Cuba says new migration accord will improve relations Cuba and the United States have

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1 Cuba says new migration accord will improve relations Cuba and the United States have Highlights this issue: Biotech company reveals it has 48 new products in the pipeline Russia considering agreement on regular oil supply President-elect Donald Trump appoints negotiator for Cuba Spanish hotel group to open four new Havana properties Cuba stresses important role of successful state enterprises ISSUE NUMBER JANUARY 2017 agreed a new migration accord with immediate effect, essentially bringing to an end high levels of illegal migration and removing one of Cuba s red lines on the full normalisation of relations. Announcing the new agreement in a statement on January 12, the White House said that the two governments had reached agreement on a comprehensive set of measures that will see the US Department of Homeland Security ending its wet-foot/dry foot policy. This is the approach that, in conjunction with the Cuba Adjustments Act, has previously enabled any Cuban who reaches US soil to remain. The accord will effectively halt the illegal entry into the US of any Cuban nationals, and remove their eligibility for humanitarian relief. It also means that any such illegal entrants will, in future, be subject to removal under US law and automatically accepted back by Cuba. The US also said that it was ending it Medical Professional Parole Programme on the basis that the two nations are working together to combat disease, and that the measure risked harming the Cuban people. Under the new regulations, Cubans seeking to stay in the US will now have to pass a credible fear process and have to present documentation proving they face a real threat in their country. It is expected that any such applicant will face a lengthy period of detention while their case is considered. A Department of Homeland Security official said that despite the new approach, the US immigration lottery will still enable at least 20,000 Cubans to emigrate to the US legally each year. The Cuban Family Reunification Parole (CFRP) programme will also continue. In a joint US-Cuba communique, the two countries further announced that the Cuban government had agreed to take back 2,746 Cubans who were deemed excludable from the United States after the 1980 Mariel boatlift, as well as some others who emigrated during the same time period and had committed crimes. In a lengthy public statement carried by all government media, Cuba said that it considered the agreement to be a positive step forward in improving relations which was based on mutual respect. It also called on the US

2 Congress to repeal the Cuban Adjustment Act of 1966, and said that the two nations would co-operate to prevent trafficking in persons, and to prosecute those implicated. A side effect of the new treaty is to place two categories of Cubans in positions of uncertainty; the hundreds of would-be migrants who are still en route across Central America to the US from locations such as Guyana and Ecuador; and those who were criminals at the time of the Mariel exodus or subsequently, who entered the US and who may now be subject to deportation to Cuba. US statistics suggest in 2016 a record 54,000 Cubans took advantage of the Cuban Adjustment Act. Commenting on the new policy, Ben Rhodes, President Obama s Deputy National Security Adviser, said that while in the past most Cubans entering the US were political refugees they were now mainly coming for economic reasons. It s important that Cuba continue to have a young, dynamic population that are agents of change, Mr Rhodes said. Jorge Mas, the Chairman of the Cuban American National Foundation, said the changes would force Cuba s leaders to be more responsive to their citizens. More predictably, the new measures were criticised by a number of high profile Cuban-American politicians including Mario Díaz-Balart, Ileana Ros-Lehtinen and the Miami Mayor, Tomás Regalado. The White House said that the President-elect s transition team was briefed before the announcement. Cuba s other red lines in relation to full normalisation of relations are the ending of the trade embargo and the return of the US naval base at Guantanamo, as long as all other issues are addressed from a position of respect for Cuba s sovereignty. The full text of the US-Cuba joint accord on migration can be read at: Cuba Biotech company reveals it has 48 new products in the pipeline. BioCubaFarma s Centre for Research and Development of Medicines (CIDEM) has said that it has 48 research projects for human use in its project pipeline. According to Dr Orlando Perdomo, CIDEM s Director of Research and Development, the portfolio contains innovative lines involving new chemical entities, drugs and molecules. He also said that a six-fold investment was planned to increase production, including the construction of a new large manufacturing facility in the Mariel Special Development Zone. Among the new products mentioned were effervescent chlorine tablets for the disinfection of potable water, and Neolimpilen, a product intended for the cleaning of contact lenses, which has more general moisturising, antiseptic and lubricating qualities. Importance of state enterprises stressed. Cuban Vice-President, Salvador Valdés Mesa, who is also a member of the politburo, has emphasised the continuing importance to the Cuban economy of successful socialist state enterprises during a factory visit in Cienfuegos. He praised the model and work of Micalum, a Cuban Advanced Technology Company that he was visiting. The company targets the country s top hotel chains and other companies linked to the leisure industry. Mr Valdés Mesa was reported in Cuba s regional media to have praised Micalum for its planning, its effective implementation of reduced energy directives during the present period if austerity, and for starting to develop export markets. New Minister of Interior named formally. Vice Admiral Julio César Gandarilla has been appointed as Minister of the Interior by the Council of States. He takes over the role from General Carlos Fernández Gondín, who died at the age of 78 following an extended fight against a chronic disease. Vice Admiral Gandarilla is a

3 member of the Central Committee of the Cuban Communist Party and has served as head of the department of counter-intelligence for 16 years. He was made Deputy Minister in 2015 when General Fernández retired for reasons of ill health. Announcing the passing of the General, until recently a central figure at the highest levels of the Cuban government, the country s political leadership and the Council of State described him as an example of fidelity to the Party, the people and the Cuban Revolution. Cuban personal taxes now due. Around 0.2m Cubans with non-state incomes are expected to pay taxes on their personal income between January 9 and the end of February. The number includes more than 170,000 self-employed workers. The recovery of such taxation from individuals and companies has become a significant financial issue for the Cuban state, with a 5% discount being offered to those individuals who pay their taxes before the February deadline. As reports of exchanges at the December 28 meeting of the Cuban National Assembly demonstrated, many self-employed people under declare their private income, or fail to declare it at all. According to the Cuban official media, this year s tax collection will be the subject of a rigorous audit. Havana says 45% of Cuban travellers do not return. In ratifying its previous commitment to allow most citizens to emigrate, Cuba has stated that since the measure was first introduced in 2013, some 671,000 Cubans have travelled abroad, 78% for the first time. In an article in Granma following the publication of the joint migration accord with the US (see above), the publication said that 45% of those leaving the country had not returned after two years. It said that the United States is the main destination for Cuban emigrants, which now make up 4% of the US population. The article also noted that 6000 Cuban had left the country illegally in United States Trump appoints negotiator for Cuba. US President-elect Donald Trump has named the chief legal officer at the Trump Organisation, Jason Greenblatt, as his special representative for international negotiations. Mr Greenblatt is expected to work on the US-Cuba relationship, in addition to matters relating to Israel and Palestine and on the negotiation and re-negotiation of US trade agreements. According to Haaretz, the Israeli daily newspaper, Mr Greenblatt, an orthodox Jew, has worked for the Trump organisation as a real-estate lawyer for the past 19 years. Bloomberg news reported last year that he was one of the aides travelled to Cuba on several occasions to investigate hotel and other opportunities for the Trump organisation. Tillerson sets out thinking on Cuba. Donald Trump s nominee as Secretary of State, Rex Tillerson, has told a confirmation hearing before the Senate Foreign Relations Committee that he expects a comprehensive review of all executive orders related to Cuba, and that he would not support any legislation to end the US embargo. Speaking about President Obama s decision to remove Cuba from the list of countries the US treats as state sponsors of terrorism a measure that has effectively freed third countries and international business to develop much closer relations with Cuba Mr Tillerson said: I would want to examine carefully the criteria under which Cuba was delisted from the list of terrorist nations that support terrorism, and whether or not the delisting was appropriate. Answering a question from Senator Marco Rubio (R-Florida) on whether he would advise the President to veto any bill passing Congress that would remove the US embargo, if there had not been democratic change on Cuba, Mr Tillerson replied: "If confirmed, yes I would. Later in the hearing, Mr Tillerson said that he believed that in 3

4 negotiations with the Obama administration the Cuban government got what it wanted, but ordinary Cuban people got nothing in the way of political or human rights reforms. Speaking more generally during the hearing about regulatory easing in relation to Cuba, Mr Tillerson said: I expect a comprehensive review of all those executive orders, and from the State Department perspective. Agreement reached on joint response to oil spills. Cuba and the US have agreed to develop a joint approach relating to oil and toxic spills in the Gulf of Mexico. The US Chargé d'affaires, Jeffrey DeLaurentis, and Cuba s Deputy Transportation Minister, Eduardo Rodriguez Davila, signed the measure on January 9 in Havana. The accord has as its objective the protection of the shared marine environment of the two countries. Among other measures, the document includes the preparation and testing of joint disaster plans, and the training of personnel. The measure is one of several recent agreements reached before the President-elect, Donald Trump, is inaugurated. Cuba is preparing for further offshore oil and gas exploration after Previous prospects have been dry. US visitor arrivals increase by 74%. The Cuban government has said that 284,937 US citizens visited Cuba in 2016, a figure 74% higher than in The figure does not include the high numbers of returning Cuban- Americans born on the island, who are regarded by Cuba as Cuban citizens. The arrival figures for 2016 are considered by Cuba to be significant, as US arrivals are to some extent restricted by rules that require visits to come under one of twelve permitted categories. The numbers announced also predate direct flights and increased cruise ship calls, suggesting that the actual arrivals figure is significantly higher than these numbers imply. Call for support for agricultural exports. A national coalition of over 100 US agriculture, trade, commerce-related businesses and associations have urged the President-elect, Donald Trump, to support American agriculture by strengthening the bilateral trade relationship between the US and Cuba. The letter, organised by the Engage Cuba Coalition and USA Rice, also encourages the President-elect to support federal legislation that would allow American farmers and agribusiness to compete in Cuba's import market. Russia Agreement on regular oil supply being considered. According to Vedomosti, a largely independent Russian business daily, the Russian government is considering the possibility of increasing its supply of oil and oil products to Cuba. The publication said that the Russian Ministry of Energy, Rosneft and Lukoil were currently discussing possible deliveries to Cuba, although the issue of price was still to be considered. It quoted a letter sent by the Russian Deputy Economy Minister, Alexei Gruzdev, to the Russian cabinet as saying: In our opinion, the successful completion of the negotiations on supplies of Russian hydrocarbons to Cuba will not only promote an increase in trade turnover, but also have a positive socio-political and humanitarian effect on the Russian-Cuban relations. In his letter, Mr Gruzdev noted that although Russia had intermittently provided oil to Cuba, the country was not yet a regular supplier. It gave no information on the oil volume that Cuba is ready to buy, or about the price that Cuba might pay. According to Russia's Federal Customs Service, some 3,100 tonnes of oil products were exported to Cuba between January and November 2016, at a total cost of US$0.74m. The report was subsequently carried in Russian media close to government. Co-operation on prisoner exchanges. State-linked publication Sputnik has reported that the agreements reached in December between Cuba and Russia included one that will enable the exchange of convicted 4

5 prisoners. The publication cited claims that the document may become the basis for wider collaboration between the two states in the field of executing custodial sentences. Europe Sercotel to open four new Havana properties. Spanish Hotel Group Sercotel has announced that it has added four boutique hotels in Havana to its collection. The new properties will be included in the group s portfolio alongside the two beach hotels it operates on Cayo Guillermo and Cayo Santa María. The Havana hotels (Sercotel Habana Paseo, the Sercotel San Alejandro, the Hotel Lido, and the Hotel Caribbean) will undergo extensive remodelling, and are expected to open at the end of 2017 under a ten-year operating agreement. They will provide a combined total of 211 rooms. The company specialises in providing high levels of service to guests in smaller properties. Regional Relationship with Nicaragua unconditional. During a visit to Nicaragua, Cuba s First Vice-President, Miguel Díaz-Canel, has said that the country can always count on the unconditional support, friendship, solidarity and cooperation of the Cuban people and government. Mr Díaz-Canel was speaking prior to the inauguration of recently re-elected President Daniel Ortega for a further term. His remarks mirror those made recently in relation to Venezuela by Victor Gaute, a member of the Central Committee of the Cuban Communist Party and the head of Cuba s mission in Venezuela. Bahamas welcomes migration accord. The Bahamas has welcomed the end of the US wet foot/dry-foot policy, which the country s Foreign Minister, Fred Mitchell, said had encouraged illegal landings on the Bahamian coast for many years. Mr Mitchell said that during 2016 the Bahamas authorities repatriated 1,179 Cubans who had arrived on their way to the United States. The Bahamian Government said that it hoped that the agreement (details above) will continue after President-elect Donald Trump takes office. Over the horizon A delegation of government officials and port leaders from Cuba are to visit US maritime centres along the Gulf Coast. The delegation will visit Port Houston, the Port of New Orleans, Port Everglades in Fort Lauderdale, the Port of Palm Beach, and Port of Virginia in Norfolk between January 22 and 30. President Castro met with the President of the US Chamber of Commerce, Thomas Donohue, on January 13 in Havana. Granma said that they discussed matters of mutual interest, but no further details were provided by either side. Mr Donohue was accompanied by Maurice Greenberg, the Chairman and CEO of CV Starr, a major US insurance company. The Chamber is a strong supporter of the normalisation process begun by President Obama, and has been urging US companies to conclude negotiations before the US administration changes on January 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: 5

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