14th & 15th Amendments Of U.S. Constitution Protect Canada's Teck Resources From Cuba Libertad Act Lawsuit. No "Personal Jurisdiction" For U.S. Courts.

HEREDEROS DE ROBERTO GOMEZ CABRERA, LLC v. TECK RESOURCES LIMITED [1:20-cv-21630; Southern Florida District]

Hirzel Dreyfuss & Dempsey, PLLC (plaintiff)
Roig & Villarreal, P.A. (plaintiff)
Law Office of David A. Villarreal, P.A. (plaintiff)
Pillsbury Winthrop Shaw Pittman (defendant)

Oral argument held this date. Oral Argument presented by Leon Francisco Hirzel, IV for Appellant Herederos De Roberto Gomez Cabrera, LLC and Robert Sills for Appellee Teck Resources Limited. [Entered: 06/07/2022 02:04 PM]
Opinion issued by court as to Appellant Herederos De Roberto Gomez Cabrera, LLC. Decision: Affirmed. Opinion type: Published. Opinion method: Signed. The opinion is also available through the Court's Opinions page at this link http://www.ca11.uscourts.gov/opinions. [Entered: 08/12/2022 09:53 AM]
Judgment entered as to Appellant Herederos De Roberto Gomez Cabrera, LLC. [Entered: 08/12/2022 09:56 AM]

LINK To Opinion of the Court (8/12/22)
LINK To Libertad Act Lawsuit Filing Statistics

Excerpts from Opinion:

In 1960, the revolutionary Cuban government confiscated Roberto Gomez Cabrera’s mineral mines. Cabrera’s children, who inherited his claim to the mines, allege that Teck, a Canadian cor poration, managed the mines and thereby “traffic[ked]” in them in violation of the Helms-Burton Act.

Cabrera’s children assigned their claims to a Florida LLC, Herederos de Roberto Gomez Cabrera, and Herederos sued Teck under the Helms-Burton Act in the U.S. District Court for the Southern District of Florida. Broadly speaking, the Act imposes li ability on “any person” who “traffics in property which was confis cated by the Cuban Government on or after January 1, 1959.” 22 U.S.C. § 6082. Teck moved to dismiss for lack of personal jurisdic tion. The district court granted Teck’s motion, holding that Flor ida’s long-arm statute didn’t provide jurisdiction over Teck and, additionally, that Teck lacked the necessary connection to the United States to establish personal jurisdiction under Federal Rule of Civil Procedure 4(k)(2). For the reasons explained below, we agree with the district court.

The parties here agree that Rule 4(k)(2)’s first condition applies—Teck isn’t “subject to jurisdiction in any state’s courts of general jurisdiction.” Accordingly, we must decide whether exer cising personal jurisdiction here would be “consistent with the . . . Constitution.” For purposes of this case, the relevant constitu tional provision—and we flag this issue because it gets to the nub of the parties’ dispute—is the Fifth Amendment’s Due Process Clause, which applies to the federal government and its courts, not the Fourteenth’s, which applies to the states.

Despite their agreement that the Fifth Amendment governs the personal-jurisdiction inquiry here, Herederos and Teck ad vance competing jurisdictional analyses. For its part, Teck con tends that we should analyze personal jurisdiction under the Fifth Amendment the same way we would under the Fourteenth Amendment—i.e., ask whether the defendant has sufficient “mini mum contacts” with the forum and whether “maintenance of the suit [would] offend ‘traditional notions of fair play and substantial justice.’” Int’l Shoe Co. v. Wash., 326 U.S. 310, 316 (1945). Here deros, by contrast, urges us to apply a more lenient “arbitrary or fundamentally unfair” standard that we have sometimes used in what it calls “extraterritorial jurisdiction” cases. See Br. of Appel lant at 15–16; Reply Br. of Appellant at 4. Although the language and logic of the “extraterritorial jurisdiction” cases can be a little confusing, those decisions, as we’ll explain, aren’t really about per sonal jurisdiction at all. Accordingly, we hold that courts should analyze personal jurisdiction under the Fifth Amendment using the same basic standards and tests that apply under the Fourteenth Amendment.

We conclude that the personal-jurisdiction analysis under the Fifth Amendment is the same as that under the Fourteenth for three principal reasons.

What, though, of the “extraterritorial jurisdiction” cases that Herederos cites? In those decisions, Herederos notes, we have said that “the extraterritorial application of the law must comport with due process, meaning that the application of the law must not be arbitrary or fundamentally unfair,” United States v. Noel, 893 F.3d 1294, 1301 (11th Cir. 2018), and that the “Due Process Clause pro hibits the exercise of extraterritorial jurisdiction over a defendant when it would be ‘arbitrary or fundamentally unfair,’” United States v. Baston, 818 F.3d 651, 669 (11th Cir. 2016). But a close review of those cases shows that, in fact, they aren’t really about personal jurisdiction at all; rather, at their core, they address what is sometimes called “legislative jurisdiction”—i.e., the power of Congress (or another lawmaking body, as the case may be) to reg ulate conduct extraterritorially.

Applying the minimum-contacts test here is relatively straightforward. We hold that Teck doesn’t have contacts with the United States sufficient to establish either specific or general per sonal jurisdiction over it.

For these reasons, Herederos’s suit doesn’t arise out of or relate to any of Teck’s ties with the United States. And because a relationship between the defendant’s conduct within the forum and the cause of action is necessary to exercise specific jurisdiction, the lack of any such relationship here dooms Herederos’s effort to establish specific personal jurisdiction over Teck.

Herederos hasn’t alleged facts sufficient to allow the United States courts to exercise either specific or general personal jurisdic tion over Teck.5 Accordingly, we AFFIRM.

Chairman Of Committee On Foreign Affairs Of U.S. House Of Representatives May Visit Cuba. This Is What His "Deliverables" Agenda Should Include.

Chairman of the Committee on Foreign Affairs of the United States House Of Representatives May Visit Cuba. 

For United States Business Community, Deliverables Are Important.  Focus Upon MSMEs. Banking.  Four Important Meetings. 

Chairman Of Congressional Black Caucus May Participate. 

From Biography: “[First elected in 1998], Congressman Meeks [Democrat, 5th District New York] is Chairman [2021- ] of the House Foreign Affairs Committee, the first black Member of Congress to serve as Chair of that committee. Meeks [68] is a multilateralist with decades of experience in foreign policy. He believes that the United States should build coalitions around our interests and work with other countries to build a stable and prosperous future.”  Representative Meeks visited the Republic of Cuba in 2006, 2014, and 2016. 

Chairman Meeks probably has anticipated the following, and his staff has probably included the subjects in his briefing materials, but reinforcement is often useful…  

The Biden-Harris Administration (2021- ) is focusing upon supporting the re-emerging private sector in the Republic of Cuba: micro, small, and medium-size enterprises (MSMEs).   

Thus, the likelihood and policy initiatives and changes, and regulatory changes supported by The White House will focus upon lessening impediments upon the re-emerging private sectors in the Republic of Cuba. 

In May 2022, the Biden-Harris Administration authorized the first direct equity investment in and the first direct financing to a privately-owned company located in the Republic of Cuba.  Subsequently, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury added opportunities and amended existing regulations to provide mechanisms for further engagement with privately-owned companies located in the Republic of Cuba.  In July 2022, the government of the Republic of Cuba confirmed direct equity investment and direct financing are authorized for MSMEs.  The regulations have yet to be published.      

• To support the commercial and economic bilateral relationship of the United States with the Republic of Cuba, the ideal agenda for Chairman Meeks will include meetings with officials who have direct responsibility for the role of MSMEs in the Republic of Cuba. 

• A goal should be to influence officials of the government of the Republic of Cuba who are crafting regulations for MSMEs to receive direct equity investments from the United States and direct financing from the United States. 

Link To Previous Analysis: Now The Hard Part For Cuba: Implementing Quickly Transparent, Equal-For-All, MSME Investment & Financing Regulations. No Limitations. No Selectivity. No Orwellian Process.   

Suggested Agenda Schedule 

• First meeting with Benjamin Ziff, Chargé d'Affaires of the Embassy of the United States. 

• Second meeting with Alejandro Gil, Minister of Economy and Planning of the Republic of Cuba; Marta Sabina Wilson Gonzalez, President of the Central Bank of the Republic of Cuba; and Ania Carnero Manresa, President of Banco Internacional de Comercio S.A. (BICSA). 

• Third meeting with Rodrigo Malmierca Díaz, Minister of Foreign Trade and Foreign Investment of the Republic of Cuba; and Antonio Luis Carricarte, President of the Chamber of Commerce of the Republic of Cuba. 

• Fourth meeting with Miguel Diaz-Canel, President of the Republic of Cuba; Manuel Marrero, Prime Minister of the Republic of Cuba; and Bruno Rodriguez, Minister of Foreign Affairs of the Republic of Cuba. 

Critical for MSMEs is for the government of the Republic of Cuba to maintain a dynamic and easily accessible online directory of MSMEs with 1) identifiers as to both direct and indirect ownership of each MSME 2) the operational address for each MSME and 3) contact information for each MSME.  An article published on 5 August 2022 by The Miami Herald and El Nuevo Herald illustrates why a directory is required: 

• Link: Miami Herald U.S.-based online food stores were meant to help Cubans. Why are they selling Havana Club?

• Link: El Nuevo Herald Tiendas de alimentos de EEUU debían ayudar a los cubanos. ¿Por qué venden Havana Club?  

For the Biden-Harris Administration, lack of a directory will impede the expansion of engagement with MSMEs and may impact those policy and regulatory changes in place relating to MSMEs- particularly those focused upon direct equity investment in and direct financing to MSMEs authorized by the OFAC. 

A priority for the government of the Republic of Cuba must be transparency as to the ownership and legal status of Republic of Cuba government-operated companies and MSMEs.  Absent self-installed transparency, the United States Department of State is likely to be pressured by members of the United States Congress to create a sub-section to the Cuba Restricted List (CRL) to identify MSMEs prohibited from receiving direct equity investment and direct financing from individuals and entities subject to United States jurisdiction.  Such a sub-section would have a chilling effect and stunt engagement with MSMEs.  The existence of a CRL referencing MSMEs would taint all MSMEs regardless of their ownership and purpose. 

Critical for a result of discussions led by Chairman Meeks is to obtain confirmation that Banco Internacional de Comercio S.A. (BICSA) will grant Elk Grove Village, Illinois-based First American Bank (2021 assets approximately US$5 billion) a correspondent account and BICSA will agree to seek through First American Bank a license from the OFAC to have a correspondent account with First American Bank.  BICSA is not among the financial institutions included in the CRL.  BICSA was vetted previously by the OFAC: Since 2015, Conway, Arkansas-based Home BancShares (2021 assets approximately US$18 billion) through subsidiary Centennial Bank (and before that subsidiary Stonegate Bank) have correspondent accounts with BICSA. 

Once First American Bank and BICSA have accounts with one another, funds to the Republic of Cuba and funds from the Republic of Cuba will move transparently, efficiently, and directly within minutes rather than days through third-countries as currently required by the OFAC- a decision implemented during the Obama-Biden Administration (2009-2017).  This efficiency is essential for the sustained engagement by United States-based sources of direct equity investment and direct financing to MSMEs. 

• From OFAC: “744. May correspondent accounts authorized pursuant to 31 CFR § 515.584(a) or used for transactions authorized by 31 CFR § 515.584(g) be established and maintained in U.S. dollars?  Yes. Correspondent accounts of depository institutions (as defined in 31 CFR § 515.333) at a financial institution that is a national of Cuba authorized pursuant to § 515.584(a) may be established and maintained in U.S. dollars. Such accounts may be used only for transactions that are authorized by or exempt from the CACR. Transactions necessary to establish and maintain such correspondent accounts- such as originating, processing, and terminating authorized funds transfers in U.S. dollars- are authorized.  Additionally, correspondent accounts used for transactions authorized by 31 CFR § 515.584(g), which permits banking institutions as defined in 31 CFR § 515.314(g) that are persons subject to U.S. jurisdiction to accept, process, and give credit to U.S. dollar monetary instruments presented indirectly by a financial institution that is a national of Cuba, may be denominated in U.S. dollars.  However, financial institutions that are nationals of Cuba remain prohibited from opening correspondent accounts at a U.S. financial institution. For a complete description of what these general licenses authorize and the restrictions that apply, see 31 CFR § 515.584(a) and (g).” LINK: https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.584 

Resumption of direct correspondent banking will materially impact the flow of remittances.  Important for the government of the Republic of Cuba to authorize a Republic of Cuba government-operated financial institution to receive/send remittances that is not among financial institutions included in the CRL.  BICSA is the logical candidate as it has experience with operating correspondent accounts with United States-based financial institutions, and soon with First American Bank.  The resumption of direct correspondent banking would permit again Denver, Colorado-based Western Union Company (2021 revenues approximately US$5.1 billion) to provide a full suite of services to customers throughout the United States, particularly in support of MSMEs.   

Focusing upon changes to United States statutes relating to payment terms of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 is not today a priority for United States exporters nor viable in terms of legislative success.  The payment process is a priority.  The easier the payment process, the more opportunities for an expansion of the sourcing for exports from the United States to the Republic of Cuba.  

• For example, since December 2001 more than US$6.8 billion in payments by the government of the Republic of Cuba for agricultural commodities, food products, and healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals), and other products purchased from United States-based companies have traveled through third-country financial institutions prior to arriving to United States-based financial institutions.  These transactions are authorized by the TSREEA, Cuban Democracy Act (CDA) of 1992, and OFAC and Bureau of Industry and Security (BIS) of the United States Department of Commerce regulations.  Funds from the United States to the Republic of Cuba have been required to endure the same costly and inefficient triangular payment process.   

• Absent direct correspondent banking, authorized transactions from the Republic of Cuba to the United States are less transparent and are multi-day rather than multi-hour and third parties earn unnecessary fees.  MSMEs will primarily engage in small transactions, so excessive costs and delays associated with receiving and sending funds is impactful to their bottom-line.  The fewer impediments for MSMEs, the more likely they will import more products from the United States.

For the United States business community (companies and individuals), having in place regulations within the Republic of Cuba that make attractive engaging with MSMEs along with regulations in place in the United States that make the movement of funds cost effective, transparent, and efficient, will result in robust engagement between the re-emerging private sectors in the Republic of Cuba and the United States.

LINK To Complete Analysis In PDF Format

On Sunday At Presidential Inauguration, Might U.S. And Cuba Delegations Cross Paths In Bogota, Colombia? Foreign Minister And At Least One Delegation Member Have Met Previously.

His Excellency Bruno Rodriguez, Minister of Foreign Affairs of the Republic of Cuba, will represent the government of the Republic of Cuba at the 7 August 2022 Inauguration of the 34th President of the Republic of Colombia.

The United States Presidential Delegation includes Representative Gregory Meeks, Chairman of the United States House of Representatives Committee on Foreign Affairs (2021- ) who has engaged previously with Minister Rodriguez. Representative Meeks visited the Republic of Cuba in 2006, 2014, and 2016. LINK

The White House
Washington DC
3 August 2022

President Biden Announces Presidential Delegation to the Republic of Colombia to Attend the Inauguration of His Excellency Gustavo Francisco Petro Urrego

President Joseph R. Biden, Jr. today announced the designation of a Presidential Delegation to Bogotá, Colombia to attend the Inauguration of His Excellency Gustavo Francisco Petro Urrego as President of the Republic of Colombia on August 7, 2022.

The Honorable Samantha Power, Administrator for the United States Agency for International Development, will lead the delegation. Members of the Presidential Delegation: The Honorable Gregory Meeks, Chairman of the House Foreign Affairs Committee; Mr. Francisco L. Palmieri, Chargé d’Affaires, a.i., United States Embassy in Bogotá, Colombia; Ms. Desirée Cormier Smith, Special Representative for Racial Equity and Justice, U.S. Department of State; and The Honorable Juan Gonzalez, Special Assistant to the President and Senior Director for Western Hemisphere Affairs, National Security Council.

Cuba's MSMEs Need Ownership Transparency To Prevent New CRL Chilling Interest In Engaging With MSMEs. A Dynamic Online Directory Can Solve That Concern. Not Much Time.

Critical for micro, small, and medium-size enterprises (MSMEs) in the Republic of Cuba is for the government of the Republic of Cuba to maintain a dynamic and easily accessible online directory of MSMEs with 1) identifiers as to both direct and indirect ownership of each MSME 2) the operational address for each MSME and 3) contact information for each MSME. An article published on 5 August 2022 by The Miami Herald and El Nuevo Herald illustrates why a directory is required: 

LINK Miami Herald U.S.-based online food stores were meant to help Cubans. Why are they selling Havana Club?

LINK El Nuevo Herald Tiendas de alimentos de EEUU debían ayudar a los cubanos. ¿Por qué venden Havana Club?

For the Biden-Harris Administration (2021- ), lack of a directory will impede the expansion of engagement with MSMEs and may impact those policy and regulatory changes in place relating to MSMEs- particularly those focused upon direct equity investment in and direct financing to MSMEs authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury. 

A priority for the government of the Republic of Cuba must be transparency as to the ownership and legal status of Republic of Cuba government-operated companies and MSMEs.  Absent self-installed transparency, the United States Department of State is likely to be pressured by members of the United States Congress to create a sub-section to the Cuba Restricted List (CRL) to identify MSMEs prohibited from receiving direct equity investment and direct financing from individuals and entities subject to United States jurisdiction.  Such a sub-section would have a chilling effect and stunt engagement with MSMEs.  The existence of a CRL referencing MSMEs would taint all MSMEs regardless of their ownership and purpose. 

The Biden-Harris Administration supports the re-emerging private sector in the Republic of Cuba.  Policy initiatives and changes, and regulatory changes will continue to focus upon lessening impediments on the re-emerging private sectors in the Republic of Cuba.   

In May 2022, the Biden-Harris Administration authorized the first direct equity investment in and the first direct financing to a privately-owned company located in the Republic of Cuba.  Subsequently, the OFAC added opportunities and amended existing regulations to provide mechanisms for further engagement with privately-owned companies located in the Republic of Cuba.   

In July 2022, the government of the Republic of Cuba confirmed direct equity investment and direct financing are authorized for MSMEs.  The regulations have yet to be published.      

LINK To Related Analysis 

Now The Hard Part For Cuba: Implementing Quickly Transparent, Equal-For-All, MSME Investment & Financing Regulations. No Limitations. No Selectivity. No Orwellian Process. 

U.S. Agricultural Commodity/Food Product Exports To Cuba Decrease 18.4% In June 2022; Decline 9.2% Year-To-Year

ECONOMIC EYE ON CUBA©
June 2022

June 2022 Ag/Food Exports To Cuba Decrease 18.4%- 1
57th Of 223 June 2022 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Decrease 9.2%- 2
Cuba Ranked 56th Of U.S. Ag/Food Export Markets- 2
June 2022 Healthcare Product Exports US$876,983.00- 2
June 2022 Humanitarian Donations US$3,786,513.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

JUNE 2022 FOOD/AG EXPORTS TO CUBA DECREASE 18.4%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in June 2022 were US$23,055,838.00 compared to US$28,256,268.00 in June 2021 and US$ US$5,507,338.00 in June 2020.

January 2022 to June 2022 exports were US$144,185,093.00 compared to January 2021 to June 2021 exports of US$158,942,168.00. A decrease of 9.2%.

June 2022 Exports Included: Sardines; Olive Oil; Vegetable Fats; Hams; Tuna; Squid; Bamboo Shots; Sweet Corn; Fruit; Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Coffee; Deodorants; Soap; Disinfectants; Insecticides; Rodentcides; Shampoo.

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

Complete Report In PDF Format

Cuba Creates New Peso Exchange Rate: Increase From 24 To 120. Helpful To MSMEs. However, 24 Remains In Use.

Cuba more than quadruples dollar/peso exchange rate 

By Marc Frank 

HAVANA, Aug 3 (Reuters) - Cuba announced it will begin purchasing on Thursday dollars and other convertible currencies at nearly five times the current rate in an effort to undercut the informal money market and capture the funds. 

Central Bank President Marta Wilson Gonzalez, appearing on state-run television on Wednesday evening, said the state-run banking system had set a new rate of 120 pesos to the dollar, compared to the official fixed rate of 24 pesos, and 115 pesos on the informal market, according to independent online news outlet El Toque tracker, the most watched in the communist-run country. 

Gonzalez said the new rate would float and did not apply to most activities of the state-dominated economy which would still operate at the fixed rate in effect for more than 18 months. 

Cuba stopped accepting dollars in 2020 citing U.S. sanctions and stopped selling convertible currency for pesos to the public soon after, stating it simply did not have the cash. 

Economy Minister Alejandro Gil, appearing with the central bank president on Wednesday, said in the near future he hoped to resume currency exchanges, but the first step would be capturing the informal market. “Today there is a high level of foreign currency that is entering the country that is not being captured by the national financial system,” he said. 

Hit by harsh new U.S. sanctions, the pandemic and current high international prices for goods and shipping, the near-bankrupt, import-dependent economy grew 1.3% last year after declining 10.9% in 2020. Gil said a gradual if slow recovery continued without giving figures. Shortages of food, medicine, fuel and now electricity have led to scattered protests in recent months. 

Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Pontificia Universidad Javeriana Cali, said the measure addressed a major complaint of tourists who exchanged money at the fixed government rate in hotels and then discovered outside on the street everything is pegged at the informal rate. Vidal said it would also benefit "the private sector which often receives foreign currency from tourists and that the banks will once more accept and exchange physical dollars at 120 which unlocks one of the major impediments that remittances had as they were fetching 24 pesos."

Now The Hard Part For Cuba: Implementing Quickly Transparent, Equal-For-All, MSME Investment & Financing Regulations. No Limitations. No Selectivity. No Orwellian Process.

Now The Hard Part For Cuba. Implementing Quickly Transparent, Workable Regulations For Investments In And Financing To Private Companies.

Regulations Must Be The Same For All Countries.
Not Orwellian: All MSMES Are Equal. Some Are Not More Equal Than Others.

The Government Of Cuba Must Refrain To Its Inherent Desire To Determine Winners And Losers; To Determine “Societal Value”

Only Citizens Of Cuba, Voting With Their Spending, Must Determine Success Or Failure Of An MSME.

The Government Of Cuba Sets Rules And Then Must Get Out Of The Way Of Prosperity.

Direct Correspondent Banking Is Essential To Support MSMEs. If Funds Cannot Move Efficiently In Both Directions, No Incentive For Investors And Providers Of Loans.

In May 2022, the Biden-Harris Administration (2021- ) authorized the first direct equity investment in and the first direct financing to a privately-owned company located in the Republic of Cuba.  Subsequently, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury added opportunities and amended existing regulations to provide mechanisms for further engagement with privately-owned companies located in the Republic of Cuba. 

In July 2022, the government of the Republic of Cuba confirmed direct equity investment and direct financing are authorized for micro, small, and medium-size enterprises (MSMEs).    

The government of the Republic of Cuba will publish, and hopefully do so promptly, transparent, and workable regulations for the delivery of direct equity investment in and direct financing to MSMEs.    

• There must be one process for all privately-owned companies.  Visualize simplicity.  Embrace clarity.  Write concisely.  Avoid ambiguity.     

• If the government of the Republic of Cuba is uncommitted to permit the global marketplace to determine if an MSME is attractive for direct equity investment and direct financing, and in its place establishes a decision-making infrastructure to “evaluate” and “approve” which MSME may receive funds from abroad and the amount of funding permitted, then the Diaz-Canel-Valdes Mesa Administration (2019- ) might reconsider commencing the process. 

Essential for the government of the Republic of Cuba to embrace a mindset appreciating the role of an independent private sector operating in an independent marketplace where marketing and operational skill determines whether a company prospers or fails, rather than trajectories and outcomes determined by third parties subject to political purity testing. 

• Risk must be rewarded, not be suspect.  Success must be rewarded, not punished.  Prosperity must be an example of the possible, not weaponized as an agency of suspicion.

What will, and not exaggerating the potential of a dinosaur extinction-level result, diminish the attractiveness of delivering direct equity foreign investment and direct financing to MSMEs will be connected directly to the government of the Republic of Cuba retaining the same subjective political multi-level, multi-jurisdiction decision-making process currently employed for evaluating the appropriateness of direct equity investment into a joint venture, economic cooperation agreement, management contract, etc., which includes a Republic of Cuba government-operated company.

• Direct equity investment into a MSME is different from direct equity investment into a Republic of Cuba government-operated company. If the government of the Republic of Cuba believes that they are the same, then the government of the Republic of Cuba is not prepared to accept direct equity investment and direct financing for MSMEs.  And going forward under these conditions will severely restrain the delivery of direct equity investment. 

• The government of the Republic of Cuba must not be deciding if an MSME needs direct equity investment, what are the terms of that direct equity investment, what will the MSME do with that direct equity investment.

• The government of the Republic of Cuba should create a transparent, easy-to-understand, list of requirements- and then leave to the MSME to self-comply by certifying compliance with a set of regulations that are the same for every MSME.

• The government of the Republic of Cuba will meaningfully doom, and provide critics with the material they seek, if the government of the Republic of Cuba determines which MSMEs are suitable for direct equity investment and direct financing originating from outside of the Republic of Cuba.

• There must be no discrimination by the government of the Republic of Cuba in terms of restricting/prohibiting the receipt by a MSME of direct equity investment and direct financing because the MSME is now or may compete with a Republic of Cuba government-operated company.

• An MSME must have no limitation as to the amount of direct equity investment and direct financing.  Provided the amounts are disclosed to the relevant Republic of Cuba government-operated entity (but remain confidential from the public to protect business strategy) and provided the MSME maintains proper accounting practices, then there should be no limitation. 

• There must be no number of employee requirement for a privately-owned company to receive direct equity investment and direct financing.  No penalty for being too small and no penalty for being too large.

• There must be no discrimination by the government of the Republic of Cuba in terms of fees, taxes, and other payments towards MSMEs versus Republic of Cuba government-operated companies.

• MSMEs must be permitted to establish operating accounts at Republic of Cuba government-operated financial institutions and establish operating accounts in financial institutions outside of the Republic of Cuba.  These accounts must be permitted to receive funds in U.S. Dollars, Euros, Lira, Pesos, Pound Sterling, Rubles, Rupees, Yen, Yuan, etc., and be permitted to send funds in U.S. Dollars, Euros, Lira, Pesos, Pound Sterling, Rubles, Rupees, Yen, Yuan, etc.  The transaction fees in the Republic of Cuba should be comparable to those of financial institutions outside of the Republic of Cuba.

• The central tenant for direct equity investment and financing: There must be no doubt that MSME funds in the Republic of Cuba may be used by an MSME to make debt payments as prescribed by the terms of investment contracts and loan agreements.

There will be failures.  Some MSMEs will have terrific ideas that are unable to be profitably executed or the marketplace may have an interest that wanes.  Some investors will lose part or all their investment; some loans will go unrepaid.  Some MSMEs will succeed beyond what an investor or investors expected; and their dividends will be large, their loans will be repaid, the MSME will expand its workforce- who will earn more money.  The marketplace must determine what happens, not the government.

• There must be transparency and efficiencies- all transactions must be delivered through financial institutions. 

Concurrently, the Biden-Harris Administration should correct the error of the Obama-Biden Administration (2009-2017) by directing the OFAC to authorize direct correspondent banking so funds move directly, efficiently, and transparently from the United States to the Republic of Cuba (delivery of direct equity investment and direct financing) and from the Republic of Cuba to the United States (receipt of dividends, profit-sharing, loan payments).

• If the OFAC authorizes by general license direct equity investment in and direct financing to MSMEs in the Republic of Cuba and authorizes direct correspondent banking there will be robust activity in moving funds directly, efficiently, and transparently from the United States to the Republic of Cuba and moving funds directly, efficiently, and transparently from the Republic of Cuba to the United States.  

• The OFAC should continue for a limited time- through the issuance of regulations by the government of the Republic of Cuba, to require specific licenses for the delivery of direct equity investment and direct financing into MSMEs. 

With the 10 May 2022 license from the OFAC authorizing for the first-time direct equity investment in and direct financing to a MSME, the next logical decision by the Biden-Harris Administration is to authorize direct correspondent banking.  The decision requires a mechanism for operability- efficient direct banking. 

Elk Grove Village, Illinois-based First American Bank (2021 assets approximately US$5 billion) will soon obtain a correspondent account with Republic of Cuba government-operated Banco Internacional de Comercia SA (BICSA), a member of Republic of Cuba government-operated Grupo Nuevo Banca SA, created by Corporate Charter No. 49 in 1993 and commenced operation in 1994.  BICSA is not among the financial institutions included in the Cuba Restricted List (CRL) maintained by the United States Department of State. 

• Once First American Bank has the correspondent account with BICSA, First American Bank should immediately seek from the OFAC a license for BICSA to have a correspondent account with First American Bank.

Since the government of Cuba in July 2022 confirmed that direct equity investment and direct financing for MSMEs are authorized, a continued embrace of the non-sensical for the Biden-Harris Administration to continue to require funds moving from the Republic of Cuba to the United States move through financial institutions in third countries- where they then take a fee from every transaction, including fees from, for example, more than US$6.7 billion since December 2001 in payments by the government of the Republic of Cuba for agricultural commodities, food products, and healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals), and other products purchased from United States-based companies.  These transactions are authorized by the Trade Sanctions and Export Enhancement Act (TSREEA) of 2000, Cuban Democracy Act (CDA) of 1992, and OFAC and Bureau of Industry and Security (BIS) of the United States Department of Commerce regulations.  Funds from the United States to the Republic of Cuba have been required to endure the same costly and inefficient triangular payment process. 

Absent Direct Correspondent Banking, authorized transactions from the Republic of Cuba to the United States are less transparent and are multi-day rather than multi-hour and third parties earn unnecessary fees.

Direct Correspondent Banking

In June 2022, Elk Grove Village, Illinois-based First American Bank (2021 assets approximately US$5 billion) acquired the operating accounts (and Republic of Cuba-focused personnel) for the Embassy of the Republic of Cuba in Washington, DC, and the Permanent Mission of the Republic of Cuba to the United Nations in New York, New York.  In 2019, First American Bank acquired Miami, Florida-based Continental National Bank (2019 assets approximately US$490 million), the first Cuban-American-owned nationally-chartered financial institution in the United States. 

From 2017 to 2022, the accounts were managed by Conway, Arkansas-based Home BancShares (2021 assets approximately US$18 billion) through its subsidiary Centennial Bank (which operates seventy-eight branches in the State of Florida).  In 2017, Home BancShares acquired Pompano Beach, Florida-based Stonegate Bank (2017 assets approximately US$2.9 billion) which had managed the accounts since 2015.  In 2015, the Obama-Biden Administration authorized the OFAC to approve a correspondent account for Stonegate Bank with BICSA. 

Along with providing services to the embassy and mission, Stonegate Bank provided funds transfer services for OFAC-authorized and BIS-authorized transactions.  In 2015, Stonegate Bank acquired the accounts after Buffalo, New York-based M&T Bank Corporation (2021 assets approximately US$150 billion) decided to no longer diplomatic services due to challenges with regulatory compliance.

According to the Republic of Cuba, “Its [BICSA] main activity is ‘enterprises’ bank’ carried through its central services and five branches based in the country’s capital, Santiago de Cuba and Villa Clara. It records all transactions in real time providing its customers with card and remote banking services while it is working on developing other methods of electronic banking.  Its institutional clients, national or foreign, receive a complete accounting and documentary service, while national entities also enjoy of significant volumes of credit facilities. Practically all sectors of the economy benefit from all this, such as that of agriculture, the food industry, the basic and light industries, transportation, aviation, fishing, construction, domestic and foreign trade, the iron and steel industry, sugar, informatics, communications and others with not only economic importance but also social, such as health, water supply, education, culture and sports.  Credit policy followed by the Bank is dictated in a collegiate way by its Credit Committee on the basis of a strict analysis and control in loan making.  The Bank counts on correspondents in the five continents, the majority are first class banks, mainly Europeans and Americans.  Equity capital of shareholders (Grupo Nueva Banca with the biggest share and Banc holding), near the USD95 millions with a balance ranging from 550 to 600 millions, make sure the Bank has a strong solvency ratio.” 

Without explanation the Obama-Biden Administration did not authorize BICSA under a license from the OFAC to have an account at Stonegate Bank, so Stonegate Bank was required to route transactions for approximately eighty (80) customers on a regular basis through a third-country financial institution, selecting Panama City, Panama-based Multibank (2019 assets approximately US$5 billion) which had dealings with the Republic of Cuba. 

In 2020, Bogota, Colombia-based Grupo Aval (2020 assets approximately US$79 billion) reported that “On May 25th, Banco de Bogotá, through its subsidiary Leasing Bogotá S.A. Panamá, acquired 96.6% of the ordinary shares of Multi Financial Group. As part of the acquisition process, MFG’s operation in Cuba was closed and as part of the transaction. Grupo Aval complies with OFAC regulations and doesn't have transactional relationships with Cuba.” 

The Biden-Harris Administration has thus far refused to authorize direct correspondent banking despite its public statements, issued license, and implemented regulatory changes focusing upon support to the re-emerging private sector in the Republic of Cuba.      

There is no logic in approving the delivery of direct equity investments and direct financing when “direct” must be defined as moving through a third country.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Florida Governor DeSantis Opposes ESG "Woke Capital" As Discriminating Against Religious, Political Or Social Beliefs. Why Doesn't His Position Extend To Investment In Cuba's Private Companies?

The Herald-Tribune
Sarasota, Florida
29 July 2022
DeSantis targets investment strategy that emphasizes moral values
By Zac Anderson

Gov. Ron DeSantis is taking aim at a system that helps investors base business decisions on moral values, announcing plans Wednesday to push back against "woke" capital.  “We don’t want to see the economy further politicized," DeSantis said during a press conference in Tampa. 

The governor is targeting a system used to evaluate companies on environmental, social and governance (ESG) attributes. It seeks to limit investments in companies that some view as socially, environmentally or politically problematic, such as fossil fuel providers or gun companies. 

The governor said he plans to prohibit Florida's state pension system from employing ESG evaluations when deciding what companies to invest in.  “We also are gonna prohibit Wall Street banks, credit card companies and money transmitters like PayPal from discriminating against customers for their religious, political or social beliefs," DeSantis said. "They’re using things like social credit scores to be able to marginalize people they don’t like.” 

Some of the governor's plans can be accomplished through administrative actions, but he also is working on legislation to address these issues.  The governor's office elaborated on the proposed legislation in a press release, which states that DeSantis is seeking to "amend Florida’s Deceptive and Unfair Trade Practices statute to prohibit discriminatory practices by large financial institutions based on ESG social credit score metrics." 

"This 'ESG score' is a framework created to force companies to meet ESG standards and arbitrarily includes metrics based on political affiliation, religious beliefs, certain industry engagement, and ESG benchmarks. Violations will be considered deceptive, and unfair trade practices will be punished according to the law."  The governor was joined Wednesday by incoming Florida House Speaker Paul Renner, who said a global elite is "weaponizing American capitalism against us." 

"This is a pocketbook issue and we will not relent until we start dismantling this dangerous form of ESG," Renner said.  DeSantis Watch, a left-wing organization opposed to the governor, accused him of "doing the bidding of his large corporate donors and billionaire supporters." 

“Florida is ground zero for the climate crisis but once again Ron DeSantis lacks the courage to take any real action to protect the livelihoods of the people of our state,” DeSantis Watch Constituencies Director Natasha Sutherland said in a statement. “Today’s executive order doesn’t take on corporations, it does the bidding of the worst of them by refusing to address their environmental impacts, human rights records, or levels of corruption while the state invests our public tax dollars with them." 

LINKS To MSME Investment And Financing Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. Jul 21, 2022

The Ketchup Is Out Of The Bottle... Cuba Authorizes Direct Equity Investments (And Direct Financing) To Privately-Owned Companies. Now, Will Cuba Make The Regulations Realistic Or Full Of Barriers? Jul 22, 2022

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.”  Jul 21, 202

Electric Vehicles Are Useful For Cuba's Entrepreneurs- So Why Won't Biden Administration Authorize Their Export? Investments And Loans Are OK, So Should Be Efficient Vehicles. Jun 30, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022 

Why Was Cuba Not Included In 2022 U.S. Department Of State Investment Climate Report Despite U.S. Authorizing Private Sector Investment? Yesterday's Briefing Provides Further.... Confusion. July 29, 2022

Why Was Cuba Not Included In 2022 U.S. Department Of State Investment Climate Report Despite U.S. Authorizing Private Sector Investment? Yesterday's Briefing Provides Further.... Confusion.

United States Department of State
Washington DC
28 July 2022
Briefing With Ned Price, Spokesperson

MR PRICE: So you’re right that among the 160 or so economies included in these reports, Ukraine and Russia are not featured. We weren’t in a position to collect the appropriate data for Ukraine. And of course, Russia’s invasion of Ukraine has led to dramatic shifts in the marketplace conditions in Russia. It’s no secret – and you heard from the Secretary yesterday, in fact – that some 1,000 multinational companies have left the Russian marketplace. It’s a very quickly evolving set of market conditions, evolving in a way that is not conducive to business or international investments. So we were not in a position to write a country report for Russia.
QUESTION: And my first question on implications for the other regions, the South Caucasus – so how much do you think current ongoing Russian war is affecting the region, and how much is it reflected in this report?
MR PRICE: How much is reflected in this report?
QUESTION: In these reports that were released today, because they are 2022 reports.
MR PRICE: That’s right.
QUESTION: I’m just wondering how much do they reflect current, latest situation in the region.
MR PRICE: Well, again, our goal with engagement with the South Caucasus is to move forward towards that comprehensive peace that we’ve talked about. I’m not certain that Russia’s aggression against Ukraine – I think the reports will discuss if there’s any implication for market conditions in the South Caucasus, but would need to refer you to the reports for that.
QUESTION: Sorry, that question was about – I’m sorry, I was dealing with something else, but that question was about the Investment Climate Reports?
MR PRICE: Yes. Yeah.
QUESTION: Okay. Well, in fact, Russia and Ukraine are in the Investment Climate Reports. They are listed. I haven’t gone and read them in detail, but there are a number of countries that are left out. The state sponsors of terror, terrorism, for example, are not included – North Korea, Syria, Iran, and Cuba. But of those four countries, the administration has actually moved to try to open up at least limited investment in Cuba. So why aren’t they included? And I realize that you might not be the best – the most authoritative person to speak about this. It might be a –Commerce – but why wouldn’t they? Also, Venezuela is not included; neither is East Timor. Are they just – they’re not even worth putting out? And the other question I have about this is that – why are there two sections for China, one for China and one for Hong Kong? It’s my understanding that this administration, like the previous administration, essentially said that there’s no difference anymore.
MR PRICE: So I have to correct you. There is no report for Ukraine this year. There may be a placeholder for it, but there is no report for Ukraine this year.
QUESTION: Okay, I’m looking at it right now.
MR PRICE: And there’s no report for Russia either.
QUESTION: I’m looking at it right now.
MR PRICE: You may be looking at last year’s or previous years, but —
QUESTION: Ukraine, country commercial guide, on the Commerce – on the International Trade Administration Commerce website.
MR PRICE: You may be looking at something else, but there is no —
QUESTION: This is the link that was in the release.
MR PRICE: Your colleagues in the room have also pulled it up, so – but I can tell you there is no Ukraine country report or Russia country report this year. Regardless, in countries and economies where the situation on the ground makes gathering this information particularly difficult, we don’t publish these reports. Consistent with that, there is no Ukraine report this year. The – fully suspect when it comes to Ukraine that we will see reflected the brutal implications of Russia’s aggression in future reports. When it comes to specific countries, again, when conditions aren’t amenable to gathering this data, or in some cases given unique circumstances – inclusion on the SST may be one such consideration – reports aren’t compiled annually.

LINK TO RELATED POST

In May 2022, Biden Administration Authorized Direct Investment Into Privately-Owned Companies In Cuba. Today, State Department Publishes "Business Climates" In 160 Countries. Cuba Excluded. Unhelpful. Jul 28, 2022

In May 2022, Biden Administration Authorized Direct Investment Into Privately-Owned Companies In Cuba. Today, State Department Publishes "Business Climates" In 160 Countries. Cuba Excluded. Unhelpful.

“The U.S. Department of State’s Investment Climate Statements provide country-specific information on the business climates of more than 1​60 countries and economies. They are prepared by economic officers stationed in embassies and posts around the world and analyze a variety of economies that are or could be markets for U.S. businesses of all sizes.”  

United States Department of State
Washington DC
28 July 2022

2022 Investment Climate Statements

The Department of State released the 2022 Investment Climate Statements today.  The reports help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 160 countries and economies that are current or potential markets for U.S. companies.  The Investment Climate Statements also serve as references for partner governments seeking to mobilize high-quality, sustainable investments to facilitate their economies’ recovery from the pandemic.

Our overseas missions are working to address the barriers to U.S. investment highlighted by the Investment Climate Statements.  The reports cover topics including (but not limited to):  Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, Corruption, and Labor Policies and Practices.

The statements also assess how governments uphold international labor standards, combat corruption, implement policies to attract environmentally sustainable foreign direct investment, and encourage companies to practice responsible business conduct.  Readers can access points of contact within each U.S. mission for additional follow-up and consultation.

The Investment Climate Statements also form a chapter of the Department of Commerce’s Country Commercial Guides and can be read together with those guides for a broad description of the investment and business environments in foreign economies.  The Country Commercial Guides can be viewed at https://www.trade.gov/ccg-landing-page and the Investment Climate Statements at https://www.state.gov/investment-climate-statements/.

Global Overview 

The Investment Climate Statements address market conditions, including issues critical to maintaining high standards, such as labor protections, environmental considerations, and responsible business conduct.  Topics include:  Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, ​Green Investment and Environmental Policies, and Corruption. 

A welcoming investment climate can help attract high quality, durable investment and support global recovery from the COVID-19 pandemic.  The reports highlight those areas in which countries have improved local investment conditions, as well as remaining barriers that may hinder opportunities for U.S. companies. 

Our diplomatic and consular posts overseas are working with partner countries to address these barriers, creating opportunities for Americans and U.S. businesses at home and around the world.  Transparent and predictable business climates not only attract international investors, they also help spur domestic investment and are key to long-term economic growth and development.

The Investment Climate Statements also form a chapter of the Department of Commerce’s Country Commercial Guides  and can be read together with those guides for a broad description of the investment and business environments in foreign economies. 

The Country Commercial Guide’s are prepared annually for around 140 countries by Commerce’s Global Markets/U.S. & Foreign Commercial Service (GM/US&FCS) and State’s Partner Post Program.  The Country Commercial Guides incorporate input from other U.S. Government agencies. 

Topics include: a market overview; leading sectors for U.S. exports; customs, regulations and standards; techniques for selling U.S. products and services; and business travel. The section on selling U.S. goods and services includes country-specific information on distribution and sales channels, eCommerce, trade financing, selling to the public sector, and other selling techniques. 

The Country Commercial Guides provide the foundation for a U.S. company’s research in preparing international business plans or responding to overseas market opportunities. They are also used by individual U.S. companies that are exporting or planning to export, as well as by trade partners to provide export counseling, trade promotion, and export education. 

LINKS

https://www.state.gov/investment-climate-statements/
https://www.trade.gov/ccg-landing-page

LINKS To MSME Investment And Financing Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. Jul 21, 2022

The Ketchup Is Out Of The Bottle... Cuba Authorizes Direct Equity Investments (And Direct Financing) To Privately-Owned Companies. Now, Will Cuba Make The Regulations Realistic Or Full Of Barriers? Jul 22, 2022

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.”  Jul 21, 202

Electric Vehicles Are Useful For Cuba's Entrepreneurs- So Why Won't Biden Administration Authorize Their Export? Investments And Loans Are OK, So Should Be Efficient Vehicles. Jun 30, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022 

Increased Obstacles For Citizens Of Cuba To Visit Spain And Schengen Area In Europe

SchengenVisaInfo
Prishtina, Kosovo
27 July 2022

No Schengen Visa Appointments Available Until September, Spanish Consulate in Cuba Says 

The Consulate General of Spain in Havana, Cuba, has announced persons who wish to obtain a visa in order to be able to enter Spain will not be able to do so as there are no available appointments.  The Consulate said last week there are no appointments available until September, SchengenVisaInfo.com reports. 

“Schengen visa appointments (tourism) are sold out. Until September they will not be available again, which we will announce in due course,” Consulate General of Spain in Havana wrote on its official Twitter account.  This means that all citizens of Cuba who were planning to visit Spain during August will have to change their holiday plans.  In addition, the Consulate said there are no visa appointments for relatives of European Union citizens either. This group of applicants will have to wait until November. “Visa appointments for relatives of EU citizens are sold out until November,” the Consulate added.

It is believed that the Consulate does not have any available appointments for this month as the demand has increased significantly now that the COVID-19 restrictions have been facilitated in all countries.  A Schengen visa is a short-stay visa that permits an individual to travel to any Schengen Area country for stays of up to 90 days. The Schengen visa is needed by all nationals of third countries that have not reached a visa liberalisation agreement with the Schengen states. 

Persons planning to visit Spain for tourism purposes are advised to apply for a Spanish tourist visa. In order to successfully apply for a visa, all persons must complete the Spanish visa application form, take two passport photos, and hold a valid passport.  In addition, everyone must provide copies of all the pages of the passport, their previous visas, other valid or expired travel passports, and their pages.  Moreover, those planning to apply for a Spanish visa must hold travel insurance, a round-trip flight itinerary, proof of accommodation, proof of sufficient financial means, a cover letter, as well as proof of civil status.  Depending if the applicant is employed, retired, or a student, other documents are needed too. 

Previously, SchengenVisaInfo.com reported that apart from Spain, other Schengen countries also do not have appointments available until September.  Due to the high demand and the backlog, it has been revealed that everyone wishing to apply for a visa will have to wait until new appointments are made available in September. 

From The European Union (EU): “The border-free Schengen Area guarantees free movement to more than 400 million EU citizens, along with non-EU nationals living in the EU or visiting the EU as tourists, exchange students or for business purposes (anyone legally present in the EU). Free movement of persons enables every EU citizen to travel, work and live in an EU country without special formalities. Schengen underpins this freedom by enabling citizens to move around the Schengen Area without being subject to border checks.

Today, the Schengen Area encompasses most EU countries, except for Bulgaria, Croatia, Cyprus, Ireland and Romania. However, Bulgaria, Croatia and Romania are currently in the process of joining the Schengen Area and already applying the Schengen acquis to a large extent. Additionally, also the non-EU States Iceland, Norway, Switzerland and Liechtenstein have joined the Schengen Area.” LINK

Biden Administration Should Authorize (And Promote) Export Of Electric Vehicles (cars, motorcycles, scooters, bicycles) For Use By MSMEs In Cuba. If Embassies Can Purchase From U.S., Why Not MSMEs?

On 10 May 2022, the Biden-Harris Administration (2021- ) authorized the direct equity investment in and direct financing to a privately-owned company (micro, small, and medium-size enterprise (MSME)) located in the Republic of Cuba by a Republic of Cuba national. LINK: With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message (May 16, 2022)

What if an MSME in the delivery sector wants their investor in the United States to provide electric vehicles?

Electrek
Quebec, Canada
25 July 2022

Electric Motorcycles Are Taking Over The Streets Of Cuba

With rising fuel costs and shortages across Cuba, the island nation has turned to electric motorcycles en masse. Nowhere is that more apparent than on the streets of Havana.  The rise in electric motorcycle usage is largely thanks to government policy, which has regulated the pricing of electric motorcycles while placing limits on imports of gasoline-powered motorcycles. 

Due to pricing policy, electric motorcycles were cheaper than gasoline-powered motorcycles for years. Eventually the government outlawed the import of gasoline-powered motorcycles all together, leaving electric as the only option for new purchases.  Pricing regulation has kept them affordable for citizens and has helped the electric two-wheelers become a dominant form of transportation in the country. 

Estimates put the total number of electric motorcycles, locally referred to as motorinas, at around 300,000. To put that in comparison, there are around 500,000 cars registered in Cuba, according to ABC News.  The most popular format for electric motorcycles in Cuba is an electric scooter. These types of motorcycles provide extra utility with step-through frames that are also useful for carrying extra stuff, especially odd-shaped cargo. 

Almost all of the electric two-wheelers come from China and are imported through Panama. But a locally produced model known as the Minerva is said to be in the works at an old bicycle factory.

While electric motorcycles were already gaining in popularity in Cuba, the local fuel shortages have continued to push more citizens toward electric motorcycles instead of gas-powered cars. As local rider Alejandro Vasallo explained:  Fuel is a lost cause, you have to look for it and queue up. Right now having an electric motorcycle here is life itself. 

This isn’t the first time Cubans have turned to electric motorcycles during fuel shortages. Back in 2019 we reported on a similar scenario where fuel shortages and spiking gas prices sent riders onto the backs of electric motorcycles. But that time it was largely everyday citizens who were taking advantage of free electric motorcycle taxi rides.  The Cuban government called on private electric motorcycle owners to help and the riders answered the call, volunteering to ferry people around cities in an unofficial electric motorcycle taxi service. 

According to Javier Capote, one of the electric motorcycle drivers: We have volunteered to do this as a service to society. It is going very well. We are very happy about it. 

After the fuel shortage hit and the Cuban government saw the impact that electric motorcycles had for its citizens, price caps were set on electric motorcycles. That allowed them to be purchased for a maximum of $1,700 at the time and their popularity skyrocketed on the island nation.  Now they are turning into a dominant form of transportation, rivaling the number of cars on the streets in many areas of Havana. 

Electrek’s Take: This kind of seems like an inevitability to me. It’s where all cities should head, and in fact where many are already well on their way. Cuba just got an extra quick shove in the right direction thanks to the heavy hand of the Cuban government.  Cars don’t fit well in cities, period. Cities weren’t built for cars. That’s why most have almost nowhere to safely walk, since streets have had to expand to fill almost the entirety of spaces between buildings.  Smaller-format vehicles like electric motorcycles are simply the correct way to reduce the physical space demanded for driving and parking larger vehicles. They are less of a danger to pedestrians than 4,000-lb. vehicles and they don’t pollute the air we all share. Bicycles (and e-bikes) would also be a great solution and should be part of the mix, but electric motorcycles are more helpful for larger streets and roads where the speed of traffic is higher.  Hopefully, this ratio of electric motorcycles to cars expands to other Western countries as well. It’s about time.

Electric Motorcycles Flood Havana Amid Diesel Shortages
By Andrea Rodriguez

19 July 2022: HAVANA (AP)- The young people come and go on their electric motorcycles at this highway outside Cuba’s capital where they perform stunts and talk about their two-wheelers, which would be largely silent if it weren’t for the music blasting from speakers.  

Cuba has been flooded in recent years with “motorinas,” as the electric scooters are called on the island, which have been promoted by the government as efficient alternatives amid extreme gas and diesel shortages, and as a solution to the country’s transportation problems.  

Authorities permitted their importation last decade – Cubans cannot import motorcycles with gasoline or diesel engines – and since then about 300,000 of them have circulated on the island, said Col. Mario Ríos Labrada, head of vehicle registry at the National Transit Directorate. In comparison there are an estimated 500,000 cars.  The motorcycles can cost between $2,000 and $5,000. Many originate in China and are imported to Cuba through Panama. Cuban officials say a locally made electric motorcycle called the “Minerva” is being produced at an old bicycle manufacturing warehouse in Villa Clara. 

“There is an ‘outbreak’ of electric motorcycles, everyone likes them,” said Ernesto José Salazar, 20, who works in a paint shop. “We got to meet up with 200 motorcycles, honking and listening to music.”  Young riders organize through social networks and spend hours discussing the benefits of a battery or where to buy tires or find the best workshop.   

“Fuel is a lost cause, you have to look for it and queue up, right now having an electric motorcycle here is life itself,” said Alejandro Vasallo, 23.  Cuban drivers face shortages of fuel, especially diesel, which is also used to power the electricity generators that feed the nation’s power grid, which collapsed this summer. Oil shortages have been caused by difficulties in Venezuela – an ally and supplier of the island – and U.S. sanctions.  

Electric scooter drivers recharge the batteries through normal power sockets and are out of luck when the supply goes down.  Authorities in Cuba promote electric motorcycles as energy efficient and as an alternative to a public transportation system plagued shortages of parts to repair broken down buses and a lack fuel.  

“Electricity will always be cheaper than diesel fuel and gasoline, and in addition, electric motors are much more efficient than combustion engines, you can save up to 70% of the cost of fuel,” Ramsés Montes Calzadilla, strategy director of the Ministry of Energy and Mines, said in an interview with news website Cubadebate. 

Electric motorcycles are changing the urban landscape in Cuba and also creating challenges: the batteries tend to catch fire and their relative silence accompanied by driver inexperience is causing traffic accidents.  The latest figures available from the Fire Department indicated that in the first half of 2020 there were 263 fires from motorcycles with gel or lithium batteries, a notable increase compared to 208 for the entire year 2019. 

RideApart
Miami, Florida
27 July 2022

Cuba's Streets Are Bustling With Electric Scooters And Motorbikes
Unsurprisingly, electric scooters are providing Cubans with much-needed mobility.
By: Enrico Punsalang

Cuba is considered by some to be a living, breathing classic car museum, with a sizable chunk of the vehicles on the road there being from the period before the Cuban Revolution. That means 1950's Cadillacs, Chevrolets, Buicks, and Fords can be seen rolling the streets on a near daily basis. Meanwhile, other vehicles consist of then-Soviet made machines, or Poland-produced Fiats. That being said, Cuba is also fast becoming an EV-focused country.

By EV, I don't mean electric cars, but rather, electric scooters and small motorbikes. Unsurprisingly, for a country that has been struggling with acquiring a thoroughly modern form of personal mobility, the country is turning to electric two-wheelers, something that is fast becoming a universally accepted way of getting around, especially in Europe and Asia. While models from mainstream manufacturers aren't likely to hit the Cuban market anytime soon, this doesn't mean that innovation from within the country can't spark a change.

At present, Cuba looks to produce its own electric two-wheelers. The plan is to convert an old bicycle factory to mass produce affordable electric scooters. Indeed, this is no novel concept, and has seen success in certain African and Asian countries. What exactly the folks at Cuba have in store, however, is not known at the moment. Nevertheless, the development of Cuba's own electric scooters and motorbikes will certainly address the need of the local populace for personal mobility.

With cars in scarce supply and reserved only for the ultra wealthy, not to mention the supply issues when it comes to gasoline, electric two-wheelers in the Cuban setting simply make sense. At present, the electric scooter user base in Cuba is growing, and it's forecasted to continue doing so. With most of the electric scooters in the Cuban market coming from China via Panama, they undeniably serve as an attractive alternative to riding bicycles or simply walking. That said, the electric scooter boom in Cuba has provided such relief that the government has stepped in and decided to cap the cost of scooters to $1,700 to keep them accessible.

Links To Republic Of Cuba EV-Related Analyses 

BIS "Returned Without Action" License Application To Donate EV Chargers To U.S. Embassy In Havana Because "Ultimate Consignee" Cancelled Transaction March 07, 2022

From U.S. Department Of State: There Is A "lack of trained mechanics on the island to service electric vehicles." So, Who Are Servicing These Vehicles? Is The Video "Fake News" February 11, 2022

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? February 10, 2022 

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. February 08, 2022

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 

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  

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  

Cuba Has Nickel And Cobalt. Vehicle Electric Batteries Use Nickel And Cobalt. Cuba Should Benefit.  September 25, 2021  

Cuba Owes Partner Canada's Sherritt International Corporation Tens Of Millions Of US Dollars. But, Both Cuba & Patient Company (And Shareholders) Anticipate Profitable Role With Electric Vehicles.  July 03, 2021  

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

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

LINKS To MSME Investment And Financing Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. Jul 21, 2022

The Ketchup Is Out Of The Bottle... Cuba Authorizes Direct Equity Investments (And Direct Financing) To Privately-Owned Companies. Now, Will Cuba Make The Regulations Realistic Or Full Of Barriers? Jul 22, 2022

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.”  Jul 21, 202

Electric Vehicles Are Useful For Cuba's Entrepreneurs- So Why Won't Biden Administration Authorize Their Export? Investments And Loans Are OK, So Should Be Efficient Vehicles. Jun 30, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022

Despite No Entrepreneurial Experience, Florida Governor Ron DeSantis Excoriates Government Of Cuba For Further Creating Space For The Re-Emerging Private Sector, For Entrepreneurs.

Florida Governor Ron DeSantis Excoriates Government Of Cuba For Further Creating Space For The Re-Emerging Private Sector, For Entrepreneurs. 

Owners Of Restaurants, Airbnb Properties, Vehicle Repair, Internet Application Developers, Confection Makers, Fashion Designers… All Vessels Of Government.  None Are Real Entrepreneurs.  

The government of the Republic of Cuba (population approximately 11.3 million) reported as of 30 June 2022 there were 3,991 “private and fifty-one state MSME’s [micro, small, medium-size enterprises], as well as fifty-five non-agricultural cooperatives (CNA), which have generated more than 70,514 new jobs.”  20 September 2022 is the deadline for the “transition process of self-employed workers, with more than three contracted employees, towards a legal form, either Mipyme [Micro Peque as Y Medianas Empresas] or CNA.”  The creation of the Limited Liability Company (LLC) was authorized in 2021 for privately-owned companies. 

On 10 May 2022, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, issued the first license authorizing a direct equity investment in and direct financing to a privately-owned company located in the Republic of Cuba and owned by a Republic of Cuba national. 

Ron DeSantis, the 46th Governor of the State of Florida (population approximately 22 million) has no private-sector experience.  No entrepreneurial experience- nothing in the public domain about his trying to start a business, succeeding, failing, etc.  His livelihood has been provided by taxpayers (United States Department of Defense, United States Department of Justice, State of Florida). 

Disappointing then for him to opine on 22 July 2022 in a media release as to what is an entrepreneur, how an entrepreneur operates, and how an entrepreneur in the Republic of Cuba might use (or be prevented from using) and benefit (or not) from direct equity investment and direct provision of financing that originates from the United States- quite likely by individuals of Cuban descent residing in the State of Florida, particularly in and surrounding the cities of Coral Gables, Miami, and Tampa, and less so from the State of New Jersey.  Governor DeSantis knows: 

• The majority of remittances to the Republic of Cuba originate in the State of Florida (approximately 1.5 million residents of Cuban descent according to 2020 Census);  

• The majority of regularly-scheduled and charter flights to the Republic of Cuba originate in the State of Florida;  

• The majority, though not all, of inputs used by MSMEs in the Republic of Cuba originate in the State of Florida;  

• The majority of letters and packages to the Republic of Cuba originate in the State of Florida;  

• The majority (overwhelmingly so) of unauthorized direct equity investment and direct financing for MSMEs in the Republic of Cuba originate in the State of Florida and do so from individuals of Cuban descent. 

Particularly odd that Governor DeSantis is embracing a position that would require disinvestment by individuals who are certainly registered voters (and perhaps support the governor) in the State of Florida.  These individuals have since 1993 (first self-employed re-authorized in the Republic of Cuba; restaurants, etc.) and then again since 2015 (first Airbnb operating in the Republic of Cuba) been the source of substantial, and unauthorized investment to MSMEs located in the Republic of Cuba.   

Far more useful from Governor DeSantis, rather than parroting the writer(s) of editorials published by The Wall Street Journal (19 May 2022) and The Washington Times (25 May 2022), would have been to publish recommendations for the government of the Republic of Cuba. 

His advice could have been constructive- “My message to the Diaz-Canel-Valdes Mesa Administration in Havana is if Cuba wants a private sector, and I am not convinced they do, its more of a prop for them, but if they do, then the process for receiving direct equity investment and direct financing from the private sector in the United States- individuals and companies, must be transparent, must be simple to understand, must be equal for everyone, and taxes and fees must be fair so as to permit profits to be reinvested, to be repatriated, and to benefit first MSME owners and their employees rather than further support misguided decisions of the government.  The State of Florida is a magnet for entrepreneurs- Cuba should follow our example.” 

These “best practices” recommendations could have focused process, regulations that the government of the Republic of Cuba will publish as to how MSMEs will receive direct equity investments and direct financing.  He could have advocated that:   

• The government of the Republic of Cuba to publish quickly transparent and workable regulations for the delivery of direct equity investment in and direct financing to privately-owned companies owned by Republic of Cuba nationals and located in the Republic of Cuba.  

• There must be one regulation, one process for all privately-owned companies.   

• There must be no discrimination by the government of the Republic of Cuba in terms of restricting/prohibiting the receipt by a MSME of direct equity investment and direct financing because the MSME is or may compete with a Republic of Cuba government-operated company. 

• There must be no limitation as to the amount of a direct equity investment and direct financing. 

• There must be no number of employee requirement for a privately-owned company to receive direct equity investment and direct financing. 

• There must be no discrimination by the government of the Republic of Cuba in terms of fees, taxes, and other payments towards MSMEs versus Republic of Cuba government-operated companies. 

• There must be transparency- all transactions must be delivered through financial institutions with a preference for the Biden-Harris Administration (2021- ) to direct the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to authorize direct correspondent banking so that funds may move directly, efficiently, and transparently from the United States to the Republic of Cuba (delivery of direct equity investment and direct financing) and from the Republic of Cuba to the United States (receipt of dividends, profit-sharing, loan payments).  

• The OFAC should continue to require licenses for the delivery of direct equity investment into a privately-owned company.

Governor Ron DeSantis Denounces the Cuban Regime’s Attempts to Steal from Americans with Deceitful Foreign Investment Policies

“22 July 2022: TALLAHASSEE, Fla. — Today, Governor Ron DeSantis directed the Florida Department of Economic Opportunity and Enterprise Florida to issue an alert warning Floridians not to let the communist Cuban regime steal their money through a recent scheme seeking to attract foreign investment for the “non-state sector.” Over the past year and a half, the Biden administration has rolled back American sanctions on Cuba and has failed to assist the Cuban people in their fight for freedom. This has emboldened the racketeers who run the Cuban regime to launch a kleptocratic scheme claiming that they will welcome American investment in the island’s supposed private sector, but foreign investment is meaningless when there are no property rights for Cuban citizens and when the Cuban government will limit which ostensibly private businesses will be allowed to receive foreign funds.  

Cuban citizens have no means to leverage investments to elevate their circumstances, and all Floridians who might be considering “investing” in Cuba’s “private sector” should be aware that their money will inevitably end up in the pockets of Raúl Castro, Miguel Díaz-Canel, and the rest of the Cuban mafia who will use that cash to continue to enrich themselves, impoverish their people, and further destabilize the Western Hemisphere. 

“One year ago we witnessed the largest demonstrations in decades against the Cuban regime in cities and towns across the island. With some additional pressure from our federal government, those protests may well have marked the downfall of the communist regime,” said Governor Ron DeSantis. “Unfortunately, the Biden administration stood idly by as the people of Cuba cried out for freedom, refusing even to authorize the provision of satellite internet by American companies. The weak policies of this administration have led the regime to attempt to perpetrate a financial fraud against the American people under the guise of private investment opportunities. Only when Cuba allows free elections, stops jailing people in the middle of the night for simply saying they want human rights, and ensures private property rights for its citizens should the American people feel confident that money sent across the straits will truly benefit the Cuban people and not the racketeers who run their regime like a mafia.” 

“The same regime that robbed Cubans, like my parents, of their livelihoods is now desperately begging Americans to ‘invest’ in the island,” said Lieutenant Governor Jeanette Nuñez. “This scheme is nothing more than a scam that fools only the sympathizers in the Biden administration.”  

It has been over one year since the people of Cuba began their demonstrations for libertad last summer. Governor DeSantis has been steadfast in his support of those who sought and continue to seek the downfall of the communist regime. In an effort to fill the vacuum left by the Biden administration’s tacit support for the Cuban government, Governor DeSantis held a roundtable at the American Museum of the Cuban Diaspora where he spoke about the importance of ensuring continued internet access for the people of Cuba; sent a letter to President Joe Biden urging the federal government to provide internet access into Cuba remotely to support those demanding freedom from the repressive communist government; spoke at a press conference at Congresswoman Maria Salazar’s Miami district office; met with Federal Communications Commissioner Brendan Carr; and held a townhall event at the Versailles restaurant where he and Senator Marco Rubio discussed their efforts to get the Biden administration, whose Cuba policy team is staffed with regime sympathizers, out of the way of the Floridian and American innovators and entrepreneurs who wanted to further the cause of freedom for Cuba. 

Governor DeSantis has also met repeatedly with Floridians from Venezuela, Colombia, and Nicaragua to discuss the destabilizing effects of the Cuban regime’s efforts to propagate its cruel ideology and despotic form of government in those countries and throughout the region. Most recently, Governor DeSantis condemned the spread of left-wing totalitarian ideology in the Western Hemisphere following the results of the Colombian election, lambasted the Biden administration’s recent attempts to legitimize the brutal Maduro regime in Venezuela, and called out the Iranian regime’s nefarious activities in South America. 

Governor DeSantis understands that almost all instability in the Western Hemisphere can be traced back to the Cuban regime and has previously said, “If you want to have a good Western Hemisphere and not have all of these problems in places like Venezuela and Nicaragua, then you should want to see a change in the regime in Havana because Havana has for decades spawned all kinds of disruptions and oppressions throughout the Western Hemisphere.” 

The Governor has also spoken about the broader geopolitical implications of having a hostile regime ninety miles off of Florida’s coast, saying, “A free Cuba would be in the interests of the United States of America. If you want influence of the Communist Party of China and Russia in the Western Hemisphere, then support the regime in Havana because every nefarious influence around the world comes through there. If you don’t want Chinese influence and you don’t want Russian influence, then you should want a free Cuba.” 

Governor DeSantis will continue to support the cause of freedom in Cuba, Venezuela, Nicaragua, Colombia, and throughout Latin America. Florida is proud to be an oasis of freedom and welcomes those who come here legally to escape oppression, but just as Americans shouldn’t have to flee lockdown states to enjoy their God-given liberties in the Sunshine State, so too should the people of Latin American not have to flee their homelands to escape the Cuban government or the instability it foments in our hemisphere. Floridians should not be tricked into funding the regime in Havana under the guise of foreign investment.”

Advisory: Florida Warns Against Tyrannical Cuban Regime’s Deceptive Call for Foreign Private-Sector Investments in the Communist State

Florida Department of Economic Opportunity and Enterprise Florida Issue Joint Advisory 

“22 July 2022: TALLAHASSEE, Fla. – Today, the Florida Department of Economic Opportunity and Enterprise Florida issued an advisory warning Floridians and potential foreign investors against the Cuban regime’s recent deceptive authorization allowing foreign investments in private businesses in Cuba to boost the country’s economic recovery. 

“Failed policies of the Biden administration have opened the door to this attempted scam, but in Florida, we are all too familiar with these communist antics,” said Florida Department of Economic Opportunity Secretary Dane Eagle. “Floridians and potential investors need to be warned that any investments with Cuba will go straight into the pockets of Cuba’s mafia dictators. Cuban citizens have no means to leverage private business investments to elevate their circumstances and there are no property rights for Cuban citizens. Under the leadership of Governor DeSantis, we will not enable Cuban racketeers getting richer while further oppressing the Cuban people yearning for freedom.” 

"There is no such thing as foreign investment in Cuba as bringing cash into the country only lines the pockets of corrupt regime officials,” said TJ Villamil, Senior Vice President of International Trade & Development at Enterprise Florida. “Florida businesses seeking to 'invest' in Cuba should know that their money will be stolen and used to support an authoritarian regime notorious for abusing human rights. We strongly discourage any firm conducting business in Cuba."  

The regime in Cuba is responsible for the destruction of one of the most prosperous countries in Latin America and destabilizing other states including Venezuela and Colombia. All data facts and figures coming out of Cuba should be questioned as the regime hides real information and real insights, hiding how poorly the economy is performing. 

As of the 2020 5-year American Community Survey estimates from the U.S. census bureau, over 1.5 million people of Cuban origin live in Florida, more than half of the total Cuban population in the United States. Approximately 1,022,706 Floridians were born in Cuba, out of 1,345,690 nationwide.

About DEO 

The Florida Department of Economic Opportunity combines the state’s economic, workforce and community development efforts, expediting economic development projects to fuel job creation in competitive communities and promote economic resiliency. For more information, including valuable resources for employers and job seekers, please visit www.FloridaJobs.org.”

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

LINKS To Related Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. Jul 21, 2022

The Ketchup Is Out Of The Bottle... Cuba Authorizes Direct Equity Investments (And Direct Financing) To Privately-Owned Companies. Now, Will Cuba Make The Regulations Realistic Or Full Of Barriers? Jul 22, 2022

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.”  Jul 21, 202

Electric Vehicles Are Useful For Cuba's Entrepreneurs- So Why Won't Biden Administration Authorize Their Export? Investments And Loans Are OK, So Should Be Efficient Vehicles. Jun 30, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022

The Ketchup Is Out Of The Bottle... Cuba Authorizes Direct Equity Investments (And Direct Financing) To Privately-Owned Companies. Now, Will Cuba Make The Regulations Realistic Or Full Of Barriers?

Miami Herald
Miami, Florida
21 July 2022

Cuba to allow foreigners to invest in private businesses, will restart dollar exchanges
By Nora Gámez Torres

Facing a humanitarian crisis that threatens to set off new protests on the island, the Cuban government is taking the unprecedented step of authorizing foreign investment in its emerging private sector and will resume an official exchange market for the dollar, among 75 measures authorities said Thursday are meant to boost the country’s economic recovery.

In a National Assembly meeting Thursday, Economy Minister and Vice President Alejandro Gil said Cuba’s economy is recovering more slowly than it needs to and that authorities will prioritize attracting foreign investment and channeling the money reaching the country through tourists and foreign remittances.

“We are authorizing foreign investment in the non-state sector,” Gil said. The government will set priorities and limit which private businesses will be allowed to receive foreign investment. Cuba passed new laws last year allowing the creation of small and medium-sized private businesses for the first time in decades.  But it was unclear if those businesses would be able to partner with foreign investors or receive financing from abroad.

In May, the Biden administration authorized an American company to finance and invest in a private business in Cuba. But it was not known if the Cuban government would allow it.

That license was a catalyst for Thursday’s announcement, said John Kavulich, the president of the U.S.-Cuba Trade and Economic Council, who heads the U.S. company that received the authorization in May. “There was never a doubt that the government of Cuba would authorize direct equity investments and direct financing for privately owned companies located in Cuba,” he said. “The government is in desperate need of the economic activity, the jobs, the creativity, the efficiencies that are the hallmark of a robust private sector.”

Gil also also announced that Cubans and tourists on the island would be able to again exchange dollars in an official market that was shut down during the pandemic, as the economy sank and the cash-strapped government was unable to sell dollars to the population. As a result, many Cubans and international travelers ended up exchanging foreign currency, including euros and other currencies, on the black market.

Gil did not say when the service would resume nor the rates. Currently, a dollar sells for 120 Cuban pesos, the local currency, on the black market. But the government sets an official exchange rate for state enterprises at 24 pesos for a dollar. The minister said the new rate will be “different” from the official one because it needed to be grounded on “economic foundations,” all but acknowledging the current rate made little economic sense, as many economists have said. It is not known if the reopening of the exchange houses will mean that Cubans will be able to use dollars again to buy at government stores

The government will also lift limits on certain goods travelers can import, such as cellphones and computers; slash custom fees from the current 100 percent to 30 percent on taxable goods imported by travelers, and cut in half the price of international parcels. The minister defended the measures, saying they are all in tune with the socialist economic model and had been thoroughly studied. He said none of the announcements would have an immediate impact, but he was adamant that the country needed cash to address people’s needs quickly. “Everything that goes against or does not favor the capture of foreign currency and the increase in supply is not going in the direction in which we have to work, and everything that we do in that direction — not without risk — is going in a positive direction,” he said.

LINKS To Related Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It. Jul 21, 2022

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.” Jul 21, 2022

Electric Vehicles Are Useful For Cuba's Entrepreneurs- So Why Won't Biden Administration Authorize Their Export? Investments And Loans Are OK, So Should Be Efficient Vehicles. Jun 30, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It.

First Cuban-American-Owned Nationally-Chartered Bank In The United States, Now Owned by First American Bank, Handling Cuba Embassy/UN Mission Transactions. They Do Not Want To Talk About It.

Cuban-American Connectivity Should Be Jumper Cable For Supporting Entrepreneurs In Cuba.

Arkansas-Based Home BancShares Ends Seven-Year Cuba Connection.
Illinois-Based First American Bank Using Its Owned Former Continental National Bank.
Home BancShares Not Commenting, No Public Filing, No Media Release.
First American Bank Not Commenting, No Public Filing, No Media Release.
Will First American Bank Seek A Correspondent Account With BICSA? Does It Have It?

In June 2022, Chicago, Illinois-based Chicago, Illinois-based First American Bank (2021 assets approximately US$5 billion) acquired the operating accounts (and Republic of Cuba-focused branch personnel) for the Embassy of the Republic of Cuba in Washington, DC, and the Permanent Mission of the Republic of Cuba to the United Nations in New York, New York, from Conway, Arkansas-based Home BancShares (2021 assets approximately US$18 billion) through its subsidiary Centennial Bank (which operates 78 branches in the State of Florida).   

In 2017, Home BancShares acquired Pompano Beach, Florida-based Stonegate Bank (2017 assets approximately US$2.9 billion) which had managed previously both accounts.  Stonegate Bank operations were absorbed into Centennial Bank.  In 2015, Stonegate Bank acquired the accounts after Buffalo, New York-based M&T Bank Corporation (2021 assets approximately US$150 billion) notified the embassy and mission that it would no longer provide services due to challenges with regulatory compliance for many accounts with embassies and missions. 

Although First American Bank has retained personnel from Centennial Bank who had managed the Republic of Cuba portfolio, First American Bank has not confirmed a) if Centennial Bank transferred its correspondent account with Republic of Cuba government-operated Banco Internacional de Comercia SA (BICSA) to First American Bank b) if First American Bank has obtained a separate correspondent account, or c) if First American Bank is managing fund transfers for authorized transactions (agricultural commodities, food products, healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals, informational materials, travel, remittances, entrepreneurial support, etc.).  

In May 2022, the Biden-Harris Administration (2021- ) announced two decisions that materially connected their actions with previous rhetoric and for which banking is an integral component.  First, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued a license authorizing the first direct equity investment in and the first direct financing to a privately-owned company located in the Republic of Cuba.  Second, the OFAC added opportunities and amended existing regulations that further provided mechanisms for engagement with privately-held companies located in the Republic of Cuba.  Both decisions require a common mechanism for operability- banking. 

With the Cuban-American roots (Miami, Florida-based Continental National Bank; 2019 assets approximately US$490 million) of First American Bank operations located in the State of Florida, there might now be expanded interest and comfort for individuals of Cuban descent residing in the State of Florida to engage with entrepreneurs residing in the Republic of Cuba. 

If the OFAC were to authorize by general license direct equity investment in and direct financing to privately-owned companies located in the Republic of Cuba, and if First American Bank was to have a Direct Correspondent Banking relationship with a financial institution(s) located in the Republic of Cuba, then likely would be a robust activity in moving funds directly, efficiently, and transparently from the United States to the Republic of Cuba and moving funds directly, efficiently, and transparently from the Republic of Cuba to the United States.    

History 

In 2015, during the Obama-Biden Administration (2009-2017), Stonegate Bank was approved by the OFAC to provide commercial operating accounts for the Embassy of the Republic of Cuba in Washington, DC, and the Permanent Mission of the Republic of Cuba to the United Nations in New York City, New York, after M&T Bank Corporation ceased doing so; and provide other types of OFAC-authorized and Bureau of Industry and Security (BIS) of the United States Department of Commerce-authorized transactions.   

Stonegate Bank also was approved by the OFAC to establish a correspondent account with BICSA, a member of Republic of Cuba government-operated Grupo Nuevo Banca SA, created by Corporate Charter No. 49 in 1993 and commenced operation in 1994.   

According to the Republic of Cuba, “Its [BICSA] main activity is ‘enterprises’ bank’ carried through its central services and five branches based in the country’s capital, Santiago de Cuba and Villa Clara. It records all transactions in real time providing its customers with card and remote banking services while it is working on developing other methods of electronic banking.  Its institutional clients, national or foreign, receive a complete accounting and documentary service, while national entities also enjoy of significant volumes of credit facilities. Practically all sectors of the economy benefit from all this, such as that of agriculture, the food industry, the basic and light industries, transportation, aviation, fishing, construction, domestic and foreign trade, the iron and steel industry, sugar, informatics, communications and others with not only economic importance but also social, such as health, water supply, education, culture and sports.  Credit policy followed by the Bank is dictated in a collegiate way by its Credit Committee on the basis of a strict analysis and control in loan making.  The Bank counts on correspondents in the five continents, the majority are first class banks, mainly Europeans and Americans.  Equity capital of shareholders (Grupo Nueva Banca with the biggest share and Banc holding), near the USD95 millions with a balance ranging from 550 to 600 millions, make sure the Bank has a strong solvency ratio.”  

Without explanation the Obama-Biden Administration did not authorize BICSA under a license from the OFAC to have an account at Stonegate Bank, so Stonegate Bank was required to route transactions for approximately eighty (80) customers on a regular basis through a third-country financial institution, selecting Panama City, Panama-based Multibank (2019 assets approximately US$5 billion) which had dealings with the Republic of Cuba.   

Absent Direct Correspondent Banking, authorized transactions from the Republic of Cuba to the United States are multi-day rather than less than multi-hour and third parties earn unnecessary fees.  Since December 2001, approximately US$6.7 billion has been transferred from the Republic of Cuba to the United States through third country financial institutions who receive a fee for every transaction relating to the export from the United States of statutorily-authorized agricultural commodities, food products, healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals), and other products.  The Biden-Harris Administration (2021- ) has thus far refused to authorize Direct Correspondent Banking despite its public statements, issued license, and implemented regulatory changes focusing upon support to the re-emerging private sector in the Republic of Cuba.      

In 2017, Home BancShares through its subsidiary Centennial Bank acquired Stonegate Bank.  “Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama, Texas, and New York City, with branches in Texas operating as Happy State Bank, a division of Centennial Bank. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.”” 

In 2020, Bogota, Colombia-based Grupo Aval (2020 assets approximately US$79 billion) reported that “On May 25th, Banco de Bogotá, through its subsidiary Leasing Bogotá S.A. Panamá, acquired 96.6% of the ordinary shares of Multi Financial Group. As part of the acquisition process, MFG’s operation in Cuba was closed and as part of the transaction. Grupo Aval complies with OFAC regulations and doesn't have transactional relationships with Cuba.”  

24 October 2019 Media Release From First American Bank (Coral Gables, Florida): [Chicago, Illinois-based] First American Bank – a privately held, $5+ billion, full-service bank – [with sixty-one locations in Illinois, South Florida, Wisconsin] announced that Continental National Bank is now officially part of the First American Bank family. The acquisition of Miami’s first Cuban American-owned community bank was recently finalized following regulatory approvals. This strategic partnership enhances the suite of products the $457 million Continental National Bank has offered to its customers throughout greater Miami-Dade for the past 40 years while also expanding First American Bank’s presence in South Florida.  “We are proud to announce our new partnership with Continental National Bank as we continue to expand our footprint in the South Florida market,” said Thomas E. Wells, CEO, and chairman of First American Bank. “The addition of the Continental National branches brings First American’s branch count to 58 – strengthening our overall presence in South Florida. We are looking forward to welcoming our new customers and providing quality, tailored services that will help them meet their financial goals.” 

Founded by Carlos Dascal in 1974 just 14 years after fleeing Cuba, Continental National Bank is a family-owned financial institution that has served the Miami community for more than four decades with an array of financial and lending products and services. Since its first location in Miami's historic Little Havana neighborhood, the bank grew to five branches located throughout Miami-Dade.  Guillermo Diaz-Rousselot, former president of Continental National Bank, will continue in his leadership role –as Miami Market President for First American Bank.  “We are proud to be part of the First American Bank family and are confident our client base will benefit from this partnership, as we enhance the expertise and suite of products we offer,” said Diaz-Rousselot. “We believe that the values of Continental National Bank directly align with those of First American and our clients can expect the same warm welcomes and personalized service when they visit any of our locations.”  Since entering the South Florida market in 2014 with the acquisition of The Bank of Coral Gables, First American Bank has flourished.  The bank recently opened a Tampa office to serve Wealth Management and commercial loan clients in that market as well. 

15 May 2019 Media Release From First American Bank (Coral Gables, Florida): First American Bank – a privately held, full-service bank with more than $5 billion in assets – today announced that subject to regulatory approvals, it has agreed to acquire Continental National Bank, Miami's first Cuban-American owned national bank with $490 million in assets. Through this strategic partnership, First American Bank will further enhance the product offerings and personalized service Continental National Bank has offered to customers throughout greater Miami-Dade.  “We are proud to announce our new partnership with Continental National Bank as we work to expand our footprint in the South Florida market,” said Thomas Wells, CEO of First American Bank. “As a bank that has been in business for more than 40 years, this acquisition will allow us to bring more sophisticated lending products to the vibrant Hispanic exile business community that Continental National Bank has served since 1974, and we look forward to adding new tools, services, and much larger lending limits to better meet the needs of this thriving client base.” 

First American Bank, an Illinois-chartered bank with 53 locations in Illinois, Wisconsin, and Florida, specializes in a broad array of business lending including SBA export finance programs, wealth management, pension and 401(k) planning, and a variety of personal banking services. Since entering the South Florida market in 2014 with the acquisition of The Bank of Coral Gables, the company has continued to flourish under the leadership of Florida Market President Brian Hagan – serving privately held small and middle market businesses while staying true to its family-owned Midwest roots. 

Jacqueline Dascal-Chariff, Chairman of Continental National Bank, stated, “There are many synergies between our two organizations, including our shared culture of client-focused relationship banking. This transaction will allow us to maintain our business culture, while still emphasizing our ability to seek practical solutions for our community and our customer’s needs. This has been at the core of what the Continental Bank legacy has been for over 40 years.”  Founded by Carlos Dascal in 1974, Continental National Bank is an award-winning and trusted financial institution that has serviced the local community for more than four decades with an array of financial and lending products and services. Since starting with its first location in Miami's historic Little Havana neighborhood, the bank has grown to five branches located in the Doral, Hialeah, Sweetwater, and Downtown Miami areas.  Guillermo Diaz-Rousselot, President of Continental National Bank, said, “This merger will provide our customers, employees, and community the benefits of scale allowing us to expand our products and services that a large multimarket community bank, like First American, can provide. We look forward to building on the solid foundations both banks have achieved. Together, we can continue to better serve the growing demands of our client base, its individuals and businesses.” 

ABOUT FIRST AMERICAN BANK: For more than 40 years, First American Bank has been focusing on building long-term relationships with customers through high-quality solutions and exceptional customer service. With services ranging from personal products to commercial banking and wealth management, and assets of more than $5 billion, First American Bank is the largest privately-held bank in Illinois with 53 locations in Illinois, Wisconsin and South Florida. First American Bank’s size and management philosophy allow the bank to offer clients top-tier financial services tailor-made to support each customer’s goals and potential for growth. First American Bank is a Member FDIC bank. 

ABOUT CONTINENTAL NATIONAL BANK: Continental National Bank is a full-service community bank established in 1974 in Miami as the first Cuban-American-chartered national bank in the United States, serving its customers for more than 45 years. With five branches conveniently located throughout Miami-Dade County, and with more than $490 million in assets, Continental National Bank has been recognized as a top community bank. The Bank offers a full range of financial and lending products and services for retail, business, and institutional clients. 

Home BancShares
Conway, Arkansas
SEC 10-Q
31 March 2022

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

risks associated with our customer relationship with the Cuban Embassy and our correspondent banking relationship with Banco Internacional de Comercio, S.A. (BICSA), a Cuban commercial bank; 

Home BancShares
Conway, Arkansas
SEC 10-K
24 February 2022

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward- looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following: risks associated with our customer relationship with the Cuban Embassy and our correspondent banking relationship with Banco Internacional de Comercio, S.A. (BICSA), a Cuban commercial bank; 

Our banking relationships with the Cuban Embassy and Banco Internacional de Comercia, S.A. (“BICSA”) may increase our compliance risk and compliance costs. 

U.S. persons, including U.S. banks, are restricted in their ability to establish relationships and engage in transactions with Cuba and Cuban persons pursuant to the existing U.S. embargo and the Cuban Assets Control Regulations. However, as a result of our acquisition of Stonegate Bank in 2017, we maintain a customer relationship to handle the accounts for Cuba’s diplomatic missions at the United Nations and for the Cuban Interests Section (now the Cuban Embassy) in Washington, D.C. This relationship was established in May 2015 pursuant to a special license granted to Stonegate Bank by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) in connection with the reestablishment of diplomatic relations between the U.S. and Cuba. In July 2015, Stonegate Bank established a correspondent banking relationship with Banco Internacional de Comercio, S.A. (“BICSA”) in Havana, Cuba. 

Cross-border correspondent banking relationships pose unique risks because they create situations in which a U.S. financial institution will be handling funds from a foreign financial institution whose customers may not be transparent to the U.S. financial institution. Moreover, Cuban financial institutions are not subject to the same or similar regulatory guidelines as U.S. banks; therefore, these foreign institutions may pose a higher money laundering risk to their respective U.S. bank correspondent(s). Investigations have determined that, in the past, foreign correspondent accounts have been used by drug traffickers and other criminal elements to launder funds. Shell companies are sometimes used in the layering process to hide the true ownership of accounts at foreign correspondent financial institutions. Because of the large amount of funds, multiple transactions, and the U.S. bank’s potential lack of familiarity with a foreign correspondent financial institution’s customer, criminals and terrorists can more easily conceal the source and use of illicit funds. Consequently, we may have a higher risk of noncompliance with the Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) rules due to our correspondent banking relationship with BICSA and will likely need to more closely monitor transactions related to correspondent accounts in Cuba, potentially resulting in increased compliance costs. Our failure to strictly adhere to the terms and requirements of our OFAC license or our failure to adequately manage our BSA/AML compliance risk in light of our correspondent banking relationship with BICSA could result in regulatory or other actions being taken against us, which could significantly increase our compliance costs and materially and adversely affect our results of operations. 

LINKS To Related Posts: 

Grupo Aval In Colombia Purchases Multibank In Panama Ending Cuba Transactions For Home BancShares In Arkansas  June 20, 2020 

Commenced In 2016, Stonegate Bank's MasterCard Products Will No Longer Be Valid In Cuba As Of March 2019  February 14, 2019 

Remittances To Cuba Mentioned 16 Times In 14 Pages Of New OFAC Regulations: Biden, Blinken, Sullivan, Nichols, Gonzalez, Yellen Defend 3rd-Country Banks Taking Percentage Of Every Dollar To/From Cuba  June 13, 2022

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Slow As Pouring Heinz Ketchup, But Coming: “…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.”

“…the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin.” 

Prensa Latina
Havana, Republic of Cuba
20 July 2022

Cuba Updates Policies for Foreign Investment

Cuba updates policies for foreign investment in search of eliminating obstacles that limit access to foreign financing, vital for the performance of the economy, explained today the minister of the branch, Rodrigo Malmierca.

The head of Foreign Trade and Foreign Investment detailed to the deputies of the Economic Affairs Commission of the National Assembly of People's Power (parliament) the actions implemented after the body's accountability to the legislature, last December. In this sense, he pointed out that the efforts have been aimed at solving the difficulties inherent in the preparation of officials to face these processes, the quality of the negotiations and the agility in carrying out the procedures and everything related to the implementation of the investments.

Malmierca specified that in the first half of this year nine businesses with foreign capital were approved, one of them in the Mariel Special Development Zone (ZEDM). They are mostly small, with a capital of around 20 million dollars, the minister pointed out, adding that they correspond to the priorities of the Caribbean nation: food production, mining, industry, wholesale trade, construction, computing and telecommunications, and biotechnology.

The inclusion of projects with low investment amounts within the country's portfolio of opportunities is one of the lines of action on which we continue to work, said Malmierca, who recalled that the aspiration is to do business that contributes to municipal development. Specifically within the elements that are updated in the investment policy with foreign capital, he commented that they value the granting of sovereign guarantees for certain agreements that are of high interest to the nation.

Currently those who bet on Cuba do so at risk, but there are businesses that are of great importance and for which it is possible to support partners, he explained. The minister added that aspects related to the participation of foreign capital in private businesses are also in the process of being defined, where some experiences could soon begin. Emphasis added

In the same way, they advance in the guidelines for a possible foreign investment in wholesale and retail trade in the country. Perfecting the operation of the single window and taking it to the municipalities is another of the actions in which the ministry is working, Malmierca said. He also announced that today there are 57 projects under negotiation that have conditions to materialize, which could occur in the space of a year and commit a capital of almost five billion dollars. 

LINK: https://www.prensa-latina.cu/2022/07/20/cuba-actualiza-politicas-para-la-inversion-extranjera

LINKS To Related Posts

With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details. About The Parties; About The Message. May 16, 2022

Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022

EFE Of Spain Reports "SME investment in Cuba a key goal of business forum." Unfortunately, Cuba Media Does Not Highlight SME Focus July 15, 2022 

Cuba Continues To Process Implementation Issues With MSMEs- Important Quickly For Regulations Authorizing Direct Equity Investment And Direct Financing From Abroad June 11, 2022 

Female Cuban Entrepreneurs Expand Their Clothing Company To Spain; Already In U.S.. Members Of U.S. Congress Believe Cuban Entrepreneurs Don't Exist. Regardless, They Are Dangerous. June 02, 2022

Response To A Washington Times Editorial From Those Criticized And On Behalf Of Those Criticized. May 26, 2022

Replying To A Wall Street Journal Editorial From Those Who Were Attacked And On Behalf Of Those Who Were Attacked. May 22, 2022

Political Malpractice: Seeking A Vote Knowing Preparation Lacking; Likely Defeat; Was Bipartisanly Defeated. Like Giving A Drunk Another Drink Rather Than Helping Get Sober.

NO- 260 (including 55 Democrats)
YES- 163 (including 1 Republican)

• Why was a controversial amendment relating to the Republic of Cuba submitted without hearings, without bipartisan cosponsors, without impacted exporters, without impacted financial institutions, for an issue that previously received some bipartisan support?

• Why was the only sponsor one of the most controversial members of the Democratic Caucus (and United States Congress), a member of “The Squad” (Alexandria Ocasio-Cortez of New York, Ilhan Omar of Minnesota, Ayanna Pressley of Massachusetts, Rashida Tlaib of Michigan, Jamaal Bowman of New York, and Cori Bush of Missouri)? Even if certain Democrats and Republicans supported the amendment, they would vote no so as not to provide any political value to Ms. Tlaib.

Vote Details: Office of the Clerk, United States House of Representatives https://clerk.house.gov/Votes/2022380

LINK To Yesterday’s Post: 

Here We Go Again…. Cuba Export-Focused Amendments Media Releases With No Mention Of Support From Exporters/Banks. What If Cuba Defaults? No Focus On What’s Important: Direct Correspondent Banking. July 20, 2022 

LINKS To Related Posts  

Arkansas Senator Boozman Will Re-introduce Legislation To Permit Payment Terms And Financing For U.S. Ag/Food Exports To Cuba. He Should Wait Until There Are Contracts In Place. June 30, 2021 

Are Cuba Advocates Again Ahead Of Tips Of Their Legislative/Regulatory Skis? February 27, 2021 

Five Essential Elements For Cuba Food/Ag Legislation To Be Successful In The U.S. Congress May 19, 2019 

Do U.S. Secretaries Of Agriculture & Treasury Comprehend Value Of Direct Correspondent Banking To Exporters? February 13, 2018 

Change To OFAC Banking Regulation Long Overdue; No Rationale For Delay September 26, 2016 

US Expected To Authorize Banks In Cuba To Have Correspondent Accounts With US Banks March 04, 2016

Melia Hotels International Of Spain Pays US$35,000.00 Per Month To U.S. Public Relations Firm: Focus Is Libertad Act Lawsuits; They Are A Defendant.

O’Dwyer’s
New York, New York
20 July 2022

Meliá Hotels Hires Raben Group For Report on US/Cuba Relations
By Kevin McCauley

Spain’s Meliá Hotels International has hired The Raben Group to conduct interviews with US policymakers on the status of US policy towards Cuba as it impacts foreign countries operating on the biggest island in the Caribbean.

It is specifically interested in the potential of changes to the Helms-Burton Act of 1996, which extended the US embargo on Cuba to foreign companies, in the event that Republicans win control of Congress following the 2022 midterm elections.

Meliá has 40 hotels in Cuba. They are located in Havana, Cayo Coco, Cayo Guillermo, Cayo Largo, Cayo Santa María, Holguín, Santiago de Cuba, Varadero, Camagüey, Trinidad and Cienfuegos.

Estuardo Rodriguez, Raben co-founder, leads the Cuba research and reports to Juan Ignacio Pardo, Meliá chief legal & compliance officer. Raben staffers had met with State Dept. officials including Mara Tekach, coordinator/director of the Office of Cuban Affairs; Ricardo Zuniga, deputy secretary of the Bureau of Western Hemisphere Affairs; and Danny Meza, undersecretary for Economic Growth, Energy and the Environment.

They are “to conduct due diligence to understand what circumstances policymakers and officials would be supportive of the goals of Meliá Hotels International, at no point will payment or financial support of candidates be offered or paid in return for such support,” according to the firm’s contract with Meliá. The pact covers the period from May 16 to August 15. It is worth $35K per month.

LINK To Libertad Act Lawsuit Filing Statistics

Four Cruise Lines Nearing Jury Trial.... Importance Of "One-Satisfaction" Rule And Determining Damages.

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. 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)

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)

ORDER SCHEDULING TRIAL AND ORDER OF INSTRUCTIONS BEFORE CALENDAR CALL (7/19/22)

PLAINTIFF HAVANA DOCKS CORPORATION’S RESPONSE IN OPPOSITION TO DEFENDANTS’ MOTIONS TO CONFIRM THE APPLICABILITY OF THE “ONE-SATISFACTION RULE” (7/15/22)

DEFENDANTS’ REPLY BRIEF IN SUPPORT OF THEIR MOTION TO CONSOLIDATE CASES FOR DETERMINATION OF DAMAGES

LINK To Libertad Act Lawsuit Filing Statistics

Excerpts:

“The “one satisfaction rule” is an equitable doctrine that sets off damage amounts recovered by a plaintiff from a joint tortfeasor to satisfy a single, indivisible harm. It is a post-trial issue to be resolved by a court after a jury returns a damages award.”

“The motions to confirm the applicability of the “one-satisfaction rule” (the “Motions”) 1 filed by Defendants Carnival Corporation, MSC Cruises, Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. (collectively, the “Defendants”) should be denied for several reasons. First, the “one-satisfaction rule” is an equitable set-off doctrine that applies after trial or judgment; it is not ripe for adjudication at this stage. Second, the “rule” is not recognized in Title III and, moreover, is foreclosed by the text of the Act. Third, the “rule” does not apply on facts of these cases because (a) Havana Docks has never been satisfied so there is nothing to set off, (b) the Defendants are not joint tortfeasors or jointly and severally liable, and (c) each Defendant’s independent and unauthorized trafficking separately harmed Havana Docks. Fourth, the “rule” does not apply to punitive damages, which the Court has found Title III’s treble damages are. And fifth, to the extent Defendants request the entry of a single or collective judgment, this is contrary to Supreme Court precedent and should be denied. For these reasons, as further explained below, the Motions should be denied.”

“Plaintiff’s Response to Consolidation is unambiguous as to its position on the one topic at issue before the Court on the instant Motion: consolidation. Given Plaintiff’s concession that the requisite elements are met here for consolidation, this Court should grant Defendants’ Motion and disregard the arguments Plaintiff makes regarding interest- and one satisfaction-related issues.”