Who Should Be The Next Governor To Visit Cuba? Hint: The State Nut Is Pecan

Who Should Be The Next Governor To Visit Cuba?
The Honorable Robert Bentley of the State of Alabama
Why?  The State’s companies and entities have strived to be first.

The State of Alabama has no peer when it comes to commercial engagement with the Republic of Cuba…    

Since 2001, Alabama-based companies have been exporters of food products and agricultural commodities (poultry) from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

During the last six years, the Port of Mobile, Alabama, has ranked 8th of 34 United States ports that have processed exports from the United States to the Republic of Cuba.

The city of Mobile, Alabama, has been a part of the Sister Cities International program (Society Mobile-La Habana) with the city of Havana, Republic of Cuba.  In October 1993, The Honorable Michael Dow was the first mayor of a city in the United States to sign a twinning agreement with a city in the Republic of Cuba.

Paint Rock, Alabama-based Cleber LLC received authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and the Bureau of Industry and Security (BIS) of the United States Department of Commerce to create a tractor warehouse/assembly facility in Mariel Special Development Zone located near the city of Havana, Republic of Cuba.  The government of the Republic of Cuba has authorized the assembly facility.  The first year investment is US$1.4 million (which has been obtained according to the company); total long term investment US$5 million.

Foley, Alabama-based GulfWise Commerce LLC (www.gulfwisecommerce.com), affiliated with 100-year-old Foley, Alabama-based The Woerner Companies (2015 revenues exceeded US$40 million; www.woerner.com), received a license from the BIS on 31 March 2016 to export advanced planting and harvesting equipment valued at US$108,184.00.  The BIS application was submitted at the end of January 2016.

The purchaser is Republic of Cuba government-operated Tecnotex SA for use by the Republic of Cuba government-operated Indio Hatuey Research Station, a Matanzas, Republic of Cuba-based agricultural research institution.  Tecnotex SA (affiliated with the Revolutionary Armed Forces of the Republic of Cuba) imports equipment, technology, and construction materials.  

The equipment, which is being manufactured in Alabama and expected to be delivered soon through the Port of Mobile, Alabama, will assist in establishing grass-covered areas for purposes ranging from erosion control to the creation of pasturage and the establishment or improvement of parks and recreational areas, such as playgrounds and sport facilities.

The discussions commenced in 2014 when GulfWise Commerce LLC initiated a dialogue with researchers at the University of Matanzas regarding multiple agriculture production issues in the Republic of Cuba.  That dialogue led to an assessment of specialized equipment needed and to subsequent negotiations for a possible sale, which led to an application to the BIS.  

Representatives of GulfWise LLC and The Woerner Companies have made five (5) visits to the Republic of Cuba; the first in 2012.  Two representatives of the Indio Hatuey Research Station visited Alabama in 2015.

Significant about the transaction is the decision by the government of the Republic of Cuba to not focus upon a United States-based multinational (for example, Illinois-based Caterpillar or Illinois-based John Deere), but rather have the first export to the Republic of Cuba of durable (non-healthcare-related) commercial equipment be from a private company.

GulfWise Commerce LLC is also seeking to import fruit (papayas, mangoes, pineapples, bananas, and coffee beans) from the Republic of Cuba to be processed at a dehydration and food ingredient facility under construction (completion date June 2016) near the Port of Mobile.  The United States Department of State added coffee to its list of authorized imports from the Republic of Cuba in April 2016, provided the coffee is grown/processed/marketed by independent cooperatives as defined by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury.

“Woerner Companies, Inc. is opening a new division called Bon Secour Valley Ingredients (BSVI) in Foley, Alabama. This new division will diversify the family to focus on sustainable agriculture by producing prepared foods and ingredients. BSVI is opening a 40,000 sq.ft. facility that will operate multiple dehydration, roasting, and extrusion lines to convert perishable fruits and vegetables into a more sustainable dehydrated form that will not require refrigeration, maintain a longer shelf life all while providing an all-natural product with healthy nutritional value. The main ingredients for the initial plant production will consist of: chicory, sweet potatoes, bananas, carrots, sweet corn, bread fruit, butternut squash, kale and pumpkin. Our focus is to go straight from the farm to BSVI for dehydration and then to your home in the form of a dehydrated banana, smoothie mix, powdered chicory and so much more.”

Mr. Robert L. Muse, the Washington, DC-based attorney who represented GulfWise Commerce LLC in the BIS equipment-licensing process, said the significance of the transaction is “… the government of Cuba clearly rewarded the patient efforts of a privately-owned company willing to invest the time to identify and fill the needs of Cuba’s rapidly changing rural economic landscape.”

Starbucks (And Other Companies) Can Now Import Coffee From Cuba... With Some Restrictions

With the United States Government now permitting the importation of coffee from the Republic of Cuba, Seattle, Washington-based Starbucks Corporation (2015 revenues exceeding US$14 billion) may now have the option to import coffee from the Republic of Cuba for inclusion in beverages and for bulk retail sale, if the company has an interest.  Importing coffee to the United States would place Starbucks in a first-tier position to operate locations within the Republic of Cuba.

Regardless of whether Starbucks Corporation decides to import bulk or packaged coffee (preferred by the government of the Republic of Cuba so as brand names become recognized), a United States-based company will almost certainly secure an agreement to import coffee from the Republic of Cuba within the next three months.  France and Japan are two of the primary export markets for coffee grown in the Republic of Cuba.

A question to be answered is whether the government of the Republic of Cuba will find greater economic value and political value from authorizing the production and export of coffee (roasted or non-roasted or processed) through what the United States defines as entrepreneurs or retain the majority of production and export through Republic of Cuba government-operated entities.  

And in the future......

There is little doubt that Starbucks Corporation will eventually have a presence within the Republic of Cuba, perhaps at properties to be managed in the Republic of Cuba by Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) and Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion).  Starwood Hotels & Resorts Worldwide is being acquired by Marriott International.

Starbucks has a presence within many branded properties managed by Starwood Hotels & Resorts Worldwide and Marriott International.  While Starbucks would be expected to seek stand-alone location(s) within the Republic of Cuba, with a focus upon resort properties, there would likely be operations within non-resort properties- both for retail and foodservice (restaurants, room service, in-room coffee makers, etc.).

Starwood Hotels & Resorts Worldwide will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton).  Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.

Marriott International is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.

Today, the U.S. Department of State updated its “Section 515.582 List,” which sets forth the goods and services produced by independent Cuban entrepreneurs that are authorized to be imported into the United States pursuant to Section 515.582 of the Cuban Assets Control Regulations (CACR).

As of April 22, persons subject to U.S. jurisdiction may also import coffee and additional textiles and textile articles produced by independent Cuban entrepreneurs, in addition to the items previously authorized. Also, imports of these items no longer need to be made directly from Cuba. These changes allow for more engagement with Cuba’s private sector through new business opportunities. The State Department will continue to update this list periodically.

Empowering the Cuban people and Cuban civil society is central to our approach to Cuba. Expanding commercial ties between independent Cuban entrepreneurs and the United States creates new opportunities for such empowerment. As President Obama stated during the March 21 entrepreneurship summit in Havana, Cuba’s economic future partly depends on growth in the private sector, and the United States wants to be a partner as Cuba moves forward.

The State Department's Section 515.582 List
Bureau of Economic and Business Affairs
April 22, 2016

Goods and Services Eligible for Importation

In accordance with the policy changes announced by the President on December 17, 2014, to further engage and empower the Cuban people, Section 515.582 of the Cuban Assets Control Regulations (31 CFR Part 515 – the CACR) authorizes the importation into the United States of certain goods and services produced by independent Cuban entrepreneurs as determined by the State Department as set forth on the Section 515.582 List, below.

Goods

The goods whose import is authorized by Section 515.582 are goods produced by independent Cuban entrepreneurs, as demonstrated by documentary evidence, that are imported into the United States, except for goods specified in the following sections/chapters of the Harmonized Tariff Schedule of the United States (HTS):

    Section I: Live Animals; Animal Products
        All chapters
    Section II: Vegetable Products
        All chapters, except Chapter 9 heading 0901 (coffee)
        **Please note that exporters will be required to prove that they have met all sanitary and phytosanitary standards, including food safety.
    Section III: Animal or Vegetable Fats and Oils and their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes
        All chapters
    Section IV: Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes
        All chapters
    Section V: Mineral Products
        All chapters
    Section VI: Products of the Chemical or Allied Industries
        Chapters 28-32; 35-36, 38
    Section XV: Base Metals and Articles of Base Metal
        Chapters 72-81
    Section XVI: Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles
        All chapters
    Section XVII: Vehicles, Aircraft, Vessels, and Associated Transportation Equipment
        All chapters
    Section XIX: Arms and Ammunition; Parts and Accessories Thereof
        All chapters

Persons subject to U.S. jurisdiction engaging in import transactions involving goods produced by an independent Cuban entrepreneur pursuant to § 515.582 must obtain documentary evidence that demonstrates the entrepreneur’s independent status, such as a copy of a license to be self-employed issued by the Cuban government or, in the case of an entity, evidence that demonstrates that the entrepreneur is a private entity that is not owned or controlled by the Cuban government. 

This list does not supersede or excuse compliance with any additional requirements in U.S. law or regulation, including the relevant duties as set forth on the HTS.

For travelers importing authorized goods into the United States pursuant to § 515.582 as accompanied baggage, the $400 monetary limit set forth in § 515.560(c)(3) does not apply to such goods, but goods may be subject to applicable duties, fees, and taxes.
Services

The authorized services pursuant to 31 CFR 515.582 are services supplied by an independent Cuban entrepreneur in Cuba, as demonstrated by documentary evidence. Persons subject to U.S. jurisdiction engaging in import transactions involving services supplied by an independent Cuban entrepreneur pursuant to § 515.582 are required to obtain documentary evidence that demonstrates the entrepreneur’s independent status, such as a copy of a license to be self-employed issued by the Cuban government or, in the case of an entity, evidence that demonstrates that the entrepreneur is a private entity that is not owned or controlled by the Cuban government. Supply of services must comply with other applicable state and federal laws.

Note 1: All payments in settlement of transactions authorized by § 515.582 should reference this section in order to avoid having them rejected.

Note 2: The authorization in §515.582 of the CACR does not supersede or excuse compliance with U.S. laws or regulations or any other additional requirements.

Note 3: The Department of State, in consultation with other federal agencies, reserves the right to update this document periodically. Any subsequent updates will take effect when published on the webpage of the Bureau of Economic and Business Affairs’ Office of Sanctions Policy and Implementation (http://www.state.gov/e/eb/tfs/spi). Updates will also be published in the Federal Register. For further information, please contact the State Department at 202-647-7489.

Note 4: For provisions relating to recordkeeping and reports, see 31 CFR §§ 501.601 and 501.602 and 19 CFR Part 163.

LINK: What May Be Imported From Cuban Entrepreneurs To The United States

Has A Lobbying Organization Created A "Tainted Proceeding" For Air Carriers With USDOT Applications?

Has A Lobbying Organization Created A “Tainted Proceeding” For Air Carriers With USDOT Applications?

Washington, DC-based EngageCuba may have created a basis for litigation against the United States Department of Transportation (USDOT) by United States-based air carriers that do not receive from the USDOT desired routings for the Republic of Cuba.

The USDOT application criteria (https://www.regulations.gov/#!documentDetail;D=DOT-OST-2016-0021-0001) does not include a measure relating to the advocacy/lobbying activities by an air carrier as a means test for awarding routes:

“The Department’s principal objective in this proceeding will be to maximize public benefits. In this regard, the Department will consider which applicants will be most likely to offer and maintain the best service for the traveling and shipping public. The Department will also consider the effects of the applicants’ service proposals on the overall competitive environment, including effects on market structure and competition in the U.S.-Cuba market, and any other market(s) shown to be relevant.  In addition, where relevant, the Department will consider other factors historically used for carrier selection.”

A relevant portion of a 22 March 2016 letter from EngageCuba to The Honorable Anthony Foxx, Secretary of United States Department of Transportation in Washington DC, includes:

"While many U.S. companies have expressed interest in doing business in Cuba, [Atlanta, Georgia-based] Delta [Air Lines] is one of the select few who, by supporting Engage Cuba, have signaled a true commitment to public policy change. We are proud to offer our support of Delta’s proposal to offer scheduled passenger service to Cuba."

That the letter includes the statement, "... is one of the select few who, by supporting Engage Cuba…" can be inferred as creating a political litmus test, rather than a purely commercial context, for the designation of routing authorities.

This effort may be construed as a lobbying organization seeking to influence the USDOT by conveying that a supporting company is doing what others are not, or have not been invited (permitted) to do, relating to advocating for a change in United States policy, and should thus be awarded route authority instead of a company that is not a (financial) supporter of the lobbying organization, but may have a superior business plan.

If Delta Air Lines receives a route authority, might another air carrier have a basis for (administratively) litigating that a lobbying organization supported by Delta Air Lines wrote a letter to the United States Secretary of Transportation stating that Delta Air Lines should be awarded route authority(s) not because of market analysis or competitive analysis or superior business plan, but because the company is lobbying for a "public policy change."

From an executive at an air carrier: "… a business risk… they will contact me for something and I will remind them of their support for Delta Air Lines."

From an executive at an air carrier: "We will carefully review all DOT route decisions to confirm that they were awarded on the commercial merits."

OFAC Updates Frequently-Asked Questions List

Publication of New Cuba-Related Frequently Asked Questions

Today, the Department of the Treasury's Office of Foreign Assets Control (OFAC) updated its Frequently Asked Questions regarding Cuba to issue the following new FAQS: # 62, 63, 67, 68, 80, 81, 93, and 97

One Year Later... What Did New York Companies Get From Governor Cuomo's Visit To Cuba

One Year Later…. What Did New York State Companies Get For Governor Cuomo’s Estimated US$200,000.00 One-Night Visit To Cuba?

One year ago today, The Honorable Andrew Cuomo (D), Governor of the State of New York, returned from a 20 April 2015 to 21 April 2015 visit to the Republic of Cuba.

He traveled with representatives of seven (7) New York-based companies and fifteen (15) members of his staff- seven (7) of whom had a focus upon relations with the media. 

What have the companies reported….

108,000 New Hotel Rooms In 14 Years..... That's 7,714 Rooms Per Year

The government of the Republic of Cuba has reported a goal of constructing 108,000 hotel rooms throughout the country during the next fourteen (14) years.  

There was no mention as to the number of rooms for each property. 

There was no mention as to what categories (one star to five star) of properties would be created.

That's 7,714 new hotel rooms per year...

If each property has two hundred (200) rooms, that's 38 hotels per year...

If each property has three hundred (300) rooms, that's 26 hotels per year.....

The government of the Republic of Cuba has not indicated whether these properties would be owned by Republic of Cuba government-operated companies, managed by Republic of Cuba government-operated companies, managed as joint ventures with non-Republic of Cuba-based companies, or owned and managed by non-Republic of Cuba-based companies.

In May 2016, H.E. Manuel Marrero, Minister of Tourism of the Republic of Cuba, shared the following:

• Gross tourism revenue in 2015 was US$2.8 billion [of which approximately 16% was reported by Palma de Mallorca, Spain-based Melia Hotels International].
• 127 new investment projects are in progress of which 76 are foreign management hotel joint ventures signed with 17 international companies.  Another 23 contracts are expected to soon be authorized.
• The Republic of Cuba approximately 66,000 hotel rooms [primarily of one-star to three-star categories based upon international standards].
• Currently, hotel rooms are being contructed at a rate of 2,400 per year; by 2019 the rate should exceed 5,000 per year.
• 33% of current and future tourism capacity will be managed by Republic of Cuba government-operated Gaviota, controlled by the Revolutionary Armed Forces of the Republic of Cuba.  Gaviota expects to add 30 new hotels by 2018.
• The Republic of Cuba has 16,000 rooms operated as privately-owned residencies (Casa Particulars) and 1,700 privately-owned restaurants (Paladares).

USITC Releases 449-Page Report On Trade (Potential) With Cuba

18 April 2016
United States International Trade Commission
Washington, DC

U.S. EXPORTS OF AGRICULTURAL, MANUFACTURED GOODS TO CUBA COULD INCREASE IF U.S. TRADE RESTRICTIONS WERE LIFTED, BUT SIGNIFICANT CUBAN BARRIERS TO FOREIGN TRADE AND INVESTMENT WOULD REMAIN

This report examines Cuban imports of goods and services from 2005 to the present; the effects of U.S. restrictions on trade with and travel to Cuba; and Cuban nontariff measures, institutional and infrastructural factors, and other barriers that may inhibit or otherwise affect the ability of firms to conduct business in and with Cuba. It also presents a qualitative and quantitative sectoral analysis of potential U.S. exports of goods and services to Cuba in the event that U.S. restrictions are lifted and Cuban import barriers are reduced. 

The U.S. International Trade Commission (Commission or USITC) conducted this investigation at the request of the U.S. Senate Committee on Finance. To produce this report, the Commission used information from a variety of sources, including publicly available literature and data, interviews and fieldwork, and the Commission’s public hearing. The Commission used qualitative and quantitative measures to analyze the effects of U.S. restrictions and to estimate the potential for increased U.S. exports of goods and services to Cuba in the event that statutory, regulatory, or other trade and travel restrictions are lifted.

CLICK HERE FOR COMPLETE REPORT IN PDF FORMAT

US Department Of State Issues Report On Cuba (The Report Contains Commercial Information)

2015 Country Reports on Human Rights Practices
13 April 2016

Media Note
Office of the Spokesperson
Washington, DC

On April 13, 2016, Secretary Kerry submitted the 2015 Country Reports on Human Rights Practices (commonly known as the Human Rights Reports) to the U.S. Congress. The reports, now in their 40th year, document the status of human rights conditions in 199 countries and territories around the world.

Mandated by Congress, the Human Rights Reports help inform U.S. foreign policy and congressional allocation of foreign aid and security sector assistance. They also serve as a reference for other governments, international institutions, non-governmental organizations, legal professionals, human rights advocates, scholars, interested citizens, and journalists.

The 2015 Reports highlight the intensified global crackdown by an increasing number of states on members of civil society. Government efforts to stifle civil society were achieved through overt or direct means including through harassment, intimidation, detention, and restrictions on their ability to operate; through the implementation of overly broad counterterrorism or national security laws to control the freedom to assemble and to suppress dissent; and through more nuanced yet burdensome bureaucratic procedures such as the passage of NGO legislation that restricts the operating space for human rights organizations. The collective result of these measures has led to the silencing of independent voices, a growing impoverishment of political discourse, and diminishing avenues for peaceful expression and change.

CLICK HERE FOR COMPLETE TEXT IN PDF FORMAT

Economic Eye On Cuba Newsletter- US Food/Ag Exports To Cuba Increase 32%

ECONOMIC EYE ON CUBA©
April 2016

Cuba Purchasing Agricultural Equipment; Gulfwise LLC Receives 1st BIS License- 1
Google Opens Technology Center In Havana; High-Speed Internet For 40 At A Time- 2
US Department Of Commerce Misstates Colgate-Palmolive’s Timetable In Cuba- 2
February 2016 Food/Ag Exports Increased 32% Compared To February 2015- 3
No Exports Of Products Authorized By 2015/2016 Initiatives- 3
February 2016 Healthcare Product Exports- 4
February 2016 Humanitarian Donations- 5
U.S. Port Export Data- 15
Speaking Schedule- 16

CLICK HERE FOR COMPLETE DOCUMENT IN PDF FORMAT

US Department Of Commerce Misstates Colgate-Palmolive's Timetable in Cuba

Information provided by the United States Department of Commerce on 21 March 2015, in conjunction with the visit to the Republic of Cuba by President Barack Obama, was not accurate:

21 March 2016
United States Department of Commerce

“DEPARTMENT OF COMMERCE FACT SHEET: Economic development in the wake of President Obama’s regulatory changes on exports and travel to Cuba

Colgate-Palmolive: Colgate-Palmolive implements its Bright Smiles program, which provides free dental care and dental hygiene products to children in Havana.”

Republic of Cuba activity by New York, New York-based Colgate-Palmolive Company (2015 revenues US$16.034 billion) commenced prior to the 17 December 2014, the date upon which President Obama announced changes to the commercial, economic and political relationship with the Republic of Cuba.  

From the company on 5 April 2016:

“Colgate Palmolive’s Bright Smiles, Bright Futures program provides oral health education and screening to millions of children in more than 80 countries as part of an effort to reduce and prevent cavities among children. The global program, celebrating its 25th anniversary, has reached more than 850 million children around the world with its education curriculum. This award-winning curriculum is translated into 30 languages. Colgate’s well-established partnerships with governments, schools and communities -- combined with a committed network of volunteer dentists and educators -- make the program work. 

With government approval, we brought a humanitarian program modeled on Bright Smiles, Bright Futures to Cuba in 2014. In our first year, we ran the program in one municipality of Havana and reached approximately 10,000 children. Additionally, we presented our plan to dentists and representatives from the Ministry of Health at the Cuban Dental Congress in November 2015. 

Today, we’re extending our reach in Havana as well as expanding the program to the provinces of Cienfuegos and Pinar del Río in partnership with the Ministry of Health. With this expansion, we expect to reach more than 170,000 children by the end of 2016.” 

A question is why would the United States Department of Commerce include Colgate-Palmolive Company in its Fact Sheet when it knew that the activities of the company pre-dated 17 December 2014.

Given that the government of the Republic of Cuba presents its healthcare system as encompassing and an accomplishment on behalf of its 11.3 million citizens in spite of United States laws and regulations, surprising that it would authorize a United States-based company to engage in a country-wide humanitarian dental program.  

However, a goal of the authorization may be to encourage Colgate-Palmolive to both export products to the Republic of Cuba and eventually manufacture products within the Republic of Cuba, as does London, United Kingdom-based Unilever (2015 revenues approximately US$73 billion), an Anglo-Dutch multinational consumer goods company co-headquartered in Rotterdam, Netherlands, and in the United Kingdom.  Its products include food, beverages, cleaning agents and personal care products.

On 22 January 2016, Unilever reported plans to "invest in Mariel, Cuba’s Special Development Zone. Partnering with state-owned company Intersuchel, we will build a $35 million homecare factory to open in 2017.  Cuba has a new overseas investor in its Mariel Special Development Zone and a new joint venture to celebrate.

Unilever and state-owned firm Intersuchel have signed a deal which will see the formation of a new company, Unilever-Suchel S.A. and a $35 million investment (equivalent to €32.3 million) in a personal and homecare factory which is set to open in 2017.

The factory will manufacture some of our top-selling personal and homecare international brands, including Sedal shampoo, Rexona deodorant, Omo detergent, Lux soap and Close-Up toothpaste. Unilever will take a 60% stake in the venture, and Intersuchel will hold 40%. The factory is expected to generate 300 direct jobs.

Unilever will invest in Mariel’s Special Development Zone, which allows foreign and domestic companies to trade and invest with fewer regulations and is designed to encourage overseas investment.

The signing ceremony for the joint venture was attended by Dutch Foreign Trade Minister Lilianne Ploumen, Ana Teresa Igarza, General Director of the Mariel Special Development Zone, Fabio Prado, President of Unilever Mexico & Greater Caribbean and Pedro Fraga, President of Intersuchel S.A."

Unilever reported that a company in a joint venture with a Republic of Cuba government-operated entity that expects to market the products of the joint venture to Republic of Cuba government-operated companies, need to be prepared to accept up to 720 days for account receivables.  Unilever reports that its operations have had a maximum wait of 180-days to receivable a payment.

Google Opens Technology Center In Havana... High Speed Internet For 40 At A Time

California-based Google has opened is technology center in the city of Havana, Republic of Cuba.  The facility has twenty Chrome notebooks, one hundred Google cardboard virtual reality visors, and two cameras for transmitting video to YouTube, owned by Google.

Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) is providing the facility with high-speed Internet, which is not available to the public.  The facility will be open five days a week and can accommodate forty customers (limited to one hour per session).

Reportedly, the partner in the Republic of Cuba is paying approximately US$900.00 per month to ETEC SA for high-speed Internet access- which provides the users of Chrome notebooks with a connection approximately seventy-times that of existing Wi-Fi locations throughout the Republic of Cuba.

According to ETEC SA, as of March 2016, an average of 200,000 people per day access the Internet from eighty-five (85) public Wi-Fi hotspots located throughout the country; in December 2015, the number was 150,000 users per day.  ETEC SA plans to create an additional sixty (60) wi-fi hot spots and establish one hundred (100) Internet cafes in 2016.  As of 31 December 2015, there were three hundred and forty-five (345) Internet cafes with a combined 11,187 computers.  The Republic of Cuba has 11.3 million citizens.

The Republic of Cuba accesses the Internet through an undersea fiber-optic cable connected to Venezuela in 2011, which became fully-operational in 2013.

From Google on 21 March 2016:

"¡Adelante! We’re thrilled to partner with the Museo Orgánico Romerillo in Havana, Cuba, which is showcasing the work of local artist Kcho. It will also feature some of the latest Google products including Cardboard and Chromebooks, connected to local carrier ETECSA’s Internet network. We hope this installation will enable people for whom Internet access is scarce to browse the web and find information.

We’re excited that Cuban children will be able to try out virtual reality to explore sites from around the world -- from Stonehenge to Port Hercule -- the same way that children in other countries do. These efforts, which are all led by our Access team, are just a start, but an important one. They demonstrate what might be possible in the future.

They come as other US technology firms and other companies increase their efforts in Cuba to bring a variety of services to the island -- including potentially WiFi and broadband providers as well. We’re also exploring additional possibilities around increasing and improving internet access, but they’re at early stages. We’ve always been very open about the fact that we want to make available as many of our products as possible throughout the world, because we believe that access to information and technology can improve lives.

In 2014, we launched Google Chrome, Google Play for Free Apps, and Google Analytics in Cuba. Later, after steps were taken toward normalizing relations between Cuba and the US, we introduced Toolbar in Cuba in January 2015 to help people search the web more easily.

We know, from the experience of many countries around the world, that new technologies and improved internet access can help people in their daily lives, provide new information and experiences, and help harness a country’s creativity and ingenuity. We hope to have the chance to offer more services to the Cuban people in the future."

Cuba Purchasing Agricultural Equipment; GulfWise LLC Receives 1st BIS License

Cuba Purchasing Agricultural Equipment; GulfWise LLC Receives 1st BIS License

Alabama Setting US Pace For Commercial Export/Assembly Activities In Cuba
1st & 2nd Agricultural Parts/Equipment Export Licenses
1st Agricultural Equipment Sale

Foley, Alabama-based GulfWise Commerce LLC (www.gulfwisecommerce.com), affiliated with 100-year-old Foley, Alabama-based The Woerner Companies (2015 revenues exceeded US$40 million; www.woerner.com), received a license from the Bureau of Industry and Security (BIS) of the United States Department of Commerce on 31 March 2016 to export advanced planting and harvesting equipment valued at US$108,184.00.  The BIS application was submitted at the end of January 2016.

The purchaser is Republic of Cuba government-operated Tecnotex SA for use by the Republic of Cuba government-operated Indio Hatuey Research Station, a Matanzas, Republic of Cuba-based agricultural research institution.  Tecnotex SA (affiliated with the Revolutionary Armed Forces of the Republic of Cuba) imports equipment, technology, and construction materials.  

The agreement was negotiated in late 2015 and agreement-in-principle was concluded in January 2016, pending BIS approval.  Formal purchase contract in process of completion. 

There are two principal pieces of equipment: (a) Rear load Sprig Harvester, 42 in. with hook chain with box carrier attachment valued at US$49,962.00 and (b) Sprigmaster Broadcast with 12 sides, spring loaders and swivel coulters valued at US$51,944.00.  Supporting parts and equipment include: (a) Gear boxes and Ogura clutch (for the Sprigger); (b) Multiple power belts; (c) Hydraulic motors; (d) Multiple Harvester teeth; and (e) Assorted miscellaneous parts are valued at US$6,278.00.  The estimated weight of the shipment will be approximately 18,000 pounds.

The equipment, which is being manufactured in Alabama and expected to be delivered soon through the Port of Mobile, Alabama, will assist in establishing grass-covered areas for purposes ranging from erosion control to the creation of pasturage and the establishment or improvement of parks and recreational areas, such as playgrounds and sport facilities.

The discussions commenced in 2014 when GulfWise Commerce LLC initiated a dialogue with researchers at the University of Matanzas regarding multiple agriculture production issues in the Republic of Cuba.  That dialogue led to an assessment of specialized equipment needed and to subsequent negotiations for a possible sale, which led to an application to the BIS.  

Representatives of GulfWise LLC and The Woerner Companies have made five (5) visits to the Republic of Cuba; the first in 2012.  Two representatives of the Indio Hatuey Research Station visited Alabama in 2015.

Significant about the transaction is the decision by the government of the Republic of Cuba to not focus upon a United States-based multinational (for example, Illinois-based Caterpillar or Illinois-based John Deere), but rather have the first export to the Republic of Cuba of durable (non-healthcare-related) commercial equipment be from a private company.

Mr. Robert L. Muse (www.robertmuse.com; 202-887-4990), the Washington, DC-based attorney who represented GulfWise Commerce LLC in the BIS licensing process, said the significance of the transaction is “… the government of Cuba clearly rewarded the patient efforts of a privately-owned company willing to invest the time to identify and fill the needs of Cuba’s rapidly changing rural economic landscape.”

Paint Rock, Alabama-based Cleber LLC has received authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and the BIS to create a tractor warehouse/assembly facility in Mariel Special Development Zone located near the city of Havana, Republic of Cuba.  The government of the Republic of Cuba has authorized the assembly facility.  The first year investment is US$1.4 million (which has been obtained according to the company); total long term investment US$5 million.

The city of Mobile, Alabama, has been a part of the Sister Cities International program (Society Mobile-La Habana) with the city of Havana, Republic of Cuba.

Since 2001, Alabama-based companies have been exporters of food products and agricultural commodities (poultry) from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

During the last six years, the Port of Mobile, Alabama, has ranked 8th of 34 United States ports that have processed exports from the United States to the Republic of Cuba.

Let's Make A Deal.... Door 1, Door 2 Or Door 3

A “Let’s Make A Deal!”

Door One- President Obama
Door Two-Nominee of the Republican Party
Door Three- Nominee of the Democratic Party

Republican National Convention
Cleveland, Ohio
18 July 2016 to 21 July 2016

Democratic National Convention
Philadelphia, Pennsylvania
25 July 2016 to 28 July 2016

When the individual accepts their nomination to be the Republican Party’s candidate for President of the United States, there will be 184 days (4,416 hours) until Inaugural Day on 20 January 2017.

When the individual accepts their nomination to be the Democratic Party’s candidate for President of the United States, there will be 177 days (4,248 hours) until Inaugural Day on 20 January 2017.

The number of days remaining until Inaugural Day is shared with President Barack Obama.

The nexus between President Obama and President Raul Castro is fixed, limited by time- days and hours and minutes and seconds.  

The governments of the United States and the Republic of Cuba have calculators- arithmetic calculation and political calculation.

For President Obama, there is a desire to remove as many regulatory and to-be-negotiated (5,913 certified claims being the primary) obstacles as possible so that a successor will have a cleansed pathway to removing remaining legislative impediments.  

For President Castro, his legacy will be defined by what he chose to do or chose to avoid with respect to the United States… at a unique moment: His counterpart in The White House seeks a permanence when he may seek flexibility and prefer uncertainty.  Breathing room.  President Castro needs to determine which of three doors he will choose.  Almost any decision may be viewed as a capitulation or as a victory.  

Until 20 January 2017, Presidents Obama and Castro have one certainty.  A clock that is counting down.  No matter how much oratory is directed towards that clock, neither president can change it.    

But, it’s President Castro who is the “game show contestant.”  He must select Door One, Door Two, or Door Three.  And, unlike much of television programming, there will be no rerun of this program.

Watch For Green, Yellow And Red Lights.....

Those who profess the Obama Administration Initiatives to be "irreversible" are wrong; the government of the Republic of Cuba can impede them, stop them and reverse them. It's happened before.

The President avoided using the phrase "regime change," but impacting the behavior of the government of the Republic of Cuba is precisely the goal of the Obama Administration Initiatives, particularly those targeting non-state enterprises and self-employed individuals- which the government of the Republic of Cuba has yet to authorize.

The Obama Administration Initiatives are focused upon supporting the recreation of a middle class abridged as a result of the 1959 Revolution that needs more, wants more, will work for more, and is willing to be vocal about their desires.

The United States business community is focusing upon this resurrected group, along with existing Republic of Cuba government-operated entities, to create and then support product and service export opportunities. This will not be a race; it will be a walk.

The President traveled a great distance, physically, politically, metaphorically; with the only certainty being uncertainty... and the government of the Republic of Cuba, in response, accepted donations, agreed to purchase nothing, and only accepted from United States companies what offerings would increase revenues.

Very much a local train- with many stops, some unplanned, perhaps a derailment or two.... and no specific timetable for arrival. Oh, and crew changes along the way....

US Newspapers Coming To Cuba Hotels Courtesy Of Airlines

Visitors and residents of Havana (and throughout the Republic of Cuba) will soon have access to the print editions of newspapers from throughout the United States as a result of the resumption of regularly-scheduled commercial airline service from the United States.

Throughout the world, properties managed by United States-based companies provide newspapers to their guests, especially guests who are members of loyalty programs.

With flights expected to operate primarily from the cities of Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, Tampa, Washington DC, newspapers from those locations are expected to be transported to the Jose Marti International Airport (and other airports) each day and then distributed to hotels.  Arlington, Virginia-based USA Today is expected to have the largest distribution platform throughout the Republic of Cuba, followed by The Miami Herald, The New York Times, The Wall Street Journal, The Washington Post, The Tampa Tribune, and The Los Angeles Times.

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton).  Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.

Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.

Seattle, Washington-based Starbucks Corporation (2015 revenues exceeded US$14 billion) has a presence within many branded properties managed by Starwood Hotels & Resorts Worldwide and Marriott International.  While Starbucks will likely seek stand-alone location(s) within the Republic of Cuba, with a focus upon resort properties, there will eventually be operations within hotels- both for retail and foodservice (restaurants, room service, in-room coffee makers, etc.).  Newspapers are sold at Starbucks locations.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Design Hotels, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element®, and the recently introduced Tribute Portfolio™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®).

NOTE: The Libertad Act ("Helms-Burton") of 1996 authorizes individuals and companies subject to United States law to engage in direct negotiations with the government of the Republic of Cuba to settle claims registered with the Foreign Claims Settlement Commission under the auspice of the United States Department of Justice.  As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide (and, soon, Marriott International), which can use this value as a means to secure opportunities within the Republic of Cuba.

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,300 properties in 85 countries and territories.  Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bvlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 54 million members.

Expect Starbucks In Cuba.... Including Within Starwood & Marriott Properties

There is little doubt that Seattle, Washington-based Starbucks Corporation (2015 revenues exceeding US$14 billion), will have a presence within properties to be managed in the Republic of Cuba by Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) and Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion).  Starwood Hotels & Resorts Worldwide is being acquired by Marriott International.

Starbucks has a presence within many branded properties managed by Starwood Hotels & Resorts Worldwide and Marriott International.  While Starbucks will certainly seek stand-alone location(s) within the Republic of Cuba, with a focus upon resort properties, there will likely be operations within hotels- both for retail and foodservice (restaurants, room service, in-room coffee makers, etc.).

Starwood Hotels & Resorts Worldwide will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton).  Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.

Marriott International is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.

The Libertad Act ("Helms-Burton") of 1996 authorizes individuals and companies subject to United States law to engage in direct negotiations with the government of the Republic of Cuba to settle claims registered with the Foreign Claims Settlement Commission under the auspice of the United States Department of Justice.  As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide (and, soon, Marriott International), which can use this value as a means to secure opportunities within the Republic of Cuba.

On 21 March 2000, Starbucks Coffee Company (Nasdaq: SBUX) and Marriott International, Inc. (NYSE: MAR) reported a long-term licensing agreement to open coffeehouse locations in select Marriott Hotels, Resorts and Suites; Marriott Conference Centers; and Renaissance Hotels, Resorts and Suites properties.  “Starbucks and Marriott are a natural fit,” said Jim Alling, senior vice president, Business Alliances for Starbucks. “Both companies are intensely focused on offering unsurpassed customer service, best-of-class products and convenience.”  Under the long-term licensing agreement, fully-branded Starbucks licensed stores, kiosks or carts will open in Marriott International properties across the United States and Canada. The licensed units will offer handcrafted espresso beverages, drip coffee and a selection of freshly baked pastries.  The agreement, which remains in force, allows Starbucks to reach more consumers in a new venue and gives Marriott the ability to offer the leading brand of specialty coffee to their guests. 

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,300 properties in 85 countries and territories.  Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bvlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 54 million members.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Design Hotels, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element®, and the recently introduced Tribute Portfolio™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®).

Semantics Are Important... The Words "Blockade" Versus "Embargo"

The government of the Republic of Cuba uses the word "blockade" to describe the impact of United States laws and regulations and policies.

The government of the United States uses the word "embargo" to describe the impact of United States laws and regulations and policies.

Merriam-Webster Dictionary

Blockade
verb block·ade \blä-ˈkād\

Simple Definition of Blockade:

To place a blockade on (a port or country) : to stop people or supplies from entering or leaving (a port or country) especially during a war

Full Definition of blockade

block·ad·ed or block·ad·ing

Transitive verb

To subject to a blockade

Block, obstruct

block·ad·er noun

Embargo
noun em·bar·go \im-ˈbär-(ˌ)gō\

Simple Definition of embargo

A government order that limits trade in some way

Full Definition of embargo

plural em·bar·goes

An order of a government prohibiting the departure of commercial ships from its ports

A legal prohibition on commerce <a trade embargo>

Stoppage, impediment; especially :  prohibition <I lay no embargo on anybody's words — Jane Austen>

An order by a common carrier or public regulatory agency prohibiting or restricting freight transportation

Interesting Remarks By President Obama During His Visit To Argentina

Remarks on 23 March 2016 by President Barack Obama during his visit to Argentina

"And I think one of the great things about America -- and I said this in Cuba -- is we actually engage in a lot of self-criticism."

"The one thing that I will say is true, though, is that everything we do today is designed to take into account transparency, human rights, to speak out on behalf of those issues.  Even where we don’t feel that we can force changes on a government, we're still going to speak out about them.  So I made a historic trip to Havana, and I said the people of Cuba have nothing to fear from me, but you should know what I really believe.  I believe that democracy is better than a one-party or one-person dictatorship.  I believe in freedom of speech and freedom of assembly, and that people shouldn’t be arbitrarily detained."

"And I said this to President Castro in Cuba.  I said, look, you've made great progress in educating young people.  Every child in Cuba gets a basic education -- that's a huge improvement from where it was.  Medical care -- the life expectancy of Cubans is equivalent to the United States, despite it being a very poor country, because they have access to health care.  That's a huge achievement.  They should be congratulated.  But you drive around Havana and you say this economy is not working.  It looks like it did in the 1950s.  And so you have to be practical in asking yourself how can you achieve the goals of equality and inclusion, but also recognize that the market system produces a lot of wealth and goods and services.  And it also gives individuals freedom because they have initiative."

VIP Services At Jose Marti International Airport

Want To Be A VIP?

Would you like to be a treated like a VIP upon arrival to and departure from Jose Marti International Airport in Havana, Republic of Cuba?

Prior to arrival, send an email to:

salonvip@hav.ecasa.avianet.cu
mario@hav.ecasa.avianet.cu
greity@hav.ecasa.avianet.cu

or telephone 011 53 7 642 0247 or 011 53 7 642 0248 and request the following services:

CUC 25 for arrival assistance for Terminal 2 & Terminal 3
CUC 15 for departure assistance for Terminal 2
CUC 30 for departure assistance for Terminal 2 & Terminal 3

Priority access for Immigration & Customs Control

Priority for obtaining your luggage.

Access to the VIP lounge prior to departure with snacks, beverages, and Wi-Fi (limited thus far to Terminal 3).  There is also a smoking area in the lounges located in Terminal 2 & Terminal 3.

LINK TO DETAILS IN PDF FORMAT