Logic From U.S. Department Of State: If We Permit It, Cuba Might Not Use It, So We Won’t Permit It. And, Yes, No One Asked Cuba. And, No One Asked U.S. Banks, Companies.

Here’s The Logic From U.S. Department Of State:  If We Permit It, Cuba Might Not Use It, So We Won’t Permit It.  But, No One Asked Cuba. 

United States Department of State: “Regarding direct correspondent banking, U.S. regulations do of course allow for U.S. banks to establish correspondent accounts in Cuba, but not the other way around, as you [recipient of message] note.  Two-way direct correspondent banking would indeed likely decrease transactions costs.  However, it is our understanding that even if the United States were to authorize direct two-way correspondent banking, Cuban banks would not actually establish accounts in the United States due to outstanding legal judgements against the Cuban government that would freeze and collect any funds a state financial institution held in the United States.  Therefore, I expect you're [recipient of message] unlikely to see direct correspondent banking on the horizon.” 

Biden-Harris Administration Adopts “Financial Prior Restraint” To Proactively Prevent United States Marketplace From Deciding Potential Issues And If Their Existence Precludes Engagement. 

Why Not Let Marketplace Decide?  Biden-Harris Administration Afraid Of Marketplace- Want’s To Control When It Should Get Out Of The Way. 

Irony?  Biden-Harris Administration Mistake Adopted From Obama-Biden Administration. 

“We’re The Government.  Here To Help You” … Not Reach Your Potential. 

The last twelve months disappointingly, but not surprisingly, continue to clarify the government of the Republic of Cuba views  as desirable neither direct investment nor direct financing from sources specifically authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to Micro, Small, and Medium-Size Enterprises (MSMEs) located in the Republic of Cuba and owned by Republic of Cuba nationals.  

During the last months however, the Diaz-Canel-Valdes Mesa Administration (2019- ) in the city of Havana, Republic of Cuba, has lavishly promoted the authorization of wholesale marketplaces in the Republic of Cuba, some to be constructed and operated by companies located in Argentina, Italy, and Spain, where owners, managers, and employees of MSMEs may purchase inputs. 

The existence of a wholesale marketplace for MSMEs is a required component for a private sector- the distance between the price of a product purchased by an MSME and the price of the product and service produced and sold by the MSME is the profit- which hopefully the government of the Republic of Cuba will not seek to tax and fee to minimize as such would harm the ability of MSMEs to expand- both revenue and employees. 

Republic of Cuba government-operated financial institutions are again accepting U.S. Dollar currency deposits.  “It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered MSME located in the Republic of Cuba and owned by a Republic of Cuba national.  

• Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023  

After nearing three years, Denver, Colorado-based Western Union Company (2022 revenue US$4.5 billion) recommenced electronic transfers from the United States to three Republic of Cuba government-operated financial institutions located in the Republic of Cuba.  Western Union Company and Republic of Cuba government-operated Orbit S.A. have yet to authorize electronic transfers for commercial transactions and to authorize U.S. Dollar electronic transfers from accounts in the Republic of Cuba to recipients in the United States. 

• Western Union Goes National For U.S. Tranfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays. Mar 3, 2023  

• Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs Apr 22, 2023 

Missing from the formula thus far embraced by the government of the Republic of Cuba is an essential ingredient: access to capital.  This is not solely about locating capital- finding money is not the problem.  This is about moving capital, payments, and other obligations from one point to another point cost-efficiently and transparently.    

MSMEs are seeking access to funding not available from sources in the Republic of Cuba.  They want direct investment, direct financing, loans, etc.  They want the opportunity of identifying funds from sources in the United States.  Having a wholesale marketplace is useful- but it will not thrive- and may not be sustainable absent MSMEs with funding to spend for supplies, particularly those MSMEs that want to expand and need to expand. 

On 10 May 2022 the Biden-Harris Administration (2021- ) through a license issued by the OFAC authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  The OFAC license application was submitted on 10 June 2021.   

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

• 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 Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

Ironically, where the Diaz-Canel Valdes Mesa Administration reinforces distain for the private sector, the Biden-Harris Administration demonstrates commercial illiteracy from adhering to a perplexing and intellectually deficient then and perplexing and intellectually deficient now embrace of a decision by the Obama-Biden Administration (2009-2017). 

• One:  The Diaz-Canel-Valdes Mesa Administration has yet after more than two years to specifically authorize and publish regulations for the delivery of direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.    

• Two:  The Biden-Harris Administration has unfortunately continued to in part mimic the dysfunctionality of the Diaz-Canel-Valdes Mesa Administration by not providing the tools required for direct investment and direct financing to be functional. 

Absence of efficient banking for MSMEs constrains their operational efficiencies and their potential.  Officials within The White House (National Security Council), the United States Department of State, United States Department of the Treasury, United States Department of Commerce, and United States Department of Agriculture know this to be true- they have heard the message consistently from individuals, companies, and organizations.   

Yet, these officials (low-level, mid-level, senior-level; career and political appointees) adhere, like Flex-Seal, Crazy Glue, and Velcro, that perfectly acceptable and logical (which is the most terrifying) for the Biden-Harris Administration to require payments (fee, percentage of transaction) to financial institutions located in third countries for every commercial transaction sent from the Republic of Cuba to the United States and for every commercial transaction sent from the United States to the Republic of Cuba.  What grade would that answer receive from a professor at Harvard Business School?     

That means fees on thus far more than US$7 billion: 

• For the period December 2001 through February 2023 from when the first agricultural commodity and food products were exported from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, the value delivered was approximately US$6,960,713,163.00. 

• For the period 2003 through 2023, the value of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) delivered from the United States to the Republic of Cuba under provisions of the Cuban Democracy Act (CDA) of 1992 was approximately US$36,480,694.00. 

• Additional tens of millions of United States Dollars in commercial payments to the Republic of Cuba for telecommunications, aircraft overflights, cargo, informational materials, artwork, aircraft landing, authorized travel, passport renewals, etc. 

The Biden-Harris Administration continues to refuse to authorize direct correspondent banking.  Incredulously, the Obama-Biden Administration had authorized United States-based financial institutions to have correspondent accounts at financial institutions located in the Republic of Cuba, but did not authorize Republic of Cuba-based financial institutions to have correspondent accounts with financial institutions located in the United States.   

United States Department of State: “Regarding direct correspondent banking, U.S. regulations do of course allow for U.S. banks to establish correspondent accounts in Cuba, but not the other way around, as you note.  Two-way direct correspondent banking would indeed likely decrease transactions costs.  However, it is our understanding that even if the United States were to authorize direct two-way correspondent banking, Cuban banks would not actually establish accounts in the United States due to outstanding legal judgements against the Cuban government that would freeze and collect any funds a state financial institution held in the United States.  Therefore, I expect you're unlikely to see direct correspondent banking on the horizon.” 

• Remittances: Will Biden-Harris Administration Repeat Mistakes Of Obama-Biden Administration And Learn From Mistakes Of Trump-Pence Administration? No Triangles. Yes Loans. Yes Investments. May 18, 2021  

Absent direct correspondent banking and re-establishment of U-turn transactions for financial institutions located in the United States and in the Republic of Cuba, transactions relating to the export from the United States of authorized agricultural commodities, food products, healthcare products, and for authorized services- including the delivery when authorized by the government of the Republic of Cuba of MSME investment and financing, continue to require use of a financial institution located in a third country which adds time, cost, and lacks transparency.   

• Airbnb Successfully Lobbied Trump Administration. Airbnb Should Now Focus On Biden Administration To Advocate For Direct Correspondent Banking So Hosts In Cuba May Access Funds Directly, Efficiently. April 06, 2022  

On 17 November 2022, the Biden-Harris Administration approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the Bureau of Industry and Security (BIS) of the United States Department of Commerce to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid to 30 November 2026.   

On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.    

On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”     

Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022 

• Potential customers of PAE have inquired about installment payments for purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and also further connect the MSME with the United States-based company.  

Biden-Harris Administration Approves Second Known License For A U.S. Company To Export Vehicles And Equipment To Private Companies In Cuba. Payment? That Remains A Problem. OFAC Doesn't Care. Apr 29, 2023  

Conclusions 

The Biden-Harris Administration policies and regulations have, thus far, focused upon providing connective and re-connective opportunities to the re-emerging private sector in the Republic of Cuba.      

The remaining challenge to transition Biden-Harris Administration policies from aspirational to operational is recreating a cost-efficient, timely, transparent, and secure mechanism to move funds from the United States to the Republic of Cuba and from the Republic of Cuba to the United States through the re-authorization of direct correspondent banking.    

The issuance of OFAC licenses and BIS licenses in May 2022, September 2022, November 2022, and April 2023 are by implementation requiring of two-way transfers that are small in value but consistent.    

Privately-owned companies located in the Republic of Cuba will need to send funds for product purchases (recently including BIS-licensed electric vehicles), send dividend (profit sharing) payments to the source(s) of direct investment, and sending interest and principal payments to source(s) of direct financing.  

For the United States Department of State to continue to require transactions include a third-country financial institution (and the number of third-country financial institutions willing to engage with Republic of Cuba-related transactions continues to decline) is cost inefficient, less transparent, and an impediment to fulfilling the goals of the licenses issued thus far by the OFAC and BIS. 

Another Bank Outside U.S. Reported To Cease Providing Wire Transfers To Cuba. No Reason Provided. Shows Urgent Need For Permitting Correspondent Accounts For Cuba Banks With U.S. Banks. December 04, 2022

LINK TO COMPLETE ANALYSIS IN PDF FORMAT 

Biden-Harris Administration Approves Second Known License For A U.S. Company To Export Vehicles And Equipment To Private Companies In Cuba. Payment? That Remains A Problem. OFAC Doesn't Care.

Good News: Biden-Harris Administration Approved Second Known License For A United States Company To Export Vehicles And Equipment To Private Companies In Cuba. 

Bad News Part One: Biden-Harris Administration (2021- ) Continues To Require Payments From The United States And Payments From Cuba To Use Banks In Third Countries- Which Earn Fees From Each Transaction. 

Bad News Part Two: Diaz-Canel-Valdes Mesa Administration (2018- ) For More Than Two Years Delays Regulations Authorizing Direct Investment In And Direct Financing From Sources In The United States To Privately-Owned Companies In Cuba.  The OFAC Authorized The First License On 10 May 2022. 

Biden-Harris Administration Issuing Licenses Is Helpful, But Resisting The Implementation Of Direct, Two-Way Payment Processes, Meaning Re-Authorizing Direct Correspondent Banking, Only Reinforces The Issuance Of The Licenses Are Cosmetic Rather Than A Treatment.  Look And Sound Good, But Only On The Surface. 

If The OFAC And BIS Issue Licenses, They Have An Obligation To Provide The Plumbing Required To Make Efficient And Cost-Effective Use Of The Licenses.  

Miami, Florida-based Apacargo Express reports the company obtained a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury for the export from the United States to the Republic of Cuba: “cars, trucks, trailers, tractors, and agricultural equipment.”  The company reports the OFAC license authorizes up to US$10 million in exports during the validity of the OFAC license.  The duration of the OFAC license has not been reported.  Unknown if the company also has a license from the Bureau of Industry and Security (BIS) of the United States Department of Commerce. 

On 17 November 2022, the Biden-Harris Administration (2021- ) approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the BIS to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid until 30 November 2026.  PAE has received five BIS licenses since 2017 including the first BIS license to export an electric vehicle to an embassy located in the Republic of Cuba.  LINK.   

• LINK: Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022  

• LINK: Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 2022 

On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.     

On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”      

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

• A license exception is a general authorization to export or reexport certain items without a license under stated conditions.  Only the license exceptions, or portions thereof, listed Section 746.2(a)(1) of the EAR are available for Cuba…. Support for the Cuban People: License Exception Support for the Cuban People (SCP) “§ 740.21 Support for the Cuban People (SCP). (a) Introduction. This License Exception authorizes certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people. (b) Improving living conditions and supporting independent economic activity.…. (1) Items for use by the Cuban private sector for private sector economic activities… (2) Items sold directly to individuals in Cuba for their personal use or their immediate family's personal use,” LINK  

Potential customers of PAE have inquired about installment payments for the purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and further connect the MSME with the United States-based company.   

In 2017, the Obama-Biden Administration (2009-2017) separately authorized Deere & Company (2022 revenues approximately US$52.5 billion) and San Juan, Puerto Rico-based RIMCO, the Republic of Cuba distributor for Peoria, Illinois-based Caterpillar Inc. (2022 revenues approximately US$59.4 billion) to establish distribution centers in the Republic of Cuba.  At the time, neither Deere & Company nor Caterpillar issued media releases or posted information on their respective Internet sites.  Neither company has provided revenues from the Republic of Cuba or identities of purchasers in the Republic of Cuba. 

• LINK: John Deere Could Provide US$30 Million In Financing For U.S. Exports To Cuba November 03, 2017 

Since November 2017, Deere & Company delivered more than US$1 million in agricultural equipment to the Republic of Cuba for use at its distribution center. Antioch, Tennessee-based Wirtgen America, Inc., a subsidiary of Windhagen, Germany-based Wirtgen Group (2021 revenues approximately US$3 billion), a construction equipment machinery subsidiary (acquired in 2017) of Deere & Company has also delivered products to the Republic of Cuba.  RIMCO continues to deliver equipment for use at its distribution center in the Republic of Cuba, including excavators, backhoes, graders, scrapers, bulldozers, railway fixtures, and signaling equipment, valued at more than US$4 million since December 2018.  John Deere Financial Services was to provide payment terms/financing for the exports, primarily Series 5000 (price range US$25,000.00 to US$80,000.00) with a limited quantity of Series 7000 (price range US$219,000.00 to US$280,000.00).  According to the company, several hundred tractors, parts and accessories may be exported from the United States to the Republic of Cuba during the next four years, with the first deliveries (for testing and evaluation) scheduled for mid-November 2017.  The potential value of the several hundred products exported from the United States to the Republic of Cuba that would be financed could range from US$9 million to US$30 million.  John Deere Financial Services has not commented as to whether the product sales goals have been achieved or if there have been issues relating to the receipt of payments.  Caterpillar has not disclosed if the company has provided payment terms for its products exported to the Republic of Cuba.  

Biden-Harris Administration MSME Support Background 

On 10 May 2022 the Biden-Harris Administration through a two-year license issued by the OFAC authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  The OFAC license application was submitted on 10 June 2021.  

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

• 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      

• LINK: Biden Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

In 2023, after nearing three years, Denver, Colorado-based Western Union Company (2022 revenue US$4.5 billion) recommenced electronic transfers from the United States to the Republic of Cuba through an agreement with Republic of Cuba government-operated Orbit S.A. which in February 2022 received authorization from the Central Bank of the Republic of Cuba as a “non-banking financial institution to process money transfers.”  Electronic transfers may be sent from more than 4,400 locations in the United States “receivers with bank and debit card accounts” at these three Republic of Cuba government-operated financial institutions: Banco Popular de Ahorro, Banco Metropolitano S.A., Banco de Credito y Comercio (Bandec). 

Western Union Company and Orbit S.A. have not yet authorized electronic transfers for commercial transactions by Micro, Small, and Medium-size Enterprises (MSMEs) and to authorize U.S. Dollar electronic transfers from accounts in the Republic of Cuba to recipients in the United States. 

• LINK: Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs Apr 22, 2023

• LINK: Western Union Goes National For U.S. Transfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays. Mar 3, 2023   

In April 2023, Republic of Cuba government-operated financial institutions again accepted U.S. Dollar currency deposits.  “It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered MSME located in the Republic of Cuba and owned by a Republic of Cuba national.   

• LINK: Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023   

Wholesale marketplaces are re-opening in the Republic of Cuba, some constructed and operated by companies located in Argentina, Italy, Spain, and potentially Russian Federation, where owners, managers, and employees of MSMEs may purchase inputs.  The existence of a wholesale marketplace for MSMEs is a required component for a private sector- the distance between the price of a product purchased by an MSME and the price of the product and service produced and sold by the MSME is the profit- which hopefully the government of the Republic of Cuba will not seek to tax and fee to minimize as such would harm the ability of MSMEs to expand- both revenue and employees.  

Links To Related Posts 

Cuba "Streamlining" Approval Process For Agriculturally-Focused Economic Associations With Foreign Capital. Still No Regulations For U.S.-Sourced MSME Private-Sector Foreign Investment/Financing Apr 27, 2023

Cuba Seeking Investors, Financing For State-Owned Companies.  U.S. Entrepreneurs Waiting Since May 2022 For Cuba Regulations To Deliver Investment And Financing To Private Companies In Cuba Apr 27, 2023

Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs Apr 22, 2023

U.S. Agricultural Interests Want To "Invest" In Cuba? Then Advocate President Diaz-Canel Approve Investment Regulations. OFAC Issued First License In 2022. Use Straight Line- Avoid Consultants. Apr 13, 2023

Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Cuba "Streamlining" Approval Process For Agriculturally-Focused Economic Associations With Foreign Capital. Still No Regulations For U.S.-Sourced MSME Private-Sector Foreign Investment/Financing

From Cuba Heute: “The implementation of some projects with foreign capital should be faster in Cuba in the future. With the "Acuerdo 9374", which appeared in the Law Gazette on April 3, the approval of international economic associations ("Asociación Económica Internacional") is shifted from the level of the Council of Ministers to the individual ministries. LINK TO DOCUMENT

In agriculture and tourism in particular, this should speed up the often lengthy approval processes. "The internal process of analyzing and approving business proposals involving foreign investments must be adapted to the new realities of the country," the law's explanatory statement reads. Especially in the case of food production, the mechanism of economic association promises a better inflow of capital.

The Ministry of Agriculture is now encouraged to target this form "as a modality for foreign investment to increase agricultural production in the country". So far, economic associations were mainly known in the context of hotel management contracts in tourism. In order to speed up the procedures, the ministries of agriculture, finance and tourism will in future be able to decide independently on the approval of projects in their area of responsibility.

Previously, all projects had to be approved “by hand” by the Council of Ministers, which investors and economists repeatedly criticized because of the length of the process. Furthermore, the term of corresponding contracts can be extended in the future at the level of the Ministry of Finance. The reform will come into force on May 3rd.

In the context of the current crisis, Cuba is currently looking massively for foreign investors to develop its economy and has removed several hurdles to this end in recent months. In principle, investments are now possible in all sectors, and small-scale projects by medium-sized companies are also welcomed.

Only recently was the tender catalog expanded in the areas of the food industry and agriculture.  The two sectors are among the country's three main priorities, alongside the expansion of renewable energies.

With the election of the Council of Ministers on April 19, long-serving Foreign Trade Minister Rodrigo Malmierca, who has recently been criticized for his lack of success in reducing bureaucracy, was replaced by Cuba's chief foreign debt negotiator, Ricardo Cabrisas.”

Background

Cuba Seeking Investors, Financing For State-Owned Companies.  U.S. Entrepreneurs Waiting Since May 2022 For Cuba Regulations To Deliver Investment And Financing To Private Companies In Cuba Apr 27, 2023

On 10 May 2022 the Biden-Harris Administration (2021- ) through a two-year license issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  The OFAC license application was submitted on 10 June 2021.  

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

• 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      

• LINK: Biden Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

In 2023, after nearing three years, Denver, Colorado-based Western Union Company (2022 revenue US$4.5 billion) recommenced electronic transfers from the United States to the Republic of Cuba through an agreement with Republic of Cuba government-operated Orbit S.A. which in February 2022 received authorization from the Central Bank of the Republic of Cuba as a “non-banking financial institution to process money transfers.”  Electronic transfers may be sent from more than 4,400 locations in the United States “receivers with bank and debit card accounts” at these three Republic of Cuba government-operated financial institutions: Banco Popular de Ahorro, Banco Metropolitano S.A., Banco de Credito y Comercio (Bandec).

Western Union Company and Orbit S.A. have not yet authorized electronic transfers for commercial transactions by Micro, Small, and Medium-size Enterprises (MSMEs) and to authorize U.S. Dollar electronic transfers from accounts in the Republic of Cuba to recipients in the United States.

• LINK: Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs Apr 22, 2023

• LINK: Western Union Goes National For U.S. Transfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays. Mar 3, 2023  

In April 2023, Republic of Cuba government-operated financial institutions again accepted U.S. Dollar currency deposits.  “It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered MSME located in the Republic of Cuba and owned by a Republic of Cuba national.  

• LINK: Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023  

Wholesale marketplaces are re-opening in the Republic of Cuba, some constructed and operated by companies located in Argentina, Italy, Spain, and potentially Russian Federation, where owners, managers, and employees of MSMEs may purchase inputs.  The existence of a wholesale marketplace for MSMEs is a required component for a private sector- the distance between the price of a product purchased by an MSME and the price of the product and service produced and sold by the MSME is the profit- which hopefully the government of the Republic of Cuba will not seek to tax and fee to minimize as such would harm the ability of MSMEs to expand- both revenue and employees. 

On 17 November 2022, the Biden-Harris Administration approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the Bureau of Industry and Security (BIS) of the United States Department of Commerce to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid until 30 November 2026.  

• LINK: Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 2022

• On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.    

• On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”     

LINK: Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022 

• Potential customers of PAE have inquired about installment payments for the purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and further connect the MSME with the United States-based company.  

Cuba Seeking Investors, Financing For State-Owned Companies. U.S. Entrepreneurs Waiting Since May 2022 For Cuba Regulations To Deliver Investment And Financing To Private Companies In Cuba

Government Of Cuba Reportedly Seeking Investors, Financing For State-Owned Companies.  U.S. Entrepreneurs Waiting Since May 2022 For Cuba Regulations To Deliver Investment And Financing To Private Companies In Cuba. 

“Diaz-Canel urges Cuban entrepreneurs to seek alliances: Havana, Apr 26 (Prensa Latina) President Miguel Díaz-Canel has reportedly urged representatives of the country's investment sector to seek alliances with Latin American and Caribbean countries to create cooperative productions.  During a meeting with executives from companies that develop investments, Díaz-Canel learned about their experiences and noted that the most important thing is to keep factories producing.  Meanwhile, Deputy Prime Minister and Minister of Economy and Planning Alejandro Gil called to increase investments and do it well, as the financing that does not guarantee sustainability in time of their inputs and raw materials can ruin the agreement made.  Gil urged to prepare the investments and investors to comply with the execution schedules and “put industries into production once the investment is completed. The generation of goods for national consumption or export depends on it, and with it, the country’s development.”  During the meeting, several state entrepreneurs shared the state of investments in their institutions, their strengths, and weaknesses in this field.”

Background

On 10 May 2022 the Biden-Harris Administration (2021- ) through a two-year license issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  The OFAC license application was submitted on 10 June 2021.  

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

• 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      

• LINK: Biden Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

In 2023, after nearing three years, Denver, Colorado-based Western Union Company (2022 revenue US$4.5 billion) recommenced electronic transfers from the United States to the Republic of Cuba through an agreement with Republic of Cuba government-operated Orbit S.A. which in February 2022 received authorization from the Central Bank of the Republic of Cuba as a “non-banking financial institution to process money transfers.”  Electronic transfers may be sent from more than 4,400 locations in the United States “receivers with bank and debit card accounts” at these three Republic of Cuba government-operated financial institutions:

Banco Popular de Ahorro
Banco Metropolitano S.A.
Banco de Credito y Comercio (Bandec)

Western Union Company and Orbit S.A. have not yet authorized electronic transfers for commercial transactions by Micro, Small, and Medium-size Enterprises (MSMEs) and to authorize U.S. Dollar electronic transfers from accounts in the Republic of Cuba to recipients in the United States.

• LINK: Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs Apr 22, 2023

• LINK: Western Union Goes National For U.S. Transfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays. Mar 3, 2023  

In April 2023, Republic of Cuba government-operated financial institutions again accepted U.S. Dollar currency deposits.  “It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered MSME located in the Republic of Cuba and owned by a Republic of Cuba national.  

• LINK: Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023  

Wholesale marketplaces are re-opening in the Republic of Cuba, some constructed and operated by companies located in Argentina, Italy, Spain, and potentially Russian Federation, where owners, managers, and employees of MSMEs may purchase inputs.  The existence of a wholesale marketplace for MSMEs is a required component for a private sector- the distance between the price of a product purchased by an MSME and the price of the product and service produced and sold by the MSME is the profit- which hopefully the government of the Republic of Cuba will not seek to tax and fee to minimize as such would harm the ability of MSMEs to expand- both revenue and employees. 

On 17 November 2022, the Biden-Harris Administration approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the Bureau of Industry and Security (BIS) of the United States Department of Commerce to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid until 30 November 2026.  

• LINK: Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 2022

• On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.    

• On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”     

LINK: Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022 

• Potential customers of PAE have inquired about installment payments for the purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and further connect the MSME with the United States-based company.  

Granma
Havana, Republic of Cuba
26 April 2023

miguel diaz-canel, president of the republic of cuba

Meeting held in April between the country's leadership and business representatives analyzes the execution of the investment process and its impact on exports. It was led by the First Secretary of the Central Committee of the Party and President of the Republic, Miguel Díaz-Canel Bermúdez.  

Díaz-Canel insisted that Antillana de Acero must be clear about export markets, as well as develop strategies that allow it to guarantee the supply of raw materials. Photo: Revolution Studios  

As what it is: a transcendental issue for the development of the economy, the current investment process in the nation was analyzed, especially the one carried out in the business sector and its impact on exports. The evaluation took place during the April meeting of the country's leadership with representatives of the business system, which was held as usual in the Palace of the Revolution under the leadership of the First Secretary of the Central Committee of the Party and President of the Republic, Miguel Diaz-Canel Bermudez.  

The exchange was also headed by the members of the Political Bureau, Manuel Marrero Cruz, Prime Minister, and Salvador Valdés Mesa, Vice President of the Republic, in addition to the Vice Prime Minister and Head of Economy and Planning, Alejandro Gil Fernández, who moderated the dialogue. In a summary of the behavior of the investment process and its impact on the state company in recent years, Gil Fernández stressed that the discussion was to contribute to continue solving deficiencies that are not new.  

Among other examples, he brought up that from 2015 to date the investment plan for each year has not been met, which has been below 90% most of the time. He explained that, according to consensus, to have an adequate rate of development it is necessary to invest between 20% and 25% of the Gross Domestic Product annually; however, in the period the amount invested has remained below these margins and the investments put into operation have not yielded the expected return. When making an evaluation of these processes, including the behavior of executions, vulnerabilities and post-investment studies, Gil Fernández emphasized the urgency of resolving inefficiencies in this area, while ratifying the need to continue investing as a way of Never give up on development. "We must invest more, but we have to do it well," he said. The meeting with the state business community was held through videoconference with managers from the territories, who were called upon to reflect on what to do new to really consolidate what the country needs, and within it the socialist state company, to efficiently and effectively develop the investment process.  

The engineer Reinier Guillén Otero, general director of the José Martí steel company, also known as Antillana de Acero, reported on the execution of the million-dollar investment in that plant and the export capacity that it will acquire, in order to cover the amounts of the credit that granted by the Russian Federation. The First Secretary of the Central Committee of the Party, Miguel Díaz-Canel Bermúdez, insisted that Antillana must be clear about export markets, as well as develop strategies that allow it to guarantee the supply of national raw materials, especially scrap metal, of in such a way that their productions are sustainable in volume and over time.  

Engineer Lissette Alonso Morales, vice president of the Chemical Industry business group (GEIQ), commented on the productions of the new Chlorine Soda plant of the Sagua la Grande Electrochemical Company. This is one of the newest industries in the country, with a high level of automation and highly qualified personnel, and it has managed to enter the international market. The export was not conceived in the initial order of the entity, but the quality of its productions and the training of its personnel have allowed it to make sales of assortments and services abroad.  

Chlorine Sosa, explained the directive, covers the national demand with its productions and exports its surpluses, in order to sustain the plant with its own income. The President of the Republic supported the company's initiatives: “propose bold initiatives”, he told them. Vice Prime Minister Gil Fernández praised the entity's results and stressed that the country should not have idle productive capacity that does so under competitive conditions and can cover unsatisfied domestic demand or export. 

We must look for alternatives, added Gil Fernández, who put the entity as a good example of the possibility that these have, based on the 43 measures implemented to strengthen the socialist state company, to manage cooperative productions with foreign companies or obtain external financing. without looking to the central financing account. "Generate foreign exchange for self-sustainability, that is the way," he said. The head of Economy and Planning also referred to the strength of having the National Economic and Social Development Plan until 2030, within which investments must be conceived. The vice prime ministers, Commander of the Revolution Ramiro Valdés Menéndez, Inés María Chapman Waugh, Jorge Luis Perdomo Di-Lella and Jorge Luis Tapia Fonseca, as well as heads of portfolios, among other executives, participated in the meeting with the national state business community. . 

Granma
Havana, Republic of Cuba
26 April 2023

Encuentro del mes abril de la dirección del país con representantes del empresariado analiza ejecución del proceso inversionista y su impacto en las exportaciones. Fue liderado por el Primer Secretario del Comité Central del Partido y Presidente de la República, Miguel Díaz-Canel Bermúdez

Díaz-Canel insistió en que Antillana de Acero tiene que tener claridad sobre los mercados de exportación, así como desarrollar estrategias que le permitan garantizar el abasto de materias primas. Foto: Estudios Revolución  

Como lo que es: un asunto trascendental para el desenvolvimiento de la economía, fue analizado el actual proceso inversionista en la nación, en especial el que se realiza en el sector empresarial y su impacto en las exportaciones.  La evaluación transcurrió durante el encuentro del mes de abril de la dirección del país con representantes del sistema empresarial, que se realizó como de costumbre en el Palacio de la Revolución bajo el liderazgo del Primer Secretario del Comité Central del Partido y Presidente de la República, Miguel Díaz-Canel Bermúdez. 

El intercambio también fue encabezado por los miembros del Buró Político, Manuel Marrero Cruz, primer ministro, y Salvador Valdés Mesa, vicepresidente de la República, además del vice primer ministro y titular de Economía y Planificación, Alejandro Gil Fernández, quien moderó el diálogo.

En una síntesis del comportamiento del proceso inversionista y su impacto en la empresa estatal en los últimos años, Gil Fernández subrayó que la discusión era para contribuir a continuar resolviendo deficiencias que no son nuevas.  Entre otros ejemplos, trajo a colación que desde 2015 a la fecha no se ha logrado cumplir el plan de inversiones para cada año, que ha quedado por debajo del 90 % la mayoría de las veces. 

Explicó que, según los consensos, para tener un ritmo adecuado de desarrollo es necesario invertir anualmente entre el 20 % y el 25 % del Producto Interno Bruto; sin embargo, en el periodo el monto invertido se ha mantenido por debajo de esos márgenes y las inversiones puestas en marcha no han dado el rendimiento previsto.  Al hacer una evaluación de estos procesos, incluyendo el comportamiento de las ejecuciones, las vulnerabilidades y los estudios de posinversión, Gil Fernández enfatizó en lo imperioso de resolver las ineficiencias en esta área, a la vez que ratificó la necesidad de seguir invirtiendo como forma de no renunciar nunca al desarrollo. «Debemos invertir más, pero tenemos que hacerlo bien», sentenció. 

El encuentro con el empresariado estatal se desarrolló mediante videoconferencia con directivos de los territorios, quienes fueron convocados a reflexionar sobre qué hacer nuevo para consolidar realmente lo que necesita el país, y dentro de él la empresa estatal socialista, para desarrollar con eficiencia y eficacia el proceso inversionista.  El ingeniero Reinier Guillén Otero, director general de la siderúrgica José Martí, conocida también como Antillana de Acero, informó sobre la ejecución de la millonaria inversión en esa planta y la capacidad de exportación que adquirirá, para de esa forma cubrir los montos del crédito que otorgó la Federación de Rusia. 

El Primer Secretario del Comité Central del Partido, Miguel Díaz-Canel Bermúdez, insistió en que Antillana tiene que tener claridad sobre los mercados de exportación, así como desarrollar estrategias que le permitan garantizar el abasto de materias primas nacionales, en especial la chatarra, de forma tal que sus producciones sean sostenibles en volumen y en el tiempo.  La ingeniera Lissette Alonso Morales, vicepresidenta del grupo empresarial de la Industria Química (GEIQ), comentó sobre las producciones de la nueva planta Cloro Sosa de la Empresa Electroquímica Sagua la Grande. 

Es esta una de las industrias más nuevas del país, con un elevado nivel de automatización y personal altamente calificado, y ha logrado incursionar en el mercado internacional. La exportación no estaba concebida en el encargo inicial de la entidad, pero la calidad de sus producciones y la formación de su personal le han permitido hacer ventas de surtidos y servicios en el exterior.  Cloro Sosa, explicó la directiva, cubre con sus producciones la demanda nacional y exporta sus excedentes, para de esa forma sostener la planta con ingresos propios. El Presidente de la República apoyó las iniciativas de la empresa: «propongan iniciativas audaces», les dijo. 

El vice primer ministro Gil Fernández ponderó los resultados de la entidad y subrayó que el país no debe tener ociosa ninguna capacidad productiva que lo haga en condiciones competitivas y pueda cubrir una demanda interna insatisfecha o exportar. 

Hay que buscar alternativas, añadió Gil Fernández, que puso a la entidad como un buen ejemplo de la posibilidad que tienen estas, a partir de las 43 medidas implementadas para fortalecer la empresa estatal socialista, de agenciarse producciones cooperadas con empresas extranjeras o conseguir financiamiento externo sin mirar hacia la cuenta central de financiamiento. «Generar divisas para la autosostenibilidad, ese es el camino», dijo.  El titular de Economía y Planificación también se refirió a la fortaleza que se tiene al disponer del Plan nacional de desarrollo económico y social hasta 2030, dentro del cual deben concebirse las inversiones.  En la reunión con el empresariado estatal nacional participaron los vice primeros ministros, Comandante de la Revolución Ramiro Valdés Menéndez, Inés María Chapman Waugh, Jorge Luis Perdomo Di-Lella y Jorge Luis Tapia Fonseca, además de jefes y jefas de carteras, entre otros ejecutivos.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Carnival Corporation Secures US$124.6 Million Surety Bond As It Pursues Appeal Of December 2022 Libertad Act Lawsuit Verdict Against It And Three Other Cruise Companies.

"WHEREAS, Final Judgment was entered on December 30, 2022, in favor of Havana Docks. and against Carnival. in the amount of $113,359,712.37. One hundred ten percent (110%) of that amount is $124,695,683.61, and WHEREAS, Carnival intends to appeal the Final Judgment to the United States Court of Appeals for the Eleventh Circuit and, if necessary, to the United States Supreme Court."

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [Consolidated to 1:19-cv-23591; 1:19-cv-21724; Southern Florida District]; Judgement Entered 12/30/22.
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. [Consolidated to 1:19-cv-23591; 1:19-cv-23588; Southern Florida District]; Judgement Entered 12/30/22.
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)
 
HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [Consolidated to 1:19-cv-23591; 1:19-cv-23591; Southern Florida District]; Judgement Entered 12/30/22.
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)
 
HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [Consolidated to 1:19-cv-23591; 1:19-cv-23590; Southern Florida District]; Judgement Entered 12/30/22.
Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

04/14/2023 NOTICE of Filing Original Supersedeas Bonds by MSC Cruises (SA), MSC Cruises S.A.. (Attachments: # 1 Supersedeas Bond) (jas) (Entered: 04/17/2023)

04/13/2023 NOTICE of Filing Bond by Carnival Corporation (Attachments: # 1 Supplement) (pes) (Entered: 04/13/2023)

02/08/2023 TRANSCRIPT INFORMATION FORM by Havana Docks Corporation re 546 Notice of Cross Appeal,, 545 Notice of Appeal,,. No Transcript Requested. (Martinez, Roberto) (Entered: 02/08/2023)

02/08/2023 TRANSCRIPT INFORMATION FORM by Havana Docks Corporation re 546 Notice of Cross Appeal,, 545 Notice of Appeal,,. No Transcript Requested. (Martinez, Roberto) (Entered: 02/08/2023)

02/08/2023 TRANSCRIPT INFORMATION FORM by Carnival Corporation re 545 Notice of Appeal,,. No Transcript Requested. (Singer, Stuart) (Entered: 02/08/2023)

02/02/2023 Acknowledgment of Receipt of NOA from USCA re 546 Notice of Cross Appeal, filed by Havana Docks Corporation. Date received by USCA: 1/30/2023. USCA Case Number: 23-10171-D. (apz) (Entered: 02/06/2023)

01/30/2023 Transmission of Notice of Appeal, Judgment under appeal, and Docket Sheet to US Court of Appeals re 546 Notice of Cross Appeal, Notice has been electronically mailed. (apz) (Entered: 01/30/2023)

01/27/2023 546 Notice of Cross Appeal as to 544 Judgment by Havana Docks Corporation. Filing fee $ 505.00 receipt number AFLSDC-16276251. Within fourteen days of the filing date of a Notice of Appeal, the appellant must complete the Eleventh Circuit Transcript Order Form regardless of whether transcripts are being ordered [Pursuant to FRAP 10(b)]. For information go to our FLSD website under All Forms and look for Transcript Order Form www.flsd.uscourts.gov/forms/all-forms. (Martinez, Roberto) (Entered: 01/27/2023)

01/26/2023 Transmission of Notice of Appeal, Judgment under appeal, and Docket Sheet to US Court of Appeals re 545 Notice of Appeal, Notice has been electronically mailed. (apz) (Entered: 01/26/2023)

01/25/2023 545 Notice of Appeal as to 544 Judgment by Carnival Corporation. Filing fee $ 505.00 receipt number AFLSDC-16268153. Within fourteen days of the filing date of a Notice of Appeal, the appellant must complete the Eleventh Circuit Transcript Order Form regardless of whether transcripts are being ordered [Pursuant to FRAP 10(b)]. For information go to our FLSD website under All Forms and look for Transcript Order Form www.flsd.uscourts.gov/forms/all-forms. (Singer, Stuart) (Entered: 01/25/2023)

LINK: Defendant Carnival Corporation’s Notice Of Filing Original Supersedeas Bond (4/13/23)
LINK: Plaintiff Havana Docks Corporation’s Notice Of Cross-Appeal (1/27/23)
LINK: Libertad Act Lawsuit Filing Statistics 

LINK: After 43 Months, Florida District Court Judge Hands First Cuba Libertad Act Verdict- Four Cruise Lines Must Pay US$439,217,424.51 Plus US$11,707,484.31 In Legal Fees. Appeals Probable. December 30, 2022

Who Or What Is Delaying Western Union From Authorizing Commercial Transfers From U.S.-Cuba And From Cuba-U.S.? Biden? Diaz-Canel? MSME's Waiting With U.S.-Based Companies And Entrepreneurs

The Biden-Harris Administration Maintains Its Policies Support The Private Sector In The Republic Of Cuba. 

• Why Then Is Western Union Not Permitting Commercial Transactions From The United States To The Republic Of Cuba?

• Why Then Is Western Union Not Permitting Commercial Transfers From The Republic Of Cuba To The United States?

If Biden-Harris Administration Is The Problem- Why And What Is Required To Change Its Position?

If Diaz-Canel-Valdes Mesa Administration Is The Problem- Why And What Is Required To Change Its Position?

Effective Engagement With Republic Of Cuba MSME’s Must Have Monies Moving In Both Directions.

The Commercial Transfer Maximum Limit Should Be US$25,000.00 Per Transaction.  No Commercial Minimum Transfer As That Would Discourage MSME Usage.

An Opportunity To Move Past Benign Neglect And Bilaterally Stupid.

In 2023, after nearing three years, Denver, Colorado-based Western Union Company (2022 revenue US$4.5 billion) recommenced electronic transfers from the United States to the Republic of Cuba through an agreement with Republic of Cuba government-operated Orbit S.A. which in February 2022 received authorization from the Central Bank of the Republic of Cuba as a “non-banking financial institution to process money transfers.”  Electronic transfers may be sent from more than 4,400 locations in the United States “receivers with bank and debit card accounts” at these three Republic of Cuba government-operated financial institutions:

Banco Popular de Ahorro
Banco Metropolitano S.A.
Banco de Credito y Comercio (Bandec)

Western Union Company and Orbit S.A. have not yet authorized electronic transfers for commercial transactions by Micro, Small, and Medium-size Enterprises (MSMEs) and to authorize U.S. Dollar electronic transfers from accounts in the Republic of Cuba to recipients in the United States.

• Western Union Goes National For U.S. Transfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays. Mar 3, 2023  

In April 2023, Republic of Cuba government-operated financial institutions again accepted U.S. Dollar currency deposits.  “It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered MSME located in the Republic of Cuba and owned by a Republic of Cuba national.  

• Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting... Apr 11, 2023  

Wholesale marketplaces are re-opening in the Republic of Cuba, some constructed and operated by companies located in Argentina, Italy, Spain, and potentially Russian Federation, where owners, managers, and employees of MSMEs may purchase inputs.  The existence of a wholesale marketplace for MSMEs is a required component for a private sector- the distance between the price of a product purchased by an MSME and the price of the product and service produced and sold by the MSME is the profit- which hopefully the government of the Republic of Cuba will not seek to tax and fee to minimize as such would harm the ability of MSMEs to expand- both revenue and employees. 

On 10 May 2022 the Biden-Harris Administration (2021- ) through a two-year license issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  The OFAC license application was submitted on 10 June 2021.  

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

• 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 Administration Will Use Cuba's Authorization Of SMSE's As Means To Expand Support For Cuba Private Sector- U.S. Investments And Loans May Be Next June 02, 2021 

On 17 November 2022, the Biden-Harris Administration approved a license application submitted on 22 October 2022 by Columbia, Maryland-based Premier Automotive Export, Ltd. (PAE) to the Bureau of Industry and Security (BIS) of the United States Department of Commerce to export electric vehicles and chargers to republic of cuba nationals with the “ULTIMATE CONSIGNEE: Privately owned companies in the Republic of Cuba owned by Cuba Nationals.”  The BIS license is valid until 30 November 2026.  

• Ten Months After Denial, Biden-Harris Administration Approves Exports Of Electric Motorcycles, Electric Scooters To Cuba Nationals And To Privately-Owned Companies In Cuba October 05, 2022

• On 28 September 2022, the BIS issued a license to PAE for the export of electric scooters and electric bicycles to Republic of Cuba nationals and to MSMEs.    

• On 15 December 2021, the BIS denied a license application submitted on 30 September 2021 by PAE to export electric vehicles and chargers to republic of cuba nationals.  From the license application: “Specific End Use- Ordinary Cuban Nationals would be the specific End User and purchasing electric vehicle for their own personal transportation.”     

Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022 

• Potential customers of PAE have inquired about installment payments for the purchase of EVs.  As monthly payments would be minimal in value, the cost for sending the funds through a third country financial institution would be larger than the installment amount.  Flexibility to provide installment payments will further enhance the cashflow of an MSME and further connect the MSME with the United States-based company.  

Representatives of Western Union Company, Orbit S.A., OFAC, Ministry of Foreign Affairs of the Republic of Cuba (MINREX), and United States Department of State need to soonest engage or if necessary, re-engage to forge an operational blueprint to that MSME transactions may use electronic currency transfers from the United States to the Republic of Cuba and from the Republic of Cuba to the United States. 

The joke is the status quo continues to enhance profitability of financial institutions located in third countries… 

Astonishing that inserting a third party into a two-party process continues to be a rational policy jointly promoted by officials- career and political in Havana and Washington DC.  However, they can applaud the existence of bilateral thinking on something- even if it only serves to reinforce stupid... or a twenty-first century version of benign neglect.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

US$2.79 Billion Cuba Lawsuit: Plaintiffs In Colorado Seeking Default Judgement Against Government Of Cuba. What Could That Mean For Libertad Act Lawsuits? Other Lawsuits?

Civil Action No. 21-cv-02497-NYW-NRN: ALFREDO VILLOLDO, and GUSTAVO E. VILLOLDO, individually, and as Administrator, Executor, and Personal Representative of the Estate of Gustavo Villoldo Argilagos, Plaintiffs, v. THE REPUBLIC OF CUBA, Defendant. 

HLHL, P.A.
Foley & Mansfield, PLLP
King & Spaulding LLP

NOTICE of Voluntary Dismissal of Case Without Prejudice by Plaintiff Alfredo Villoldo (Eutermoser, Brian) (Entered: 04/18/2023)

Supplemental MOTION for Default Judgment as to by Plaintiffs Alfredo Villoldo, Gustavo E. Villoldo, Gustavo (I) E. Villoldo. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Proposed Order (PDF Only)) (Eutermoser, Brian) (Entered: 04/18/2023) 

LINK: Plaintiff Alfredo Villoldo’s Notice Of Voluntary Dismissal Without Prejudice (4/18/23)- 3 Pages
LINK: Plaintiffs’ Supplemental Motion For Default Judgment (4/18/23)- 12 Pages
LINK: Plaintiffs’ Supplemental Motion For Default Judgment (4/18/23)- Exhibits

PLAINTIFF ALFREDO VILLOLDO’S NOTICE OF VOLUNTARY DISMISSAL WITHOUT PREJUDICE: Pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(i), Plaintiff Alfredo Villoldo, by and through undersigned counsel, hereby gives notice that his claims in this action are voluntarily dismissed. Defendant Republic of Cuba has not served an answer or a motion for summary judgment in this action. Accordingly, Plaintiff Alfredo Villoldo notices voluntary dismissal without prejudice. See Fed. R. Civ. P. 41(a)(1)(B). 

PLAINTIFFS’ SUPPLEMENTAL MOTION FOR DEFAULT JUDGMENT: Pursuant to the Court’s Order on Motion for Default Judgment, dated March 7, 2023 (ECF 41) (the “Order”), Plaintiffs Alfredo Villoldo, individually, and Gustavo E. Villoldo, individually and as Administrator, Executor, and Personal Representative of the Estate of Gustavo Villoldo Argilagos (collectively, “Plaintiffs”), respectfully submit this Supplemental Motion for Default Judgment.

LINK TO PREVIOUS POST: U.S. Federal Judge In Colorado Agrees To Enforce Part Of US$2.79 Billion Judgment Against Government Of Cuba For Torture. Mar 15, 2023

U.S. Agricultural Interests Want To "Invest" In Cuba? Then Advocate President Diaz-Canel Approve Investment Regulations. OFAC Issued First License In 2022. Use Straight Line- Avoid Consultants.

Agricultural Interests In United States Reportedly Want To Invest In The Republic Of Cuba. 

Are There Any Public Examples, With Details, Of A Specific Desired Investment?   

“We’re Losing” What Exactly? 

Government Of The Republic Of Cuba Has Yet To Authorize.   

United States-Based Agricultural Interests Should Focus In Public Towards Advocating The Diaz-Canel-Valdes Mesa Administration (2019- ) Issue Regulations For Direct Investment And Direct Financing Regulations When Sourced From The United States.  Awaiting Two Years For Those… 

We’re Not Losing…. They’re Losing.  And, Thus Far, They Are Content With That.  

OFAC Did Its Part On 10 May 2022- Issued The First License.  They Too Await Decision By Government Of The Republic Of Cuba. 

Agricultural And Other Interests Seeking To Export, Import, Service Provision, Direct Investment, And Direct Financing Opportunities In Cuba Do Not Need Consultants.   

They May Need An Attorney.  They Should Interact Directly With Representatives Of The Government Of The Republic Of Cuba- Or Wait Until They Can Do So. 

Don’t Create A Triangle Where There Should Be A Straight Line. 

Reuters
London, United Kingdom
U.S. farming businesses want Biden to allow more investment in Cuba
By Nelson Acosta

HAVANA, April 4 (Reuters) - U.S. agro-businesses, on a trade tour in Cuba, said on Tuesday they were "losing" in their bid to boost commerce with Cuban farmers and called on the Biden administration to ease restrictions and allow them to invest in private agriculture on the island. 

U.S. President Joe Biden last May loosened restrictions on travel, remittances and migration, and promised the United States would do more to support the fledgling private sector in Cuba. 

Change, however, has been too slow to come, said Paul Johnson, chair of the U.S. Agricultural Coalition for Cuba, a more than 100-member organization that includes national and state farm organizations, corporations and producers. 

"We're losing, and we're tired of losing," Johnson told reporters on the sidelines of the gathering at a hotel in Havana.  The U.S. businesses are keen to both sell their own product to Cuba and to invest in private sector farms and cooperatives to help them develop. 

Little has changed on the island since a similar group of would-be investors arrived last April. Many farms have been shuttered by lack of investment, equipment, fuel and supplies, leading to widespread shortages of food across Cuba. 

"It's frustrating to us in the United States, because we believe it's something that we can fix. We need to go back to our government ... and insist that the private sector is a path forward to development," said Johnson. 

Cuba, a long-time foe of the United States, swapped capitalism for socialism shortly after Fidel Castro's 1959 revolution, preferring state over private enterprise.  But in August 2021, the communist-run government lifted a ban on private companies that had been in place since 1968. Upwards of 7,000 such businesses have opened since, according to an Economy Ministry list updated on March 23. 

Investors from countries including Mexico, Venezuela, Vietnam, China, Spain and Russia, among others, have previously participated in state- and private business in Cuba. 

The United States remains an outlier. The U.S. Treasury Department [Office of Foreign Assets Control (OFAC)] last May authorized a company owned by entrepreneur John Kavulich [U.S.-Cuba Trade and Economic Council] to invest in a small private business in Cuba's services sector, the first such approval in decades. 

But many other similar requests remain unanswered, Johnson said.  "Obviously that's just not good enough," Johnson said. "We're capitalists. We invest in private business all around the world. Why can't we do it in Cuba?" 

Despite the loosening of some restrictions, a Cold War-era U.S. embargo on Cuba remains in place, prohibiting some trade and financing between the two countries and complicating investment ties.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Aiming For Moscow And Budapest, Biden Administration Hits Havana: Made Cuba's International Banking A Bit More Challenging.

UPDATE: Politico (4/13/2023)- SANCTIONS WORK: Hungary is withdrawing from the Russia-linked International Investment Bank, a day after the U.S. sanctioned it, Lili Bayer reports.

“The Hungarian government has decided to terminate Hungary’s membership with the International Investment Bank (IIB). A day after the United States imposed sanctions on the Budapest-based bank and three of its senior executives resident in Hungary, the economic ministry said in a statement that whereas the Russia-backed IIB had played an important development role in central and eastern Europe, there was no sense in carrying on with its operations following the US sanctions. Hungary is withdrawing its officials from the IIB, it added. David Pressman, the US ambassador to Hungary, told journalists on Wednesday that sanctions applied to the “Budapest-based, Russia-controlled” bank and three of its senior executives resident in Hungary, including one Hungarian national.” LINK To Government Of Hungary Media Release

“INTERNATIONAL INVESTMENT BANK (a.k.a. MEZHDUNARODNY INVESTITSIONNY BANK; a.k.a. "IIB"), Vaci ut, 188, Budapest H-1138, Hungary; Fo utca 1, Budapest H-1011, Hungary; 7 Mashi Poryvaevoy Street, Moscow 107078, Russia; SWIFT/BIC IIBMHU22; Website www.iib.int; Organization Established Date 10 Jul 1970; Target Type Financial Institution; Tax ID No. 30479900-1-51 (Hungary); alt. Tax ID No. 9909152110 (Russia); Legal Entity Number 2534000PHLD27VN98Y03 [RUSSIA-EO14024].”  

“The Bank’s member states are the Republic of Bulgaria, the Republic of Cuba, Hungary, Mongolia, Romania, the Russian Federation and the Socialist Republic of Vietnam.” 

LINK: Cuba Has 1.42% Shareholding In Hungary-Based International Investment Bank January 24, 2021

“Specially Designated Nationals And Blocked Persons List (SDN) Human Readable Lists: As part of its enforcement efforts, OFAC [Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury] publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them.  View more information on Treasury's Sanctions Programs.”  

International Investment Bank 

“International Investment Bank is a multilateral development institution that aims to facilitate connectivity and integration between the economies of the Bank’s member states in order to ensure sustainable and inclusive growth and the competitiveness of national economies, backed by the existing historical ties.  The Bank was established and operates as an international organisation based on the intergovernmental Agreement Establishing the International Investment Bank dated 10 July 1970, registered with the United Nations Secretariat on 1 December 1971 under number 11417, as amended and restated from time to time, together with the Bank’s Charter, which is an integral part of the Agreement. The Agreement Establishing the IIB is an international treaty. 

The IIB’s authorised capital amounts to EUR 2 billion.  The Bank’s member states are the Republic of Bulgaria, the Republic of Cuba, Hungary, Mongolia, Romania, the Russian Federation and the Socialist Republic of Vietnam.  The Bank’s headquarters are located in Budapest, Hungary.  IIB specialises in medium- and long-term financing of projects aimed at supporting the economic development of its member states and that would have a significant positive social, economic and environmental impact. The Bank offers direct financing and provides loans in partnership with other financial institutions as well as through partner banks.  IIB securities are currently traded on the Bratislava, Bucharest, Budapest, Moscow, Prague and Vienna stock exchanges.

The Board of Governors is the Bank’s supreme governing body, consisting of representatives from the IIB’s member states. The Board of Directors is responsible for the general management of the Bank’s operations. The Bank’s executive body is the Management Board, whose members are appointed by the Board of Governors. The Bank’s activities are controlled by the Audit Committee, which is made up of representatives from the IIB’s member states appointed by the Board of Governors. The Bank’s financial statements are confirmed by a semi-annual compliance audit review and an annual audit.  As an international organisation, the Bank is not subject to national banking and other regulations; it enjoys immunities and privileges determined by the Agreement Establishing the IIB and corresponding agreements with its member states.” 

LINK: Patriot Act Certification Regarding Correspontant Accounts For Foreign Banks
LINK: Wolfsberg Group Correspondent Banking Due Diligence Questionaire
LINK: W-8BEN-E Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)

Politico
Brussels, Belgium
13 April 2023

AS US INCREASES PRESSURE ON HUNGARY: The United States on Wednesday imposed sanctions on Hungary-based International Investment Bank, which has links to Russia, as well as three individuals living in Hungary, marking a new low point in Budapest’s relationship with Washington. 

Background: The IIB is a controversial institution located in Budapest with ties to the Russian state, which Western officials fear may be used for Russian intelligence operations inside Europe. U.S. Ambassador to Hungary David Pressman said Washington had repeatedly shared information with Hungarian counterparts about the threat the bank posed to NATO, but said Budapest had “dismissed” those concerns. Lili Bayer has more.

17.5% Decrease In U.S. Agricultural Commodity/Food Products Exports To Cuba In February 2023. Exports Remain Up 10.4% Year-To-Year.

ECONOMIC EYE ON CUBA©
April 2023

February 2023 Ag/Food Exports To Cuba Decrease 17.5%- 1
55th Of 216 February 2023 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 10.4%- 2
Cuba Ranked 54th Of U.S. 2023 Ag/Food Export Markets- 2
February 2023 Healthcare Product Exports US$61,354.00- 2
February 2023 Humanitarian Donations US$2,398,423.00- 3
Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16 (not yet available)

FEBRUARY 2023 FOOD/AG EXPORTS TO CUBA DECREASE 17.5%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in February 2023 were US$24,592,601.00 compared to US$29,812,459.00 in February 2022 and US$21,242,760.00 in February 2021. 

February 2023 exports included among other items: Waffles and Wafers; Coffee; Tuna; Condiments; Toilet Paper; Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Meat of Swine; Preserved Chicken Meat; Yeasts; Non-Alcoholic Beverages.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Cuba Banks Again Accepting U.S. Dollar Deposits. That's Good. Better Would Be Providing Regulations For U.S.-Sourced Direct Investment And Direct Financing To MSMEs. First OFAC License Waiting...

“It is very useful for us as a company and more than now we need a lot of capital injection to face the crisis with the purchase of professional machinery.  This gives us the possibility of having currency input that currently could not be exchanged into currencies other than USD.”  Owner of an officially-registered Micro, Small, and Medium-Size Enterprise (MSME) located in the Republic of Cuba and owned by a Republic of Cuba national. 

Granma
Havana, Republic of Cuba
10 April 2023

Financial and banking institutions will accept cash deposits of US dollars in bank accounts (+ Video) 

From this moment on, financial and banking institutions will accept cash deposits of US dollars in bank accounts, and the acceptance of this currency in the operations of buying and selling currencies in the Exchange Market will be maintained as before. 

Resolution 26 of 10 of the Central Bank of Cuba, dated April 2023, 63, which repeals Resolution 2023 of June 6, which prohibited the acceptance of the US dollar in cash by banks and non-bank financial institutions, has been published in the Extraordinary Official Gazette No. 2023 of April 176, 2021, which prohibits the acceptance of the US dollar in cash by banks and non-bank financial institutions, for its banking. 

The repeal of Resolution 176/2021 responds to the current circumstances and priorities of economic policy. The current economic scenario of the country, having overcome the covid-19 pandemic, with the revival of tourism, the resumption of the presence of foreign visitors and the gradual recovery of productive activity and services, suggests taking this step, even though the measures of maximum economic pressure that have extremely reinforced the economic blockade remain in force, particularly those aimed at hindering Cuba's external financial flows and preventing deposits abroad of US dollars in cash. 

The foreign exchange market established in August 2022, among other measures, has created the conditions so that both the possibility of making deposits in US dollars in financial and banking institutions, and of receiving that currency in cash from exchange operations, can be accepted, as it was in the past. 

Since the policy of economic pressure that led to the June 2021 decision remains in place, the underlying problem has not been resolved. Therefore, it will be necessary to monitor the evolution of banking and financial activity from this new step, with the confidence that it will be beneficial for national economic activity and for the population, and with the willingness to make the adjustments that are pertinent according to their behavior. 

From this moment on, financial and banking institutions will accept cash deposits of US dollars in bank accounts, and the acceptance of this currency in the operations of buying and selling currencies in the Exchange Market will be maintained, as until now. 

LINK Las instituciones financieras y bancarias aceptarán depósitos en efectivo de dólares estadounidenses en cuentas bancarias (+ Video) › Cuba › Granma - Órgano oficial del PCC 

Central Bank of the Republic of Cuba
Havana, Republic of Cuba
10 April 2023

En la Gaceta Oficial Extraordinaria No. 26 del día 10 de abril de 2023 ha sido publicada la Resolución 63 de 2023 del Banco Central de Cuba, de fecha 6 de abril de 2023, que deroga la Resolución 176 de junio de 2021, que prohibía la aceptación del dólar estadounidense en efectivo por parte de los bancos e instituciones financieras no bancarias, para su bancarización.

La derogación de la Resolución 176/2021, responde a las circunstancias y prioridades actuales de la política económica. El actual escenario económico del país, habiendo superado la pandemia COVID 19, con el inicio de la reanimación del turismo, la reanudación de la presencia de visitantes extranjeros y la recuperación paulatina de la actividad productiva y de servicios, aconseja dar este paso, aun cuando permanecen en vigor las medidas de máxima presión económica que han reforzado en extremo al bloqueo económico, en particular las dirigidas a entorpecer los flujos financieros externos de Cuba e impedir los depósitos en el exterior de dólares estadounidenses en efectivo.

El mercado cambiario establecido en agosto de 2022, entre otras medidas, ha creado las condiciones para que se pueda aceptar, como era en el pasado, tanto la posibilidad de realizar depósitos en dólares estadounidenses en las instituciones financieras y bancarias, como de recibir esa moneda en efectivo a partir de operaciones de canje.

Puesto que la política de presión económica que dio lugar a la decisión de junio de 2021 permanece vigente, el problema de fondo no se ha resuelto. Por consiguiente, será necesario monitorear la evolución de la actividad bancaria y financiera a partir de este nuevo paso, con la confianza de que resultará beneficioso para la actividad económica nacional y para la población, y con la disposición de realizar los ajustes que resulten pertinentes según su comportamiento. 

A partir de este momento las instituciones financieras y bancarias aceptarán depósitos en efectivo de dólares estadounidenses en cuentas bancarias, y se mantendrá como hasta el presente, la aceptación de esta moneda en las operaciones de compra y venta de divisas en el Mercado Cambiario.

LINK https://www.bc.gob.cu/noticia/nota-del-banco-central-de-cuba/1736

Verdict By London Court In Cuba Debt Lawsuit: From Court- Money Remains Owed By Cuba, Cuba Lawfully Changed Assignment Process, Plaintiff Will Seek New Assignment. Another Year In Court?

Court Judgement Excerpt: “CONCLUSIONS AND SERVICE OUT- 400. In conclusion: i) BNC consented on its own behalf to the assignment by ICBC to CRF of its rights and obligations under the Agreements; ii) It lacked capacity to consent on behalf of Cuba to the assignment by ICBC to CRF of its rights under the Guarantee; iii) Accordingly, the rights and obligations of ICBC under the Agreements were validly assigned to CRF, with the result that CRF is entitled to rely on the contractual provisions contained therein as to the jurisdiction of the English court, waiver of immunity and service of process.  401. I therefore find and declare that: i) BNC, on its own behalf, consented to the assignment of the debts represented by the Agreements by ICBC to CRF; ii) Accordingly, the debts represented by the Agreements have been validly assigned by ICBC to CRF; APPROVED JUDGMENT CRF v Banco 94 iii) The Court has jurisdiction to try the debt claims herein; iv) BNC is not immune from the jurisdiction of the Court pursuant to the SIA; and v) The conditions for the service of the Claim Form out of the jurisdiction upon BNC have been satisfied.”

LINK TO 3-PAGE APPROVED JUDGEMENT (4 April 2023)

LINK TO 94-PAGE APPROVED JUDGEMENT IN PDF FORMAT (4 April 2023)

“London, UK, 4th April 2023
Cuba Defeated in English High Court by CRF
CRF I Limited v. Banco Nacional de Cuba and Republic of Cuba - CL-2020-000092 090

Following a landmark ruling by the English High Court in favour of CRF I Limited, Mr. David Charters, the Chairman of CRF provided a series of quotes for a press release, highlighting the company's commitment to ethical business practices and its intent to work closely with the Cuban government to reach a mutually beneficial solution.  Mr. Charters stated, "We are pleased that a Senior Judge in the English High Court has recognised CRF as a responsible creditor, and not a vulture fund, contrary to Cuban assertions. This decision reaffirms our commitment to conducting business in an ethical and responsible manner." 

Mr. Charters continued, "We have always maintained that the claims of bribery against CRF I Limited and our colleague Jeet Gordhandas were baseless, and we are pleased that this has been confirmed by a costs order against Cuba. We remain committed to upholding the highest standards of integrity and transparency in our business dealings."  In response to a prior recent statement from Cuban Justice Minister Silvera, Mr. Charters welcomed Cuba's recognition of CRF as a legitimate creditor: "We welcome the statement from Minister Silvera that Cuba will recognize our legitimate debts and legitimate creditors, as CRF is both. We look forward to working with the Cuban government to find a mutually beneficial solution." 

Emphasising CRF's commitment to supporting the Cuban economy, Mr. Charters added, "CRF remains committed to finding a solution with Cuba that has zero impact on its budget for at least 5 years, recognising the difficult economic situation the country is facing. We believe that a mutually beneficial solution can be reached through constructive dialogue and cooperation."  Addressing a technical point in the judgement, Mr. Charters concluded, "BNC was the Central Bank of Cuba and remains responsible for managing these unpaid Cuban debts. Cuba won a technical point in this judgement which we have already remedied and we do not expect this issue to impact the eventual final outcome, which is a complete victory for CRF."” 

"Further to our press release earlier this morning, please see below a further release by Rosenblatt: The Rosenblatt team - Harvey Rands, George Jackson, Madeleine Binkley and Tracy Tsao - is pleased to have obtained a landmark judgment establishing jurisdiction against Banco Nacional de Cuba in respect of Cuban sovereign debt held by their client CRF I Limited.  In judgment handed down yesterday, the Commercial Court held that CRF are a legitimate creditor of Cuban sovereign debt payable by Banco Nacional de Cuba, the former Cuban central bank, having agreed to an assignment of two debt positions from ICBC Standard Bank to CRF.  The court rejected Cuba’s contrived allegations both of bribery, and that CRF is a vulture fund. Cuba’s allegation of bribery was cynically maintained without foundation for two years before being dropped shortly before trial.  CRF may now proceed to a substantive trial to enforce recovery of the sovereign debt that it unequivocally owns. In the meantime, Banco Nacional de Cuba has been ordered to make a payment of £575,000 to CRF on account of costs.  The Republic of Cuba relied on Cuban law to establish that the Banco Nacional de Cuba could not consent to an assignment of Cuban sovereign debt on its behalf. Accordingly, CRF have now made an express request directly to the Republic of Cuba for consent to assign the underlying guarantees, which they have no ground to refuse in accordance with the judgment handed down.

Other Release Notes:  It's important to note that CRF has already re-filed and Cuba must accept the assignment or risk being deemed unreasonably withholding. Cuba has bought themselves 28 days.  CRF appears to be the clear winner in this situation, as it has a draft order for costs. This suggests that CRF has a strong case and is likely to come out on top.  Another important point to consider is that CRF is a bona fide creditor. This means that they have a legitimate claim to the funds in question, which strengthens their position in any legal proceedings.  Finally, it's worth noting that all creditors know exactly how to put Cuba in the crosshairs. This suggests that Cuba may face additional legal challenges in the future if they continue to withhold funds from CRF or other creditors. Ultimately, it's in Cuba's best interest to resolve this situation as quickly and fairly as possible."

Granma
Havana, Republic of Cuba
4 April 2023

República de Cuba gana pleito en Londres: CRF no es acreedor del Estado cubano
La sentencia acoge el planteamiento sostenido por la parte cubana durante el proceso y desestima la reclamación de CRF contra el Estado cubano

En audiencia desarrollada este martes 4 de abril (08.45 horas de Londres) en la Alta Corte de Inglaterra y Gales, la jueza Sara Cockerill notificó a los abogados de las partes la sentencia correspondiente a la demanda interpuesta por el fondo buitre CRF I Limited contra la República de Cuba y el Banco Nacional de Cuba (BNC).  La sentencia acoge el planteamiento sostenido por la parte cubana durante el proceso y desestima la reclamación de CRF contra el Estado cubano. La resolución judicial confirma que las irregularidades cometidas por funcionarios del BNC, sujetas a investigación penal primero y a sentencia judicial después, fueron motivos razonables para que el gobierno cubano negara su consentimiento en ceder la deuda a favor de CRF.  El documento afirma, tal como venía alegando la República de Cuba, que el BNC no cuenta con capacidad legal ni autoridad para representar al país. Ello ratifica que CRF es un extraño en los instrumentos financieros que reclamaba contra Cuba y no le asistía el derecho a establecer la demanda en Londres; la República de Cuba es, por tanto, inmune a la jurisdicción inglesa y no tiene obligación alguna de responder con su patrimonio ante esta demanda.  Como se ha explicado anteriormente, el objeto central del proceso judicial fue determinar si el tribunal inglés era competente para conocer la reclamación de CRF como acreedor del BNC y de la República de Cuba.  De acuerdo con la sentencia notificada esta mañana, CRF no es acreedor del Estado cubano, lo que significa que la República de Cuba queda fuera del pleito. En lo adelante el proceso continuará solamente contra el Banco Nacional de Cuba, quien tendrá derecho a establecer las reclamaciones que le permite la ley inglesa.  

Google Translate: “In a hearing held this Tuesday, April 4 (08:45 London time) at the High Court of England and Wales, Judge Sara Cockerill notified the lawyers for the parties of the judgment corresponding to the lawsuit filed by the vulture fund CRF I Limited against the Republic of Cuba and the National Bank of Cuba (BNC). The ruling accepts the approach sustained by the Cuban party during the process and dismisses the CRF claim against the Cuban State. The judicial resolution confirms that the irregularities committed by BNC officials, first subject to criminal investigation and later to a judicial sentence, were reasonable grounds for the Cuban government to deny its consent to assign the debt in favor of CRF. The document affirms, as the Republic of Cuba had been claiming, that the BNC does not have the legal capacity or authority to represent the country. This confirms that CRF is a stranger in the financial instruments that it claimed against Cuba and did not have the right to establish the claim in London; the Republic of Cuba is, therefore, immune to English jurisdiction and has no obligation to respond with its assets to this claim. As previously explained, the central purpose of the judicial process was to determine whether the English court was competent to hear the claim of CRF as a creditor of the BNC and of the Republic of Cuba. According to the sentence notified this morning, CRF is not a creditor of the Cuban State, which means that the Republic of Cuba is out of the lawsuit. From now on, the process will continue only against Banco Nacional de Cuba, who will have the right to establish the claims allowed by English law.”

LINK TO 94-PAGE APPROVED JUDGEMENT IN PDF FORMAT (4 April 2023)

On Monday, 23 January 2023, at 10:00 am in London, United Kingdom, an eight-day Jurisdiction Trial commenced with pre-reading for two days, 18 January 2023 and 19 January 2023.  The trial was held at the High Court of Justice, City Court House, Rolls Building, 7 Rolls Buildings, Fetter Ln, London EC4A 1NL. Presiding: Mrs. Justice Sara Cockerill.  

CRF I Limited (Cayman Islands), V. Banco Nacional de Cuba, The Republic of Cuba.  High Court of Justice, Business And Property Courts Of England And Wales, Queen’s Bench Division, Commercial Court [Part 7 Claim- General Commercial Contracts], Royal Courts of Justice. [CL-2020-000092 Filed 18 February 2020; Court Filing Fee £10,000.00 (approximately US$13,000.00].  

From Court Filing: “CRF is a company incorporated under the laws of the Cayman Islands. It was established to invest in defaulted Cuban sovereign debt.  CRF gradually acquired a portfolio of Cuban sovereign debt which was valued in the total principal sum of EUR189 million by 31 March 2016, and EUR1,200 million by 26 November 2017.  The majority of that portfolio, and the part that is relevant to these proceedings, was settled by way of risk participation at ICBC.  That is a common arrangement in the sovereign debt market.”   

Rosenblatt (plaintiff)
Memery Crystal (plaintiff- firm merged with Rosenblatt)
7 King’s Bench Walk (plaintiff)
Gibson, Dunn & Crutcher UK LLP (previously for plaintiff)
PCB Byrne LLP (defendant)
Essex Court Chambers (defendant)
Uria Menendez (defendant)  

Links To Related Analyses 

Four Convicted Cubans Are Defense Witnesses In London Bank Trial; One From Prison. Actual Bribery No Longer Defense Strategy; Allegation Of Bribery Remains. Skeletons Tell All? January 18, 2023 

36 Months Of Litigation; US$5.8 Million On Attorneys By Cayman Islands-Based Plaintiff And Havana-Based Defendants, Now London Trial. KCs Lead Sides. Issues: Interpol Red Notice, Jurisdiction, Bribery Jan 13, 2023   

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

NOTE: On 28 May 2021, London, United Kingdom-based ICBC Standard Bank Plc filed a lawsuit against Banco Nacional de Cuba and the Government of the Republic of Cuba. The lawsuit (CL-2021-000343) was filed in the High Court of Justice, Commercial Court, Part 7 Claim, Central Commercial Contracts and Arrangements. ICBC Standard Bank Plc is represented by London, United Kingdom-based Herbert Smith Freehills LLP.  The defendants have no counsel listed.  The last update to the lawsuit was 22 November 2021.  The claim document has been completed, but has not been served.  No documents have been filed- and no documents could be filed for months.  LINK  Total amount of claim by ICBC Standard Bank Plc against Banco National de Cuba and Government of the Republic of Cuba is approximately 200 Million Euros (approximately US$224.8 million).  Total amount of interest is approximately 1 Billion Euros (approximately US$1.12 billion).  

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

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

In 2022, World Food Program Spent US$16,335,744.00 In Cuba. WFP Report Highlights Issues For Women In Agricultural Workplace- “…a lack of women's empowerment persists in Cuba”

In 2022, World Food Program Spent US$16,335,744.00 In Cuba.  WFP 54-Page Annual Report Highlights Issues For Women In The Agricultural Workplace- “…a lack of women's empowerment persists in Cuba” 

“… the country's high dependence on imports and limited access to foreign currencies significantly reduced the availability of domestic and imported food commodities. Moreover, the monetary reform initiated in 2021 reduced food subsidies, pushing inflation higher than forecasted (40 percent from October 2021 to October 2022 [3]) and deepening the dual-currency inequality gap, which led to higher prices of basic goods and services and impacted households’ vulnerability to food insecurity. As a result, the country experienced food shortages, including main cereals (wheat flour, rice, and corn), beans, vegetables, dairy products and meat (beef and pork) [4].” 

“… Cuba is one of the Caribbean countries most exposed to hurricanes, droughts and unseasonal rains. These shocks are expected to become more frequent and severe due to the effects of climate change. Rising sea levels, increase in temperature and decrease in precipitation affect agriculture, forestry and tourism, pillars of the national economy. In the aftermath of Hurricane Ian in September 2022, WFP implemented a 2-month food assistance plan to reach shock-affected populations in the provinces of Pinar del Río, Artemisa, Mayabeque and the municipality of Isla de la Juventud.” 

“The impact of ongoing monetary reform that started in January 2021 was another risk monitored by WFP. This reform, called Tarea Ordenamiento, has not yet achieved the desired results. Therefore, the shortage of basic products and the increase in global food prices contributed to national inflation. WFP will continue to monitor the effects of the reform, especially on the food security of lower-income households.” 

“Cuba ranked 73rd in the Gender Inequality Index out of 170 countries in 2021 [1]. Despite progress, gender inequality and a lack of women's empowerment persists in Cuba, especially in rural areas where women account for 46 percent of the population but only 17 percent of employees in agriculture [2]. Despite national efforts, including a gender strategy for the agriculture system launched in 2016, only 13 percent of members of agricultural cooperatives are women. The persistence of male-centred agricultural systems, patriarchy and gender stereotypes limit women's access to resources, land ownership and decision-making. For example, only 28 percent of management positions in rural areas are performed by women [3]. In general, the presence of women in the agricultural sector is characterized by the limited role of users [4] (36 percent) or landowners (16 percent). Also, there are few incentives for young people to participate in agriculture and their employment in the sector is limited (15 percent). This context has negative effects on the sustainability of food systems.” 

LINK TO COMPLETE 54-PAGE REPORT IN PDF FORMAT

In Moscow…. New Supplies Of Coffee From Cuba, New Brand Too: Guantanamera Coffee

On Friday, 31 March 2023, a new coffee product from the Republic of Cuba available at GUM Department Store (Gosudarstvenny Universalny Magazin (State Department Store)) located on Red Square In Moscow, Russian Federation.

And…. Packages of coffee viewed in GUM in December 2022 which had labels indicating the coffee products were past their expiration dates, have been replaced.   

Cuban Coffee In Ukraine… This Afternoon In Kharkiv, The First City Attacked By The Armed Forces Of The Russian Federation On 24 February 2022, СІЛЬПО Supermarket Has 225 Grams For US$5.42.

Cuba Coffee At GUM Department Store On Red Square In Moscow. Unfortunately, Packages Past Their Sell-By Date  

Cubita Coffee From Cuba Available At GUM Department Store In Moscow

If Accurate, Unhelpful To Biden Administration Seeking Openings... “Cuban pres. admires Ayatollah Khamenei's wisdom, leadership"

“Cuban pres. admires Ayatollah Khamenei's wisdom, leadership

TEHRAN, Mar. 21 (MNA) – Cuban President Miguel Diaz-Canel says that Ayatollah Khamenei is a wise leader who has a tremendous capability for logical thinking and analysis.

In an exclusive interview with Al Mayadeen, the Cuban President talks about Cuba's stance on the war in Ukraine and his country's relationship with different countries.

Speaking about Cuban-Iranian relations, the Cuban president described Iran as Cuba’s sister nation. He said that the foundations of the relationship between the two countries are based on history and mutual respect, as well as the great resistance that the two people waged in the face of imperial blockades and sanctions. According to the Cuban president, "the Cuban and Iranian people share an understanding of resistance, courage, heroism, dignity, and defiance to the plans of imperialist power."

He also expressed his appreciation for the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei as a politician and as the leader of the Iranian Revolution, admiring his “tremendous capability for logical thinking and analysis,” also describing him as a wise leader.

The Cuban president indicated that the two countries are working on joint projects that serve the economic development of both, especially in the fields of energy and food. He pointed out that Iranian President Ebrahim Raeisi might visit his country, while also expressing his desire to visit Tehran this year.

Miguel Diaz-Canel, President of the republic of cuba (2019- )

Diaz-Canel stressed that this year will witness a deepening of relations between the two countries, and the adoption of projects that are of mutual benefit. He specified both nations share mutual projects that include scientific research, technology, and energy.

The Cuban president expressed his admiration for Iran's culture, civilization, and resistance against aggression, and said that the technological development that Iran has achieved despite the embargo and sanctions is very important, and multifaceted, pointing out that being familiar with Iran's development can benefit Havana.  MP/PR”

news/198725/Cuban-pres-admires-Ayatollah-Khamenei-s-wisdom-leadership

Will The Ibero-American Summit of Heads Of State In Santo Domingo Be An Opportunity For Christopher Dodd, SPA For The Americas, To Speak With President Of Cuba?

United States Department of State
Washington DC
24 March 2023

Senior Presidential Advisor for the Americas Dodd’s Travel to the Dominican Republic
Office of the Spokesperson

Special Presidential Advisor (SPA) for the Americas Christopher J. Dodd will travel to Santo Domingo, the Dominican Republic, on March 24-25 to attend the 28th Ibero-American Summit of Heads of State and Government.  SPA Dodd is attending the summit at the invitation of Dominican President Luis Abinader, whose government is hosting the event.  In Santo Domingo, SPA Dodd will attend Summit events and hold bilateral meetings with President Abinader and other regional leaders.  This visit demonstrates the Biden Administration’s commitment to engaging with our neighbors as we work together to encourage inclusive economic growth, confront shared challenges, and promote democracy, human rights, and the rule of law in our hemisphere.

U.S. Department Of State Issues 2022 Cuba Human Rights Practices Report. Corruption And Private Sector Issues Hightlighted

United States Department of State
Washington DC
20 March 2023

2022 Country Reports on Human Rights Practices: Cuba

Section 4. Corruption and Lack of Transparency in Government

The law provides criminal penalties for corruption; however, there were numerous reports of government corruption, supported by a poorly regulated and opaque banking sector.  The government was highly sensitive to corruption allegations and often conducted anticorruption crackdowns.

Corruption:  There were numerous reports of police and other official corruption in enforcement of economic restrictions and provision of government services.  For example, employees frequently stole products from government stocks and sold them on the black market.  Corruption by customs officers was also reportedly common.  The government and state-controlled businesses engaged in international money laundering to evade sanctions.

E. ACCEPTABLE CONDITIONS OF WORK

Informal Sector: Despite criminal penalties for doing so, a significant number of workers participated in the informal economy, including individuals who traded on the black market or performed professional activities not officially permitted by the government. There was no publicly available information regarding the size of the informal sector.

Self-employed persons, such as fruit sellers, bicycle taxi drivers, and others, were frequently targeted by police for allegedly acting illegally, even when licensed. Police sometimes arbitrarily and violently closed these businesses and confiscated any goods.

LINK To Department Of State Report Page
LINK To 2022 Country Reports on Human Rights Practices: Cuba

USDA Accepting Applications For 2024 Export Programs- Cuba Again Authorized For Participation. Since 2018 Farm Bill, FMD And MAP Focus On Cuba Remains Anemic. Will 2024 Be Different?

“USDA Accepting Applications for FY 2024 Export Programs 

The U.S. Department of Agriculture’s [USDA] Foreign Agricultural Service is accepting applications from eligible organizations for fiscal year 2024 funding for five export market development programs. FAS recently published the FY 2024 Notices of Funding Opportunity for the Market Access Program, Foreign Market Development Program, Technical Assistance for Specialty Crops Program, Quality Samples Program and Emerging Markets Program.  The application deadline for the five programs is May 19, 2023. 

Background 

Under the Market Access Program, USDA provides competitive, cost-share assistance to U.S. exporters and agricultural, fish, and forest product trade organizations for international marketing and promotion of U.S. commodities and products. More information about the program and the FY 2024 funding opportunity is available at:  https://www.fas.usda.gov/programs/market-access-program-map.  

Under the Foreign Market Development Program, USDA partners with nonprofit agricultural and forest product trade associations to build longer-term international demand for U.S. commodities. More information about the program and the FY 2024 funding opportunity is available at: https://www.fas.usda.gov/programs/foreign-market-development-program-fmd.” 

• LINK: Cuba Was 55th Largest Agricultural Commodity/Food Export Market In 2022. Increased 7.7% From 2021 To 2022; Up 40.2% In December 2021. Surprise: US$288,000.00 In Cigarettes From Tampa, Florida. Feb 9, 2023   

Defining Anemic: In Five Years, 2018 Farm Bill USDA Provision For Cuba Had No Use Of FMD And Two Uses Of MAP. Approximately 90 U.S.-Based Entities Could Have Participated. That’s A 2.2% Use Rate. Feb 3, 2023   

Source: USDA

In 2018, legislative advocates maintained that inserting a Market Access Program (MAP) and Foreign Market Development (FMD) provision in H.R. 2, the five-year Agriculture Improvement Act, known as the Farm Bill signed into law on 20 December 2018 by Donald Trump, 45th President of the United States was critical to “laying the groundwork” for increasing exports of agricultural commodities and food products to the Republic of Cuba.  Statements from members of the United States Congress included: “… an important first step to regaining our presence in Cuba.”     

Approximately seventy United States-based entities (primarily trade promotion organizations) annually are identified by the United States Department of Agriculture (USDA) as receiving funding for MAP and approximately twenty entities are identified as receiving funding for FMD.   

Leading to the enactment of the 2018 Farm Bill, most observers reasonably concluded that legislative advocates- within the United States Congress and organizations in Washington DC and outside of the beltway would have prominently teed-up at least one high-profile applicant to publicize in advance they would use the provision if it became law or at least one high-profile applicant to immediately and publicly request funding when the 2018 Farm Bill became law on 21 December 2018.     

The most significant impact of an anemic number of MAP/FMD requests and usage in 2018, 2019, 2020, 2021, 2022, and 2023 is what the lack of interest portends for other legislative efforts in the United States Congress relating to the Republic of Cuba, particularly those focused upon changes to cash-in-advance payment terms for agricultural commodity and food product exports from the United States to the Republic of Cuba required by the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSREEA).  The question opponents will ask: “If authorizing MAP/FMD for Cuba was so important, why have so few organizations used it?”    

The cash-in-advance terms were supported by United States-based exporters while opposed by United States-based agricultural commodity and food product trade promotion organizations.  United States-based exporters were concerned in 2000 and remain concerned in 2023 that with Republic of Cuba government-operated entities maintaining a chronic inability to abide by payment terms other than cash-in-advance, more prudent to retain a perhaps smaller market share with no payment issues rather than a larger market share with endemic, and necessarily publicly-disclosed payment issues.    

Links To Related Analyses 

Members Of U.S. Senate Advocate For Regulatory Changes To Commercial Relationship With Cuba. But, A Significant Part Of What They Seek In Washington Await Decisions In Havana. Mar 16, 2023

In The Olympics, 110-Meter Hurdle Race Has Ten Hurdles.  Senator Klobuchar's Reintroduced Cuba Legislation Has At Least Twelve In The United States Congress. Mar 9, 2023

Better Informed, Richard Branson Could Provide Essential Value To MSMEs In Cuba, To Diaz-Canel-Valdes Mesa Adminstration In Havana, And To Biden-Harris Administration In Washington Feb 15, 2023  

Why No Advance Or Post Visit Mention On State Of Delaware Internet Sites For Visit To Cuba By Secretaries Of Agriculture And State? Under-The-Radar Visits Are Not Helpful. February 14, 2023

Another Unpublicized U.S. Senator Visit To Cuba. Rather Than Focus On What Cuba Private Sector Needs From Cuba Government, He Focuses Upon What Cuba Private Sector Needs From U.S. Government. January 05, 2023 

Mr. de Cossio At MINREX In Cuba Not Quite Accurate With His Comments About Biden-Harris Administration Efforts With MSMEs And Remittances Dec 20, 2022  

If MSMEs Are Important To Cuba, Why Nearing Seven Months And No Regulations Authorizing Foreign Investment And Foreign Financing? Biden Administration And 6,000 MSMEs In Cuba Are Waiting. Nov 30, 2022  

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

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   

Ag Delegations Traveling To Cuba Must Know What Is Possible, Advocate To Government Of Cuba To Permit All That Is Permissible- Direct Export Of Coffee, Cacao, Honey. Complaining Not Constructive. April 14, 2022  

Might Cubaexport In 2020 Permit “Independent Entrepreneurs” To Export Coffee Beans, Cocoa and Honey To The United States? January 14, 2020  

Members Of U.S. Senate Advocate For Regulatory Changes To Commercial Relationship With Cuba. But, A Significant Part Of What They Seek In Washington Await Decisions In Havana.

Three Members Of The United States Senate Advocate For Regulatory Changes To Commercial Relationship With Cuba  

A Significant Part Of What They Seek In Washington Await Decisions In Havana

Part Of What They Seek Is Already Authorized By The OFAC

Part Of What They Seek Is Not The Responsibility Of The USDA- It Is The Responsibility Of Those Who Advocated For It And Have Not Used It.  Whose Fault Is That?

They Should Also Send A Letter To Miguel Diaz-Canel, President Of The Republic Of Cuba

On 15 March 2023, three members of the United States Senate sent a three-page letter to Joseph Biden, 46th President of the United States:  Chris Van Hollen (D-Maryland), Ron Wyden (D- Oregon), Chairman of the Finance Committee, and Cynthia Lummis (R-Wyoming).  LINK To Letter

Excerpt

“Small, private sector Cuban entrepreneurs have been clamoring for access to capital that could help their businesses thrive, support private sector employment, and make it less likely Cubans seek to migrate to the United States due to lack of hope for a better future. Rather than continue the failed policy of broad-based sanctions, your Administration should undertake efforts to increase economic exchange between the United States and the Cuban people. This should include risk-based, targeted efforts, including narrow changes to U.S. licensing and regulations, to support Cuba’s small and medium-sized private enterprises in accessing U.S. financial services to legitimate the Cuban private sector and facilitate its growth.”

On 10 May 2022 the Biden-Harris Administration (2021- ) authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national. 

Unfortunately, the government of the Republic of Cuba has yet- two years and counting, to specifically authorize and publish regulations for the delivery of direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.   

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

• 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    

Excerpt

“Establish a targeted Office of Foreign Assets Control (OFAC) license to allow U.S. banks to provide financial services to small, private sector Cuban businesses, potentially through Cuban banks, with appropriate risk management controls to prevent the flow of funds to entities controlled by the Cuban government. The licensing regime should include both payments activity and microfinancing of the private sector in Cuba, including agricultural cooperatives;”

The senators are correct that the absence of efficient banking for micro, small, and medium-size enterprises (MSMEs) constrains their operational efficiencies and their potential. 

The Biden-Harris Administration continues to refuse to authorize direct correspondent banking.  Incredulously, the Obama-Biden Administration (2009-2017) had authorized United States-based financial institutions to have correspondent accounts at financial institutions located in the Republic of Cuba, but did not authorize Republic of Cuba-based financial institutions to have correspondent accounts with financial institutions located in the United States. 

Absent direct correspondent banking and re-establishment of U-turn transactions for financial institutions located in the United States and in the Republic of Cuba, transactions relating to the export from the United States of authorized agricultural commodities, food products, healthcare products, and for authorized services- including the delivery when authorized by the government of the Republic of Cuba of MSME investment and financing, continue to require use of a financial institution located in a third country which adds time, cost, and lacks transparency. 

Helpful if the three senators would advocate to the government of the Republic of Cuba about the lack of MSME investment/financing regulations which, if issued, would address items referenced in the letter to President Biden   Implementing MSME investment/financing regulations would provide an incentive for the Biden-Harris Administration to authorize direct correspondent banking and U-turn transactions.

• LINK Another Bank Outside U.S. Reported To Cease Providing Wire Transfers To Cuba. No Reason Provided. Shows Urgent Need For Permitting Correspondent Accounts For Cuba Banks With U.S. Banks. December 04, 2022

• LINK Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022

• LINK Airbnb Successfully Lobbied Trump Administration. Airbnb Should Now Focus On Biden Administration To Advocate For Direct Correspondent Banking So Hosts In Cuba May Access Funds Directly, Efficiently. April 06, 2022 

Excerpt

“Work with stakeholders to encourage the use of USDA’s Market Access Program (MAP) and Foreign Market Development (FMD) Program funds, authorized by the 2018 Farm Bill, to educate U.S. farmers and ranchers and facilitate the export of U.S. agricultural commodities to the Cuban market;”

• LINK Defining Anemic: In Five Years, 2018 Farm Bill USDA Provision For Cuba Had No Use Of FMD And Two Uses Of MAP. Approximately 90 U.S.-Based Entities Could Have Participated. That’s A 2.2% Use Rate. Feb 3, 2023  

In 2018, legislative advocates maintained that inserting a Market Access Program (MAP) and Foreign Market Development (FMD) provision in H.R. 2, the five-year Agriculture Improvement Act, known as the Farm Bill signed into law on 20 December 2018 by Donald Trump, 45th President of the United States was critical to “laying the groundwork” for increasing exports of agricultural commodities and food products to the Republic of Cuba.  Statements from members of the United States Congress included: “… an important first step to regaining our presence in Cuba.”    

Approximately seventy United States-based entities (primarily trade promotion organizations) annually are identified by the United States Department of Agriculture (USDA) as receiving funding for MAP and approximately twenty entities are identified as receiving funding for FMD.   

Leading to the enactment of the 2018 Farm Bill, most observers reasonably concluded that legislative advocates- within the United States Congress and organizations in Washington DC and outside of the beltway would have prominently teed-up at least one high-profile applicant to publicize in advance they would use the provision if it became law or at least one high-profile applicant to immediately and publicly request funding when the 2018 Farm Bill became law on 21 December 2018.    

The most significant impact of an anemic number of MAP/FMD requests and usage in 2018, 2019, 2020, 2021, 2022, and 2023 is what the lack of interest portends for other legislative efforts in the United States Congress relating to the Republic of Cuba, particularly those focused upon changes to cash-in-advance payment terms for agricultural commodity and food product exports from the United States to the Republic of Cuba required by the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSREEA).  The question opponents will ask: “If authorizing MAP/FMD for Cuba was so important, why have so few organizations used it?”   

The cash-in-advance terms were supported by United States-based exporters while opposed by United States-based agricultural commodity and food product trade promotion organizations.  United States-based exporters were concerned in 2000 and remain concerned in 2023 that with Republic of Cuba government-operated entities maintaining a chronic inability to abide by payment terms other than cash-in-advance, more prudent to retain a perhaps smaller market share with no payment issues rather than a larger market share with endemic, and necessarily publicly-disclosed payment issues.    

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Links To Related Analyses

 U.S. Agricultural Commodity/Food Products Exports To Cuba Increased 48.7% In January; Cuba Ranked 52nd Of 207 Global Export Markets. US$45,110.00 In Waffles And Wafers Among Products Purchased. Mar 13, 2023

In The Olympics, 110-Meter Hurdle Race Has Ten Hurdles.  Senator Klobuchar's Reintroduced Cuba Legislation Has At Least Twelve In The United States Congress. Mar 9, 2023

Western Union Goes National For U.S. Tranfers To Cuba.... When Will Cuba Permit U.S. Investment And Financing For MSMEs In Cuba? No Excuse For Delays.  Mar 3, 2023  

Cuba Updates Regulations On Import, Sale, Transfer Of Vehicles, Including Electric Vehicles, For MSMEs And Individuals. Two Years And Waiting... No MSME Investment/Financing Delivery Regulations Feb 25, 2023  

Misleading Tweet By Biden-Harris Department Of State Emulates Trump-Pence Department Of State.  So Much For Wanting To Be Different.  Channeling Michael Kozak. Feb 25, 2023

Cuba Was 55th Largest Agricultural Commodity/Food Export Market In 2022. Increased 7.7% From 2021 To 2022; Up 40.2% In December 2021. Surprise: US$288,000.00 In Cigarettes From Tampa, Florida. Feb 9, 2023  

Better Informed, Richard Branson Could Provide Essential Value To MSMEs In Cuba, To Diaz-Canel-Valdes Mesa Adminstration In Havana, And To Biden-Harris Administration In Washington Feb 15, 2023  

Why No Advance Or Post Visit Mention On State Of Delaware Internet Sites For Visit To Cuba By Secretaries Of Agriculture And State? Under-The-Radar Visits Are Not Helpful. February 14, 2023

Defining Anemic: In Five Years, 2018 Farm Bill USDA Provision For Cuba Had No Use Of FMD And Two Uses Of MAP. Approximately 90 U.S.-Based Entities Could Have Participated. That’s A 2.2% Use Rate. Feb 3, 2023  

Another Unpublicized U.S. Senator Visit To Cuba. Rather Than Focus On What Cuba Private Sector Needs From Cuba Government, He Focuses Upon What Cuba Private Sector Needs From U.S. Government. January 05, 2023 

Mr. de Cossio At MINREX In Cuba Not Quite Accurate With His Comments About Biden-Harris Administration Efforts With MSMEs And Remittances Dec 20, 2022  

If MSMEs Are Important To Cuba, Why Nearing Seven Months And No Regulations Authorizing Foreign Investment And Foreign Financing? Biden Administration And 6,000 MSMEs In Cuba Are Waiting. Nov 30, 2022  

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

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   

Ag Delegations Traveling To Cuba Must Know What Is Possible, Advocate To Government Of Cuba To Permit All That Is Permissible- Direct Export Of Coffee, Cacao, Honey. Complaining Not Constructive. April 14, 2022  

Might Cubaexport In 2020 Permit “Independent Entrepreneurs” To Export Coffee Beans, Cocoa and Honey To The United States? January 14, 2020  

Senator Klobuchar Could Be A Catalyst For Claims Or Her Candidacy Could Doom Her Legislation February 16, 2019