US-Cuba trade hit decade low in 2014
AAP
US exports to Cuba hit one of their lowest points in a decade in 2014, a
demonstration of the longstanding barriers to trade that will hamper
President Barack Obama's move to expand ties, figures show.
The statistics from the US-Cuba Trade and Economic Council show that US
farmers sold slightly more than $US253 million ($A323.43 million) worth
of food and agricultural products to Cuba in the first 10 months of
2014. If the last two months of the year reflect similar sales levels,
2014 could be the worst year for US exports to Cuba since 2004.
American farmers say the main barrier to sales to Cuba is a US
government ban on providing credit to the island. That wouldn't change
under reforms Obama has proposed.
Obama's proposals do include a slight relaxation of US rules on Cuban
payments to American farmers, allowing Cuba to pay for goods once they
are delivered rather than before they are ordered. But US law still
prohibits any form of credit to Cuba's state-run import agencies, which
routinely run low on cash and ask for several years to pay for the goods
they have ordered.
Those repayment terms are often granted by the Brazilian and Spanish
food companies whose products fill the shelves of many Cuban supermarkets.
The US is opening trade with Cuba, but granting credit requires an act
of Congress that appears unlikely in the short term.
"There is nothing in what the president has announced that indicated
that there are any opportunities to provide payment terms," said John
Kavulich, senior policy adviser for the trade and economic council. "No
one should expect a meaningful increase in exports to Cuba on the day
these regulations are issued."
US agricultural producers have launched a push to persuade Congress to
do away with the legal restrictions that remain part of the US embargo
on Cuba.
"It's going to take Congress to end this embargo for the US to be
competitive in Cuba," said Paul Johnson, vice-chairman of the newly
formed US Agriculture Coalition for Cuba. "Our products can't compete
with Brazil, Argentina, the EU and China because of the credit issue."
Source: US-Cuba trade hit decade low in 2014 - Yahoo7 Finance Australia
- https://au.finance.yahoo.com/news/us-cuba-trade-hit-decade-010114198.html
Tuesday, April 28, 2015
5 Challenges to Doing Business in Cuba
5 Challenges to Doing Business in Cuba
By Michael Muckian
April 27, 2015
The emergence of cooperatives in Cuba and President Obama's
reestablishment of relations with the country has attracted the
attention of U.S. cooperatives and credit unions. About the size of
California and home to 11.3 million people, the Caribbean island nation
could become the next great success for the global cooperative movement.
But establishing a credit union beachhead in Cuba won't be as easy as it
may seem, according to Dr. Sandra Torres, an international management
consultant, assistant professor at the Miami Dade College School of
Business and former auto programs manager at the $550 million Tropical
Financial Credit Union in Pembroke Pines, Fla.
Lack of a private sector, the virtual absence of Internet connectivity
and knowledge that a totalitarian regime, however relaxed, is still
looking over everyone's shoulder should give would-be business
developers pause. What's more, since control of financial services still
rests squarely in the hands of government authorities, the development
of credit unions – either homegrown or as part of U.S. outreach efforts
– will be a long, slow process.
Torres, the New York City-born daughter of a Cuban national who
emigrated to the U.S. in 1942, outlined five distinct hurdles credit
unions and other financial institutions could face trying to do business
in Cuba.
1. There are one too many Cuban currencies. First and foremost, Cuba
needs to stabilize its currency situation, Torres said. U.S. visitors to
Cuba exchange their American dollars upon arrival for Cuban convertible
pesos, known locally as "chavito" or CUCs, Torres said. The exchange
rate is generally one-to-one, so visitors know exactly what they are
getting.
Cuban residents are paid in regular Cuban pesos, which currently have an
exchange rate of 26.5 to one. Whereas, one Cuban CUC is worth one
American dollar, one Cuban peso currently is worth 3.77 American cents.
The average Cuban's monthly salary is 471 pesos, or about $20. By
comparison, the average minimum wage throughout U.S. federal and state
prison systems is $0.93 per day, according to the nonprofit advocacy
group Prison Policy Initiative. Based on a 40-hour workweek, Cubans make
7 cents per day more than U.S. prisoners.
But while pesos do have an international exchange rate, CUCs do not and
the Cuban government will not exchange what visitors don't spend for
American dollars. Leave Cuba with a pocketful of unspent CUCs, Torres
said, and you could wind up with some expensive souvenir paper.
"Cuba needs currency reform and then salary reform," Torres said. "You
can't set up a financial institution in a country with a dual currency
going on."
2. Cooperatives are not a new concept in Cuba, but credit cards are. The
Cuban government has learned to balance its own books over the past
decade by offloading business enterprises onto the workers who operate
them, turning them into worker-owned cooperatives that then pay taxes
back to the government. The agricultural sector has paved the way, but
service industries also have led to the formation of cooperatives.
The cooperatives operate as private enterprises and even have their own
bank accounts. The workers make deposits that earn interest and even
take out small loans. But that's where the financial sophistication
ends, Torres said.
"Cubans do not have credit cards," said Torres, who has traveled to Cuba
a dozen or more times in her life to visit family members and bring them
goods from the U.S. "They also have to learn about the concept of credit
and that loans have to be paid back. That's not part of their cultural
understanding."
3. Debit cards do exist, but there's need for greater financial
sophistication. Many Cubans, especially those who are retired, are paid
using a targeta magnetica – literally a "magnetic card" – that operates
like a debit card and allows Cubans to pay for goods and services with a
familiar card swipe.
But that's where the 21st century ends for Cuban financial services,
Torres said. Existing financial institutions do not issue monthly
statements to depositors, who must go to the teller window with their
savings passbook to get their account information manually updated.
Some employers do issue paper checks, but much of the funds transaction
is done through magnetic cards.
"For most Cubans, everything is done with the state and the amounts in
question are really very small," Torres said. "There is going to be a
lot of consumer education that needs to go on."
4. Most Cubans don't understand the demands of a business culture. After
a half-century of communist rule, most Cubans operate at much the same
income levels and personal ethos. Physicians, like laborers, often take
the bus to work and very few can afford to own any of the fabled classic
American cars for which the island nation has become known, Torres said.
"You buy a 1955 Buick with a rebuilt Russian diesel engine, but very few
Cubans can afford to pay the 200,000 pesos that they cost," Torres said.
With little disposable income and a lack of earning opportunities, many
Cubans pay little attention to absenteeism and being late for work. With
the exception of foreign hotels that cater to tourists, there is little
concern for customer service and literally no opportunity to return
shoddy merchandise for a refund.
"The very people whom credit unions might want to attract don't
understand business concepts as we know them," Torres said. "Employees
working for foreign entities may be up to it, but that's a small minority."
People will have be trained not only in how credit unions do business,
but in how business is done in general if credit unions want to succeed,
she added.
5. Then there are the regulations and bureaucracy. Any country with a
centralized economy often has a top-heavy bureaucracy that makes getting
things done difficult at best, and Cuba is no different, Torres said. In
operational terms, that means that no one is willing to make a decision
and everyone is going to have to ask his or her superior what can be
done to address an issue.
In a centralized economy, regulations abound and in Cuba's case credit
unions may also face a crisis of misunderstanding and mistrust, if only
because of the population's unfamiliarity with financial cooperatives,
Torres said.
"They're likely to say, 'Who are these people?' when talking about the
credit unions," Torres said. "They will say, "My government is my
government, but what do you mean I own this bank?'"
Coupled with the sheer challenges of teaching the population the ways
and means of business culture, no enterprise is simply going to land in
Havana and open its doors to a waiting public. There will be a lot of
education necessary, Torres said.
"That's not to say that credit unions don't have an in because we are
doing this for the people," Torres said. "But no matter who you are, you
will have to in some way deal with the Cuban government, because they're
still there."
What Not to Do When You Visit Cuba
Cuba is a beautiful Caribbean country with culture, tradition and
history, not to mention hand-rolled cigars, fiery rum and beautiful
beaches. But there are things you must not do when you visit Cuba,
according to Dr. Sandra Torres.
• Stay away from anyone who offers you anything on the street that you
can't buy in state-owned stores. This includes any form of contraband,
as well as young women or young men for obvious reasons, Torres said.
In fact, just to be safe, don't even buy any cigars or rum, she added.
• Do not exchange money with people on the street. The better rate they
promise you usually isn't better, Torres said, and you never want to
show your money in public.
• Stay away from talking politics in all its forms. You might not like
the reaction you get no matter what you say, and you never want to give
anyone from the government any reason to pay special attention to you.
• Always travel with a guide. Cuba has beautiful mountains, beaches and
jungles that are there to be enjoyed, but traveling with a guide,
especially in a country with such low income levels, is simply safer,
Torres said.
"In the end, a gringo does not need to go down there just to see the
sights unless there is a purpose for your visit," Torres added. "Don't
expect what you see in Puerto Rico."
Source: 5 Challenges to Doing Business in Cuba -
http://www.cutimes.com/2015/04/27/5-challenges-to-doing-business-in-cuba
By Michael Muckian
April 27, 2015
The emergence of cooperatives in Cuba and President Obama's
reestablishment of relations with the country has attracted the
attention of U.S. cooperatives and credit unions. About the size of
California and home to 11.3 million people, the Caribbean island nation
could become the next great success for the global cooperative movement.
But establishing a credit union beachhead in Cuba won't be as easy as it
may seem, according to Dr. Sandra Torres, an international management
consultant, assistant professor at the Miami Dade College School of
Business and former auto programs manager at the $550 million Tropical
Financial Credit Union in Pembroke Pines, Fla.
Lack of a private sector, the virtual absence of Internet connectivity
and knowledge that a totalitarian regime, however relaxed, is still
looking over everyone's shoulder should give would-be business
developers pause. What's more, since control of financial services still
rests squarely in the hands of government authorities, the development
of credit unions – either homegrown or as part of U.S. outreach efforts
– will be a long, slow process.
Torres, the New York City-born daughter of a Cuban national who
emigrated to the U.S. in 1942, outlined five distinct hurdles credit
unions and other financial institutions could face trying to do business
in Cuba.
1. There are one too many Cuban currencies. First and foremost, Cuba
needs to stabilize its currency situation, Torres said. U.S. visitors to
Cuba exchange their American dollars upon arrival for Cuban convertible
pesos, known locally as "chavito" or CUCs, Torres said. The exchange
rate is generally one-to-one, so visitors know exactly what they are
getting.
Cuban residents are paid in regular Cuban pesos, which currently have an
exchange rate of 26.5 to one. Whereas, one Cuban CUC is worth one
American dollar, one Cuban peso currently is worth 3.77 American cents.
The average Cuban's monthly salary is 471 pesos, or about $20. By
comparison, the average minimum wage throughout U.S. federal and state
prison systems is $0.93 per day, according to the nonprofit advocacy
group Prison Policy Initiative. Based on a 40-hour workweek, Cubans make
7 cents per day more than U.S. prisoners.
But while pesos do have an international exchange rate, CUCs do not and
the Cuban government will not exchange what visitors don't spend for
American dollars. Leave Cuba with a pocketful of unspent CUCs, Torres
said, and you could wind up with some expensive souvenir paper.
"Cuba needs currency reform and then salary reform," Torres said. "You
can't set up a financial institution in a country with a dual currency
going on."
2. Cooperatives are not a new concept in Cuba, but credit cards are. The
Cuban government has learned to balance its own books over the past
decade by offloading business enterprises onto the workers who operate
them, turning them into worker-owned cooperatives that then pay taxes
back to the government. The agricultural sector has paved the way, but
service industries also have led to the formation of cooperatives.
The cooperatives operate as private enterprises and even have their own
bank accounts. The workers make deposits that earn interest and even
take out small loans. But that's where the financial sophistication
ends, Torres said.
"Cubans do not have credit cards," said Torres, who has traveled to Cuba
a dozen or more times in her life to visit family members and bring them
goods from the U.S. "They also have to learn about the concept of credit
and that loans have to be paid back. That's not part of their cultural
understanding."
3. Debit cards do exist, but there's need for greater financial
sophistication. Many Cubans, especially those who are retired, are paid
using a targeta magnetica – literally a "magnetic card" – that operates
like a debit card and allows Cubans to pay for goods and services with a
familiar card swipe.
But that's where the 21st century ends for Cuban financial services,
Torres said. Existing financial institutions do not issue monthly
statements to depositors, who must go to the teller window with their
savings passbook to get their account information manually updated.
Some employers do issue paper checks, but much of the funds transaction
is done through magnetic cards.
"For most Cubans, everything is done with the state and the amounts in
question are really very small," Torres said. "There is going to be a
lot of consumer education that needs to go on."
4. Most Cubans don't understand the demands of a business culture. After
a half-century of communist rule, most Cubans operate at much the same
income levels and personal ethos. Physicians, like laborers, often take
the bus to work and very few can afford to own any of the fabled classic
American cars for which the island nation has become known, Torres said.
"You buy a 1955 Buick with a rebuilt Russian diesel engine, but very few
Cubans can afford to pay the 200,000 pesos that they cost," Torres said.
With little disposable income and a lack of earning opportunities, many
Cubans pay little attention to absenteeism and being late for work. With
the exception of foreign hotels that cater to tourists, there is little
concern for customer service and literally no opportunity to return
shoddy merchandise for a refund.
"The very people whom credit unions might want to attract don't
understand business concepts as we know them," Torres said. "Employees
working for foreign entities may be up to it, but that's a small minority."
People will have be trained not only in how credit unions do business,
but in how business is done in general if credit unions want to succeed,
she added.
5. Then there are the regulations and bureaucracy. Any country with a
centralized economy often has a top-heavy bureaucracy that makes getting
things done difficult at best, and Cuba is no different, Torres said. In
operational terms, that means that no one is willing to make a decision
and everyone is going to have to ask his or her superior what can be
done to address an issue.
In a centralized economy, regulations abound and in Cuba's case credit
unions may also face a crisis of misunderstanding and mistrust, if only
because of the population's unfamiliarity with financial cooperatives,
Torres said.
"They're likely to say, 'Who are these people?' when talking about the
credit unions," Torres said. "They will say, "My government is my
government, but what do you mean I own this bank?'"
Coupled with the sheer challenges of teaching the population the ways
and means of business culture, no enterprise is simply going to land in
Havana and open its doors to a waiting public. There will be a lot of
education necessary, Torres said.
"That's not to say that credit unions don't have an in because we are
doing this for the people," Torres said. "But no matter who you are, you
will have to in some way deal with the Cuban government, because they're
still there."
What Not to Do When You Visit Cuba
Cuba is a beautiful Caribbean country with culture, tradition and
history, not to mention hand-rolled cigars, fiery rum and beautiful
beaches. But there are things you must not do when you visit Cuba,
according to Dr. Sandra Torres.
• Stay away from anyone who offers you anything on the street that you
can't buy in state-owned stores. This includes any form of contraband,
as well as young women or young men for obvious reasons, Torres said.
In fact, just to be safe, don't even buy any cigars or rum, she added.
• Do not exchange money with people on the street. The better rate they
promise you usually isn't better, Torres said, and you never want to
show your money in public.
• Stay away from talking politics in all its forms. You might not like
the reaction you get no matter what you say, and you never want to give
anyone from the government any reason to pay special attention to you.
• Always travel with a guide. Cuba has beautiful mountains, beaches and
jungles that are there to be enjoyed, but traveling with a guide,
especially in a country with such low income levels, is simply safer,
Torres said.
"In the end, a gringo does not need to go down there just to see the
sights unless there is a purpose for your visit," Torres added. "Don't
expect what you see in Puerto Rico."
Source: 5 Challenges to Doing Business in Cuba -
http://www.cutimes.com/2015/04/27/5-challenges-to-doing-business-in-cuba
Though door’s opened a crack, Cuba trade still faces obstacles
Though door's opened a crack, Cuba trade still faces obstacles
Apr 27, 2015 by Hembree Brandon in Farm Press Blog
The recent meeting between Obama and Cuba's President Raoul Castro has
renewed hopes by American agriculture that expanded trade opportunities
are on the horizon, but there are still obstacles on both ends, analysts
say.
The standoff between the U.S. and Cuba that President Barack Obama wants
to end is older than the president himself.
In January 1961, outgoing president Dwight Eisenhower ended diplomatic
relations with the island nation (Obama was born in August that year).
Cuba had allied itself with the Soviet Union and embraced communism, and
in 1962 President John Kennedy enacted the trade and diplomatic embargo
that continues to this day. The Cuban missile crisis in October 1962
brought the world to the brink of nuclear war. Fortunately, Russia
blinked and catastrophe was averted, but Cuba became a virtual unknown
to most Americans, save for the occasional TV clip of classic 1950s
American automobiles patched together with duct tape.
Stay current on what's happening in Mid-South agriculture: Subscribe to
Delta Farm Press Daily.
Pre-embargo, Cuba was a major customer of U.S. agriculture, particularly
rice and chicken. In 1958, 70 percent of Cuba's imports came from the
U.S., and American business interests controlled a large part of the
country's economy.
U.S. business, agriculture, and tourism interests have been pressuring
Washington for years to scrap the embargo and allow free trade between
the two nations. President Obama has termed the embargo a U.S. policy a
failure. But there remains strong opposition by the powerful Cuban
American community and many members of Congress who have differences
with Cuba's stance on human rights, communism, and more than 6,000
claims for billions of dollars of U.S. businesses seized by the Cuban
government over 50 years ago.
There has been limited authorized U.S.-Cuba trade since 2000, but it
requires cash-in-advance transactions and considerable red tape. The
best years were 2007, when Cuba bought $437.5 million worth of
agricultural products; 2008, with $710 million; and 2009, with $528.4
million, according to the U.S.-Cuba Trade and Economic Council.
But in subsequent years, amounts have gone downward and in 2014 U.S.
ag/food exports to Cuba hit their lowest level since 2003, only $291
million. Top 10 exports in 2014 were frozen chicken and soybeans (by far
the two largest commodities in value, $147.5 million and $67 million
respectively), oil cake, soybeans, corn, mixed animal feeds, herbicides,
frozen pork, frozen turkey, soups/broth, and fresh fruit.
The recent meeting between Obama and Cuba's President Raoul Castro has
renewed hopes by American agriculture that expanded trade opportunities
are on the horizon, but there are still obstacles on both ends, analysts
say.
The American Soybean Association issued a statement saying the
organization appreciates the renewed focus from the Senate Agriculture
Committee on expanding agricultural trade to Cuba. A Senate hearing gave
several groups, including the U.S. Agriculture Coalition for Cuba
(USACC), of which ASA is a member, an opportunity to speak about the
challenges and potential opportunities for trade with Cuba.
"Normalized and barrier-free trade with Cuba — an emerging market only
90 miles from our shores —would have a positive impact on soybean
exports in the form of increased demand for pork, poultry, dairy and
eggs, as well as vegetable oil for cooking," said ASA first vice
president and Greenwood, Del., farmer Richard Wilkins.
ASA is a charter member of the USACC, which was formed in response to
the need to re-establish Cuba as a market for U.S. food and agriculture
exports.
"We know the soybean industry is losing out on valuable opportunities to
market U.S. food and agriculture products in Cuba," Wilkins says.
"In the last year, Cuba imported about a half-million tons of soybeans
and soybean products. A little less than half that total came from the
U.S. soybeans that have gone to Cuba in the last year have been exported
with difficulty as a result of the red tape related to the 1960s embargo.
"Lifting trade barriers and normalizing commercial trade would allow
U.S. soybean producers to grow the Cuban export market and better
compete with foreign suppliers who continue to increase their market share."
Only Congress can lift the embargo, and the Republican-controlled body
thus far has shown little enthusiasm for doing so. Obama, through his
executive authority, can eliminate many of the restrictions to trade and
travel, and opening doors to Cuba is, sources say, one of the legacy
objectives of his presidency.
Even so, hurdles remain, among them an antiquated infrastructure in Cuba.
Source: Though door's opened a crack, Cuba trade still faces obstacles |
Farm Press Blog -
http://deltafarmpress.com/blog/though-door-s-opened-crack-cuba-trade-still-faces-obstacles
Apr 27, 2015 by Hembree Brandon in Farm Press Blog
The recent meeting between Obama and Cuba's President Raoul Castro has
renewed hopes by American agriculture that expanded trade opportunities
are on the horizon, but there are still obstacles on both ends, analysts
say.
The standoff between the U.S. and Cuba that President Barack Obama wants
to end is older than the president himself.
In January 1961, outgoing president Dwight Eisenhower ended diplomatic
relations with the island nation (Obama was born in August that year).
Cuba had allied itself with the Soviet Union and embraced communism, and
in 1962 President John Kennedy enacted the trade and diplomatic embargo
that continues to this day. The Cuban missile crisis in October 1962
brought the world to the brink of nuclear war. Fortunately, Russia
blinked and catastrophe was averted, but Cuba became a virtual unknown
to most Americans, save for the occasional TV clip of classic 1950s
American automobiles patched together with duct tape.
Stay current on what's happening in Mid-South agriculture: Subscribe to
Delta Farm Press Daily.
Pre-embargo, Cuba was a major customer of U.S. agriculture, particularly
rice and chicken. In 1958, 70 percent of Cuba's imports came from the
U.S., and American business interests controlled a large part of the
country's economy.
U.S. business, agriculture, and tourism interests have been pressuring
Washington for years to scrap the embargo and allow free trade between
the two nations. President Obama has termed the embargo a U.S. policy a
failure. But there remains strong opposition by the powerful Cuban
American community and many members of Congress who have differences
with Cuba's stance on human rights, communism, and more than 6,000
claims for billions of dollars of U.S. businesses seized by the Cuban
government over 50 years ago.
There has been limited authorized U.S.-Cuba trade since 2000, but it
requires cash-in-advance transactions and considerable red tape. The
best years were 2007, when Cuba bought $437.5 million worth of
agricultural products; 2008, with $710 million; and 2009, with $528.4
million, according to the U.S.-Cuba Trade and Economic Council.
But in subsequent years, amounts have gone downward and in 2014 U.S.
ag/food exports to Cuba hit their lowest level since 2003, only $291
million. Top 10 exports in 2014 were frozen chicken and soybeans (by far
the two largest commodities in value, $147.5 million and $67 million
respectively), oil cake, soybeans, corn, mixed animal feeds, herbicides,
frozen pork, frozen turkey, soups/broth, and fresh fruit.
The recent meeting between Obama and Cuba's President Raoul Castro has
renewed hopes by American agriculture that expanded trade opportunities
are on the horizon, but there are still obstacles on both ends, analysts
say.
The American Soybean Association issued a statement saying the
organization appreciates the renewed focus from the Senate Agriculture
Committee on expanding agricultural trade to Cuba. A Senate hearing gave
several groups, including the U.S. Agriculture Coalition for Cuba
(USACC), of which ASA is a member, an opportunity to speak about the
challenges and potential opportunities for trade with Cuba.
"Normalized and barrier-free trade with Cuba — an emerging market only
90 miles from our shores —would have a positive impact on soybean
exports in the form of increased demand for pork, poultry, dairy and
eggs, as well as vegetable oil for cooking," said ASA first vice
president and Greenwood, Del., farmer Richard Wilkins.
ASA is a charter member of the USACC, which was formed in response to
the need to re-establish Cuba as a market for U.S. food and agriculture
exports.
"We know the soybean industry is losing out on valuable opportunities to
market U.S. food and agriculture products in Cuba," Wilkins says.
"In the last year, Cuba imported about a half-million tons of soybeans
and soybean products. A little less than half that total came from the
U.S. soybeans that have gone to Cuba in the last year have been exported
with difficulty as a result of the red tape related to the 1960s embargo.
"Lifting trade barriers and normalizing commercial trade would allow
U.S. soybean producers to grow the Cuban export market and better
compete with foreign suppliers who continue to increase their market share."
Only Congress can lift the embargo, and the Republican-controlled body
thus far has shown little enthusiasm for doing so. Obama, through his
executive authority, can eliminate many of the restrictions to trade and
travel, and opening doors to Cuba is, sources say, one of the legacy
objectives of his presidency.
Even so, hurdles remain, among them an antiquated infrastructure in Cuba.
Source: Though door's opened a crack, Cuba trade still faces obstacles |
Farm Press Blog -
http://deltafarmpress.com/blog/though-door-s-opened-crack-cuba-trade-still-faces-obstacles
Congress Moving to Improve Trade With Cuba
Congress Moving to Improve Trade With Cuba
New measures regarding credit would make it easier to export
agricultural products.
By Xiaolan Tang April 27, 2015 | 4:26 p.m. EDT
Congress has been moving swiftly on rule changes that could provide
American producers of agricultural products greater access to Cuba by
removing barriers to credit.
Legislation was introduced last week by Sen. Heidi Heitkamp, D-N.D.,
andSen. John Boozman, D-Ark., aiming to ease agricultural trade.
"The biggest obstacle in that effort involves private companies and
banks not being able to provide credit to export agricultural
commodities to Cuba, where these crops are in high demand," Heitkamp said.
Until recently, under the Trade Sanctions Reform and Export Enhancement
Act of 2000, exports of certain goods were allowed to go to Cuban
markets only if cash payments were made before the goods were shipped.
While third-party financing is available, U.S. banks are not able to
finance exports to Cuba. In January, OFAC revised interpretation of the
statutory term "cash-in-advance" to make it essentially
"cash-on-delivery" -- though they did not change the phrasing itself. It
also authorized U.S. banks to establish correspondent accounts at Cuban
banks.
Still, critics say this practice prevents U.S. farmers from competing
effectively against other international exporters.
"The reason for the most loss in our market share there was our
inability to extend credit, as our competitors, the EU and Brazil and
others are doing," said Michael T. Scuse, undersecretary of the
Department of Agriculture, at a Senate hearing on Tuesday, citing a
study by University of Florida. "So the playing field right now is not
level."
President Barack Obama announced at the end of last year the
re-establishment of diplomatic relations with Cuba and a series of
actions aimed at easing trade restrictions.
In February, a bipartisan group of senators introduced The Freedom to
Export to Cuba Act, which would allow U.S. companies to export products
to Cuba directly, remove financial restrictions on business transactions
and allow U.S. banks to extend credit to Cubans for the purchase of
American goods.
Most types of trade with Cuba is still prohibited.
U.S. agricultural exports to Cuba reached a peak of $658 million by
2008. However, they had fallen by more than half, to $300 million by the
end of last year. Global agricultural exports to Cuba have doubled over
the past decade to $1.7 billion.
According to World Food Program data, Cuba imports about 80 percent of
its food, mainly from China, Brazil and the European Union.
Half of American exports to Cuba are poultry products, and Scuse said
there is a potential to gain greater market share for U.S. producers of
corn, rice and dairy, since Cuba is less than 100 miles away from the U.S.
For their part, farmers are ready to begin selling to Cuba.
"I would suggest that Congress carefully consider whether there is a
compelling, practical reason to restrict the freedom of Americans to
engage in commerce, especially for those who are just trying to sell
wholesome, American-grown food," Doug Keesling, owner of Keesling Farms
in Kansas, told the Senate Committee on Agriculture, Nutrition and
Forest last week.
Source: Congress Moving to Improve Trade With Cuba - US News -
http://www.usnews.com/news/articles/2015/04/27/congress-moving-to-improve-trade-with-cuba
New measures regarding credit would make it easier to export
agricultural products.
By Xiaolan Tang April 27, 2015 | 4:26 p.m. EDT
Congress has been moving swiftly on rule changes that could provide
American producers of agricultural products greater access to Cuba by
removing barriers to credit.
Legislation was introduced last week by Sen. Heidi Heitkamp, D-N.D.,
andSen. John Boozman, D-Ark., aiming to ease agricultural trade.
"The biggest obstacle in that effort involves private companies and
banks not being able to provide credit to export agricultural
commodities to Cuba, where these crops are in high demand," Heitkamp said.
Until recently, under the Trade Sanctions Reform and Export Enhancement
Act of 2000, exports of certain goods were allowed to go to Cuban
markets only if cash payments were made before the goods were shipped.
While third-party financing is available, U.S. banks are not able to
finance exports to Cuba. In January, OFAC revised interpretation of the
statutory term "cash-in-advance" to make it essentially
"cash-on-delivery" -- though they did not change the phrasing itself. It
also authorized U.S. banks to establish correspondent accounts at Cuban
banks.
Still, critics say this practice prevents U.S. farmers from competing
effectively against other international exporters.
"The reason for the most loss in our market share there was our
inability to extend credit, as our competitors, the EU and Brazil and
others are doing," said Michael T. Scuse, undersecretary of the
Department of Agriculture, at a Senate hearing on Tuesday, citing a
study by University of Florida. "So the playing field right now is not
level."
President Barack Obama announced at the end of last year the
re-establishment of diplomatic relations with Cuba and a series of
actions aimed at easing trade restrictions.
In February, a bipartisan group of senators introduced The Freedom to
Export to Cuba Act, which would allow U.S. companies to export products
to Cuba directly, remove financial restrictions on business transactions
and allow U.S. banks to extend credit to Cubans for the purchase of
American goods.
Most types of trade with Cuba is still prohibited.
U.S. agricultural exports to Cuba reached a peak of $658 million by
2008. However, they had fallen by more than half, to $300 million by the
end of last year. Global agricultural exports to Cuba have doubled over
the past decade to $1.7 billion.
According to World Food Program data, Cuba imports about 80 percent of
its food, mainly from China, Brazil and the European Union.
Half of American exports to Cuba are poultry products, and Scuse said
there is a potential to gain greater market share for U.S. producers of
corn, rice and dairy, since Cuba is less than 100 miles away from the U.S.
For their part, farmers are ready to begin selling to Cuba.
"I would suggest that Congress carefully consider whether there is a
compelling, practical reason to restrict the freedom of Americans to
engage in commerce, especially for those who are just trying to sell
wholesome, American-grown food," Doug Keesling, owner of Keesling Farms
in Kansas, told the Senate Committee on Agriculture, Nutrition and
Forest last week.
Source: Congress Moving to Improve Trade With Cuba - US News -
http://www.usnews.com/news/articles/2015/04/27/congress-moving-to-improve-trade-with-cuba
Monday, April 27, 2015
Code For Cuba
Develop applications that can be launched in Cuba to facilitate (1)
connectivity/access to information, (2) entrepreneurship and (3)
journalism and digital advocacy.
Roots of Hope, a nongovernmental organization focused on empowering
youth in Cuba through technology and entrepreneurship, is hosting a
two-day hackathon in the San Francisco Bay Area at Facebook Headquarters.
The project is Roots of Hope's second annual liberation/circumvention
tech hackathon focused on solutions for the Cuban context. Cuba is the
least connected and technologically capacitated country in the Western
hemisphere, but it is also a country with a talented workforce and an
ever-growing number of innovative solutions that leverage technology.
The goal of this hackathon is to develop ideas and applications that can
be launched into the Cuban reality and inform and empower a broader
community around the topics of technology and innovation in Cuba. This
year's theme, Connectivity, Digital Activism & Entrepreneurial
Empowerment, encourages greater dialogue, free speech, and
knowledge-sharing. Join us in building solutions for Cubans on the
island so they may connect more-readily to the rest of the world.
Roots of Hope's first hackathon was hosted in Miami in January 2014,
yielding great results and establishing the conversation around what
innovative technology solutions can meet for Cuba. Check out the winning
ideas from the Miami hackathon:
Apretaste, an online marketplace - similar to Craigslist - which allows
users to purchase and sell goods and services directly from one another.
Apretaste is completely functional via email, making it accessible to
the over 60% of Cuba's population with email access. The application has
launched and has more than 40,000 monthly users in Cuba.
Cuba Direct, an email-based application which allows users to access
Google searches, Wikipedia articles, Twitter updates and more, without
needing a connection to the Internet, and therefore making it accesible
to over 60% of Cubans.
Raspberry Pi, a credit-card-sized single-board computer, was adapted to
allow Cubans on the island to create web access points for sharing
information with those in their vicinity.
For more information about Roots of Hope, visit http://www.rootsofhope.org.
Source: http://codeforcuba.challengepost.com/
connectivity/access to information, (2) entrepreneurship and (3)
journalism and digital advocacy.
Roots of Hope, a nongovernmental organization focused on empowering
youth in Cuba through technology and entrepreneurship, is hosting a
two-day hackathon in the San Francisco Bay Area at Facebook Headquarters.
The project is Roots of Hope's second annual liberation/circumvention
tech hackathon focused on solutions for the Cuban context. Cuba is the
least connected and technologically capacitated country in the Western
hemisphere, but it is also a country with a talented workforce and an
ever-growing number of innovative solutions that leverage technology.
The goal of this hackathon is to develop ideas and applications that can
be launched into the Cuban reality and inform and empower a broader
community around the topics of technology and innovation in Cuba. This
year's theme, Connectivity, Digital Activism & Entrepreneurial
Empowerment, encourages greater dialogue, free speech, and
knowledge-sharing. Join us in building solutions for Cubans on the
island so they may connect more-readily to the rest of the world.
Roots of Hope's first hackathon was hosted in Miami in January 2014,
yielding great results and establishing the conversation around what
innovative technology solutions can meet for Cuba. Check out the winning
ideas from the Miami hackathon:
Apretaste, an online marketplace - similar to Craigslist - which allows
users to purchase and sell goods and services directly from one another.
Apretaste is completely functional via email, making it accessible to
the over 60% of Cuba's population with email access. The application has
launched and has more than 40,000 monthly users in Cuba.
Cuba Direct, an email-based application which allows users to access
Google searches, Wikipedia articles, Twitter updates and more, without
needing a connection to the Internet, and therefore making it accesible
to over 60% of Cubans.
Raspberry Pi, a credit-card-sized single-board computer, was adapted to
allow Cubans on the island to create web access points for sharing
information with those in their vicinity.
For more information about Roots of Hope, visit http://www.rootsofhope.org.
Source: http://codeforcuba.challengepost.com/
Comienzan en Cuba pruebas de ingreso a universidad
Comienzan en Cuba pruebas de ingreso a universidad
Estudiantes egresados de duodécimo grado podrán presentarse a las
pruebas de ingreso para la Educación Superior hoy lunes 27 de abril en
todo el país
lunes, abril 27, 2015 | Villaclara Press
VILLA CLARA, Cuba. -Estudiantes egresados de duodécimo grado podrán
presentarse a las pruebas de ingreso para la Educación Superior hoy
lunes 27 de abril en todo el país.
En la provincia de Villa Clara, Martha Rojas, madre de un escolar,
expresó a CubaNet que primeramente deben examinar la asignatura de
Matemática, para luego el jueves 30 realizar Español y concluir el día 4
de mayo con Historia. "En el caso que desaprueben alguna asignatura,
pueden presentarse a la segunda convocatoria a celebrarse en el mes de
junio."
Agregó Martha, madre soltera que labora en el sector de la Salud
Pública, que las pruebas de ingreso se han convertido en la pesadilla de
los padres con hijos que concluyen el bachillerato, pues "para nadie es
secreto lo débil que se encuentra el sistema educacional cubano. Hay que
contratar 'repasadores' desde que el niño está en décimo grado para
lograr que llegue a estos exámenes con el conocimiento necesario. Luego
solo queda cruzar los dedos, porque siempre hay sorpresas".
La responsable de la enseñanza preuniversitaria en esta provincia
central, Belkis Niebla, comentó en los medios de difusión del territorio
que "tienen derecho a presentarse todos los estudiantes graduados de
duodécimo grado con su carnet de identidad". Se espera los participantes
superen los 3 000 en la provincia, de los que casi el 50% pertenecen al
municipio Santa Clara.
Agregó la funcionaria que para los estudiantes de la orden 18 (jóvenes
que son obligados a pasar el Servicio Militar sin haber concluido
estudios) se hará una excepción. Éstos tienen la primera convocatoria en
junio, del 18 al 24. "En el mes de agosto se hará una tercera
convocatoria especial. En la misma podrán participar los estudiantes de
la orden 18 que no se hayan presentado y casos que sean plenamente
justificados por la comisión de ingreso provincial".
(Adrián del Sol)
Source: Comienzan en Cuba pruebas de ingreso a universidad | Cubanet -
http://www.cubanet.org/noticias/comienzan-en-cuba-pruebas-de-ingreso-a-universidad/
Estudiantes egresados de duodécimo grado podrán presentarse a las
pruebas de ingreso para la Educación Superior hoy lunes 27 de abril en
todo el país
lunes, abril 27, 2015 | Villaclara Press
VILLA CLARA, Cuba. -Estudiantes egresados de duodécimo grado podrán
presentarse a las pruebas de ingreso para la Educación Superior hoy
lunes 27 de abril en todo el país.
En la provincia de Villa Clara, Martha Rojas, madre de un escolar,
expresó a CubaNet que primeramente deben examinar la asignatura de
Matemática, para luego el jueves 30 realizar Español y concluir el día 4
de mayo con Historia. "En el caso que desaprueben alguna asignatura,
pueden presentarse a la segunda convocatoria a celebrarse en el mes de
junio."
Agregó Martha, madre soltera que labora en el sector de la Salud
Pública, que las pruebas de ingreso se han convertido en la pesadilla de
los padres con hijos que concluyen el bachillerato, pues "para nadie es
secreto lo débil que se encuentra el sistema educacional cubano. Hay que
contratar 'repasadores' desde que el niño está en décimo grado para
lograr que llegue a estos exámenes con el conocimiento necesario. Luego
solo queda cruzar los dedos, porque siempre hay sorpresas".
La responsable de la enseñanza preuniversitaria en esta provincia
central, Belkis Niebla, comentó en los medios de difusión del territorio
que "tienen derecho a presentarse todos los estudiantes graduados de
duodécimo grado con su carnet de identidad". Se espera los participantes
superen los 3 000 en la provincia, de los que casi el 50% pertenecen al
municipio Santa Clara.
Agregó la funcionaria que para los estudiantes de la orden 18 (jóvenes
que son obligados a pasar el Servicio Militar sin haber concluido
estudios) se hará una excepción. Éstos tienen la primera convocatoria en
junio, del 18 al 24. "En el mes de agosto se hará una tercera
convocatoria especial. En la misma podrán participar los estudiantes de
la orden 18 que no se hayan presentado y casos que sean plenamente
justificados por la comisión de ingreso provincial".
(Adrián del Sol)
Source: Comienzan en Cuba pruebas de ingreso a universidad | Cubanet -
http://www.cubanet.org/noticias/comienzan-en-cuba-pruebas-de-ingreso-a-universidad/
Corruption and its Three Enormous Harms
Corruption and its Three Enormous Harms / 14ymedio, Carlos Alberto Montaner
Posted on April 26, 2015
14ymedio, Carlos Alberto Montaner, 25 April 2015 – Mexico and corruption
are two words that always go hand in glove, or as the Columbians
mischievously say, "grab each other's peepees."
Corruption in Venezuela is greater, and that of Argentina is not far
behind, according to Transparency International, but to judge by what is
happening in Chile, Brazil and Cuba, it seems to be a bad Latin American
epidemic. The continent, with few exceptions, is a pigsty.
In any case, the Mexican government wants to end corruption. It was
about time. Is that possible? When did it start? They tell you,
laughing, as soon as you set foot in the country.
The Spanish conquistadors tortured Cuauhtemoc, the Aztec chieftain, to
make him reveal where he hid the gold:
"Tell me, you damned Indian, where the gold is," screamed the torturer,
through the interpreter, while he burned the hands and feet of the
warrior prince.
"I've told you forty times that it is buried 50 steps from the pyramid,
under the palm tree," screamed Cuauhtemoc, writhing in pain.
"He says he does not know, and that if he did know, he would never tell
you," translated the interpreter, secretly rubbing his hands together.
It all started there. Right at the beginning. The confusion between
public and private is in Latin America's DNA and in that of three
quarters of the planet. They gave Hernan Cortez a tribute of 20,000
Indians as a reward for the conquest of Mexico. Then they took them
away, and the fierce captain ended up in Europe, poor and angry, unable
to forget the scorching odor of burned flesh.
Some cynics and pragmatists – sometimes they are the same – maintain
that corruption is a form of wealth redistribution and income growth,
designed to stabilize society through a web of interests and complicities.
I do not believe it. The harms that unpunished corruption causes are
usually devastating. Let's look at just three from an infinitely greater
list.
First, it rots the essential premise of the Rule of Law, making a lie of
the principle that everyone is subject to the authority of the law. If
the politician or the civil servant steals with impunity, or receives
bribes for granting favors, why is the common citizen going to pay
taxes? What stops him from lying or cheating?
The law establishes that it is a crime to sell cocaine and also to seize
public property. Why not sell cocaine if others embezzle the national
treasury with impunity? Why not rob a bank? What moral difference is
there between stealing from everyone or stealing from a business or an
individual person?
Second, it distorts and inflates the whole economic process. The market
economy is based on free competition. It presumes that goods and
services compete on price and quality. It is the end buyer who decides
which businesses succeed or fail. When a politician or an official
favors one business in exchange for a commission, this unholy operation
forces the consumer to select an inferior and more expensive option,
given that the cost of corruption is added to the prices.
Moreover, corruption eliminates incentives to innovate and improve the
quality of the offer, while it notably reduces productivity, which is
the foundation for growth. Why be more productive and lower prices if
we have a captive market? Why design a new and better car if the
customer is obliged to buy the usual one? Sometimes the businesses
themselves distort the market by agreeing among themselves to raise
prices. This is another serious form of corruption.
Third, it destroys the ideal meritocratic structure to which all healthy
societies should aspire. It weakens the passion to study and curbs the
entrepreneurial impulse. In corrupt societies personal connections
prevail. "He who has godparents gets baptized." That is the general
order. Ties are more important than effort to compete in an open and
free market. What sense does it make to burn the midnight oil studying
when, in order to enrich yourself, it suffices to pass an envelope under
the table of a corrupt official? Why sweat and toil in the effort to
create a successful business if to achieve economic success a
combination of personal relations and lack of scruples suffices?
There is no doubt: corruption kills the political and economic system
and moral values. Ask the Spaniards who today walk that dark and
uncertain road. Of course corruption is a tendency present in our
species. That is known, but it is not a good excuse. Either we fight it
and defeat it or it devours us. It is that simple.
Translated by MLK
Source: Corruption and its Three Enormous Harms / 14ymedio, Carlos
Alberto Montaner | Translating Cuba -
http://translatingcuba.com/corruption-and-its-three-enormous-harms-14ymedio-carlos-alberto-montaner/
Posted on April 26, 2015
14ymedio, Carlos Alberto Montaner, 25 April 2015 – Mexico and corruption
are two words that always go hand in glove, or as the Columbians
mischievously say, "grab each other's peepees."
Corruption in Venezuela is greater, and that of Argentina is not far
behind, according to Transparency International, but to judge by what is
happening in Chile, Brazil and Cuba, it seems to be a bad Latin American
epidemic. The continent, with few exceptions, is a pigsty.
In any case, the Mexican government wants to end corruption. It was
about time. Is that possible? When did it start? They tell you,
laughing, as soon as you set foot in the country.
The Spanish conquistadors tortured Cuauhtemoc, the Aztec chieftain, to
make him reveal where he hid the gold:
"Tell me, you damned Indian, where the gold is," screamed the torturer,
through the interpreter, while he burned the hands and feet of the
warrior prince.
"I've told you forty times that it is buried 50 steps from the pyramid,
under the palm tree," screamed Cuauhtemoc, writhing in pain.
"He says he does not know, and that if he did know, he would never tell
you," translated the interpreter, secretly rubbing his hands together.
It all started there. Right at the beginning. The confusion between
public and private is in Latin America's DNA and in that of three
quarters of the planet. They gave Hernan Cortez a tribute of 20,000
Indians as a reward for the conquest of Mexico. Then they took them
away, and the fierce captain ended up in Europe, poor and angry, unable
to forget the scorching odor of burned flesh.
Some cynics and pragmatists – sometimes they are the same – maintain
that corruption is a form of wealth redistribution and income growth,
designed to stabilize society through a web of interests and complicities.
I do not believe it. The harms that unpunished corruption causes are
usually devastating. Let's look at just three from an infinitely greater
list.
First, it rots the essential premise of the Rule of Law, making a lie of
the principle that everyone is subject to the authority of the law. If
the politician or the civil servant steals with impunity, or receives
bribes for granting favors, why is the common citizen going to pay
taxes? What stops him from lying or cheating?
The law establishes that it is a crime to sell cocaine and also to seize
public property. Why not sell cocaine if others embezzle the national
treasury with impunity? Why not rob a bank? What moral difference is
there between stealing from everyone or stealing from a business or an
individual person?
Second, it distorts and inflates the whole economic process. The market
economy is based on free competition. It presumes that goods and
services compete on price and quality. It is the end buyer who decides
which businesses succeed or fail. When a politician or an official
favors one business in exchange for a commission, this unholy operation
forces the consumer to select an inferior and more expensive option,
given that the cost of corruption is added to the prices.
Moreover, corruption eliminates incentives to innovate and improve the
quality of the offer, while it notably reduces productivity, which is
the foundation for growth. Why be more productive and lower prices if
we have a captive market? Why design a new and better car if the
customer is obliged to buy the usual one? Sometimes the businesses
themselves distort the market by agreeing among themselves to raise
prices. This is another serious form of corruption.
Third, it destroys the ideal meritocratic structure to which all healthy
societies should aspire. It weakens the passion to study and curbs the
entrepreneurial impulse. In corrupt societies personal connections
prevail. "He who has godparents gets baptized." That is the general
order. Ties are more important than effort to compete in an open and
free market. What sense does it make to burn the midnight oil studying
when, in order to enrich yourself, it suffices to pass an envelope under
the table of a corrupt official? Why sweat and toil in the effort to
create a successful business if to achieve economic success a
combination of personal relations and lack of scruples suffices?
There is no doubt: corruption kills the political and economic system
and moral values. Ask the Spaniards who today walk that dark and
uncertain road. Of course corruption is a tendency present in our
species. That is known, but it is not a good excuse. Either we fight it
and defeat it or it devours us. It is that simple.
Translated by MLK
Source: Corruption and its Three Enormous Harms / 14ymedio, Carlos
Alberto Montaner | Translating Cuba -
http://translatingcuba.com/corruption-and-its-three-enormous-harms-14ymedio-carlos-alberto-montaner/
Subscribe to:
Posts (Atom)
