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Last Updated: 5/15/08


Cuba Trade Delegation


On February 19-22, a delegation of representatives from prominent U.S. trade associations visited Cuba on a fact-finding mission to learn more about the Cuban economy and the role of the private sector. The group visited officials in ministries with responsibility for trade, foreign investment, basic industries, tourism and food imports, and met with Ricardo Alarcon, President of the National Assembly. Upon their return, delegation members held a press conference to provide their firsthand perspective on the state of the Cuban economy and the potential for future U.S. trade with Cuba.

Press Coverage


As printed in
World Peace Herald
March 9, 2007

Businessmen dismiss Cuban system's imminent collapse
Cuban economy assessed as stable

By Steve Hirsch
The Washington Times

Businessmen who recently returned from a visit to Cuba dismissed the notion yesterday that that country's economy will collapse with the passing of President Fidel Castro, or that his death will spur an exodus from the island. 
    
Questions about the effect of Mr. Castro's political departure or death have taken on urgency since his hospitalization last year and ceding of power to his brother Raul. 
    
Meanwhile, dozens of federal, state and local agencies participated with the military in an exercise in Florida this week to prepare for any influx of Cubans when Mr. Castro dies. 
    
Wayne S. Smith, a senior fellow at the Center for International Policy, which sponsored the businessmen's trip, disputed the idea that Mr. Castro's death or departure would bring down Cuba's system. 
    
"This idea that the Cuban economy is collapsing and the regime is on the ropes is absolute nonsense," he said, adding that Cubans are not likely to flee the island in the event of Mr. Castro's death. 
    
Efforts have begun in Congress, with its new Democratic majorities, to chip away at the U.S. embargo of Cuba. Businessmen who participated in the trip offered cautious appraisals of economic opportunities for U.S. firms. 
    
Timothy Deal, senior vice president of the U.S. Council for International Business, said Cuba has reached a critical point and is "looking to the outside world to provide new resources." 
    
The U.S. embargo allows certain cash sales of food to Cuba. Daniel O'Flaherty, vice president of the National Foreign Trade Council, said the United States is Cuba's third-largest source of imports, while Cuba is a major market for U.S. rice, chicken and wheat. 
    
Jake Colvin, director of the pro-trade industry group USA Engage, said Cuban interest in outside investment is more limited than its interest in trade but that Havana has a particular interest in outside investment in the energy sector, including oil and gas production. 
    
Rep. Jeff Flake, Arizona Republican, said the United States lacks meaningful information about activity in Cuba. He previously sponsored legislation to allow U.S. companies to work with Cuba to exploit oil reserves, and is likely to introduce similar legislation this year. 
    
U.S. diplomats in Havana, he said, are capable but are "so totally divorced from reality because ... they can't meet with the Cuban government." 
    
He termed U.S. diplomacy toward Cuba "sophomoric." 
    
"And then we wonder why we get bad intelligence in Cuba about the transition. It's because they can't and won't talk to anybody there," he added.
 

As printed by
Southwest Farm Press

March 13, 2007

Trade experts offer insights from mission to Havana

Representatives from prominent U.S. trade associations hosted a press conference at the National Press Club to provide their firsthand perspective on the state of the Cuban economy after returning from a fact-finding mission to Cuba, which took place February 19-22. Members of the mission met with trade and international economic officials from the Cuban government to learn more about the Cuban economy and the role of the private sector. The panelists were in Cuba as consultants to gather information on a trip sponsored by, and on behalf of, the Center for International Policy

"This is a critical time in Cuba's history," said Timothy Deal, Senior Vice President and Head of the Washington, DC office of the U.S. Council for International Business. "Our trip made clear that the severe economic troubles Cuba faced following the Soviet collapse are over. The country is looking to the outside world to provide new resources."

Consultants on the information-gathering mission included Mr. Deal, Daniel O'Flaherty, Vice President of the National Foreign Trade Council; Jake Colvin, Director of USA*Engage; Peggy Rochette, Senior Director of International Policy for the Food Products Association; Allison O'Donnell, Director of Government Relations for the National Retail Federation; Robert Muse, an attorney; and Abigail Poe with the Center for International Policy.

"Our trip was a rare opportunity to assess firsthand the role of the private sector in the Cuban economy, and we found a mixed bag," said Colvin. "There are certainly opportunities for trade - and probably would be more absent the U.S. embargo - but it is clear that investment opportunities at this point are more limited and subject to very specific conditions," he continued.

The group visited officials in ministries with responsibility for trade, foreign investment, basic industries, tourism and food imports, and met with Ricardo Alarcon, President of the National Assembly. Members also toured oil exploration facilities east of Havana.

"Overall, the economy is probably in better shape than it has been in years, and Cuba seems quite content to partner with friendly countries - particularly Venezuela," said O'Flaherty. "What we saw is that Cuba is charging forward with plans for oil exploration and expanded tourism facilities with some degree of foreign participation - and without the U.S."

Robert Muse, an attorney who accompanied the delegation to Cuba, noted that, with regard to U.S. policy, "Should the U.S. want to take down its barriers to trade and investment with Cuba, President Bush and anyone who follows him has the latitude under current law to allow the resumption of commercial relations between the two countries."

Wayne Smith, Senior Fellow and Director of the Cuba Program at the Center for International Policy, said that, "CIP is delighted that these individuals could bring their experience and expertise to help evaluate the Cuban economy at this very important juncture."

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