Highlights this issue: 26 June 2017, Issue 922

Transcription

1 26 June 2017, Issue 922 Highlights this issue: Uncertainty over counter-narcotics cooperation Spending on science continues to increase Carnival concerned that new US Cuba policy may stop cruise development China and Cuba agree to deepen economic cooperation Head of US broadcasting to Cuba resigns Foreign Minister criticises new US policy Cuba s Foreign Minister, Bruno Rodríguez has said that by rescinding President Obama s policy directive on Cuba, the US policy is effectively ends US recognition of Cuba s independence and sovereignty. Speaking to the media on June 20 during a visit to Austria, he said that President Trump s decision reverses President Obama s recognition of Cuba s independence, sovereignty, and self-determination, and curtails his engagement with the Cuban government as a legitimate and equal interlocutor. He also noted that President Trump had moved away from his predecessor s approach that the blockade (was) a failed policy, which has been unsuccessful, failed to achieve its objectives, and should be eliminated. Despite this, Mr Rodriguez confirmed that Cuba is willing to continue engaging in a respectful dialogue and cooperation in areas of mutual interest, and to negotiate pending bilateral issues with the United States. He warned, however, that Cuba will not make concessions which would in any way impact its sovereignty and independence, and will never negotiate under pressure or threats. He added that it is the Cuban government s intention to wait until the US government produces specific regulations intended to implement the newly announced measures, before expressing an opinion on their scope and depth. Mr Rodriguez described the style of President Trump s announcement in Miami as a grotesque Cold War-era spectacle. He reserved particularly harsh criticism for those Cuban-Americans who were present at the announcement, describing them as an aging, extremist minority of Cuban origin. He said that younger Cubans in the US supported normalisation and ending the embargo. Mr Rodriguez s other remarks and media statements also revealed that: Cuba believes that the new measures will affect relations between the US government and the wider Latin America/Caribbean region, and will severely damage the credibility of (US) foreign policy. Under national and international law and the Latin American tradition Cuba will not return individuals considered by the US as fugitives from justice, and that they have been granted political asylum or refuge. The Caribbean Council is able to provide further detail about all of the stories in our Cuba Briefing publication. If you would like a more detailed insight into any of the content of today s issue, please get in touch with a member of our team here.

2 Cuba s criteria for progressing with bilateral negotiations include: ending the embargo; returning the Guantánamo Naval Base; and accepting the concept of mutual compensation in resolving the issue of certified US owners of expropriated assets. Cuba intends to uphold those agreements which have already been signed, and is willing to negotiate and sign new cooperation agreements in other areas. Uncertainty over counter-narcotics cooperation Antonio Ibarra, Secretary of Cuba s National Drugs Commission, has stated that the country wants to continue its effective collaboration with the United States on counter-narcotics issues. Speaking to the media, Mr Ibarra said that Cuba hopes that the United States will not renounce the effective collaboration that Cuba can lend to it. Last year Cuba and the US agreed a comprehensive security agreement that includes provision for the exchange of real time information with the US Coast Guard, and which established channels of direct communication with US agencies involved in counter-narcotics processes and other security issues. Although Cuba has been holding high-level exchanges looking at security cooperation in Washington and Havana on a biannual basis, an initial meeting due to take place earlier this year was postponed at the request of the new US Administration. Cuba is now concerned that the cooperation mechanism will be discarded. Mr Ibarra said that in 2016 Cuba seized 1,711kg of narcotics (1,503kg of marijuana and 207kg of cocaine). The figure has risen significantly this year, a trend which was attributed by Mr Ibarra to: Organised criminal groups which had previously focused on human trafficking may now be reorganising their activities to traffic narcotics following the end of the US Wet Foot, Dry Foot policy; Closer cooperation with the US, Jamaica and the Bahamas on surveillance and interdiction; Decriminalization and legalisation of the production of marijuana in Argentina and Uruguay, causing a rise in marijuana trafficking throughout the region. The freezing of dialogue on such issues since President Trump entered the White House. Mr Ibarra told media outlets that Cuba will not be joining countries in the region that have legalised cannabis for medicinal or recreational purposes. Separately, the Cuban customs service (AGR) has reported that in the first five months of this year a significantly larger volume of narcotics was seized from travellers on arrival into the country than during the same period in A report in Granma said that the AGR confiscated 30.22kg of narcotics in 2016, but that this had risen to

3 32.59kg in the first four months of this year alone. Granma added that there had also been an increase in arms and munitions smuggling during the same period. Cuba Work begins on renovating heritage hotels in Santa Clara. Construction brigades from Emprestur, an enterprise linked to the Ministry of Tourism, have begun a programme of renovation and remodelling of several heritage hotels in the province of Santa Clara. The objective is to complete the upgrades in time for FITCuba 2018, the country s annual tourism fair, which will next be held in Cayo Santa Maria. The hotels include the Florida and Floreale, both located in the provincial capital of Santa Clara. Other hotels involved include: The Cosmopolitan, in Camajuaní The Bauzá and Leyenda, in Remedios The derelict Hotel El Comercio, in Caibarién The Hotel Sagua, in Sagua la Grande. All will upgraded to four-star standard, and will form part of the luxury Encanto brand. When completed, the properties will significantly expand accommodation capacity in the Santa Clara region, and will be marketed as cultural and heritage hotels. Promotion will focus on attracting European visitors. FITCuba 2018 will have a special emphasis on UK tourism to Cuba. Research and science spending continues to increase. Prensa Latina has reported that Cuban expenditure on scientific research continues to rise. A report quoting officials from the country s Ministry of Sciences, Technology and the Environment (CITMA), said that the country spent the equivalent of 0.91% of GDP on science-related activity in The funds are principally administered by CITMA; the ministries of Public Health, Agriculture, Transportation and Higher Education; and BioCubaFarma, which produces medicines and advanced technology as well as acting as a healthcare service provider. The report said that expenditure and investment in the sector had increased by 23% in 2016 when compared with the previous year. No absolute figure for expenditure was quoted, but if one accepts World Bank estimates that Cuba s GDP stood at US$87bn in 2016, spending on scientific research and development would equate to approximately US$790m. The report placed Cuba after Argentina, Mexico, Brazil, and Costa Rica for expenditure in Latin America on science and research. Proposals for new taxes targeting polluters. In an interview with Cuban news agency ACN, the Director of Environmental Management of the Havana Bay State Working Group, Mercedes Gzegozewski, has suggested that companies polluting the bay should be taxed to pay for clean-up operations. She argued that the measure would improve sanitation for residents, and would also be an essential step towards enabling the area to be used for tourism and maritime leisure activities. Cuban band signs to major US record label. Billboard magazine has reported that a Cuban group, Angeles, has signed a contract with US record label Warner Music Latina. The band and its producer are reported to have reached a new agreement for the international promotion and distribution of their work. United States Carnival concerned Trump policy may stop cruise port development. The CEO of Carnival Cruise Line, Arnold Donald, has said that while the cruise industry may not be directly affected by President Trump s new Cuba policy, he expects its interest in the expansion of Cuban ports to be disrupted. Mr Donald stated that Carnival expected the new policy to disrupt cruise companies interest in investing in Cuban ports, which are controlled by the military. He added that cruise companies are unsure whether new

4 regulations will prevent them from helping Cuba to develop its limited port capacity to ensure that medium and large cruise ships can dock in the country. He noted, however, that it was quite possible that Cuba may undertake the necessary investment and development itself. Head of US broadcasting to Cuba resigns. María Gonzalez, the Director of the Office of Broadcasts to Cuba (OCB) which oversees Radio and TV Martí and the website Martí Noticias, has resigned. According to El Nuevo Herald Ms Gonzalez had come under increasing attack from Cuban-Americans who opposed her approach of bringing coverage in line with the more independent standards of the Voice of America. She was also criticised for adopting an overly favourable stance on the Obama administration. Minnesota Governor visits to identify agricultural opportunities. The Lt Governor of Minnesota, Tina Smith, has visited Cuba with an accompanying business delegation. The visit, which coincided with President Trump s announcement of his new policy on Cuba, was intended to develop agricultural sales and academic exchanges with the country. Governor Smith, a Democrat, told the Cuban media that she was disappointed that the progress made under President Obama was being set aside. She highlighted, however, that agriculture was not touched by President Trump in his new policy. Europe European Parliament takes step towards a final agreement on EU policy. The European Parliament has reached a preliminary agreement to approve the EU-Cuba Political Dialogue and Cooperation Agreement reached last December (Cuba Briefing December 12, 2016). On June 20, the Foreign Affairs Committee of the European Parliament adopted the agreement by a majority decision of 57 votes to nine, with two abstentions. It now proceeds to a meeting of the full Parliament in Strasbourg on July 4 for final Parliamentary approval, after which it must be formally ratified by EU members states. Although the process is expected to take some time only Hungary and Estonia have so far ratified the text once the full European Parliament has approved the agreement, the European Commission is expected to begin its provisional application. Spain has indicated that it will move quickly to ratify the agreement in the near future. Russia Russia criticises new Trump Cuba policy. The Russian Foreign Ministry has said that President Trump s new policy on Cuba is a return to the outdated rhetoric of the Cold War era. The Ministry said that while President Obama s policy towards Cuba was a well-thought political decision in which there were no losers, the Trump Administration s arrogant style of bullying Cuba has no future. The Russian statement went on to confirm Moscow s steadfast solidarity with Cuba, and recognised its constructive role in Latin America and on world issues. The Americas St Vincent Prime Minister visits after OAS fails to sanction Venezuela. Dr Ralph Gonsalves, the Prime Minister of St Vincent and the Grenadines, has made an official working visit to Cuba, during which he met with President Castro. Reports in the Caribbean media say that their discussions centred in part on the recent debate in the Organisation of American States (OAS) aimed at isolating Venezuela.

5 At its June 19 meeting in Cancún, OAS foreign ministers failed to achieve the two thirds majority required to pass a strongly-worded resolution calling on the Venezuelan government to reconsider its proposal for a constituent assembly, end the ongoing violence, respect human rights and engage in a process of dialogue. Although a prior CARICOM position had been agreed, St Vincent chose to take an alternate approach. Dr Gonsalves reportedly criticised President Trump s recent decision to reverse US policy on Cuba in remarks made during his visit. Panama offers deal to return to some migrants. The government of Panama has proposed that some of the Cuban economic refugees who were stranded in the country when the US ended its wet foot, dry foot policy earlier this year should return voluntarily to the island, becoming cuentapropistas. The proposal, which would apply to just 126 migrants in western Panama, could also involve the offer of start-up capital for creating small businesses. According to Panama s Directorate General of Migration, more than 39,000 undocumented Cubans have been living in Panama for the last five years. Returning migrants would be offered multiple-entry visas by Panama. The government hopes that this would enable returning migrants to purchase products in Panama for resale in Cuba as their businesses develop. CHTA issues strong statement criticising new US travel policy. The Caribbean Hotel and Tourism Association (CHTA) has issued a strongly-worded statement confirming its regret that President Trump s new policy will reimpose restrictions on travel to Cuba by US citizens. The regional private sector association said that it was speaking on behalf of its members in rejecting restrictions on trade and travel. The statement added that the CHTA wishes to see Cuba continue to engage in regional economic development, and warned that the announced policy changes could stall or altogether reverse the heartening progress made in recent years. The CHTA urged both the US and Cuba to accelerate cooperation, on the basis that the growth of travel and trade presents the greatest opportunity for breaking the long-standing social, political and economic barriers that have historically divided the two countries. It said that the decision was likely to have negative consequences for Cuba s development, as well as that of the wider Caribbean region. China China and Cuba Agree to Deepen Economic Cooperation. The Cuban Minister for Foreign Trade and Investment, Rodrigo Malmierca, and his Chinese counterpart, Zhong Shan, have said that both countries wish to further strengthen bilateral economic relations. The statement followed a meeting of the Cuba-China Intergovernmental Commission for Economic and Trade Relations. China is now Cuba s principal global trading partner. Among the issues discussed were greater Chinese involvement in Cuban infrastructure projects including airports, ports, docks, roads, telecommunications, hotels and tourist facilities. China indicated that it was willing to import more Cuban products, and would work with Cuba to encourage reciprocal investment and to support trade and bilateral investment. The discussions also centred on China providing increased training for Cuban government officials, technicians and professionals. Minister Malmierca noted that the Chinese renminbi was increasingly being used in financial relations between the two countries, and said that Cuba was interested in gaining access to the funds the Chinese government has made available to the Latin American and Caribbean region.

6 Cuban National Assembly President visits China. The President of the Cuban National Assembly, Esteban Lazo, has held high level political meetings with leading members of the Chinese Communist Party, and with regional Chinese Assembly members. The visit focused in part on deepening parliamentary relations with the Chinese provinces. Reports of his discussions related to the Cuban-Chinese joint venture Biotech Pharmaceuticals Co Ltd noted that Cuba earned US$8m/year between 2012 and 2015, from total annual sales of approximately US$51.4m. The arrangement, which involves the development, production and marketing of monoclonal antibodies for the treatment of cancer, is due to be renegotiated in Over the Horizon There is uncertainty in Havana about the precise implications and reach of President Trump s National Security Directive on Cuba (Cuba Briefing, June 19, 2017). The Cuban government has said that it remains unclear whether the decision includes the repudiation of the many agreements reached over the last two years between the two governments. These include agreements on bilateral cooperation on regional and hemispheric issues; international terrorism, including narcotics trafficking; trafficking in persons; cyber-crime; cyber warfare; and fraud and money laundering. Officials in third countries indicate that until Washington clarifies its intent, uncertainty is likely to remain over whether the decision to rescind the 2016 Obama Policy Directive also brings into question the future of human rights dialogue and other core aspects of the US-Cuba relationship. It also remains uncertain whether the US Treasury will tighten rules in relation to investment flows in such a way that Washington will again attempts to chill investments from third countries. Separately, officials in Europe say they are watching carefully to see if the US President will, like every one of his predecessors, use his executive power to waive the Helms Burton Title III provision on a six-monthly basis. Failure to do so would enable US registered claimants of expropriated assets to act against those said to be trafficking (making use of) such property. The text of the Trump security directive can be found at 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

7 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@caribbeancouncil.org now or subscribe online at Corrections or amendments should be sent to: publications@caribbean-council.org