EXCHANGE RATES UNCHANGED- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to one U.S. Dollar, for 21 Pesos and purchased the U.S. Dollar for 19 Pesos, as it has since 1 April 1998. The U.S. Dollar on the informal market increased from as low as 18 Pesos three weeks ago to 20 Pesos. CADECA had purchased the U.S. Dollar for 20 Pesos and sold the U.S. Dollar for 22 Pesos from 12 March 1998 to 31 March 1998. CADECA purchased the U.S. Dollar for 21 Pesos and sold the U.S. Dollar for 23 Pesos from 11 February 1998 to 11 March 1998. CADECA purchased and sold the U.S. Dollar for 23 Pesos from August 1997 through 10 February 1998. CADECA began April 1997 purchasing the U.S. Dollar for 26 Pesos and selling the U.S. Dollar for 26 Pesos. In April 1995, the U.S. Dollar could be purchased on the unofficial market for 40 Pesos, as CADECA did not yet exist. The official international exchange rate of one Peso to one U.S. Dollar, in effect for more than thirty years, remained unchanged. The government maintains a fixed exchange rate for its international dealings and a more flexible exchange rate for domestic use. The government does not fluctuate the value of the Peso for commercial transactions regardless of any fluctuation in the value of the U.S. Dollar or other currencies on the international market. The Peso and the U.S. Dollar circulate freely in the Republic of Cuba.
COMMERCE DEPARTMENT TO PERMIT EXPORT OF HEALTHCARE PRODUCTS FOR CLINICAL TESTING- In an immensely significant statement of policy, in response to a written inquiry from the U.S.-Cuba Trade and Economic Council, the United States Department of Commerce in Washington, D.C., has confirmed that United States-based healthcare companies can, upon receipt of a license from the Bureau of Export Administration (BXA) of the United States Department of Commerce, export healthcare products to the Republic of Cuba for the purpose of clinical testing (laboratory and patient). This statement of policy comes less than two months after Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, confirmed that it had asked the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute. A Canada-based company has asked the OFAC for permission to market a Republic of Cuba-produced, United States-patented, healthcare product in the United States. An increasing number of United States-based healthcare product companies are evaluating Republic of Cuba-produced healthcare products for potential distrubution within the United States. The inquiry by the U.S.-Cuba Trade and Economic Council was initiated on behalf of member companies whose representatives have traveled to the Republic of Cuba under license from the OFAC for the purpose of identifying export (sales) opportunities for healthcare products, the first three such licenses having been issued to members of the U.S.-Cuba Trade and Economic Council. Company representatives reported that physicians within the Republic of Cuba had asked to conduct clinical tests on some products in advance of possible purchases. Such testing would, according to the physicians, 1) determine if the products meet Republic of Cuba public health safety standards and 2) assist with building brand awareness and brand preference for the products. Successful clinical testing of a product, the physicians said, will enable them to more forcefully recommend that hospital administrators and the managers of purchasing departments within the Ministry of Public Health (MINSAP) of the Republic of Cuba allocate resources for the purchase of products produced by United States-based healthcare companies. SmithKline Beecham plc has asked the OFAC to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute. The Clinton Administration is expected soon to permit, with restrictions, SmithKline Beecham's request. Reportedly, the government of the Republic of Cuba could eventually receive US$10 million to US$20 million from SmithKline Beecham for a five-year exclusive right to market the vaccine. Compensation could be made in the form of products. Approximately 1,000 United States citizens contract Meningitis B each year, of which 120 die. Writing to the Clinton Administration in support of the request by SmithKline Beecham were from the United States Senate: The Honorable Christopher Dodd (D-Connecticut), The Honorable Richard Lugar (R-Indiana), and The Honorable Arlen Specter (R-Pennsylvania) among others; and from the United States House of Representatives: The Honorable Tom DeLay (R-Texas), The Honorable Sonny Callahan (R-Alabama), The Honorable Joseph McDade (R-Pennsylvania), The Honorable James Greenwood (R-Pennsylvania), The Honorable Nancy Pelosi (D-California), The Honorable Henry Waxman (D-California), and The Honorable Howard Berman (D-California) among others.
U.S. GRAINS COUNCIL SAYS CUBA WOULD PURCHASE 500,000 TONS OF FEED GRAINS ANNUALLY- The 110-member, Washington, D.C.-based, U.S. Grains Council believes that the Republic of Cuba would shift its current supply channels (mostly Europe-based) for the annual import of 500,000 tons of feed grains (corn, barley, sorghum, etc.) to suppliers within the United States, if such transactions were authorized by the United States government. According to attorneys for the United States Department of the Treasury, the United States Department of Commerce, and the United States Department of State, The Honorable William J. Clinton, President of the United States, does have authority to authorize the direct export (sales) of bulk food commodities to the Republic of Cuba, provided that entities subject to United States law do not provide any financing to entities within the Republic of Cuba (or through third parties) for the direct export of the bulk food commodities. In June 1998, the U.S. Grains Council coordinated a donation of 40,000 of corn for rabbit producers within the Republic of Cuba. New York City-based Continental Grain Company (1997 revenues US$16 billion) assisted with the packaging and shipping of the donation. According to one senior-level executive of a United States-based commodities company, "Donations should not become the focus. A relationship based upon handouts is counterproductive. There are thousands of tons of various types of grains in barges that could be sold- earning money for our farmers, and transported to Cuba by water along the Mississippi River- through Minnesota, Iowa, Wisconsin, Missouri, Tennessee, Arkansas, Louisiana or Mississippi within twenty-four hours." Members of the U.S. Grains Council include: Archer Daniels Midland Company, Continental Grain Company, Cargill, ConAgra, Monsanto, John Deere Company, Pioneer Hi-Bred International, and Merrill Lynch & Company.
GRAIN IMPORT UPDATE- Republic of Cuba grain imports from the French port of Rouen between 1 June 1998 and 24 June 1998 were 78,750 tons.
CUBA INCREASINGLY USED AS MARKETING THEME IN THE UNITED STATES- At the annual International Casual Furniture & Accessories Market, held in Chicago, Illinois, a Design Excellence Award in the Rattan/Wicker/Woven category was presented to Mr. Brown Jordan for his "Havana" chair. The "Havana" chair "brings to life the memory of camelback club chairs on the balcony of Cuba's Grand Hotel. Its elegant design features a woven resin in a herringbone patters, over an aluminum powdercoated frame. The suggested retail is US$899.00," according to a promotional brochure. At a Johnston & Murphy retail store in New York City, New York, "Havana Joe" brand shoes produced by a Spain-based company are reportedly selling "briskly." Phoenix, Arizona, has a "Havana Cafe" which has received a rating of 20 (out of 30 possible points) for food quality from the New York City-based Zagat Reiview. A compact disc of music by the Republic of Cuba-based "Buena Vista Social Club" has sold more than 1 million copies. The normal sales for an album of its type is between 5,000 copies and 10,000 copies.
IBERIA AIRLINES ADVERTISEMENT IN THE NEW YORK TIMES SHOWS CUBA ROUTINGS- An air carrier may have established a precedent by referencing its service to the Republic of Cuba in an advertisement published in the United States. On page A16 of The New York Times on 1 July 1998, an advertisement for Madrid, Spain-based Iberia Airlines shows a map which includes two routings between Spain and the Republic of Cuba (city of Havana and resort area of Varadero). The text of the advertisement mentions that Iberia is "working with American Airlines" and its customers can access "... anywhere American Airlines flies in the U.S. to any of Iberia's 95 worldwide destinations." American Airlines and Hounslow, Middlesex, United Kingdom-based British Airways are jointly purchasing a 10% share in Iberia Airlines, which has continued to increase its flights between Spain and the Republic of Cuba, and has technical and operational agreements with both Republic of Cuba government-operated Cubana Airlines and with the Institute of Civil Aviation (IACC) of the Republic of Cuba.
AMERICAN AIRLINES ADVANTAGE MEMBERS EARN MILEAGE ON FLIGHTS TO CUBA- Dallas/Fort Worth, Texas-based American Airlines is now permitting the 33 million members of its Advantage Program to accrue mileage for airline partner travel to/from/through the Republic of Cuba. While American Airlines does not currently provide service to/from/through the Republic of Cuba, and no awards are available for travel to the Republic of Cuba, members of the Advantage Program can accrue mileage to/from/through the Republic of Cuba when traveling on airlines affiliated with the TACA Airline Group (Taca Airlines, Aviateca Airlines, Lacsa Airlines, Nica Airlines, and Copa Airlines). San Jose, Costa Rica-based Lacsa Airlines, for example, currently services the Republic of Cuba. During the last several, the globalization strategy by American Airlines has directly and indirectly included the Republic of Cuba: First, American Airlines has a Carrier Service Provider (CSP) license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., which authorizes the company to operate charter flights between the United States and the Republic of Cuba. Second, American Airlines and Hounslow, Middlesex, United Kingdom-based British Airways are seeking approval from the United States Department of Justice and the European Commission to establish an global alliance to coordinate flight schedules and connections, frequent flyer programs, and to sell seats on each other's aircraft. Third, British Airways is expected to begin service between the United Kingdom and the Republic of Cuba within the next twelve months. Fourth, American Airlines and British Airways are jointly purchasing a 10% share in Madrid, Spain-based Iberia Airlines, which has continued to increase its flights between Spain and the Republic of Cuba, and has technical and operational agreements with both Republic of Cuba government-operated Cubana Airlines and with the Institute of Civil Aviation (IACC) of the Republic of Cuba. Fifth, In July 1997, American Airlines agreed to purchase a 10% share in Aerolineas Argentinas S.A., the national air carrier of Argentina, which began service to the Republic of Cuba in June 1998. Aerolineas Argentinas aircraft have been chartered for use in service between the United States and the Republic of Cuba. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba. [Opinion by OFAC dated 4 March 1994]. Arlington, Virginia-based US Airways already permits the 17 million members of its US Airways Dividend Miles program to accrue mileage for travel to/from/through the Republic of Cuba. While US Airways does not currently provide service to/from/through the Republic of Cuba, and no awards are available for travel to the Republic of Cuba, members of the US Airways Dividend Miles program can accrue mileage to/from/through the Republic of Cuba when traveling on airlines affiliated with LatinPass. LatinPass is a partner of the US Airways Dividend Miles program (other airline partners include ANA, Qantas, Alitalia, Sabena, Swissair, and Northwest). LatinPass, which has 125,000 members, includes ACES, Avianca, Aviateca, COPA, LACSA, Mexicana, Nica, Saeta, Taca, US Airways, KLM, Avis, American Express Membership Rewards, AT&T True Awards, InterAmerican Rent a Car, Diners Club Rewards, Holiday Inn Worldwide, and Radisson Hotels Worldwide. Since 1962, Delta Air Lines, Continental Airlines, and United Air Lines have had route authorities from the following cities: Delta- Havana to Houston, Los Angeles, New Orleans, San Francisco, and San Juan; Continental- Havana to Fort Lauderdale, West Palm Beach, United- Havana to Miami, Key West, Baltimore, Boston, Dallas, Houston, Los Angeles, New Orleans, New York, Newark, Philadelphia, San Francisco, San Juan, St. Croix, St. Thomas, and Washington, D.C.; and Camaguay to Miami, Baltimore, Boston, Dallas, Houston, Los Angeles, New Orleans, New York, Newark, Philadelphia, San Francisco, San Juan, St. Croix, St. Thomas, and Washington, D.C.
TOURISM INDUSTRY PURCHASED US$450 MILLION IN FOOD PRODUCTS IN 1997- The Ministry of Agriculture of the Republic of Cuba reported that in 1997 the tourism industry purchased US$450 million in food products- both imported and domestically-produced. The Ministry of Tourism of the Republic of Cuba reported that the country received 1,170,000 tourists in 1997, producing gross revenues of approximately US$1.5 billion. In 1998, the Republic of Cuba expects to receive 1,400,000 tourists, producing gross revenues of US$2.0 billion to US$2.3 billion. The government of the Republic of Cuba continues to implement a policy of replacing imported food products with domestically-produced food products.
|
HS Code 9802200000 9802300000 9802400000 9802400000 TOTAL US$ |
Description Medicinal & Pharmaceutical Products, Donated All Wearing Apparel, Donated For Relief/Charity Articles Donated For Relief Or Charity, Nesio (Not Elsewhere Specified Or Indicated) Articles Donated For Relief Or Charity, Nesio (Not Elsewhere Specified Or Indicated) |
District Miami, FL Miami, FL Detroit, MI Miami, FL |
April 1998 Value in US$ 17,000.00 9,800.00 00.00 32,724.00 US$59,524.00 |
Year-To-Date Value in US$ 87,924.00.00 112,968.00 21,000.00 536,043.00 US$757,935.00 |
|
Food Product Rice (LB) Black Beans (LB) Pork (LB) Cooking Fat (LB) Lamb (Boned) Ham (Boned) Garlic (U) Onion (LB) Tomato (LB) Lettuce (Bunch) Cabbage (U) Cucumber (LB) Carrots (LB) Malanga (LB) Yucca (LB) Sweet Potato (LB) Squash (LB) Tomato Sauce (BSB) Limes (U) Oranges (U) Tangerines (U) Grapefruit (U) Pineapple (U) Papaya (LB) Banana Fruit (U) Banana Cooking-S (U) Banana Cooking-H (U) String Beans (Bunch) Peanuts (LB) Corn Meal (LB) |
Havana 5 (5) 7-8 (7-8) 25 (25) 15 (20) 25 (25) 50 (60) 1-1.5 (.25-1) 7 (5-7) 12-15 (4-8) NA (NA) 4 (5) 2-2.5 (2) 4 (4) 3-4 (4-5) 1.5-2 (1.5) 1.2 (1.2-1.5) 2 (2) 10 (9) .50-1 (.33-1) .50-1 (.50-1) NA (NA) NA (NA) 10-15 (5-20) 3.5 (2-4) .50-1 (.50-1) 2-4 (2-4) .50-1 (..40-.50) 4 (4) 9 (11) 3 (4) |
Camaguey 3.50 (4.5) 7 (7) 15 (18) 16 (20) 13 (13-14) 29 (30) 1 (.40-1) 2.5 (1.2) NA (NA) NA (2) NA (NA) 1.5 (1.2) 1.5 (1.5) 3 (4) 1 (NA) 1.2 (1.5) 1 (1.5) 8 (7) .10 (.15) 33 (.25) NA (NA) NA (NA) 5 (3-6) 1.2 (1.2-1.5) .50 (.60-1) 1.2-1.5 (1.2-1.5) .25 (.30-.40) 4 (5) 8 (11) 3.4 (4.5) |
Santiago de Cuba 5 (7) 8 (9) 16-17 (18) 13-14 (18) 15(15) 30 (30) 1 (.25-1.00) 3 (NA) NA-NA NA (NA) NA (4-5) 1.00 (1.5) 3 (4) 3.5 (5) 1 (1.2) 1 (1.5) 1 (1.5) 10 (7) .15 (.15) .33 (NA) .25 (NA) NA (NA) 6-8 (2-10) 1 (1.5-2) .50 (.50) 1.5-2.0 (1.5-2.5) .20 (.20-.35) 2 (3.5-4) 10 (10) 4 (4) |
THE "BLACK" FOOD MARKET FROM HAVANA TO SANTIAGO DE CUBA- In addition to government-operated food markets, free-market food markets, government-provided ration card, and government-operated U.S. Dollar retail stores, the Republic of Cuba has a substantial "black" market where available products range from the stolen (meat, seafood, etc.) to the homegrown (chickens and eggs) to the homemade (cheese, baked goods which are permitted but may be produced with ingrediants obtained through the "black" market) to the forbidden (beef and lobster). The following is a price sampling for the last week of June 1998 in the cities of Havana, Camaguey, and Santiago de Cuba. Prices are in Pesos and based upon per pound cost or per unit cost (u). HAVANA- Powdered milk 20.00; Shrimp 20.00; Lobster tail 40.00 (u); eggs 2.00 (u); Fish filet 20.00; Chicken 20.00; White cheese 20.00; Coffee beans 40.00; Processed meat 40.00; Beef 40.00. CAMAGUEY- Fresh milk 4.00 liter; Shrimp 25.00 to 30.00; Lobster tail 30.00 (u); Eggs 1.50 (u); Fish Filet 20.00 to 30.00; Chicken 15.00 to 20.00; White cheese 12.00; Coffee ground 20.00; Beef 15.00. SANTIAGO DE CUBA- Powdered milk 12.00; Shrimp 25.00; Lobster tail 20.00 to 30.00 (u); eggs 1.20 (u); Fish filet 20.00; Chicken 15.00; White cheese 20.00; Yellow cheese 30.00; Coffee ground 12.00; Beef NA; Ham 25.00; and Butter 25.00.
Home
About the U.S.-Cuba Trade and Economic Council
Letters of Cooperation
Realities of MarketCuba©
1998 Commercial Highlights
1999 Commercial Highlights
Who Can Visit Cuba & Conducting Transactions With Cuba
Cuba Internet and E-mail Contacts
Non-United States Companies and Cuba
Foreign Investment and Cuba
United States-based Attorneys
Trademark and Patent Registration
Certified Claims
Special Bulletins
Economic Eye on Cuba© Weekly Newsletter
Congressional Testimony
Publications
Events and Speaking Schedule
Mailing List Request