Delimitation accords set scene for oil exploration

Transcription

1 Delimitation accords set scene for oil exploration Highlights this issue: Poor employment conditions for selfemployed questioned US President must make first Cuba move by February 1 Major bilateral security agreement signed with US Photovoltaic parks under construction Cuba gives first indication of thinking on Trump Administration Matanzas being upgraded as a cultural tourism destination ISSUE NUMBER JANUARY 2017 In the final hours of the Obama administration, Cuba and the United States signed a bilateral treaty in Washington that delimits the boundaries of an area known as the eastern gap, a point at which the 200 mile economic zones of Mexico, the US and Cuba converge in the Gulf of Mexico. In parallel, Mexico and Cuba signed a similar agreement in Havana relating to the same area. The January 18 accords cover an area of the three countries extended continental shelf, widely believed to be rich in oil and gas deposits. In a brief statement, now taken offline, the US State Department said The treaty is consistent with the longstanding US goals to resolve our outstanding maritime boundaries and promote maritime safety and protection of the marine environment. In Havana, the Mexican ambassador told Granma We have always resolved issues on the bilateral agenda in a very satisfactory manner. In the current context, he said, the agreement was essential for energy and investment reasons. The Cuban Foreign Ministry said in a statement that the document provided legal certainty for the parties to exercise their rights of jurisdiction and sovereignty over that maritime area. The signing potentially brings to an end any dispute over rights in relation to all mineral finds in the Gulf of Mexico, as Mexico had previously signed an agreement relating to its section of the Eastern Gap with the US. However, before the new treaty enters into force it must be ratified by the US Senate, a process that is uncertain as, according to industry sources, it has not yet voted on the 1977 Cuban maritime boundaries treaty. Like all other US executive branch actions, the measures will be subject to review by the incoming US administration, making its future uncertain, although US oil and gas majors are believed to be interested in the potential of that part of the Gulf of Mexico. Resolution of the three countries overlapping and previously unresolved claims began in mid Mexico already has a cross-border agreement with the United States on developing potential oil and gas resources in the Gulf of Mexico.

2 Poor conditions for self-employed questioned A lengthy article has appeared in Granma addressing the working conditions and employment rights of selfemployed workers ( cuentapropistas ). The article made clear that the Cuban labour law in place for state workers should also apply to self-employed workers and should be enforced. It cited several examples of malpractice in the self-employed sector, including women being made redundant when pregnant, long working hours, unpaid maternity and sickness leave, and the absence of a paid vacations. According to the article, hundreds of young people in the country working in employment in the non-state sector have become deeply concerned about the social aspects of self-employment. Quoting a member of the National Bureau of the Young Communist League (UJC), Julio Gómez Casanova, Granma said that the most frequent problems faced related to job insecurity and the absence of contracts and vacations. It also made clear that the UJC was now paying greater attention to the interests of self-employed citizens under 35 years of age, and that Cuba s other mass organisations were holding meetings with self-employed workers to discuss how they might provide support. The article quoted others as saying that while legislation relating to cuentapropistas was experimental and still under study, it would be necessary to include in regulations an additional range of social measures to protect such workers. In doing so it noted that the Cuban Workers Federation (CTC) had put forward suggestions as to how this can be done. The story in Granma also cited the laws that cover self-employment, noting the role of the Ministry of Labour in enforcement while observing that such laws are mandatory. It then quoted a somewhat defensive response from the Ministry about its actions in this respect. The story concluded by observing that while the self-employed sector had come to stay, socialism implied there should be no exploitation of working people. The article, which said that some 31% of the country s 0.5m cuentapropistas are between 18 and 35 years of age, and 32% are women, suggested that many such workers are now likely to be encouraged as a matter of policy to engage in non-traditional ways with the Cuban state and the country s mass organisations. Cuba Photovoltaic parks under construction. Work is underway on the construction of 59 solar photovoltaic parks across Cuba. According to reports in the Cuban media, the Ministry of Construction (Micons) has said that 33 will be completed this year, mainly by brigades from the Ministry. The 33 photovoltaic parks will be integrated into the national grid providing around 59 megawatts. Cuba now obtains 4% of its electricity from renewable sources and aims to reach 24% by Matanzas upgraded as a cultural tourism destination. Large numbers of Cuban engineers and technicians are reportedly working on a rehabilitation programme in the city of Matanzas. The objective is

3 to revive the historic centre of the city to enhance its attractions and turn it into a destination for cultural tourism. According to the Cuban state media, in the first quarter of the year some 200 technicians are aiming to complete the necessary preparations for the restoration of the Sauto Theatre, the Guanima bridge between Havana and Varadero, and the transformation of Medio Street into a modern commercial pedestrian promenade, as well as other projects. The reports also said that the construction of the new Varadero International Hotel was on schedule. Lower tourism growth expected in Cuba s Ministry of Tourism has said that it expects 4.2m visitors in According to the nightly television programme Mesa Redonda, this would represent a 1% increase over the 4m who vised in The report noted that Cuba currently has 66,547 rooms for visitors, with another 4,020 scheduled to be added by the end of The programme noted that foreign investment was being pursued, primarily in facilities located in the island s most popular destinations: Havana, Varadero, Trinidad, Holguín, and the cays of Cuba s northern coast. Coffee shortfall leads to US$50m in imports. According to the publication Trabajadores, Cuban Coffee production has fallen by 90% in recent years resulting in government having to spend around US$50m to import beans to meet domestic demand. Citing Ministry of Agriculture figures, the weekly publication said that while Cuba once produced 60,000 tonnes of coffee a year, it now scarcely reaches 10% of that quantity. The article quoted experts who attributed the decline to drought, hurricanes, and the failure to make sufficient fertiliser, insecticide and tools available to coffee farmers. Low incomes and better rewards from growing other crops were also cited as reasons for the decline in production. The publication said that while a new approach aimed at increasing production had been introduced, the country still needed to import 19,000 tonnes of coffee to meet domestic demand. Non-state fares to be controlled. The Vice President of the Provincial Administrative Council of Matanzas has said that a decrease in the maximum fares charged by non-state transportation is likely to be introduced in the province. The new fares will be based on increases in prices charged between January 2010 and June Reports in the Cuban media said that while self-employed transport operators claimed that their increased prices reflected higher operating costs, reality reflects the need to put an end to such an increase. Environmental twinning agreement. The Zapata Swamp National Park in the Cuban province of Matanzas and the Everglades in Florida have been twinned through an agreement intended to improve their environmental management. The agreement was signed in Washington. According to the Cuban Foreign Ministry, the Zapata Swamp and Everglades National Parks are outstanding examples of the natural and cultural heritage that both nations wish to preserve for present and future generations. United States US President must make first Cuba move by February 1. President Trump s first decision on Cuba is expected to be to take a position before the end of January on whether to permit US citizens to file lawsuits against any interest that has profited from property expropriated by the Cuban government. Under a clause in the 1996 US Helms Burton legislation relating to civil litigation filed in US courts against either private companies (American and international), or the Cuban government, the US President must certify every six months that the provision remains suspended. Every US President to date has opted to do so. The current suspension ends on February 1 this year. Some Washington-based observers believe that the views previously expressed by some of his transition team suggest that President Trump will not continue to suspend the clause. Any such decision could see huge numbers of actions brought against US and European companies making use of assets alleged to have been expropriated.

4 Trump team s possible thinking on Cuba outlined. The Miami-based TV and radio station WLRN has reported that members of President Trump s transition team have been meeting with Cuban-Americans in South Florida to discuss future US-Cuba policy. In an interview with the station, Andy Gomez, a former senior fellow at the University of Miami s Institute for Cuban and Cuban-American Studies, provided some indication of the new Administration s line of thinking. Gomez noted that Cuba was not a top priority for the incoming Administration, but said that the transition team had indicated that President Trump will make it harder for Americans to visit Cuba. He also predicted that the new Administration will roll back the remittances Cuban-Americans can send to the island until the Cubans come to the table with something concrete. Mr Gomez said that his own conversations suggested that exchanges between Washington and Havana will cease. They think we re going to have to push back to see if Cuba might be willing to come to the table on more serious issues, Mr Gomez said. He argued that one line of thinking in this regard might be to promote a more transactional arrangement based on Cuba developing a long-term plan to repay American companies that had their properties confiscated after the 1959 revolution. I think that will attract, as I am told, the Trump Administration to say, OK, let s now move forward, he told WLRN. Mr Gomez also said that his discussions indicated another action may be to rescind business executive orders made by President Obama, while being very careful not to step on or violate any contracts that are already in place. Another issue that may be reconsidered, according to Mr Gomez, was a reduction in existing levels of travel in the hope of creating social instability. He stated his own opposition to this approach. Mechanisms to consider claims discussed. On January 12, Cuba and the United States held a third meeting aimed at starting to address registered claims for compensation between the two countries. The discussions centred on probable mechanisms to achieve a settlement. Both sides stressed the importance and usefulness of continuing these exchanges. Applications from most stranded medics to be allowed. Cuban medical professionals thought to number in their hundreds who have been waiting in third countries for permission to emigrate to the United States are to be allowed to have their paperwork processed. In a last-minute reprieve following an announcement by the Obama administration that it was eliminating the Cuban Medical Professional Parole programme (Cuba Briefing January 16, 2017), the US Department of Homeland Security said that it will process all pending applications submitted before 5pm on January 12, the official end of the programme. Major bilateral security agreement signed. Cuba and the United States have signed an agreement to cooperate against terrorism, drug trafficking, money laundering and other international criminal activities. Present in Havana for the signing on January 16 was President Obama s Deputy National Security Adviser, Ben Rhodes, who helped negotiate the normalisation of relations between the two countries. The arrangement establishes a framework for a partnership on counternarcotics, counterterrorism, legal cooperation, and money laundering. It is expected to lead to a strong US-Cuba law enforcement relationship, although the accord could theoretically be reversed by President Trump. Air and maritime rescue accord signed. Cuba and the United States have signed an agreement to strengthen cooperation in aeronautical and maritime search and rescue. The agreement, signed in Havana, provides for communication channels, training and a regulatory framework between the coastguards of the two countries and other agencies. New agreement on transmission of pathogens. Cuba and the United States signed a memorandum of understanding on bilateral cooperation in plant and animal health care in Washington on January 20. The agreement relates to ensuring that animal and plant pathogens are not introduced into either country. It

5 envisages the exchange of scientific information, best practice and collaborative projects on specific plant and animal health issues. New Jersey police want Trump to return fugitive. The head of New Jersey's state police has criticised the recent law enforcement accord reached between the US and Cuba, on the basis that it does not require the return of Joanne Chesimard. Ms Chesimard was convicted in 1977 for the death of a state trooper. Colonel Rick Fuentes said that he hoped to work with the Trump Administration to negotiate her return. Ms Chesimard was granted asylum in Cuba, where she now lives under the name Assata Shakur. Port Everglades wants increased shipping links. The US east coast port of Port Everglades has said that it plans to sign an agreement with Cuba that it hopes will generate new local job opportunities and revenue. The agreement is expected to be signed on January 26 with a visiting delegation of Cuban government officials. Port Everglades is primarily hoping for more cruise and export opportunities for local cruise lines and business owners. Existing services to Cuba include Pearl Seas Cruises of Connecticut which operates cultural voyages, and Crowley Maritime which has a twice-weekly cargo service to Mariel. The port is also hoping for an expansion of US exports of poultry, produce, equipment and building materials, but acknowledged the uncertainty surrounding the policy of the incoming US Administration towards Cuba. Russia Visitor arrivals continue to increase. Russian visitor arrivals to Cuba grew by 50% in According to the Cuban embassy in Moscow, total numbers last year exceeded 65,000. It was the first time in the four years following Russia s economic downturn that visitor arrivals had increased. Prensa Latina quoted an official as saying that if the dynamic was maintained in 2017, Cuba could expect more than 70,000 Russian visitors, numbers not seen since western sanctions began to affect the national economy. Europe Cuba gives first indication of thinking on Trump Administration. The first quasi-formal commentary on Cuba s possible response to the election of Donald Trump has appeared in the London-based Guardian newspaper. The publication carried details of exchanges between Dr Helen Yaffe, a fellow in the economic history department at the London School of Economics and Cuba s lead negotiator with the US, Josefina Vidal, the Director General of the US Department at Cuba s Ministry of Foreign Affairs. The newspaper quoted Mrs Vidal as saying that Aggression, pressure, conditions, impositions do not work with Cuba. This is not the way to attempt to have even a minimally civilised relationship with Cuba. The Guardian also noted that Cuban officials plan to wait for action rather than words, because the US President had repeatedly flip-flopped on the issue of rapprochement and also put his business interests above his country s laws. The article related to a Rockefeller-LSE grant-funded study. The full article can be read at German body sees limited window for cooperation. A twelve-person German business delegation from Baden-Württemberg visited Havana from January The delegation included companies engaged in the production of automotive equipment, industrial machinery, and medical products. Other participants were reported by the Cuban media to be interested in renewable energy, and systems engineering for telecommunication and information technologies. In November, Baden-Württemberg International reported that it is planning another visit from May 1 to 6 to explore the market for universities and research institutions. At the time, it noted that given the size of the island

6 and the limited number of possible cooperation partners meant that it was likely that within a few years the cooperation possibilities with Cuban partners will be exhausted. Regional Cuba to be at CELAC summit in Dominican Republic. The fifth summit of the Community of Latin American and Caribbean States (CELAC), which will take place in Punta Cana in the Dominican Republic between January 24-25, is expected to be attended by high-level Cuban government officials. Speaking about the event s importance to Cuba, the Deputy Foreign Minister, Abelardo Moreno, said that the organisation contributed unity within diversity. He hoped that the meeting would reiterate CELAC s rejection of the US embargo, and continue to support the return of territory occupied by the US at Guantánamo. Over the horizon The Cuban Government continues to stress in the need to increase food production. During visits to locations in Matanzas province, Cuba s Second Secretary, Vice President José Ramón Machado Ventura, stressed that if progress was to be made, farmers must make better use of land and machinery. He said that more resources had been made available to farmers in the expectation of higher yields. The Cuban government has held further high level meetings in Havana with senior representatives of the North Korean (DPRK) government. Official media reported that the Cuban Vice-President, Salvador Valdes Mesa, received his counterpart from the DPRK Choe Ryong Hae on January 12. As was the case during previous North Korean visits in 2016, the reports said that bilateral relations and their future were reviewed, and the bonds of friendship were highlighted during a working visit. Mr Choe, one of the most powerful officials in the DPRK s formal hierarchy who has close ties to the country s historic leadership, was accompanied by the Foreign Deputy Minister Sin Hong Chol. Mr Choe was formerly the political director of the Korean People s Army. This is the fifth reported high level exchange in Pyongyang and Havana since May 2016 (See Cuba Briefing July 4, 2016 for further background). 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