Highlights this issue:

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1 6 February 2017, Issue 903 Highlights this issue: Cuba developing standards for software New blog for young people s opinions Approval given for electric car exports Cuban delegation meets business and Congressional leaders Bipartisan agriculture financing bill reintroduced Turkish health tourism deal signed White House confirms Cuba policy under review President Trump s Press Secretary has confirmed that the new US Administration is undertaking a full review of US policies towards Cuba. Speaking at a White House press briefing on February 3, Sean Spicer said in answer to a question relating to the status of Cuban migrants, following the ending of the US Wet-foot Dry-foot policy by President Obama (Cuba Briefing January 16, 2017), we are in the midst of a full review of all US policies towards Cuba. He also noted that President Trump is committed to an agenda of ensuring human rights for all citizens throughout the world, adding that as we review those policies in Cuba, that will be forefront in their policy discussions. It is widely believed that the new US administration may be moving towards a more transactional approach in relation to Cuba. A number of Washington observers told Cuba Briefing that this may result in the Trump administration seeking to trade off an agreement on expropriated assets against economic openings, and that Mr Trump s appointment of Jason Greenblatt as Assistant to the President and Special Representative for International Negotiations is intended to facilitate such an approach. However, they also note that there are significant divisions between Cabinet members over Cuba, some of whom want greater emphasis on human rights and political change. Others, however, believe that greater advantage should be taken of potential commercial opportunities, for example in relation to agriculture. They also expect the US Treasury to place further pressure through OFAC on companies and individuals in third countries making use of expropriated assets. It is not known how long the new policy review on Cuba will take. Speaking on January 25 in the Dominican Republic, President Castro said that while he hopes that relations with the US will continue to normalise, Cuba will not sacrifice its independence and sovereignty to achieve this. 1

2 Cuba developing standards for software Cuba s National Centre for Software Quality (Calisoft) has said that it is developing national standards for computer programmes and software. An article in Granma said that the Centre, a unit of the Ministry of Communications (Mincom), has been tasked with overseeing the quality of the product and the process of all software development in Cuba. The group was formerly a department at the University of Computer Science (UIC) but has been strengthened following the development of an indigenous software industry. The report said that Calisoft is directed and supported by engineers and graduates with higher degrees in computer science, most of whom are young people. Calisoft was reported by Granma to be working closely with Cuba s National Software Company (Desoft), the Computer and Automation Company for Construction (Aicros), the Young Computing Clubs, and Transoft, a body working with the country s Transport Engineering Company. It is also technically evaluating imported software products as well as appraising and certifying local software producers. Currently, Calisoft only provides services to state-owned enterprises, but is expected in due course to provide services to cooperatives and private organisations that are emerging to provide support to all Cuban software producers. The organisation was also reported to be creating a knowledge base to store the input and experiences of every Cuban software developer. Granma s report suggested that Calisoft has recognised the value of software development taking place in a decentralised, informal way across the country. Although this is common internationally, the article states that Cuba will seek to adapt the output to what it describes as the current conditions of our country in order to commercialise unique Cuban software globally. Cuba Workers for foreign companies to pay income tax from April. Vladimir Regueiro, Director of the Income Policy Department of the Ministry of Finances and Prices, has confirmed that from April, Cubans who work for foreign companies operating in Cuba must pay personal income tax. Mr Regueiro said that all such workers receiving salaries more than CUP 2500/ month (about US$100/ month) will have to do so. The level of tax due will be assessed on the same basis as that used by the Cuban Tax Administration Office (ONAT) since October 2016 in relation to workers in state enterprises. The new measure does not include workers hired by companies in the Mariel Special Development Zone, who are already paying such taxes. Under the regulations, employers must deduct the tax and pay ONAT directly. A resolution to regulate the measure is expected shortly. 2

3 Trade Unionists told to take the initiative. Delegates attending a Cuban Workers Federation (CTC) evaluation assembly in Granma province have been told that grass roots representatives must be given greater training to encourage them to take the initiative when it comes to increasing productivity and efficiency. The CTC s Secretary General, Ulises Guilarte De Nacimiento, who is also a politburo member, said that union leaders must be given the economic and legal knowledge to enable them to formulate their own criteria, rather than merely repeating administrative discourse. This would, he said, involve holding quality grassroots union meetings to discuss and solve specific problems. Issues addressed during the meeting also included the membership of workers in the non-state sector and the need for union leaders to better relate to workers. New blog for young people s opinions. An official blog has been established to provide what the Cuban media have described as space for debate and to share their thinking on Cuban society. Asael Alonso, an official with the Cuban Young Communist League (UJC), said that the blog aims to create a common internet space to address issues relating to Cuban society by using a fresh language, open debate and respect, and defending the best values of the Cuban Revolution. The fresh and clean looking El Joven Cubano blog includes multimedia and is linked to Facebook, Twitter, Google+ and YouTube. The blog is available at The site was launched as a part of the UJC s recognition that the organisation needs to relate more closely to Cuban youth. State promises to re-employ doctors who left. Cuba s Ministry of Public Health has said that it will reinstate any doctors who left their overseas assignments and wish to return to Cuba. A government notice published in the official daily Granma, reaffirmed that under the country s 2014 migration law, health professionals who return to the country will be allowed to resume their work in the national health system. It also said that they would retain their positions and full salaries as well as full social security benefits for their families. The official statement concluded by reiterating that health professionals represented the main strength of the Cuban public health system and the provision of social justice in Cuba and in other nations. The announcement follows the Obama Administration s decision to end the Cuban Medical Professional Parole Program in January In Cuba doctors earn between US$40 and US$60 per month depending on their level of specialisation. Amnesty says MCL leader a prisoner of conscience. Dr Eduardo Cardet, the leader of Cuba s dissident Movimiento Cristiano Liberación (MCL) since 2014 has, according to Amnesty International, been held in a prison in Holguín since November 2016, having been refused bail on three occasions. Mr Cardet is charged with attacking an official of the state. Amnesty has declared him a prisoner of conscience. The MCL advocates political change in Cuba. United States Approval given for electric car exports. Premier Automotive Export has been given approval by the US authorities to export electric cars to Cuba. The Miami-based company, which is a subsidiary of Cayman Automotive, will become the first US car company to ship US-built vehicles to Cuba. The approval took four years to obtain. Under a four-year licence granted by the US Department of Commerce, the company will make an initial shipment to the Embassy of Guyana in Havana. A report in the Cayman Compass said that the export authorization specifies that the cars may not be re-exported, and that ownership may not be transferred within the country unless authorized by the US government. The company is hoping to supply other Embassies and US entities in Cuba, and plans to install 50 charging locations in Havana. 3

4 Ports agreements favour states other than Florida. Florida s Republican Governor, Rick Scott, has formally indicated that he is proceeding with his twitter threat to cut off funding for improvements to the state s ports if they pursue trade ties with Cuba. The proposed state budget seeks to halt US$177m of funding to the state s ports if they develop projects that result in the expansion of trade with Cuba. The tweets led the ports of Palm Beach and Fort Lauderdale to withdraw from signing agreements with a visiting delegation from the Cuban National Ports Authority. Governor Scott s decision is regarded as being related to his expected run for the US Senate when his present term ends. In contrast, an agreement was signed during the same visit by Cuba with the Virginia Port Authority, with the aim of growing Virginia s agricultural exports to Cuba. Cuba now has five agreements with US ports, which include: o The Port of Mobile in Alabama o New Orleans o Lake Charles o South Louisiana o Virginia Cuban delegation meets business and Congressional leaders. A Cuban business delegation visiting Washington as part of a 12 day visit to US ports (see above) has held working meetings with the US Chamber of Commerce (USCC), trade associations, and members of Congress. According to the Cuban Embassy in Washington, the group met with Kurt Nagle, Chairman of the American Port Authorities Association, a body which represents 140 ports and 240 maritime providers in the Americas. They also met with the Cuba Working Group in the US Congress. South Florida TV establishes presence in Havana. The Miami TV station WPLG has announced that it will become the first local US TV station to base a full-time news crew in Cuba. The station, which is a Berkshire Hathaway-owned Miami ABC affiliate, has obtained permission to locate a permanent newscast reporter, Hatzel Vela, and photojournalist, Brian Ely, in Havana. The station said that in agreeing to WPLG s presence in Cuba, the Cuban authorities only request was that coverage would be fair. A significant number of WPLG s viewers are Cuban-Americans. Royal Caribbean significantly increasing cruise calls. Royal Caribbean Cruises has said that it is increasing its Cuba sailings for 2017 from four to 11. The company has received approval for ten sailings using its 1,602- passenger Empress of the Seas ship from Tampa, and for one sailing from Miami. The company estimates that it will generate US$22.1m in revenue from its Cuba sailings. Royal Caribbean's Cuba sailings commence in April and are scheduled to continue through November. Two months ago, Royal Caribbean and Norwegian received approval from the Cuban government to sail to Cuba. Bipartisan agriculture financing bill reintroduced. Two US senators have reintroduced a bipartisan bill into the US congress which aims to lift restrictions on private financing for agricultural exports to Cuba. They are Heidi Heitkamp (D - North Dakota) and John Boozman (R - Arkansas). At present US law bans the financing of agricultural exports to Cuba, instead requiring cash payments in advance. American opens Havana office. American Airlines has opened an office in Havana. The airline began flying the Miami-Havana route in November Despite the possibility of a change in US travel regulations, the airline says it is optimistic about long term growth in US-Cuba travel. US Government suggests options for stranded Cuban migrants. The Miami Herald has reported that changes to US immigration policy introduced on January 12 by former President Barack Obama, have left a significant number of Cuban migrants stranded in several Central American locations. 4

5 The newspaper said that the US government has reiterated that Cuban migrants at the US border can ask for political asylum, but they need to prove credible fear of persecution. It also suggested that they seek asylum in the countries where they were stranded. The Herald quoted a State Department spokesman as saying that another option for those stranded in third countries would be to bring their concerns to the UN High Commissioner for Refugees (UNHCR). Many Cuban migrants in temporary shelters in Panama, Colombia or Mexico are either undocumented or have nearly expired transit permits. Onshore oil reserve estimates increased. The listed Australian company Melbana Energy has said that it has significantly increased its reserve estimates for onshore oil, despite present low rates of recovery. In an updated statement of reserves, the company said that it estimated there to be 612m barrels of prospective oil in its onshore Block 9. The latest estimate for the block is more than double its previous forecast. The company plans to accelerate its onshore drilling programme. Melbana Energy said that its Cuban programme has a competitive operating cost of around US$7 per barrel and believes that modern enhanced oil recovery techniques may increase historic recovery factors. Virginia body to encourage Cuba trade ties. The state of Virginia has established a bipartisan state council to promote ties with Cuba and to urge Congress to end the trade embargo. The honorary chair is State Governor Terry McAuliffe. The group is related to Engage Cuba, which has established sixteen other similar state groups. Customised visits promoted. A New York City based private jet start up, Encore Jets, has said that it will offer direct flights to Cuba from 24 US cities including Miami, Atlanta and New York. Working in a partnership with Alabama based tour operator International Expeditions, it is introducing private charter flights and customised visits through a Discover Cuba programme. The Americas Barbados proposes closer regional collaboration. Barbados Foreign Minister, Maxine McClean, has said that the most fitting demonstration of solidarity between Cuba and the Caribbean would be active collaboration to strengthen the region s domestic, regional and global agendas. Speaking at an event in Barbados to mark Cuba s national day, she praised Cuba s reputation for global leadership. Rest of the world Turkish health tourism deal signed. A leading Turkish conglomerate operating as MIRAMAR Health Tourism, has signed an agreement that will see Turkish patients receive medical treatment in Cuba. Speaking at a signing ceremony at the Cuban Embassy in Istanbul, company President, Adnan Volkan Pekkan, who is also the Vice President of the Pekkan Group, said that the agreement would enable the company to offer treatments for cancer, diabetes, and orthopaedic surgery at significantly lower prices than in other countries. The company will manage visa, accommodation and transport arrangements for its clients and make use of a new Turkish Airlines direct air service. Over the Horizon US experts from the Global Institute of Robotics, based in Florida, have met with their Cuban counterparts to exchange experiences relating to robotic surgery. Cuban reports said that in response to an invitation from the Cuban Society of Endoscopic Surgery, Vipul Patel, Director of the Florida-based Institute, participated in a meeting on Laparoscopic and Robotic Surgery in Havana. Cuba is not yet advanced or practised in robotic surgery, but is interested in developing the skills and technology to enter the field. Speaking on a panel at Cuba s annual national conference on teaching, the Minister of Culture, Abel Prieto, has said that Cuba must fight against the movies and junk television series, that contain the deforming 5

6 messages of commercial advertising, reality shows, the influence of celebrities (and) their nonsense. He said that the stress in audio-visual productions should be on virtue, heroism and wisdom, that the media should encourage the young to transform what happens around them rather than be receivers of news and entertainment, to read more and to use technology to enrich their knowledge. Please do not forward this publication Copyright 2017 The Caribbean Council Cuba Briefing is produced for Cuba Initiative Members and subscribers by the Publications Division of The Caribbean Council, Temple Chambers, 3-7 Temple Avenue, London EC4Y 0HP, United Kingdom. No legal responsibility is accepted for any errors or omissions. Publisher: The Caribbean Council Editor: David Jessop Subscription Rates: 200/US$450 per annum for 45 issues for up to 3 users (a discounted rate for additional users and companies registered in the Caribbean is available on application) For subscription enquiries contact: emily.soar@caribbean-council.org Cuba Briefing is a subscription publication which is available to paying subscribers and members of The Caribbean Council only. It should not be forwarded internally or externally within your organisation. All recipients need to be subscribed directly via The Caribbean Council distribution list. If you have not received this publication directly from the Caribbean Council, and would like to subscribe or be added as part of your company's membership, please contact emily.soar@caribbean-council.org now or subscribe online at Corrections or amendments should be sent to: publications@caribbeancouncil.org 6