license (D1076571) 9 January 2017- 31 January 2021.  For the export to the Embassy of Guyana: 2015 Nissan Leaf, 100% electric 4 door sedan with a range of 87 miles on a single charge. The engine is 24 Kw and delivers 97 horsepower.  Clipper Creek LCS-40.  Clipper Creek Level II Charger is 40 Amp charger fitted with the J-1772 universal charging connector. 

On 10 November 2021 and 15 December 2021, the BIS denied a license to Premier Automotive Export, Ltd., which has since been appealed, for the export of electric vehicles from the United States to the Republic of Cuba where the sole authorized purchasers would be Republic of Cuba nationals who are self-employed, and to officially-registered micro, small, and medium-size enterprises (MSMEs).  The primary argument made by the BIS in denying the license application was “Interagency reviewers have determined that your proposed transaction would be detrimental to U.S. foreign policy interests due to an unacceptable risk of diversion to unauthorized end uses and/or end users that primarily generate revenue for the state (including uses in the tourism industry).” 

Premier Automotive Export Ltd., has submitted a license application to the BIS for authorization to donate to the United States Department of State four (4) electric vehicle (EV) chargers for use at the Embassy of the United States in Havana, Republic of Cuba, and for use at the Residence of the United States Ambassador in Havana, Republic of Cuba.  A letter relating to the donation was sent to the United States Department of State.  The company would also coordinate the installation of the electric vehicle chargers.  The selected electric vehicle chargers will service all vehicles currently available and those planned for production:  

2- Clipper Creek LCS-40 Level II 40 Amp Charger fitted with the J-1772 universal charging connector.  https://store.clippercreek.com/residential/hcs-40-hcs-40p-ev-charging-station 

One Clipper Creek EV charger would be located at the United States Embassy and one Clipper Creek EV Charger would be located at the Residence of the United States Ambassador. 

2- Tesla Wall Connector Gen 3 (208/240V).  https://www.tesla.com/support/home-charging  

One Tesla EV charger would be located at the United States Embassy and one Tesla EV Charger would be located at the Residence of the United States Ambassador. 

The reason for the donation of electric vehicle chargers from different manufacturers is twofold.  First, unknown which manufacturer and model of electric vehicle(s) will the United States Department of State purchase for use in the Republic of Cuba.  Second, the Biden-Harris Administration continues to promote favorably manufacturers and models of electric vehicles from companies with union representation for their employees.  Austin, Texas-based Tesla, Inc., is non-union.  Detroit, Michigan-based General Motors Company; Dearborn, Michigan-based Ford Motor Company; and Amsterdam, The Netherlands-based Stallantis N.V. (Chrysler, Dodge, Jeep, etc.) are union. 

From The White House (25 January 2022): Statement by President Biden on General Motors Investment in Michigan.  “Today’s announcement by GM – to make its largest investment ever, $7 billion to create 4,000 new jobs at EV manufacturing sites in Michigan – is the latest sign that my economic strategy is helping power an historic American manufacturing comeback. From day one, my Administration has been laser focused on making sure that America leads the manufacturing future of electric vehicles. This announcement is just the latest in over $100 billion of investment this past year in American auto manufacturing to build electric vehicles and batteries. Over the last year, I hosted the United Auto Workers and automakers at the White House, signed an executive order aimed at getting to 50% electric vehicle sales share in 2030, and set ambitious new standards. The Bipartisan Infrastructure Law was a major step toward this future by investing in EV charging, and Congress can catalyze more with additional incentives for Made in America electric vehicles, batteries, and semi-conductors built by union hands.” 

On 25 January 2022, a spokesperson from the United States Department of State was quoted:  “Does the United States Department of State at its primary underground garage at C Street NW have electric vehicle charging stations?  Yes.  2) Are there charging stations for United States government-owned vehicles?  If so, how many?  Yes- 4 stations.  3) Are there charging stations for vehicles owned by employees of the United States Department of State?  If so, how many?  Yes- 4 stations.  4)  Are there charging stations for vehicles owned by visitors to the United States Department of State?  If so, how many?  Yes- for official visitors only.”  

Given the 20 January 2022 statements during a Background Press Call by Senior Administration Officials at The White House about the 6-10 June 2022 Summit of the Americas, now is ideal for the Biden-Harris Administration to highlight use of electric vehicles in the Republic of Cuba.  At minimum, have installed the hardware prior to June 2022 in preparation for the arrival of the first electric vehicle for use by the Embassy of the United States in the Republic of Cuba.  

So with that said, look, the summit, I'll say, will focus on -- our theme for the summit is: “Building a Sustainable, Resilient, and Equitable Future.” … Also making sure that for a region that is so dependent on fossil fuels, to ensure that we are mobilizing capital to help facilitate what is a global energy transition away from fossil fuels and toward the energies of the future.  Making sure that the hemisphere does not get left behind is something that we're very focused on.  Of course, issues of climate finance in areas like the Caribbean, Small Island Development States that are impacted by climate change.”  

The BIS confirms the value of renewable energy products for use in the Republic of Cuba: “There is a general policy of denial for exports and reexports to Cuba of items subject to the EAR, as described in Section 746.2(b) of the EAR. However, there are exceptions to the general policy of denial, some of which are listed below: … Items necessary for the environmental protection of U.S. and international air quality, waters and coastlines, including items related to renewable energy or energy efficiency, are generally approved. 

Currently operating in the Republic of Cuba are Amsterdam, Netherlands-based Stellantis N.V.-owned Sochaux, France-based Peugeot DTSR-171 electric vans (through Republic of Cuba-based distributor) and Yokohama, Japan-based Nissan Motor Co., Ltd., Nissan NV200e electric vans.   Republic of Cuba government-operated companies Aguas de la Habana (with ten vehicles) and ETECSA use electric vans.  Clearly, these companies would not be using electric vehicles in the Republic of Cuba if mechanics were lacking. 

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Ministry of Transport of the Republic of Cuba (MINTRANS): Before 2030, MINTRANS plans for 45% of the total number of vehicles owned by Republic of Cuba government-operated companies will be electric vehicles.  A goal is to introduce more than 56,000 electric vehicles of which about 36,000 will be imported while 17,000 will be retrofitted from existing combustion engine vehicles.  A goal is to install 38,000 charging stations throughout the country with 16,000 fast charging stations and the remainder slow or semi-fast charging stations.  An additional 2,000 slow and fast charging stations will in public places while 180 50KV fast charging stations will be located to supply public services.  The first Cuban company to utilize electric vehicles in the Republic of Cuba was Republic of Cuba government-operated Aguas de la Habana.  The company operates a twenty-two Nissan e-NV200 vehicles.  LINK To YouTube Video: https://www.youtube.com/watch?v=uNhxN0aevXc

First Clerk Default Judgement: Switzerland-Based MSC Shipping Does Not Respond To Libertad Act Lawsuit. Judge Must Rule. Will Defendant Challenge? Probably. Damages Trial Likely Next.

NOTE: Privately-held Geneva, Switzerland-based Mediterranean Shipping Company S.A. is a Swiss-Italian international shipping line. It has been the largest container shipping line since late 2021, after overtaking fellow 2M Alliance member Denmark, Copenhagen-based A.P. Møller-Mærsk A/S (2021 revenue approximately US$40 billion).

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. MSC MEDITERRANEAN SHIPPING COMPANY SA. [1:21-cv-23400; Florida Southern District].   

Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices Of John S. Gaebe P.A. (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)

Application For Clerk’s Default (1/24/22)
Clerk’s Default (1/25/22)

Link To Libertad Act Title III Lawsuit Filing Statistics

Excerpts: Application For Clerk’s Default

Plaintiffs, Odette Blanco de Fernandez, et al. (“Plaintiffs”), by and through counsel and pursuant to Rule 55(a) of the Federal Rules of Civil Procedure, file this Application for Clerk’s Default against MSC Mediterranean Shipping Company SA (“MSC” or “Defendant”) and state:

1. Plaintiffs filed their Complaint against MSC, a Swiss company, on September 22, 2021. See Doc. No. 1.
2. MSC was properly served with the Summons and Complaint in accordance with the laws of Switzerland under Article 5 of the Hague Convention on December 23, 2021. See Declaration of William B. Milliken, counsel for Plaintiffs, attached as Exhibit A.
3. MSC’s deadline to respond to the Complaint was on or before January 13, 2022. Fed.R.Civ.P. 12(a).
4. As the docket in this case demonstrates, MSC has failed to plead or otherwise defend.
5. Accordingly, Plaintiffs are entitled to a Certificate of Default by the Clerk pursuant to Rule 55(a) of the Federal Rules of Civil Procedure.

WHEREFORE, Plaintiffs respectfully request the entry of a Certificate of Default by the Clerk and such other relief as the Court deems just and reasonable.

Excerpts: Clerk's Default

It appearing that the defendant(s) herein, is/are in default for failure to appear, answer, or otherwise plead to the complaint filed herein within the time required by law. Default is hereby entered against defendant(s) MSC MEDITERRANEAN SHIPPING COMPANY SA

Other Plaintiff- Related Libertad Act Title III Lawsuits

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON DIAZ BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE VERSUS A.P. MOLLER-MAERSK A/S (a/k/a A.P. MOLLER-MAERSK GROUP); MAERSK A/S (a/k/a MAERSK LINE A/S); MAERSK, INC.; and MAERSK AGENCY U.S.A., INC [2:21-cv-00339; Eastern District of Louisiana].

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ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. CROWLEY MARITIME CORPORATION, Defendant. [3:20-cv-01426 Middle District Florida; Transferred To Florida Southern District 1:21-cv-20443].

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