CTS Becomes 7th U.S. Company To Establish A Sales Office In Cuba

Airlines (ticket offices)

Atlanta, Georgia-based Delta Air Lines (2017 revenues approximately US$41 billion)
Fort Worth, Texas-based American Airlines (2017 revenues approximately US$42 billion)
Chicago, Illinois-based United Airlines (2017 revenues approximately US$38 billion)
Long Island City, New York-based JetBlue Airways (2017 revenues approximately US$7 billion); the company has two ticket offices in the city of Havana.

Agricultural Equipment (distribution centers)

Peoria, Illinois-based Caterpillar Inc. (2017 revenues approximately US$38 billion)
Moline, Illinois-based Deere & Company (2017 revenues approximately US$27 billion)

Travel Agency (sales office)

Cypress, California-based Cuba Travel Services (2017 revenues DND)


CYPRESS, Calif., Feb. 27, 2018 /PRNewswire/ -- Cuba Travel Services, the leading charter and tour operator serving the destination with offices in California, Florida, New Jersey, and Texas, announced today the upcoming opening of their Havana location on March 31st.

It is considered a significant event as this is the first time a U.S. based travel company is awarded permission to operate in Cuba in over 60 years. Services provided by the California based company in Havana will include: Flight ticket sales, Customer support, Hotel reservations, Tour operation support, Car rentals, Excursions, Transfers, Programmed packages, Cruise Support Services, Advisory Services.

Opening a new office in Havana will allow Cuba Travel Services to monitor its operations more closely and better assist their clients while in the country.  Additionally, CTS will be better positioned to ensure their cruise and tour operator clients continue to offer OFAC compliant programs.

Cuba Travel Services will open its first office in the historic Lonja Del Comercio building located in Plaza de San Francisco just across from the Sierra Maestra cruise terminal and has plans to open additional locations in Havana, Camaguey, Cienfuegos, Varadero and Santiago de Cuba.

"Having the Ministry of Tourism grant this request to have a location in Cuba has been a big win for our organization. Our physical presence means our licensed clients will get faster service and more personalized attention directly from our staff," said Michael Zuccato, General Manager at Cuba Travel Services. "This is a very exciting time for us, to be the first U.S. based Travel Company to open its doors in Havana. We are confident our existing market expertise and knowledge combined with local representation, will result in an improved customer experience."   

About Cuba Travel Services

With nearly 20 years of experience providing services to authorized companies, groups and individuals, Cuba Travel Services is the leading travel company serving the destination from the United States. They offer real-time hotel, flight and excursion bookings, transportation, OFAC compliant tour programming and a variety of other turnkey travel solutions. They also serve as key advisors to airlines, cruise companies, tour operators and other businesses entering the Cuba market.

Headquartered in California, Cuba Travel Services currently maintains offices in Texas, New Jersey, North Carolina and Florida. The company provides specialty travel services including charter flights, private aviation services, visa processing, OFAC call center support services, cruise and yachting programs, shipments of authorized cargo and other logistical and travel support services.

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Competition From Donations And Long Term Government Financing Are Hurdles To John Deere And Caterpillar

In November 2017, Moline, Illinois-based John Deere (2017 revenues approximately US$27 billion) delivered US$755,823.00 in agricultural equipment to the Republic of Cuba for use at its distribution center.  

Peoria, Illinois-based Caterpillar Inc. (2017 revenues approximately US$38 billion) also has a distribution center in the Republic of Cuba.  John Deere reported that the company would provide financing for equipment purchases by authorized Republic of Cuba entities.

From Ganma (2/27/18): Punjab, India-based Sonalika Group (2017 revenues approximately US$682 million) has donated sixty (60) small and medium-sized tractors (assembled in the Republic of Cuba) and farming equipment (including rotary and grass cutters, cultivators, trailers and replacement parts) valued at a combined US$5 million, to Republic of Cuba government-operated Gelma's Agricultural and Livestock Basic Enterprise Unit under the auspice of the Ministry of Agriculture of the Republic of Cuba.

According the the Ministry of Agriculture of the Republic of Cuba, the tractors will be used with protected and semi-protected crops, specifically within in green houses and covered growing spaces.

MINSK, 27 February (BelTA)- MTZ is mulling over the delivery of over 940 tractors to Cuba, Dmitry Schastny, the deputy marketing director of Minsk Tractor Works (MTZ trademark), head of the department for sales in non-CIS countries, said at an international conference of MTZ distribution network entities, BelTA has learned.

In 2017, Minsk Tractor Works delivered 150 tractors to Cuba. The loan to purchase the tractors was allocated by the Development Bank of Belarus in accordance with Decree No.523 to promote the export of goods (works, services). The decree helps MTZ as an exporter to supply equipment to the consumers and get payments. “As regards this transaction the MTZ received the payment instantaneously after the shipment of tractors,” Dmitry Schastny said. MTZ opened a representative office in Cuba and intends to continue to supply large quantities of equipment. Now, together with the Development Bank and Cuban counterparts the company is working on the possibility to supply 943 tractors.

Cuba's Ambassador to Washington Is A Hostage- If He Departs, He Won't Be Replaced.

Members of the Congress are quietly and virtually holding hostage H.E. Jose Cabanas, Ambassador of the Republic of Cuba to the United States.  

If the government of the Republic of Cuba seeks to replace Ambassador Cabanas, there will be an effort to persuade the Trump Administration to deny any request from the government of the Republic of Cuba for a replacement to present credentials to the United States Government.  The Trump Administration is likely to concur with any request from Members of Congress.

As a result, the level of representation at the Embassy of the United States in Havana, Republic of Cuba, would be the same as the level of representation at the Embassy of the Republic of Cuba in Washington DC.  No Ambassador.

In 2016, there was expectation that the government of the Republic of Cuba was considering Mrs. Josefina Vidal, then Director General of the United States Department at the Ministry of Foreign Affairs of the Republic of Cuba, to replace Ambassador Cabanas if the November 2016 presidential election had a different outcome; the value of having a woman as ambassador to the United States when a woman is president of the United States.  Mrs. Vidal is now Ambassador of the Republic of Cuba to Canada.

http://www.cubatrade.org/blog/2016/8/3/if-hillary-clinton-wins-in-november-who-might-cuba-appoint-as-its-ambassador-to-washington?rq=josefina%20vidal

From www.allgov.com:

"José Cabañas, a long-time member of Cuba’s Foreign Service, assumed a new position in Washington without having to move his office.

Cabañas, who had been the chief of the Cuban Interests Section in Washington since 2012, presented his credentials as Cuba’s first ambassador to the United States in more than 50 years to President Barack Obama on Sept. 17, 2015.

His appointment to the post came two months after a restoration of diplomatic relations between the two countries, which had ended during Cold War hostilities in 1961.

Cabañas is from Matanzas, a city on Cuba’s north coast. He earned a bachelor’s degree in international political science in 1983 from the Raúl Roa García Higher Institute of International Relations in Havana. He would return there years later to serve as a senior professor.

Cabañas joined Cuba’s Foreign Ministry in 1984, when he wrote “Radio Martí: A New Aggression,” a study at how the United States used the media against the Cuban government. He began focusing primarily on North America in 1986 and in 1990 was assigned to the Cuban Embassy in Canada. Between 1990 and 1993, he served first as third secretary, then as second secretary at the mission in Ottawa.

Cabañas returned to Havana in 1993 as deputy director of the ministry’s North American Affairs Division. The following year he moved to the Cuban Residents Abroad Division, where he worked—along with a three-year stint in Consular Affairs—until 2001.

That year he stepped away from North America to become ambassador to Austria. Starting in 2005, he stepped down from that post but remained in Vienna as Cuba’s ambassador to the many international organizations based there.

In 2005, Cabañas was brought back to Havana to serve as director of the Division for Document Management in the Ministry of Foreign Affairs. In 2009 he was named Vice Minister of Foreign Relations, a post he held until taking over Cuba’s Washington mission. During the year that he won his ministerial appointment, he earned a Ph.D. in political science from the University of Havana.

Cabañas maintained a somewhat higher profile than his predecessors, traveling around the United States speaking to various organizations. He was the first head of Cuba’s Interests Section to allow himself to be filmed at such events.

Cabañas and his wife, Edilia González, have two children."  

White House Modifies And Continues National Emergency With Cuba- Vessels

THE WHITE HOUSE

Office of the Press Secretary
FOR IMMEDIATE RELEASE
February 22, 2018

MODIFYING AND CONTINUING THE NATIONAL EMERGENCY WITH RESPECT TO CUBA AND CONTINUING TO AUTHORIZE THE REGULATION OF THE ANCHORAGE AND MOVEMENT OF VESSELS BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

In order to modify and continue the ongoing national emergency declared in Proclamation 6867 of March 1, 1996, expanded by Proclamation 7757 of February 26, 2004, and modified by Proclamation 9398 of February 24, 2016, in light of the need to continue the national emergency based on a disturbance or threatened disturbance of the international relations of the United States related to Cuba, and,

WHEREAS it is the policy of the United States that a mass migration from Cuba would endanger our security by posing a disturbance or threatened disturbance of the international relations of the United States;

WHEREAS the Cuban economy is in a relatively weak state, contributing to an outflow of its nationals toward the United States and neighboring countries;

WHEREAS the overarching objective of our policy is stability with our immediate neighboring countries and an outflow of Cuban nationals may have a destabilizing effect on the United States and its neighboring countries;

WHEREAS it is the policy of the United States to ensure that engagement between the United States and Cuba advances the interests of the United States and of the Cuban people as described in National Security Presidential Memorandum-5 of June 16, 2017 (Strengthening the Policy of the United States Toward Cuba);

WHEREAS the United States continues to maintain an embargo with respect to Cuba;

WHEREAS the unauthorized entry of vessels subject to the jurisdiction of the United States into Cuban territorial waters is in violation of the law of the United States and contrary to the policy of the United States;

WHEREAS the unauthorized entry of United States-registered vessels into Cuban territorial waters is detrimental to the foreign policy of the United States and counter to the purpose of Executive Order 12807 of May 24, 1992, which is to ensure, among other things, safe, orderly, and legal migration;

WHEREAS the possibility of large-scale unauthorized entries of United States-registered vessels into Cuban territorial waters would disturb the international relations of the United States by facilitating a possible mass migration of Cuban nationals;

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 1 of title II of Public Law 65-24, ch. 30, June 15, 1917, as amended (50 U.S.C. 191), sections 201, 202, and 301 of the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code, in order to modify the scope of the national emergency declared in Proclamations 6867, 7757, and 9398, and to secure the observance of the rights and obligations of the United States, hereby continue the national emergency declared in Proclamations 6867, 7757, and 9398, and authorize and direct the Secretary of Homeland Security (the "Secretary") to make and issue such rules and regulations as the Secretary may find appropriate to regulate the anchorage and movement of vessels, and delegate to the Secretary my authority to approve such rules and regulations, as authorized by the Act of June 15, 1917.  Accordingly, I hereby direct as follows:

Section 1.  The Secretary may make rules and regulations governing the anchorage and movement of any vessel, foreign or domestic, in the territorial waters of the United States, that may be used, or is susceptible of being used, for voyage into Cuban territorial waters and that may create unsafe conditions, or result in unauthorized transactions, thereby threatening a disturbance of international relations.  A rule or regulation issued pursuant to this proclamation may be effective immediately upon issuance if it involves a foreign affairs function of the United States.

Sec. 2.  The Secretary is authorized, to the extent consistent with international law, to inspect any vessel, foreign or domestic, in the territorial waters of the United States, at any time; to place guards on any such vessel; and, with my consent expressly hereby granted, take full possession and control of any such vessel and remove the officers and crew and all other persons not specifically authorized by the Secretary to go or remain on board the vessel, when necessary to secure the rights and obligations of the United States.

Sec. 3.  The Secretary may request assistance from such departments, agencies, officers, or instrumentalities of the United States as necessary to carry out the purposes of this proclamation.  Such departments, agencies, officers, or instrumentalities shall, consistent with other provisions of law and to the extent practicable, provide the assistance requested.

Sec. 4.  The Secretary may seek assistance from State and local authorities in carrying out the purposes of this proclamation.  Because State and local assistance may be essential for an effective response to this emergency, I urge all State and local officials to cooperate with Federal authorities and to take all actions within their lawful authority necessary to prevent the unauthorized departure of vessels intending to enter Cuban territorial waters.

Sec. 5.  All powers and authorities delegated by this proclamation to the Secretary may be delegated by the Secretary to other officers and agents of the United States Government consistent with applicable law.

Sec. 6.  Any provisions of Proclamations 6867, 7757, or 9398 that are inconsistent with the provisions of this proclamation are superseded to the extent of such inconsistency.

Sec. 7.  This proclamation shall be immediately transmitted to the Congress and published in the Federal Register.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of February, in the year of our Lord two thousand eighteen, and of the Independence of the United States of America the two hundred and forty-second.

DONALD J. TRUMP

 

THE WHITE HOUSE

Office of the Press Secretary
FOR IMMEDIATE RELEASE
February 22, 2018

TEXT OF A LETTER FROM THE PRESIDENT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE

February 22, 2018

Dear Mr. Speaker:     (Dear Mr. President:)

Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, within 90 days before the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date.  In accordance with this provision, I have sent to the Federal Register for publication the enclosed Proclamation stating that the national emergency with respect to Cuba that was declared on March 1, 1996, in Proclamation 6867, as amended by Proclamation 7757 on February 26, 2004, and Proclamation 9398 on February 24, 2016, is to continue in effect beyond February 25, 2018, as modified by the enclosed Proclamation.

It continues to be the policy of the United States that a mass migration from Cuba would endanger the security of the United States by posing a disturbance or threatened disturbance to our international relations.  The unauthorized entry of vessels subject to the jurisdiction of the United States into Cuban territorial waters is in violation of the law of the United States and is contrary to the policy of the United States.  Further, the unauthorized entry of United States-registered vessels into Cuban territorial waters continues to be detrimental to our foreign policy and counter to the purpose of Executive Order 12807 of May 24, 1992, which is to ensure, among other things, safe, orderly, and legal migration.  The possibility of large-scale unauthorized entries of United States-registered vessels would disturb the international relations of the United States by facilitating a possible mass migration of Cuban nationals.  For these reasons, I have determined that it is necessary to continue the national emergency declared with respect to Cuba and the emergency authority relating to the regulation of the anchorage and movement of vessels set out in Proclamation 6867 as amended by Proclamations 7757 and 9398, and as further modified by the enclosed Proclamation.

Sincerely,

DONALD J. TRUMP

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Why Won't Cuba & Members Of Congress Understand: It's The Regulations, Stupid.

Why does the government of the Republic of Cuba, through its Embassy in Washington DC and Ministry of Foreign Affairs (MINREX) in Havana, continue to focus upon seeking changes to laws rather than changes to regulations?

Who benefits from advocacy towards a goal that was last achieved more than 6,300 days ago- eighteen (18) years?

It’s The Regulations, Stupid.

Being Practical Versus Being Aspirational.

Perhaps, It’s The Free Visits To Cuba?

The last regulatory changes were issued in 2017, having followed multiple changes in 2015, 2016 and January 2017; and changes since 1994. 

Some of the regulatory changes have been beneficial to the United States business community and some of the regulatory changes have been detrimental to the United States business community.  But, changes there have been. 

In 2017, the defensive advocacy (lobbying) efforts by United States airlines, cruise lines, hotel management companies, and travel service providers among others to Members of Congress and to representatives within the Trump Administration were not focused upon legislation, the efforts were focused upon regulations.  Those advocacy (lobbying) efforts were successful because they were targeted and reasonable.

After failing for eighteen (18) years, wouldn’t a shift in focus be rational?  Perhaps, the survival of individuals, and relationships, and opportunities for Potemkin-like self-congratulation, are the primary fuel for a jalopy of an advocacy strategy.

That the government of the Republic of Cuba continues to be duped by self-serving interests of Members of Congress, advocates, consultants and lobbyists whose efforts have resulted in far more maintenance of the status-quo than creating not only an increased quantity of commercial opportunities for United States companies, but an increase in the depth of commercial opportunities- moving past optics to full-throttled and not transitory engagement.

Since 2014, these individuals have sought to pivot from embracing multi-year (remember “under the radar”) fierce legislative strategy failures to promote that through their efforts in 2017 regulatory changes deemed detrimental to the interests of the United States business community were made less so.  Seeking to profit from what their self-promoted prominence was built upon- having the Obama Administration engage with the Republic of Cuba.  The Obama Administration did not do all that it could have done; and these individuals who claimed to have the inside track to the decision-making process are demonstrably responsible for the result.  It’s appalling.  

Why focus upon “moving the ball” when the focus can be upon celebrating in the end zone?  How many yards have been gained in eighteen years?  Regulatory touchdowns were first scored in 1994 and have continued sometimes more-than-annually for the last twenty-five (25) years…. Regardless of which political party occupied The White House.  A lopsided score thus far by any reasonable, sane, measure.

If a strategy has not been successful for eighteen (18) years, why continue to pursue it when there are alternatives?  Oh, but each year is promoted as “the” year of legislative change; there is “momentum.”

If the Republic of Cuba has importance to Members of Congress and, thus to their respective state/district constituencies, why not direct funds from their official accounts and/or committee and/or sub-committee accounts to make payments for expenses relating to visiting the Republic of Cuba?  If not, what is the message?  That the Republic of Cuba is of importance provided someone else is willing to pay for the journey.  Even the fully-disclosed use of campaign funds would be an improvement.

For many years, most Members of Congress who visit the Republic of Cuba have relied on non-for-profit organizations to make payments on their behalf; and often the sources of these payments are not disclosed.  Not helpful.

Focusing upon the authorization of the 50% of Direct Correspondent Banking (DCB) that the Obama Administration failed to authorize would be practical rather than aspirational; and have a far more likely opportunity for implementation.  It’s an easy fix, benefits United States exporters, increases financial transaction transparency, and ends banks in third countries earning fees from the efforts of United States farmers.  Four check-offs for the Trump Administration.  And that’s just one regulation.

The government of the Republic of Cuba continues to convey to Members of Congress that there will be no “normalization” of the bilateral commercial, economic and political relationship until there are changes to United States statutes (Cuban Democracy Act of 1992, Libertad Act of 1996, Trade Sanctions Reform and Export Enhancement Act of 2000) and numerous regulations.  That’s not an illogical position to hold.

In the mid 2000’s, the government of the Republic of Cuba began to seek “Advocacy Agreements” from visiting Members of Congress and, specifically, from Governors, and from representatives of United States companies: If the visitor would sign an agreement, and make it public, that they would advocate for changes to United States laws and regulations, the government to of the Republic of Cuba would agree to make a purchase of food products and/or agricultural commodities from the respective state- and announce it during the visit or soon after completion of the visit. 

This misguided strategy was short-lived as the government of the Republic of Cuba was simultaneously advocating for a removal of politics from the commercial process.  Rather quickly, there was resentment by Members of Congress, Governors, and representatives of the United States business community.

The government of the Republic of Cuba continues to pressure representatives of United States companies to pressure Members of Congress to support changes to statutes and in an inconsistent and terribly limited fashion, to a far lesser extent, regulations.  The pressure point focus should be reversed.

There is one inescapable conclusion: The goal of the government of the Republic of Cuba is to advocate for activity rather than advocate for results.

What makes sense?  Directing resources towards a legislative process where the last success was eighteen (18) years ago or direct resources towards a regulatory process that has, and can, provided results within months?

If the decision is to focus upon what has not worked, what is a conclusion?  That the goal is not about change.

LINK TO PDF FORMAT

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Cuba Has Become A US$2.2 Billion Travel Marketplace

Cuba Has Become A US$2.2 Billion Travel Marketplace

As of 12 February 2018, with an additional 15,488 potential passengers from nine (9) new itineraries that include the Republic of Cuba by Miami, Florida-based Norwegian Cruise Line Holdings Ltd., cruise lines operating from the United States could for the cumulative period 2017/2018/2019:

Deliver 586,000+ Passengers To Cuba

344+ Sailings To Cuba

US$781+ Million In Gross Revenues To The Companies

US$83+ Million Spent In Cuba By Passengers

US$22+ Million In Port Fees To Cuba

&

US$235+ Million To U.S. Airlines

US$109+ Million Hotels/Restaurants/Ground Transportation In Florida

Transporting, housing, and feeding these 586,000+ travelers could result in an additional US$235+ Million to United States airlines transporting passengers to South Florida port gateways and US$109+ million to hotels, restaurants and ground transportation services located in South Florida.  

NOTE: Total United States airline revenues in 2017 from transporting passengers from the United States to the Republic of Cuba and return was approximately US$400 million.  In 2017, individuals subject to United States jurisdiction spent approximately US$650 million while visiting the Republic of Cuba.

The three (3) largest cruise lines (through their multiple brands Oceana Cruises, Azamara Club Cruises, Regent Seven Seas Cruises, and Holland America Line among others) and smaller cruise lines (through their multiple brands) have approximately 344 itineraries which include the Republic of Cuba for the cumulative 2017, 2018 and 2019 sailing seasons.  Additional itineraries are expected.  The largest three:   

Miami, Florida-based Norwegian Cruise Line Holdings Ltd

Miami, Florida-based Carnival Corporation & plc

Miami, Florida-based Royal Caribbean Cruises Ltd

NOTE: In 2017, the three-largest cruise lines combined operated a fleet of approximately 146 vessels, managed approximately 14 brands, earned approximately US$29 billion in gross revenues, and employed approximately 218,000 men and women.

If each vessel sails to the Republic of Cuba at capacity, more than 586,000 passengers would visit the Republic of Cuba from 2017 through 2019.

The gross revenues to the cruise lines from the approximately 344+ sailings that include the Republic of Cuba could cumulatively exceed US$781+ million for the period 2017 through 2019.

The 586,000+ passengers would be projected to spend approximately US$83+ million while in the Republic of Cuba [averaging approximately US$140.00 per person in expenditures and organized/non-organized excursions including cost(s) for tour(s), meals (government-operated and privately-operated), ground transportation (privately-operated classic car tours), sundries and souvenirs (including spirits, coffee, tobacco, artwork and crafts)].  Some passengers could spend considerably more (alcohol, cigars and coffee for example) given the United States duty-free personal exemption of US$800 per person.  

Vessel port charges in the Republic of Cuba may exceed US$22+ million, ranging up to approximately US$79,000.00 for the largest vessels (684-passenger to 2,744-passenger).

LINK TO ANALYSIS IN PDF FORMAT

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Members Of Congress Continue To Visit Cuba, But Most Don't Want To Publicize It

83.3% Of Current Delegation Do Not Provide Information About Visit On Their Official Internet Sites

There Were To Be Five, But There Are Now Six In The Delegation

Who Pays For Visits By Members Of Congress To Cuba?

Members of the United States Congress have increasingly provided no information in advance of a visit to the Republic of Cuba, often placing no information prior to, during, or after their visit on the official Internet sites or on social media platforms

Five Members of the United States Congress are scheduled to visit the Republic of Cuba fro 17 February 2018 to 21 February 2018.  Two (2) members of the United States Senate and three (3) members of the United States House of Representatives.

Two members of the delegation are known: The Honorable Patrick Leahy (D- Vermont), a member of the United States Senate, placed notification on his official Internet site.  The Honorable Kathy Castor (D- Florida), a member of the United States House of Representatives, issued a release to a journalist, but there is no information on her official Internet site.

The three other members of the delegation have not been identified.  NOTE: On 19 February 2018, the Ministry of Foreign Affairs of the Republic of Cuba (MINREX) posted to its Twitter account an image of the delegation and their respective identities.

The four (4) Members of Congress who were not previously identified include The Honorable Ron Wyden (D- Oregon) and The Honorable Gary Peters (D- Michigan), members of the United States Senate; and The Honorable Jim McGovern (D-Massachusetts) and The Honorable Susan Davis (D- California), members of the United States House of Representatives.

Only one (1) member of the delegation has included any mention of the visit on their official Internet sites... Senator Leahy. 

If the Republic of Cuba has importance to Members of Congress and, thus to their respective state/district constituencies, why not direct funds from their official accounts and/or committee and/or sub-committee accounts to make payments for expenses relating to visiting the Republic of Cuba?  If not, what is the message?  That the Republic of Cuba is of importance as long as someone else is willing to pay for the journey.  Even the fully-disclosed use of campaign funds would be an improvement.

For many years, most Members of Congress who visit the Republic of Cuba have relied on non-for-profit organizations to make payments on their behalf; and often the sources of these payments are not disclosed.  Not helpful.

The notification by Senator Leahy did not include the names of other members of the delegation:

"02.16.18
Leahy To Lead Congressional Delegation To Cuba

U.S. Senator Patrick Leahy (D-Vt.) will head a bicameral congressional delegation that will visit Cuba next week, during the congressional recess. 

Leahy for two decades has been centrally involved in efforts to replace the failed 50-year-old U.S. Cuba policy of isolation with a new path toward normalization.  Leahy is the Vice Chairman of the Senate Appropriations Committee and also serves as the Ranking Member of the Appropriations Subcommittee on the State Department and Foreign Operations, which oversees the State Department’s budget.  Other congressional leaders who will accompany Leahy are two other senators and three members of the House of Representatives. 

The purpose of the visit is to meet with U.S. and Cuban officials, officials of other governments, and Cubans in the emerging private sector to discuss: the presidential transition in Cuba; U.S. and Cuban investigations of health incidents involving U.S. government personnel in Cuba; cooperation on maritime security, search-and-rescue, narcotics and human trafficking, and migration issues; the impact of the withdrawal of U.S. Embassy and Cuban Embassy personnel and of revised Treasury Department regulations on U.S.-Cuban relations; and opportunities for public health, law enforcement, scientific, environmental, commercial, educational, cultural, and other engagement with Cubans.

The delegation will depart the United States on Saturday, Feb. 17, and return on Wednesday, Feb. 21."

LINK: List of Members of Congress Visiting The Republic of Cuba

 

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U.S. Department Of State Discusses Results Of JAMA Report On Cuba Diplomatic Personnel Health Issues

Heather Nauert
Spokesperson
Department Press Briefing

Washington, DC
February 15, 2018

QUESTION: A question on Cuba. The Journal of the American Medical Association released this report yesterday detailing the symptoms and experiences of 21 of the American personnel who have been affected by these health attacks, as you guys call them. Does the State Department support the release of this report? And do you find it consistent with your own internal investigations?

MS NAUERT: Yeah. So let me start out by saying safety and security of Americans is always our top issue. That includes our own colleagues. We have seen the Journal of American Medical Association report that was put out just yesterday, JAMA as many people refer to it. Our embassy – and I want to make sure folks are aware of this – released a health alert. It is posted. I believe it’s on our U.S. embassy in Havana’s website. That basically alerts people to the fact that this JAMA report exists, this JAMA report exists, so that we could provide information not only to our personnel, but so that information can be provided to the general public who may still be choosing to travel to Cuba.

So that’s the purpose of that. It was written by independent medical personnel who took part in evaluating and treating some of the injuries of our people. I won’t detail what came out in the report. You can take a look at it ourselves. But we’ve shared the link to the article in order to inform U.S. citizens about what the doctors believe may be some of the symptoms and medical reactions of some of those people who were affected.

QUESTION: In the report it says that the doctors signed nondisclosure agreements in order to be able to obtain some of the information about these individuals. It also says, though, that the other doctors who evaluated as part of the peer evaluation before publication were unable to access some of that information. Is there --

MS NAUERT: Let me answer your first question first. So you’re saying the doctors signed nondisclosure agreements?

QUESTION: Right.

MS NAUERT: Okay. If that is the case – and I don’t know that that is the case – let me remind you that there’s an investigation still ongoing. So if they were asked by the U.S. Government to sign that, I would think that would be a pretty good indication that we don’t want people talking about (a) the medical symptoms of individuals, (b) the names of individuals, because that is – that is their own information and they’re our employees. But in addition, this investigation is still ongoing, so it’s extremely important for us to not disrupt that investigation so we could figure out who’s responsible for this and what’s responsible for it.

QUESTION: I think I know the answer to this question, then. But is there – are there things that you guys have determined in the investigation that were not allowed to be released in the report?

MS NAUERT: I don’t have any information on that. I mean, that’s like so far in the weeds with our experts talking to the medical professionals in Pennsylvania. I just don’t have that level of detail.

QUESTION: Sure. And one last question on this. At the time of the evaluations of the – of these personnel, 14 of them had still not been able to return to work because their symptoms were so severe. Can you give any information, any update on that, and whether or not they have?

MS NAUERT: Yeah. I don’t have any – an update for you on that. I’ll see what I can get for you if that is, in fact, even releasable information. Okay?

QUESTION: Okay.

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U.S. Department Of State Reports On Meeting With Cuba To Discuss Trafficking In Persons

Western Hemisphere: United States and Cuba Meet to Combat Trafficking in Persons

Media Note
Office of the Spokesperson
Washington, DC
February 14, 2018

The United States and Cuba held a series of meetings this week in Washington, D.C. to coordinate their efforts to combat trafficking in persons.

On February 13, the Department of State hosted a bilateral meeting on efforts to prosecute traffickers, protect victims, and prevent trafficking. The U.S. delegation was led by Joel Maybury, Acting Principal Deputy Director of the Office to Monitor and Combat Trafficking in Persons. Representatives from the Departments of Justice, Labor, Homeland Security, and Health and Human Services also participated. The Cuban delegation was led by Deputy Director General Johana Tablada de la Torre of the Ministry of Foreign Affairs’ Directorate General for the United States and included officials from various Cuban agencies.

On February 14, the Department of Homeland Security hosted a technical exchange on trafficking in persons, one of the eight working-level exchanges under the U.S.-Cuba Law Enforcement Dialogue. Participants discussed best practices on investigations and prosecutions, human trafficking trends in the region, and potential areas of coordination to fight the scourge of trafficking, which threatens national security and public health and safety in both countries.

The United States and Cuba last met to discuss trafficking in persons in January 2017.

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USAID Seeking US$10 Million For Projects In Cuba

Department Press Briefings : Department Press Briefing

Heather Nauert
Spokesperson
Department Press Briefing
Washington, DC
February 13, 2018

MS NAUERT: Cuba. We’ll take Cuba.

QUESTION: Thank you. I – regarding the budget.

MS NAUERT: Yes.

QUESTION: The assistance given to human rights and pro-democracy groups, supporting human rights and pro-democracy groups within Cuba has been halved from 20 to 10 million in this proposal for the budget. Given the treatment of, for example, religious people in Cuba, the persecution, the increase in harassment to religious groups, et cetera, how can you – what is the judgment made to be – to halve that type of assistance to the human rights groups?

MS NAUERT: Well, I think as we look at putting the budget together and our numbers come from OMB, and then we negotiate and work with Congress, so we’re not an endpoint; we’re at sort of a middle to a starting point phase right now as we look at our overall budget.

As it pertains to Cuba, to your question, last year for the year 2018 – right now, we’re looking at the budget for 2019. So last year for 2018, it was actually zero for democracy promotion in Cuba. The President then undertook his Cuba Policy Review and made some changes about how this government views the Government of Cuba and how we want to handle our relations with Cuba. This year, we’ve come with the number of $10 million for democracy promotion, so up significantly from zero last year. Okay? Okay.

QUESTION: But Heather, when (inaudible) – when you were discussing the – the Cubans had raised some complaints about the Cuba Internet Task Force that held a meeting here recently, saying that basically that the State Department is trying to subvert Cuba’s government. I think you called that ridiculous and maybe ludicrous, but I mean, if we have money built into our budget to promote a different system of government in a country than what the system they currently have – I mean, how can you say that that’s not attempt to subvert their government?

MS NAUERT: Well, the internet task force that you’re talking about was a pulled-together group sponsored here at the State Department – a group of NGOs, but also people from the private sector, because we believe that the Cuban people should have free and full and unfettered access to the internet. They don’t. It’s cost-prohibitive in many places; people don’t have the access that a government should give them. So we’re doing what we can with the budget that we have, and determining where we can best use our resources. And some folks putting that together felt that that was the right dollar amount for that. Okay.

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U.S. Department Of State Silent On Meeting With Cuba To Discuss Money Laundering

http://www.minrex.gob.cu/en/cuba-and-united-states-hold-exchange-cooperation-prevent-and-combat-money-laundry

Cuba and the United States hold exchange on the cooperation to prevent and combat money laundry

Submitted by editor on Tue, 02/13/2018 - 12:17

On February 12, 2018, a second technical exchange was held between the authorities from Cuba and the United States charged with the prevention and combat against money laundry. The meeting took place in a respectful and professional ambiance.

This exchange, which falls within the context of the law enforcement dialogue between both countries, provided both parties with the opportunity to discuss about the tendencies of this crime at a regional level, the main experiences gained in the combat against money laundry and the next steps that would be taken to advance the bilateral collaboration on this matter.   

The Cuban representatives underscored the necessity to increase cooperation between authorities of both countries to ensure the effective combat against this criminal offense. Both parties shared the view that determined action is required against these acts and against those who commit them and the consensus was that impunity cannot be permitted.

The Cuban delegation also stated that for the comprehensive analysis of these issues, Cuba favors the exchange in different forums, mainly of the UN system. In addition, the Cuban government actively collaborates with the Financial Action Task Force of Latin America (GAFILAT), a regional inter-governmental organization to prevent and combat money laundry, terrorist financing and the funding of the proliferation of mass destruction weapons. In its Mutual Evaluation Reports, GAFILAT acknowledges that the general risk for money laundry and terrorist financing in Cuba is low, highlights the inter-institutional coordination and cooperation existing at all levels in the country to combat these crimes and the updated legal framework Cuba has for this purpose.

The Cuban delegation was composed of representatives of the Ministry of the Interior, Banco Central de Cuba, the Office of the Attorney General of the Republic and the Ministry of Foreign Affairs. The U.S. delegation was composed of officials of the Departments of Homeland Security, Justice, State, Health and Human Services and, Treasury.

Both parties agreed to continue with these technical exchanges in the future and to coordinate actions that may contribute to the effective combat against this crime.(Cubaminrex)

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Do U.S. Secretaries Of Agriculture & Treasury Comprehend Value Of Direct Correspondent Banking To Exporters?

Banks in third-countries have been winning a multi-million dollar payment lottery every month for eighteen (18) years.

Members of the United States Congress should request U.S. Secretary of Agriculture Sonny Perdue and U.S. Secretary of the Treasury Steven Mnuchin to support Direct Correspondent Banking (DCB) for Cuba exports- which will immediately provide benefits for U.S. companies- and require the Republic of Cuba to make payments in less time.

United States food product and agricultural product exports, on a cash-only basis, to the Republic of Cuba have increased a combined 48% during the last two years- 36% from 2015 to 2016 and 12% from 2016 to 2017; for 2017, the Republic of Cuba ranked 54th of 229 United States export markets.  A total of US$5.5 billion since December of 2001 under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

Reducing transaction fees, which can range to 2% or more, will permit United States exporters to a) be more competitive on pricing and b) be more competitive on transportation where a 2% difference in a proposed contract may make a difference.

The Honorable John Boozman (R- Arkansas), The Honorable Heidi Heitkamp (D- North Dakota) and The Honorable Rick Crawford (R- Arkansas) should immediately redirect their respective legislative efforts along with Members of Congress who support those legislative efforts, including the sixty-two (62) co-sponsors of Representative Crawford’s legislation to seek a regulatory change.

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury is responsible for the implementation of Direct Correspondent Banking (DCB).

The Obama Administration, without explanation, refused to assist United States exporters by authorizing DCB.

DCB will eliminate a three-way payment process and create a two-way payment process resulting in more efficiency and less cost to United States exporters; and, important to the Trump Administration, removing an unnecessary eighteen-year (18) multi-million dollar revenue stream for third-country financial institutions.

DCB far more benefits United States exporters than it does Republic of Cuba-based importers.  DCB means less time for United States exporters to be paid and less cost to receive those payments.

According to one senior-level executive of a New York, New York-based financial institution, "banks in other countries have been lottery winners since December 2001; I'm confident the Trump Administration appreciates that United States farmers should not have to give-up anything in order to export their products.  The Obama Administration could have, should have done something.  They didn't.  Now, the Trump Administration can right that wrong and authorize direct correspondent banking transactions."      

http://www.cubatrade.org/blog/2017/12/12/president-trump-deserves-opportunity-to-right-an-obama-administration-wrong-sftcp-dcb

More than 6,300 days have passed since the last legislation seeking to expand the United States-Republic of Cuba commercial landscape introduced in the United States Congress became law.  

During this time, however, there have been substantial regulatory export-supportive changes which would have been far more impactful (commercially and politically) if the government of the Republic of Cuba had permitted those changes to be implemented.  

Reasons for the fluctuations in United States exports to the Republic of Cuba include, but are not limited to, global commodity pricing, lack of DCB, and lack of payment terms from United States companies.  

DCB may be implemented by regulation.  Payment terms require legislation.  A change to regulation is easier than a change to law. 

United States companies and United States financial institutions would not provide the payment terms preferred by the Republic of Cuba which are government-to-government long-term payment (financing) agreements and purchasing from government-controlled entities.   

Government of Vietnam-operated Vinafood 1 & Vinafood 2 have provided payment terms to Republic of Cuba government-operated Alimport of two (2) years to pay for rice (25% to 30% broken). United States producers can provide this product; payment terms without the use of United States government programs would be cash to 30 days; and for credit-worthy customers, generally not exceed sixty (60) days to ninety (90) days.

Have United States companies and United States financial institutions publicly offered (through media releases, congressional statements, company policies) that they are prepared (meaning today) to provide payment terms (and disclose what those would be) for exports of agricultural commodities and food products to the Republic of Cuba?  Lacking these public positions, the successful advocacy for legislation remains stagnant. 

Thus far, only Moline, Illinois-based John Deere (2017 revenues approximately US$27 billion) has publicly confirmed the company will provide, through internal sourcing, payment terms for agricultural equipment exported from the United States to the Republic of Cuba.  The company has a distribution center, authorized by the OFAC, in the Republic of Cuba.

Has Alimport publicly shared what (specific) payment terms it would require from United States companies as a predicate for increasing purchases?  No.

Alimport reported that it imported approximately US$1.8 billion in food products and agricultural commodities in 2017, compared with approximately US$1.8 billion in 2016, US$1.8 billion in 2015, and US$2.55 billion in 2014. Alimport reported that the country imports approximately 70% to 80% its food product and agricultural commodity requirements.

The authorization of DCB will increase revenues for United States exporters, which is a focus of the Trump Administration.

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2017 Report: US Exports To Cuba Increase By 12%; Ranks 53rd Of 229 Export Markets; Poultry 61% Of Total

ECONOMIC EYE ON CUBA©
February 2018

December 2017 Food/Ag Exports To Cuba Decreased 60%- 1
2017 Exports Increased 12% To US$260.6 Million- 2
Cuba In 2017 Was 53rd Of 229 U.S. Food/Ag Export Markets- 2
US$160 Million In Poultry; 61% Of Total Exports- 2
13% Increase In Metric Tons- 14
US$5.55+ Billion In Food/Ag Products Since December 2001- 2
2017 Healthcare Product Exports Decreased 7%- 2
2017 Humanitarian Donations Increased 28%- 3
Obama Administration Initiatives Exports Continue To Increase- 3
GE Delivers US$2.9 Million For Power Project- 3
U.S. Port Export Data- 14
Speaking Schedule- 16

 

DECEMBER 2017 FOOD/AG EXPORTS TO CUBA DECREASED 60%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in December 2017 were US$11,963,399.00 compared to US$29,992,937.00 in December 2016 and US$4,302,105.00 in December 2015. 

Food product and agricultural commodity exports from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000: 

2017: US$260,667,075.00
2016: US$232,064,645.00
2015: US$170,551,329.00

CLICK HERE FOR COMPLETE REPORT IN PDF FORMAT

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U.S. Department Of State Hosts First Internet Task Force Meeting

Media Note
Office of the Spokesperson
Washington, DC
February 7, 2018

As directed in President Trump’s June 16, 2017, National Security Presidential Memorandum “Strengthening the Policy of the United States Toward Cuba,” the Department of State convened a Cuba Internet Task Force composed of U.S. government and non-governmental representatives on Wednesday, February 7. Over the next year, the task force will examine technological challenges and opportunities for expanding Internet access in Cuba with the goal of helping the Cuban people enjoy the free and unregulated flow of information.

During the inaugural meeting, the task force agreed to form two subcommittees, one to explore the role of media and freedom of information in Cuba, and one to explore Internet access in Cuba. The subcommittees will provide the task force a preliminary report of recommendations within six months based on input from relevant experts and stakeholders. The task force agreed to reconvene in October to review the preliminary reports, after which it will prepare a final report with recommendations for the Secretary of State and the President.

The Cuba Internet Task Force is chaired by Deputy Assistant Secretary for Western Hemisphere Affairs John S. Creamer. In addition to the Department of State, other entities represented on the task force are: the Office of Cuba Broadcasting, the Federal Communications Commission, the Department of Commerce’s National Telecommunications and Information Administration, the U.S. Agency for International Development, Freedom House, and the Information Technology Industry Council.

The Cuba Internet Task Force is a Presidential Advisory Committee under the Federal Advisory Committee Act (FACA). Consistent with the objectives of FACA we will work to ensure that advice by advisory committees is objective and accessible to the public. All public documents related to the task force will be made available on the Department of State’s Cuba Internet Task Force webpage. Those interested in being considered for participation on a subcommittee should email CubaITF@state.gov with an explanation of their relevant experience and interest.

https://www.state.gov/p/wha/ci/cu/citf/index.htm

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Amazon Benefiting From Cuba Travel Promotion In United Kingdom

Seattle, Washington-based Amazon.com, Inc. (2017 revenues approximately US$160 billion) is benefiting from a program by London, United Kingdom-based Cuba Holidays (www.cubaholidays.co.uk) to provide to customers in February 2018 a £20 (approximately US$28.00) voucher or £30 (approximately US$42.00) voucher for use with Amazon.  The program is in conjunction with London, United Kingdom-based Travel Weekly (www.travelweekly.co.uk):

http://www.travelweekly.co.uk/articles/288760/earn-amazon-vouchers-when-you-book-with-cuba-holidays-this-february

A Vice President of Amazon.com, Inc., visited the Republic of Cuba in September 2016 as a member of the delegation accompanying Lt. Governor Brad Owen (D) of Washington:

http://www.cubatrade.org/blog/2016/7/6/lt-governor-of-washington-leading-19-member-delegation-to-cuba-in-september-2016?rq=Amazon

 

Senator Heitkamp (D- ND) Should Have Fact-Checked The Data Used For Her Article About Cuba

Senator Heitkamp Should Have Better Fact-Checked The Data Used For Her Article About Cuba

On 25 January 2018, The Honorable Heidi Heitkamp (D- North Dakota), published a statement in the Grand Forks, North Dakota-based Grand Forks Herald newspaper:

https://www.grandforksherald.com/opinion/4393532-heidi-heitkamp-support-farmers-remove-cuban-barriers

Some of the data referenced to support her statements were false.  Whether the data was obtained from her United States Senate staff and/or advocacy organizations, imperative for the data to be accurate.  

The Republic of Cuba should neither be oversold nor undersold in pursuit of political gain as each may have consequences for United States companies.

More than 6,300 days have passed since the last legislation seeking to expand the United States-Republic of Cuba commercial landscape introduced in the United States Congress became law.  

During this time, however, there have been substantial regulatory export-supportive changes which would have been far more impactful (commercially and politically) if the government of the Republic of Cuba had permitted those changes to be implemented.  

Since December 2001, the Republic of Cuba has purchased more than US$5,537,994,881.00 in agricultural commodities and food products under provisions of the Trade Sanctions Reform and Export Enhancement Act of 2000.

The first issue: 

Senator Heitkamp writes: "U.S. agricultural exports to Cuba have dropped every year since 2009 as a result of the onerous requirement that Cuba pay cash in advance for U.S. imports. Cuba instead turns increasingly to producers in other countries that could offer credit, which, as any farmer or exporter will tell you, is the way business is done."

In 2009, United States agricultural commodity and food product exports to the Republic of Cuba were US$528,482,955.00.  

In 2010, the value was US$366,467,782.00
In 2011, the value was US$358,457,389.00
In 2012, the value was US$457,318,357.00
In 2013, the value was US$348,747,293.00
In 2014, the value was US$291,258,881.00
In 2015, the value was US$170,551,329.00
In 2016, the value was US$232,064,645.00
In 2017, the value was US$248,703,676.00 (through November 2017)

http://www.cubatrade.org/

While the value of US$710,086,323.00 in 2008 has thus far not been exceeded, important to remember that the first exports in December of 2001 were US$4,318,906.00, while the following year, 2002, the value increased to US$138,634,784.000.

Since 2009, the year-to-year values have fluctuated; and for 2015, 2016, and 2017 there have been increases.

http://www.cubatrade.org/blog/2018/1/16/us-exports-to-cuba-increase-101-more-than-us70000000-in-agricultural-equipment

Reasons for the fluctuations include global commodity pricing, lack of efficient banking transactions, and lack of payment terms from United States companies.  

United States companies and United States financial institutions would not provide the type of payment terms that is preferred by the Republic of Cuba which are government-to-government long-term payment (financing) agreements and purchasing from government-controlled entities.   

Government of Vietnam-operated Vinafood 1 & Vinafood 2 have provided payment terms to Republic of Cuba government-operated Alimport of two (2) years to pay for rice (25% to 30% broken). United States producers can provide this product; payment terms without the use of government programs would be cash to 30 days; and for credit-worthy customers, generally not exceed sixty (60) days to ninety (90) days.

Have any United States companies and United States financial institutions publicly offered (through a media releases, congressional statements, company policies) that they are prepared (meaning today) to provide payment terms (and disclose what those would be) for exports of agricultural commodities and food products to the Republic of Cuba?  Lacking these public positions, the successful advocacy for legislation remains stagnant. 

Thus far, only Moline, Illinois-based John Deere (2017 revenues approximately US$27 billion) has publicly confirmed the company will provide, through internal sourcing, payment terms for agricultural equipment exported from the United States to the Republic of Cuba. 

Has Alimport publicly shared what (specific) payment terms it would require from United States companies as a predicate for increasing purchases? 

What would be meaningful in terms of marginally and positively impacting United States exports (meaning everything that is permitted by law and regulation)?  The implementation of Direct Correspondent Banking (DCB), which may be initiated by the United States Department of the Treasury's Office of Foreign Assets Control (OFAC).

DCB will eliminate a triangular payment process and create a two-way payment process resulting in more efficiency and less cost; and removing a revenue stream for third-country financial institutions.  That's worth tri-partisan advocacy.    

http://www.cubatrade.org/blog/2017/12/12/president-trump-deserves-opportunity-to-right-an-obama-administration-wrong-sftcp-dcb

The second issue: 

Senator Heitkamp writes: "Cuba imports $2 billion in agricultural goods annually." 

Alimport reported that it imported approximately US$1.8 billion in food products and agricultural commodities in 2017, compared with approximately US$1.8 billion in 2016, US$1.8 billion in 2015, and US$2.55 billion in 2014. Alimport reported that the country imports approximately 70% to 80% its food product and agricultural commodity requirements.

The government of the Republic of Cuba reported spending US$2.554 billion in 2008 to import 3.423 metric tons of food products and agricultural commodities. Using the actual value for U.S. Dollar food products and agricultural commodity exports to the Republic of Cuba, the United States sourced 27% of the Republic of Cuba’s food product and agricultural commodity imports in 2008.

The government of the Republic of Cuba reported spending US$1.47 billion in 2007 to import 3.423 million metric tons of food products and agricultural products. The United States was the source for 29%.

Secretary Of State Tillerson Discusses Cuba Before Visit To The Americas

Secretary's Remarks: On U.S. Engagement in the Western Hemisphere

Rex W. Tillerson
Secretary of State
Austin, Texas

February 1, 2018

Excerpts.....

Elsewhere we will continue to encourage others in the region, like Cuba, who disregard their people and ignore this democratic moment in Latin America, to give their people the freedom that they deserve.

Cuba has an opportunity in their own transfer of power from decades of the Castro regime to take a new direction. In June, President Trump laid out a new vision for our approach to Cuba – one that supports the Cuban people by steering economic activity away from the military, intelligence, and security service which disregard their freedom.

The administration’s policy – as written in the National Security Presidential Memorandum – also seeks to, quote, “ensure that the engagement between the United States and Cuba advances the interests of the United States and that of the Cuban people.”

It includes advancing human rights and encouraging the nascent private sector in Cuba. The future of our relationship is up to Cuba – the United States will continue to support the Cuban people in their struggle for freedom.

Venezuela and Cuba remind us that for our hemisphere to grow and thrive, we must prioritize and promote democratic values.

MR INBODEN: So I want to come back to another country that you mentioned towards the end of your – end of your speech, and that’s Cuba, one of the two remaining tyrannies in the region along with Venezuela. President Trump has been quite critical of the Obama administration’s previous normalization process with Cuba, with the Castro regime. But as you mentioned in June when the President announced some new regulations – or a few months ago, in November when he announced some new regulations, some Cuban American groups worried that those didn’t go far enough in reversing the previous administration’s policies. So what would you say are your strategic priorities towards Cuba going forward?

SECRETARY TILLERSON: Well, as I mentioned, they’re – they will be going through a transfer of power – supposed to this year, we’ll see whether it happens this year or not, but – and this will be, in all likelihood, the first transfer of power that Cuba has not been led under a Castro regime, so that we think there are opportunities, perhaps, for – an opportunity to shift towards a more open and democratic future. That’s what we’re hoping.

With respect to our objectives with Cuba, and the – I think President Trump’s analysis – and I agree with it – of the terms with Cuba that were in place when we took office, that an awful lot had been given to the Cuban Government, and not much had been received in return, other than a clear economic opportunity for U.S. business interests, which is great.

But that was coming on the backs of the Cuban people, who are still very repressed. So we have taken a shift, we preserved a lot of that, but basically said, “Yes, we do want to support the Cuban people.” We’re not interested in supporting the Cuban regime. And as you know, the government and the security forces and others have a significant presence in almost all economic activity. So one of our objectives was to separate that and allow the Cuban people to have a more full, rewarding participation in that economy, and limit what we’re – what the government is benefiting from through their ownership.

So that was one of the significant changes, but again, it’s all – it’s all directed at how do we help the Cuban people. That’s what we want to do is help the Cuban people, and we are hopeful, and we stay – we do stay engaged with the Cuban authorities that – in this transition, can they find their way to maybe a different future? I don’t know. We’ll see.

President Trump Mentions Cuba In State Of The Union Address

THE WHITE HOUSE
 
Office of the Press Secretary
For Immediate Release
January 30, 2018
 
REMARKS BY PRESIDENT TRUMP IN STATE OF THE UNION ADDRESS
 
U.S. Capitol
Washington, D.C.

My administration has also imposed tough sanctions on the communist and socialist dictatorships in Cuba and Venezuela.  (Applause.)  

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U.S. Department of State About Vice President Diaz-Canel's inauguration: an "undemocratic transition of political authority"

Special Briefing
Senior State Department Officials
Via Teleconference
January 29, 2018

MODERATOR: Thank you so much. Good morning, everyone, and thank you for joining us for today’s background call to preview the Secretary’s upcoming trip to Texas, Mexico, Argentina, Peru, Colombia, and also Jamaica. Today we’re joined by [Senior State Department Official One], who will be referred to as Senior State Department Official One. We’re also joined by [Senior State Department Official Two], who will be referred to as Senior State Department Official Two. As a reminder, today’s call is on background; it’ll be embargoed until the end of the call. 

And with that, I will turn it over to our senior State Department officials for opening remarks, and then we’ll take a few questions. 

QUESTION: ... And a quick question on Cuba: Will the Secretary Tillerson be addressing the situation in Cuba on his trip? 

SENIOR STATE DEPARTMENT OFFICIAL TWO: The State Department, in line with the White House, will use all economic, political, and diplomatic tools at our disposal to address the situation in Venezuela. The upcoming undemocratic transition of political authority in Cuba is likely to be raised at multiple stops throughout the Secretary’s trip. 
 

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