Should President Obama Visit Cuba? Yes, He Should. Here's Why, What The Visit Might Look Like & What He And President Castro Need To Do.

17 December 2014 to 17 December 2015

2,283 Words
682 Words

365 Days
8,760 Hours
525,600 Minutes
31,536,000 Seconds

US Food/Ag Exports -37%
US Healthcare Exports +500%
US Licensed Visitors To Cuba +54%
US Dollar Outflows To Cuba +150%
Cuba’s Cost Of Doing Business -10%

202 Days Since Removed From Sanctions List
150 Days Since Cuba Embassy Re-Opened In Washington
125 Days Since United States Embassy Re-Opened In Havana

400 Days Remaining For President Obama
800 Days Remaining For President Castro

Should President Obama Visit Cuba?  Yes, He Should.  
Here’s Why, What The Visit Might Look Like & What He and President Castro Need To Do.

Click Here To View The Twelve-Page Report In PDF Format

Reuters: After half a century, U.S. and Cuba to resume scheduled flights

Reuters

London, United Kingdom

17 December 2015

After half a century, U.S. and Cuba to resume scheduled flights

WASHINGTON/NEW YORK | By Arshad Mohammed and Jeffrey Dastin

The United States and Cuba have agreed to restore scheduled commercial airline service for the first time in more than five decades in a deal allowing 110 round-trip flights a day between the former Cold War foes.

Announced a year to the day after the two countries embarked on a process of normalizing ties, the latest accord will not go into effect immediately but should eventually increase tourism and business on the communist-ruled island.

Under the pact, U.S. airlines will be able to sell tickets on their websites for flights to Cuba but they must first apply for permission from U.S. regulators to fly specific routes. Charter flights operated by U.S. carriers already connect the countries.

The United States and Cuba have agreed to allow 110 round-trip flights on U.S. airlines to Cuba per day, according to Thomas Engle, deputy assistant secretary for transportation affairs at the U.S. State Department.

That includes 20 flights to Havana and 10 to each of the other nine international airports in Cuba, he said, adding that no date has been set for final signing of the aviation pact but that nothing was expected to derail it.

There will likely be a 60-to-90 day process during which U.S.-based air carriers will submit proposed routes, suggesting scheduled flights would not begin until the first few months of 2016 at the earliest.

The decision to restore ties, made by U.S. President Barack Obama and Cuban President Raul Castro a year ago, in part reflected Washington's judgment that its policy of isolating Havana politically, economically and diplomatically had failed.

While U.S. officials still criticize Cuba for human rights, they now believe promoting political and other freedoms is more likely to be achieved through engagement.

Although the agreement will eventually make it easier to travel back and forth between the countries, the U.S. ban on general tourism to the Caribbean island remains in force.

U.S. travelers still must meet at least one of 12 criteria to visit, such as visiting family in Cuba or taking part in educational tours or journalistic activity.

STILL MANY U.S.-CUBAN DIFFERENCES

"We continue to have differences with the Cuban government, but we raise those issues directly, and we will always stand for human rights and the universal values that we support around the globe," Obama said in a written statement.

The United States broke diplomatic relations with Cuba in 1961, two years after Fidel Castro ousted U.S.-backed dictator Fulgencio Batista in a revolution that steered the island on a leftist course and made it a close ally of the Soviet Union.

Since last year's detente, the countries have restored diplomatic ties and reopened their embassies. Obama has also taken steps to encourage closer business ties with the island.

However, the longstanding U.S. trade embargo on the island remains in place and the United States' Republican-controlled Congress has resisted Obama's calls to lift it. Cuba's human rights record still draws criticism from Washington, and Castro's government has made clear the diplomatic opening does not mean Havana plans to change its one-party political system.

SURGE IN TOURISM

The large 110 round-trip flights per day quota was negotiated in anticipation of an end to the tourism ban, and designed to encourage airlines to lobby Congress for access, said John Kavulich, president of the nonprofit U.S.-Cuba Trade and Economic Council, which promotes trade between the nations.

"This is as much a political document as it is a transportation document," he said. "That's by design... Both countries are recognizing that the numbers need to be high so there's a heightened interest by the carriers to want the routes."

Kavulich said a flood of U.S. visitors might be "disruptive" to Cuba's one-party political system, but stressed that the Cuban government needs the revenue.

Cuba's embassy in Washington said in a statement on the airline deal that the countries reiterated their commitment to flight security and to protecting civil aviation "from acts of unlawful interference."

Kavulich said this was likely a reference to the possibility that people with claims against Cuba might seek to seize Cuban assets in the United States and he suggested that the United States might do its best to protect such assets.

Aircraft landing in the United States must meet U.S. safety standards, so aging Russian planes in the Cuban fleet will likely only fly domestically within Cuba.

Under the deal, airlines from both countries will be able to make commercial agreements such as sharing flight codes and leasing planes to each other, it said.

New York-based JetBlue Airways Corp, which already operates charter flights to the island, said it plans to apply to schedule service once it has reviewed the aviation deal.

Other U.S. airlines - American Airlines Group Inc, Delta Air Lines Inc and United Continental Holdings Inc - have expressed interest in scheduling flights to Cuba.

American Airlines hopes to begin scheduled flights to Cuba between the beginning of April and the end of June, pending regulatory approval, vice president of regulatory affairs Howard Kass told Reuters.

Obama's decision to relax travel restrictions to Cuba earlier this year has led to a boom in U.S. citizens' visits to Cuba, which are up 71 percent this year, with 138,120 Americans arriving through November.

IMAGE

An American Airlines airplane prepares to land at the Jose Marti International Airport in Havana September 19, 2015.  Reuters/Carlos Garcia Rawlins

Paris Club Members Reach Debt Repayment Agreement With Cuba

Agreement on the debt between Cuba and the Group of Creditors of Cuba
December 12, 2015

The representatives of the Group of Creditors of Cuba and of the Government of the Republic of Cuba met from 10 December to 12 December and agreed on 12 December 2015 on an arrangement to clear USD 2.6 billion of debt in arrears due to the Group of Creditors of Cuba over an 18-year period.

This arrangement offers a framework for a sustainable and definitive solution to the question of arrears due by the Republic of Cuba to the Group of the Creditors of Cuba covering a total stock of debt of USD 11.1 billion, including late interest, as of 31 October 2015.

During the meeting, the delegation of the Republic of Cuba provided a description of the economic and financial situation of its country and presented the measures taken by the Government of the Republic of Cuba aimed at supporting the Cuban economic development.

The Group of Creditors of Cuba welcomed progress made by the Republic of Cuba towards the normalization of its relations with creditors and the international financial community.

Realization of payments under a formal commitment of the Republic of Cuba to fully clear its arrears is a necessary and important step for the normalization of financial relationships between the Group of Creditors of Cuba and the Republic of Cuba. The Group of Creditors of Cuba's export credit agencies that wish to do so will resume their export credit activities.

Background note: The Group of Creditors of Cuba includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

LINK: Media Release

Governor Of Virginia To Visit Cuba In January 2016

The Honorable Terry McAuliffe (D), Governor of the Commonwealth of Virginia, will travel to the Republic of Cuba from 3 January 2016 to 6 January 2016.

Governor McAuliffe may be expected to channel the interests/positions of Mrs. Hillary Clinton in his discussions with representatives of the government of the Republic of Cuba.  Thus, will he be offered a meeting with H.E. Raul Castro, President of the Republic of Cuba?

Moody's Changes Cuba's Outlook To Positive From Stable; Caa2 Rating Affirmed

Rating Action:

Moody's changes Cuba's outlook to positive from stable; Caa2 rating affirmed

Global Credit Research - 10 Dec 2015

New York, December 10, 2015 -- Moody's Investors Service has today affirmed Cuba's Caa2 foreign currency issuer rating and changed the outlook to positive from stable.

The key drivers of today's rating action are the following:

1) Dependence on Venezuela has lessened since 2014, and despite pressure on Cuba's external finances from lower economic and financial support from its main trade partner, risks remain manageable.

2) Continued reform momentum and increased rapprochement with the United States have supported favorable macroeconomic performance and raise the likelihood that US economic sanctions might be eased further.

The positive outlook on Cuba's Caa2 rating reflects Moody's expectation that measures to diversify trade and financial links will contribute to favorable macroeconomic trends and will coincide with continued easing of economic sanctions by the US. The positive outlook also anticipates that the Cuban authorities will maintain the current reform momentum following the Communist Party Congress in April 2016, while managing challenges stemming from weaker external finances.

Cuba's long-term local currency country risk ceilings and the foreign currency bond ceiling remain unchanged at Caa2. The foreign currency bank deposit ceilings is also unchanged at Caa3. The short-term foreign currency bond and deposit ceilings remain at NP (Not Prime). These ceilings reflect a range of undiversifiable risks to which issuers in any jurisdiction are exposed, including economic, legal and political risks. These ceilings act as a cap on ratings that can be assigned to the foreign and local-currency obligations of entities domiciled in the country.

RATIONALE FOR THE OUTLOOK CHANGE

-- FIRST DRIVER: DEPENDENCE ON VENEZUELA HAS LESSENED, AND DESPITE PRESSURE ON EXTERNAL FINANCES FROM LOWER ECONOMIC AND FINANCIAL SUPPORT FROM ITS MAIN TRADE PARTNER, RISKS REMAIN MANAGEABLE --

The principal driver of Moody's decision to change the outlook to positive from stable is that lower Venezuelan support has fostered diversification and, despite some external liquidity pressures, the risks remain manageable. In 2014, Venezuela greatly reduced trade and investment flows to Cuba as economic stress stemming from lower oil prices and social tensions led to increased liquidity pressures for the oil exporting nation. As a result of lower support from its main trade partner and top provider of financial assistance, Cuba's economic growth slowed significantly to 1% from 2.7% in 2013. However, measures to diversify trade and financial links seem to have been successful and have coincided with a gradual easing of economic sanctions by the US. Although they have not fully offset the loss of Venezuelan support, the outlook for stronger inflows remains favorable over the medium term.

Increased tourism activity has improved the economic outlook for the country, but tourism earnings have not fully offset the decrease in Venezuelan financial inflows which has hurt the balance of payments. Since 2009, the government has substantially curtailed imports and cut state payrolls and subsidies in order to maintain an external current account surplus. Despite these challenges, Moody's believes that external liquidity pressures remain manageable as the authorities have adopted measures to ensure balance of payments sustainability since the 2008-09 liquidity crunch and the crisis that followed the dissolution of the Soviet Union. The country's dependence on Venezuela will diminish further as Cuba diversifies its trade and financial relations over the next two-to-three years.

As barriers to investment and financing constraints continue to ease, supported by continued US rapprochement, the authorities will have much greater scope to access finance and ease the current tight external liquidity conditions. Moody's expects an increase in capital inflows is forthcoming. Both government policy and the changing relationship with the US will encourage more inward FDI, as well as official lending, following the restructuring of commercial and bilateral debt in recent years.

-- SECOND DRIVER: CONTINUED REFORM MOMENTUM AND INCREASED RAPPROCHEMENT WITH THE US HAVE SUPPORTED FAVORABLE MACROECONOMIC PERFORMANCE AND RAISE LIKELIHOOD ECONOMIC SANCTIONS MIGHT BE WEAKENED FURTHER --

The second driver of the outlook change is Moody's expectation that the cautious reform momentum will be maintained as the US is likely to continue easing sanctions. The easing of US trade and travel restrictions came at a crucial time for Cuba, helping to offset the accelerating loss of Venezuelan economic assistance. Rapprochement between the US and Cuba has helped increase overall tourism flows by nearly 16% so far this year. This prompted Moody's to revise up its real GDP growth forecast for Cuba to 3.5% (from 2.3%) in 2015 and 3.0% (from 2.9%) in 2016, while the government expects the economy will expand by 4% this year.

The authorities' expectation of a strong rebound in economic activity this year may reflect the anticipated effect of thawing U.S. sanctions. Increasing permissible US participation in the Cuban economy is likely to have a multiplier effect on economic activity, as it could "crowd in" investment by non-US investors in anticipation of increased visitor arrivals to the Caribbean nation. Moreover, the last Communist Party Congress, held in April 2011, focused on the introduction of economic reforms designed to create more efficient markets and drive productivity growth. Moody's believes that the next meeting (to be held in April 2016) is likely to continue this process by expanding private-sector activity, reducing price controls, reforming the tax system, and potentially addressing the issue of the dual currency system.

The public sector payroll has already decreased strongly, media sources suggest that by 2016 there will be one million fewer state employees than in 2009, and further reductions could come after the next Communist Party Congress. This is in line with the government's strategy to continue expanding the private sector, as these workers are likely to be absorbed initially into the tourist sector and then other sectors as investment comes into the country.

Despite a lack of data availability and transparency that Moody's continues to highlight as an important rating constraint, official and publicly available data remain adequate to maintain a rating on the Cuban sovereign.

WHAT COULD MOVE THE RATING UP/DOWN

There could be upward pressure on Cuba's rating if there is a further easing of US economic sanctions that has a material impact on Cuba's economic prospects and reform momentum is maintained. More clarity over the political transition at the end of President Raul Castro's current term would ease concerns over political and social instability. Enhanced data timeliness and transparency would also be credit positive.

Conversely, the positive outlook on Cuba's rating would be changed back to stable if there is no further progress in US rapprochement and reform momentum is lost. Evidence of increased stress on Cuba's external finances would also lead to a stabilization of the outlook.

GDP per capita (PPP basis, US$): Unavailable (also known as Per Capita Income)

Real GDP growth (% change): 1% (2014 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 2.1% (2014 Actual)

Gen. Gov. Financial Balance/GDP: -2.6% (2014 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 3.9% (2014 Estimate) (also known as External Balance)

External debt/GDP: 14.6 (2014 Estimate)

Level of economic development: Very Low level of economic resilience

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

On 09 December 2015, a rating committee was called to discuss the rating of the Cuba, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer has become less susceptible to event risks. Other views raised included: The issuer's institutional strength/ framework, have not materially changed. The issuer's governance and/or management, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The systemic risk in which the issuer operates has materially decreased.

The principal methodology used in this rating was Sovereign Bond Ratings published in September 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this rating action, if applicable.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Jaime Reusche
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Anne Van Praagh
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

USPS To Commence Operations

Press Release issued by the Cuban Delegation participating in the Negotiations to Re-establish Direct Postal Service between Cuba and US
 

PRESS RELEASE ISSUED BY THE CUBAN DELEGATION PARTICIPATING IN THE NEGOTIATIONS TO RE-ESTABLISH DIRECT POSTAL SERVICE BETWEEN CUBA AND THE UNITED STATES. MIAMI, DECEMBER 10, 2015.

MIAMI, December 11, 2015. On Thursday, December 10, the representatives of Cuba and the United States held a new round of talks on the re-establishment of direct postal service between both countries. The Cuban delegation was headed by José Ramón Cabañas Rodríguez, Ambassador of Cuba to the United States; and the US delegation was headed by Lea Emerson, Executive Director for International Postal Affairs at the United States Postal Service.

Both delegations agreed to re-establish direct postal service between the two countries through the implementation of a Pilot Plan for the transportation of mail which will become effective within the next few weeks, with the hope of eventually institutionalizing it on a permanent basis in the future.

After more than five decades without this important service, the direct transportation of mail and postal packages between Cuba and the United States will be available to the citizens of both countries on a date to be announced further on, once the discussion of the technical, operational and safety aspects required for its implementation is completed.

During the meeting, the Cuban delegation set out examples evidencing the impact that the implementation of the US blockade has had on the transactions carried out by Grupo Empresarial Correos de Cuba.

The talks were held in a respectful, professional and constructive ambiance (Cubaminrex).

Fairmont Hotels & Resorts Could Become First U.S. Hotel Brand In Cuba

Fairmont Hotels & Resorts, which began as a United States-based company and is now a Canadian-based operator of luxury hotels and resorts, is being purchased by Paris, France-based Accor SA, which manages properties in the Republic of Cuba.

Currently, Fairmont Hotels & Resorts manages properties in nineteen countries including Canada, the United States, Azerbaijan, Barbados, Bermuda, People's Republic of China, Egypt, Germany, India, Indonesia, Kenya, Mexico, Monaco, the Philippines, Saudi Arabia, Singapore, South Africa, Switzerland, Ukraine, the United Arab Emirates, and United Kingdom.

Fairmont Hotels & Resorts is known in Canada for its famous historic hotels and resorts such as The Empress in Victoria, the Hotel Vancouver in Vancouver, The Palliser in Calgary, the Hotel Macdonald in Edmonton, the Château Laurier in Ottawa, The Royal York in Toronto, the Banff Springs Hotel in Alberta and the Château Frontenac in Québec.  Many of these hotels were originally built by the Canadian Pacific Railway in the late 19th and early 20th centuries.

Fairmont's portfolio also includes The Plaza in New York, the Savoy Hotel in London, the Peace Hotel in Shanghai and the Makkah Clock Royal Tower Hotel in Makkah (Mecca), Saudi Arabia.

Economic Eye On Cuba December 2015 Newsletter

ECONOMIC EYE ON CUBA©

December 2015

Food/Ag Exports For October -19%; Year To Date -37%

Cuba Ranks 58th of 228 Food/Ag Export Markets Thus Far In 2015

Healthcare Product Exports +500% Thus Far In 2015

U.S. Port Export Data

Updated Speaking Schedule

United States and Cuba To Discuss Financial Claims On 8 December 2015

United States and Cuba Hold Claims Talks In Havana

Media Note

Office of the Spokesperson

Washington, DC

December 7, 2015

The United States and Cuba will hold their first government-to-government claims discussion in Havana on December 8. The U.S. delegation will be led by Mary McLeod, Acting Legal Adviser for the U.S. Department of State. This initial meeting will allow the two sides to exchange information on a wide variety of claims. These include claims of U.S. nationals that were certified by the Foreign Claims Settlement Commission, claims related to unsatisfied U.S. court judgments against Cuba, and claims of the United States Government. The Government of Cuba has also raised claims against the United States related to the embargo. The meeting is the first step in what we expect to be a long and complex process, but the United States views the resolution of outstanding claims as a top priority for normalization.

The reestablishment of diplomatic relations allows us to more effectively represent U.S. interests and values in Cuba and strengthen our ties with the Cuban people.

From Political Advocate To Business (Travel) Consultant?

An increasing number of individuals who are or have engaged in Republic of Cuba-related political advocacy (as sole proprietors, lobbyists, employees of not-for-profits, affiliated with educational institutions, etc.) are planning to depart or have departed those venues and reinventing as (travel) consultants eager, for a considerable price, to be engaged by entities that wish to have groups visit the Republic of Cuba to identify commercial opportunities.

They are relocating because the revenue stream to seek legislative remedies in the United States Congress has evaporated due to the continuing changes in OFAC and BIS regulations and the decision by the government of the Republic of Cuba not to (thus far) actively permit United States companies to make use of the expanded OFAC and BIS regulations.  

Any legislative focus is now targeted at after 24 February 2018, the date upon which H.E. Raul Castro, President of the Republic of Cuba, will retire.  As a result of his retirement, one provision of the Libertad Act of 1996 will have been met.

They are enticed by the knowledge that one United States governor wasted US$25,000.00 in taxpayer funds to pay a "Cuba Country Expert" at a Washington, DC-based not-for-profit organization when all of the expertise was available at no cost from the government of the Republic of Cuba and other entities (for profit and not-for-profit).

The challenge for the newly-minted self-proclaimed (travel) consultants is they have no knowledge or have limited knowledge of the private sector and their ability to function within the Republic of Cuba is solely based upon having been a political advocate.

Of value to remember that the government of the Republic of Cuba is not supportive of consultants- as it prefers a straight line between it and a company rather than a triangle created by the insertion of a third-party.

Of value to remember the tangible commercial results of the hundreds of representatives from United States companies, three United States governors, sixteen United States Senators, and twenty-seven members of the United States House of Representatives who have visited the Republic of Cuba in 2015 who have visited the Republic of Cuba thus far in 2015….

Prepared Text For Delivery At U.S.-Cuba Business Summit (1 December 2015)

1 December 2015

U.S.-Cuba Legal Summit

The University Club

One West 54th Street

New York, New York

DRAFT OF PREPARED REMARKS (subject to editing)

Embargoed For Release/Reference- 12:01 am 1 December 2015

John S. Kavulich

President

Good morning….. (TEXT)

Who Accompanied Governor Abbott (R- Texas) To Cuba?

Delegation List

IATA To Create Billing & Settlement Plan For Cuba In 2016; Will Assist US Airlines

The organizational meeting of the International Air Transport Association (IATA) was held in Havana, Cuba in April of 1945 and IATA formally came into being on the 19th of that month. Later that year, in October, the First Annual General Meeting of IATA was held in Montreal. At that time, there were 57 members from 31 countries; today, IATA represents some260 members from all over the world.

Remarks of Tony Tyler (Director General & CEO) at a Press Conference in Havana, Cuba

his is my first trip to Cuba, but I am proud to lead an organization that was actually founded in this very hotel 70 years ago. In April, 57 airlines gathered here to lay the foundations for post war civil aviation. They had a vision which has stood the test of time.

Today IATA is a global trade association representing some 260 airlines. Our work touches almost every aspect of aviation. Our global standards help to make the aviation industry safe, secure, profitable and environmentally sustainable.

My visit commemorates IATA’s history which began here. But even more importantly, it celebrates the amazing force for good that aviation has become in our world. This year 3.5 billion people and 50 million tonnes of cargo will fly. That’s about a million people a day over 50,000 routes. In doing so, we will support 58 million jobs and $2.4 trillion in economic activity. Over a third of the value of goods traded internationally are delivered by air.

Simply put, IATA was created here in Havana to support the air transport industry. Today air transport plays a critical role in the world’s social and economic development. It is undeniably a force for good in our world. Aviation creates value and makes our world a much more prosperous place.

Cuba’s air transport industry has tremendous potential. Even in my brief visit, I have come to realize that aviation could be contributing much more to Cuba. Look at tourism. Cuba welcomed a record 3 million tourists in 2014. But the Dominican Republic attracted 5 million. They are both amazing countries, but even just looking at Cuba’s size compared to the Dominican Republic indicates that it should be able to accommodate a much larger tourism industry than it does today. There is tremendous potential for growth of the inbound tourist market.

And it is the same for the outbound market. As you all know, restrictions on outbound travel were lifted a few years ago. We estimate that there were about 300,000 departures from Cuba last year—outbound travel. For a country of over 11 million people that is relatively small. And for sure it will grow as average incomes rise. We did a projection to 2034 and conservatively see the potential for one in four Cubans to be traveling by air at that time. Even if the population were steady—an obviously unrealistic expectation—that would see a market of 10 times the size of today in less than two decades.

IATA will have a relevant role to play in the growth and development of air transport in Cuba.  I mentioned our financial systems. IATA operates global financial systems which, in 2014, handled some $388 billion. The bulk of this was in our Billing and Settlement Plan or BSP. That probably won’t mean much to you. But for airlines it is an indispensable enabler of their global business.

In markets around the world IATA helps airlines to do business by helping to facilitate the distribution of their product through travel agents. We accredit travel agents—to make sure that they have sound operations aligned with global standards. And we help facilitate the transactions between airlines and those travel agents through a standardized agreement and settlement mechanism. The latter is the BSP.

Agents are important distribution partners for airlines. About 60% of ticket sales are through agents on average—higher in developing markets. In Cuba we have 4 accredited agents with well over 100 branches across the country, but we do not yet operate a BSP.

We have been studying the market closely for an opportunity to start a BSP here. Today I am pleased to announce that we believe that the potential and timing is right.  We hope to start BSP operations within 2016. Setting it up will no doubt be challenging. The banking system being one of them. But we will be working with our stakeholders—including Cubana and the government—to overcome these in relatively short order.

Direct scheduled air links are a much anticipated outcome of the thawing of relations between the US and Cuba. That will certainly create opportunities for growth. Establishing an IATA BSP in Cuba will be an important facilitator for growth in outbound ticket sales. 

Another critical area where I believe that IATA can add value to the development of air transport in Cuba will be the infrastructure. The infrastructure in Havana is already struggling to cope with current volumes. The airport terminals and the airfield are in need of major upgrades.

IATA is not in the business of building or upgrading airports. But we do help airports and governments plan infrastructure developments. By bringing deep knowledge of airline and passenger needs we can ensure that the infrastructure investments deliver maximum benefit.

A big part of that is technology and process driven. That the industry is in a relatively early stage of development is actually an advantage. Because of the expected strong growth, to a large extent Cuba will have relatively “greenfield” opportunities. As a result, the implementation of global best practice technology and processes in Cuba has the potential to leapfrog to become a model in the region for modern air transport infrastructure.

What I am suggesting? Let me give you an example with one of our programs—Fast Travel. It is about self-service. We have developed global standards for check-in, self-boarding, self-bag tagging, etc. The efficiencies of these options pay for the investments in no time. Visitors to Cuba will already know what to expect. And as large numbers of passengers originating here are first-time travelers they can become accustomed to the new processes quite easily.

The potential is great. And in my meetings with the Tourism and Transport ministries I have emphasized IATA’s willingness to assist as Cuban aviation ramps up.

New OFAC Regulations Removes Some Issues For US Financial Institutions; May Create Opening For Resumption Of Credit Card/Charge Card Transactions

25 November 2015

Office of Foreign Assets Control (OFAC) of The United States Department of the Treasury

52. Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions?

No. A financial institution may rely on U.S. travelers to provide their certifications of authorized travel directly to the person providing travel or carrier services when processing Cuba travel-related transactions, unless the financial institution knows or has reason to know that the travel is not authorized by a general or specific license.

The CACR requires persons subject to U.S. jurisdiction providing travel or carrier services to retain for at least five years from the date of the transaction a certification from each customer indicating the section of the CACR that authorizes the person to travel to Cuba. See § 515.572(b). U.S. travelers utilizing a general or specific license are also required to retain for five years records associated with their travel to Cuba.

Texas Governor To Visit Cuba

Governor Abbott To Lead Business Development Mission To Cuba

Governor Abbott will lead a delegation to Havana, Cuba where he will hold meetings and events to focus on travel, trade and exports from Monday, November 30th to Wednesday, December 2nd. While in Cuba, Governor Abbott will meet with officials from Cuba’s Ministry of Foreign Trade and Investment, Port of Mariel, Cimex (Cuban Export-Import Corporation), Cuba Chamber of Commerce, Alimport (Cuban Export Company and Food Importer) and various economic institutions. This will be Governor Abbott’s second international business development trip since taking office.

“With a new era of eased trade and travel restrictions between the U.S. and Cuba – and as the 12th largest economy in the world - Texas has an opportunity to capitalize and expand its economic footprint at home and abroad,” said Governor Abbott. “Opening the door to business with Texas will expand free enterprise and the freedom that flows from it. I look forward to expanding business opportunities for both Texas and Cuba.”

Governor Abbott will be joined on the trip by Tracye McDaniel, CEO of TexasOne, members of the Governor’s staff and various business and economic leaders from around the state. The trip will be sponsored and paid for by TexasOne, the state’s Economic Development Corporation.

Joint Statement Between The Republic of Cuba And The United States of America on Cooperation on Environmental Protection

Joint Statement Between The Republic of Cuba And The United States of America on Cooperation on Environmental Protection

Joint Statement

Washington, DC

November 24, 2015

The Republic of Cuba and the United States of America,

Recognizing the importance of protecting the terrestrial environment of both States, as well as the coastal and marine environments of the Caribbean Sea, Gulf of Mexico, and other waters in the region;

Affirming their intention to strengthen cooperation on disaster risk reduction and address the causes and effects of climate change, extreme weather events and ocean acidification, including through strategies to improve resilience to climate change and oil spills and to natural disasters, particularly hurricanes;

Acknowledging a range of ongoing cooperative activities related to environmental protection involving governmental agencies in both States, as well as relevant initiatives undertaken by non-governmental organizations, scientific groups, and academic institutions;

Desiring to enhance such activities and initiatives for their mutual benefit;

Also desiring to strengthen cooperation on scientific research on conservation, environmental monitoring and protection, and related fields;

Are committed to pursuing the following actions in accordance with their respective international obligations and national law:

1. Facilitating the exchange of information, including scientific data, research findings, technological information, and best practices, on environmental protection, conservation and sustainable management of terrestrial and marine natural resources, as well as on disaster prevention, mitigation, preparedness, and response actions, and related fields.

2. Strengthening ongoing cooperative activities involving governmental agencies in both States and, where appropriate, planning to engage in additional cooperative activities involving such agencies, to promote the following objectives:

A. Protection of coastal and marine ecosystems, including through:

i. Reduction of marine pollution, especially land -based sources including wastewater, nutrients and marine debris;

ii. Strengthened watershed management;

iii. Conservation and sustainable management of marine resources such as shared fisheries resources, coral reefs, marine mammals, sea turtles, and other marine life;

iv. Prevention of illegal, unreported and unregulated fishing and seafood fraud; and

v. Establishment, monitoring, management and enforcement of marine protected areas.

B. Protection of biodiversity, including through:

i. Prevention, control and management of invasive alien species;

ii. Protection of endangered and threatened species and the habitats on which they depend;

iii. Sustainable management of protected areas, fisheries, forests, important watersheds and wetlands;

iv. Prevention of wildlife trafficking, as well as illegal logging;

v. Monitoring and control of fisheries resources;

vi. Exchange of information on regulatory frameworks related to biosafety;

vii. Protection of migratory species; and

vii. Prevention, control, and management of forest fires.

C. Disaster risk reduction and addressing the causes and effects of climate change and ocean acidification, including through:

i. Strategies to integrate climate change considerations into development planning;

ii. Early warning of and enhancing coastal resilience to natural disasters, particularly hurricanes, and sharing of real-time earthquake information;

iii. Ecosystem-based approaches to resilience planning and coastal resilience;

iv. Research and environmental monitoring, in particular regarding ocean acidification, and the degradation of coral reefs; and

v. The development and implementation of plans to protect fisheries resources from health-related risks and other biological threats.

D. Prevention of oil spills and hazardous substances pollution through strengthened environmental regulation and control of offshore energy and oil and hazardous substance pollution, as well as through cooperation on oil spill preparedness and recovery and response capacity;

E. Improvement of maritime safety, meteorological and oceanographic information and notice to mariners including through improved hydrographic data and products and their exchange, as well as promoting cooperation and improving search and rescue capability;

F. Enhancing understanding of terrestrial and marine ecosystems and the effects of climate change on those ecosystems, including through observation and monitoring systems, science, and expanded research and exploration.

3. Endeavoring to facilitate the movement of officials, equipment, and materials involved in the cooperative activities envisioned in Paragraph 2.

4. Strengthening collaboration in and through sub-regional, regional, and global organizations and other arrangements in which both States participate that have mandates related to one or more of the objectives set forth in Paragraph 2.

5. Endeavoring to facilitate initiatives undertaken by non-governmental organizations, scientific groups, and academic institutions designed to promote one or more of the objectives set forth in Paragraph 2, including by:

A. Facilitating travel between the two States of individuals involved in such initiatives;

B. Enabling and facilitating entry and exit of relevant equipment, materials, and samples;

C. Promoting joint academic, scientific, technical, and educational exchanges; and

D. Promoting access to and use of relevant scientific data bases.

The Republic of Cuba and the United States of America may develop specific instruments to address issues of mutual interest set forth in this Joint Statement.

The Republic of Cuba and the United States of America intend to review the implementation of this Joint Statement within two years and periodically thereafter and to consider possible enhancements to it as may be necessary in the future, including by expanding the list of objectives set forth in paragraph 2 as may be mutually decided.

Signed at Washington, D.C. on November 24, 2015, in the English and Spanish languages, both texts being equally valid.

For the Republic of Cuba

José Ramón Cabañas Rodríguez

For the United States of America

David Balton

U.S.-Cuba Legal Summit on 1 December 2015 in New York City

Complimentary for In-house Counsel and Members of Corporate Legal Departments

The American Lawyer, Corporate Counsel, and Focus Latin America present the annual U.S. - Cuba Legal Summit at the University Club of New York on December 1, 2015.

With the newly opened borders of Cuba, many see a great opportunity to expand business with our neighbors to the South. A mere 90 miles off the coast of Florida, Cuba offers an untapped marketplace for business expansions and M&A in a rich up-and-coming Marketplace. Experts warn, however, that foreign investors will be looking for a functional legal system and a willingness to take disputes to international arbitration before they will invest big dollars in Cuba.

The U.S. Cuba Legal Summit looks to provide a platform for U.S. in-house counsel to investigate the legal system in Cuba with a sharp eye to potential pluses and minuses when opening lines of communications.

Seating is limited - register today! 

www.corpcounsel.com/uscubalegalsummit

Who You Will Meet

Legal counsel, corporate executives and compliance officers from Fortune 500 and Latin 500 companies -- as well as other key stakeholders in the region -- who will engage in lively peer-to-peer discussions on the most challenging legal issues affecting U.S. and Cuba.

Stonegate Bank and MasterCard Enable U.S.-Issued Debit Cards for Use In Cuba

Stonegate Bank and MasterCard Enable U.S.-Issued Debit Cards for Use in Cuba

Stonegate is pleased to announce that the bank is now offering a Debit MasterCard that can be used at any of Cuba’s 10,000 hotels, restaurants and other card-accepting merchants.

“This is the first step in relieving the burden of U.S. travelers carrying cash when travelling to Cuba and another step in normalizing commercial relations between the two countries. Hopefully more issuing banks will help this process by approving credit and debit cards as well,” said Dave Seleski, president and CEO of Stonegate Bank.

Initially, cardholders will need to sign for all Debit MasterCard purchases. Stonegate expects to expand the use of the cards to ATMs in 2016.

Before visiting Cuba, Stonegate cardholders will need to ensure they are traveling under one of the 12 categories authorized by U.S. regulations, including religious and professional purposes.

MasterCard originally removed its network block on U.S.-issued cards being used in Cuba in March 2015. Since then, federal rules left the final decision to each bank whether its cardholders will be allowed to use their cards on the island.

“As the infrastructure continues to develop on the island, this milestone reinforces a collective effort, starting with last spring’s trade mission, to deliver our cardholders a convenient and safe way to pay when traveling to Cuba,” said Jeff Wilson, president. GeoCentral Division at MasterCard.

For further information on obtaining a debit card, please visit www.stonegatebank.com.

About Stonegate
Stonegate Bank (NASDAQ: SGBK) is a full-service commercial bank, providing a wide range of business and consumer financial products and services through its 21 banking offices in its target marketplace of South and West Florida, which is comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. As of September 30, 2015, Stonegate Bank had $2.31 billion in assets and $1.95 billion in deposits. Stonegate Bank’s principal executive office and mailing address is 400 North Federal Highway, Pompano Beach, Florida 33062 and its telephone number is (954) 315-5500.

About MasterCard
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities — such as shopping, traveling, running a business and managing finances — easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.