Exporting to Cuba Workshop

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1 Exporting to Cuba Workshop Exposing by H.E. Ambassador of Cuba JAMPRO, February 4, 2015.

2 Cuba Economic and Social Performance and Business Environment

3 The Sixth Congress of the Communist Party of Cuba approved Guidelines of the Social and Economic Policy of the Party and the Revolution in 2011 and Cuba launched the updating of its economic model. Cuba s key purpose is to re-launch the economy while preserving social achievements in health care, education, culture, sports, recreation and social security. The economic transformation aspires to introduce market mechanisms without abandoning the central planning policy. The socialist stateowned enterprise will remain as the fundamental property structure.

4 The country is looking for attracting foreign investment and promoting small firms, cooperatives in the agricultural and services sector and self-employment business, in order to reduce the state s role in non- strategic economic areas. Cuba s Parliament approved a new Tax Law, in July 2012 A new Foreign Investment Law, in March 2014.

5 The Mariel mega-port was inaugurated, in January Development Special Zone in Mariel, characterized not only by the extensive infrastructure created with the investment in the modern Containers Terminal, inaugurated January of last year, but also for the special features in taxes, manpower, insurances and other incentives. Cuba has presented the official Investment Projects. Portfolio in Different Sectors, including the Mariel Special development Zone, in last November 3 rd.

6 Cuba s regional projection in terms of business and investment

7 The Caribbean is Cuba s natural geographical location. Cuba has always preferred to practice a solidarity policy towards the Caribbean, to cooperate rather than to compete. For Cuba, to participate in regional economic integration processes is a key element within the ongoing changes. Jamaica is one of our closest neighbours, geographically, historically and culturally. Given the deep and excellent ties between our two governments and peoples, we are seeking to further strengthen those relations in terms of business and bilateral trade.

8 Cuba has always preferred to practice a solidarity policy towards the Caribbean, to cooperate rather than to compete. For Cuba, to participate in regional economic integration processes is a key element within the ongoing changes. Cuba s economy is open and highly dependent on foreign trade. Foreign trade is conducted via import and export companies specialized by product sector. Trade is carried on with over 3,000 foreign firms. All products that enter Cuba must be declared to customs and are subject to inspection.

9 Cuba is a signatory of the UN (Vienna) Convention on Contracts for the International Sale of Goods; it is a founder member of GATT and belongs to the WTO. The need for us to advance towards a commercial policy that fosters deeper relations with CARICOM member States, to the extent possible, was put forward at the 5 th CARICOM-Cuba Summit last December, and we have decided to explore the opportunities this market offers for our products, and vice versa. We consider that a new avenue is being open in trade relations between our countries in the Caribbean region, and the outcomes will largely depend on the possibility to recognize our needs and prospects.

10 LIST OF CUBAN GOODS THAT COULD BE IMPORTED FROM CARICOM MEMBER STATES 1. Sawn timber 2. Rice 3. Oils and lubricants 4. Anhydrous ammonia 5. Herbicides 6. Fertilizers 7. Organic chemicals 8. Chemical reagents 9. Defoliants 10. Detergent for domestic use 11. Steel wire rod 12. Sheet steel

11 13. Electric motors and parts thereof 14. Machinery and graphic arts equipment 15. Screws, washers and nuts 16. Containers and plastic caps 17. Articles of plastics 18. Means of transport and parts thereof 19. Miscellaneous hardware 20. Jet fuel 21. Liquid petroleum gas 22. Underwear

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14 How to do business with Cuba?

15 Doing business with Cuba Identify the importexport company Agreements Bidding A7 o D7 visa Authentication and registration of documents Supplier & customer catalogue

16 CUBA AND FOREIGN DIRECT INVESTMENT

17 Advantages Highly qualify labor force Scientific development in important economic sectors Existing infrastructure for the development of production and foreign trade High standart of health and hygiene High level of citizen security

18 Prioriy sectors and activities Agricuture and forestry; Food industry Energy and mining Sugar industry Light, Chemestry, Electronic and Metalmechanic industries Pharmaceutical and biotechnologic industries Wholesale business Health Construction Tourism Transport

19 Investing in the Mariel Special Development Zone

20 DAYS Faster Business Approval Process Reception, verification and processing of the application and the required documentation VENTANILLA ÚNICA ONE-STOP SHOP Evaluation of the proposal. Approval or refusal. EVALUATION COMMITTEE Approval or refusal of application COUNCIL OF MINISTERS

21 SECTORS AND ACTIVITIES It is recommended to focus new businesses in: 1. Infrastructure Development. 2. Priority Sectors leading to the development of the country: - Biotechnology and pharmaceuticals. - Container and Packing industry. - Renewable Energy. - Agriculture. - Agro-Food Industry. - Light Industry. - Real Estate. - Tourism. - Telecommunications and ICT.

22

23 As I have repeatedly affirmed, both Cuba and the United States should learn the art of civilized coexistence based on respect for differences between our governments, and on cooperation in areas of common interest that may contribute to tackling the challenges facing the hemisphere and the world.

24 The current situation opens up a modest opportunity for the hemisphere to find new and better forms of cooperation that can benefit the two Americas. This would help in the solution of pressing problems and the opening of new avenues.

25 The main issue still stands unresolved. The economic, commercial and financial blockade causing enormous human and economic damages to our country constitutes a violation of International Law, and must cease.

26 We have followed with interest the announcement made by the President of the United States of some executive decisions aimed at modifying certain aspects concerning the implementation of the blockade.

27 The measures made public so far are very limited. The prohibition stands with regards to credits and the use of the dollar in our international financial transactions; the individual travels of Americans with license for so-called people-to-people exchanges are prevented and conditioned to subversive purposes; and maritime travels are also forbidden. Another standing prohibition, among many others, restricts the acquisition in third markets of equipment or technology with more than 10 percent of American input as well as the U.S. importation of goods containing Cuban raw materials.

28

29 President Barack Obama could use with determination his extensive executive powers to substantially modify the implementation of the blockade. This is something he can do even without Congressional approval. His decision to promote a debate with Congress towards the removal of the blockade is significant. We are aware that the path to the removal of the blockade will be long and difficult and will require the support, mobilization and resolute action of every person of goodwill in the United States and the world.

30 Thank you, very much

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