The presentation is about the recent development (until 2016) of the renewed diplomatic relations between Cuba and the US and its impacts in and reactions from the rest of the Caribbean.

1. Reconfigurations in Cuba – U.S. relations
and its impacts on Caribbean states
Dr. Jacqueline Laguardia Martinez
Institute of International Relations, UWI
Jacqueline.Laguardia-Martinez@sta.uwi.edu

2. Points to explore
1. Forces to change: Cuba - USA
2. The 17D: facts and consequences
3. Cuba and the Caribbean in the new context
4. 2016 and recent developments

3. End of 2014: the right moment to change
• Growing understanding within the
U.S. of the failure of the U.S. policy
towards Cuba.
• Cuba as a lost opportunity.
• Younger generations of Cuban-
Americans want the U.S. to have a
normal relation with Cuba.
• U.S. businessmen are interested on
making business in Cuba.
• Obama’s presidency second term.
• On 2014, Cuba and the
European Union opened
negotiations on a bilateral
agreement on Political Dialogue
and Cooperation.
• Latin America and the
Caribbean have asked the U.S.
to change its policy towards
Cuba: Cuba was invited to
attend the 7th Summit of the
Americas in April, 2015.

4. Some revealing signs
• April, 2009: Fifth Summit of the Americas in Port of Spain.
President Obama publicly committed himself to look for a ‘fresh
start’ in the relations between the two countries.
• June, 2009: The Organization of American States met in
Honduras and revoked Cuba’ suspension from the multinational
group approved in 1962.
• December 10th, 2013: President Barack Obama shook hands with
President Raúl Castro in Nelson Mandela’s state memorial
service.
• October – December, 2014: The New York Time’s editorials

5. Turning point: December 17th, 2014
•Both Presidents Obama and Castro addressed their
countries and international audiences, almost at the
same time.
•Both countries released prisoners.
•They announced the agreement to renew diplomatic
relations.

6. President Obama’s administration towards Cuba before 17D
• To allow Cuban-Americans to
travel easier to the island and to
send monetary remittances to
relatives.
• To allow American citizens to visit
Cuba for educational travel.
• Bilateral cooperation in drug
interdiction, natural disasters,
migration and fighting Ebola in
Africa.
• It has being particularly aggressive with
companies that negotiate with Cuba or
Cuban citizens (BNP Paribas, Red Bull).
• It continued mechanisms to organize and
promote internal opposition.
• Cuba continued included in the List of
States promoting international terrorism
made by the U.S. State Department.
• It bypassed the UNGA Resolutions that
demands the end of the embargo.
Sense of failed policy

7. Some advances until May 2016
• Rounds of negotiation and technical meetings: immigration; cultural and academic
exchanges; environment; natural disasters; Internet; drug interdiction; air safety;
remittances; humanitarian aid; democracy; human rights; cyber security
• 9 Bilateral Agreements and MOU: agriculture, environment, postal service, telephone
calls, regular flights, safety of maritime navigation, security of travelers and trade.
• A Cuba-U.S. Bilateral Commission was established on August 2015
• High-level visits, U.S. representatives to Cuba: Sec. Anthony Foxx (Transport); Sec.
Thomas J. Vilsack (Agriculture); Sec. Penny Pritzker (Commerce); Sec. John Kerry (State);
Virginia’s Gov. Terry McAuliffe; Texas Gov. Greg Abbott; Arkansas Gov. Asa Hutchinson;
New York Gov. Andrew Cuomo. Cuban representatives to the U.S.:
Rodrigo Malmierca Díaz (Minister of Foreign Trade and Foreign Investment)
• Cuba was excluded from the list of State sponsors of international terrorism in 2015
• Opening of Embassies in 2015 (July 21 Cuba in Washington/August 14 U.S in Havana)

8. Some advances until May 2016
• January 2015: U.S. companies authorized to export limited goods; a general license to
establish mechanisms to provide commercial telecommunications services in Cuba or
linking third countries and Cuba was approved; permissible use of U.S. credit and debit
cards; financial institutions may open accounts at Cuban banks.
• February 2015: Cuba’s small private business sector authorized to sell goods to the U.S.
• March, 2015: Restoration of direct telecommunication connection.
• April, 2015: Roswell Park Cancer Institute of Buffalo, New York, signed an agreement with
Cuba’s Center for Molecular Immunology to import the Cuban lung cancer vaccine with a
clinical trial in the United States.
• January 2016: More sectors of U.S. business authorized to export goods and services to
Cuba; more general licenses for categories of authorized travelers to Cuba.
• March, 2016: First flight from the United States to Cuba after agreement on restoring direct
postal service.

9. President Obama’s visit to Cuba, March 20-22, 2016
 Positive for the
normalization process.
 President Obama
announced the
authorization to individuals
to travel to Cuba for
‘people to people’
educational trips, allowed
Cuba to use American
dollars in international
transactions and other
measures to facilitate trade
and maritime
transportation.

10. What has not happened yet
The embargo/blockade is still in place
February 2016: A review of the Treasury Department’s enforcement actions involving
Cuba show eight sanctions cases since 17D. Fines imposed since the rapprochement
began have totaled USD 5,278,901, according to Treasury. Some of the companies fined
are WATG Holdings, Inc., PayPal Inc., CGG Services, Halliburton Atlantic and Halliburton
Overseas.
October 28, 2015: The United States voted against the UNGA Resolution criticizing the
U.S. economic blockade against Cuba (191-2).
The economic damages caused to the Cuban people by the blockade have been set at
more than 800,000 billion USD.
If the blockade were eliminated, exports from the US to Cuba could reach 4,300 million
USD a year and Cuban exports could be 5,800 million USD annually (Gary Hufbauer and
Barbara Kotschwar, 2014).

11. There are four aspects of the embargo that the President of the
United States cannot act:
1. The prohibition on US subsidiaries in third countries from trading
products with Cuba (Torricelli Act, 1992).
2. The prohibition on carrying out transactions with US properties
that were nationalized in Cuba (Helms-Burton Act, 1996).
3. The obligation to pay in cash and in advance for purchases of
agricultural products by Cuba in the US (Trade Sanctions Reform
and Export Enhancement Act of 2000).
4. Preventing American citizens from traveling to Cuba as tourists
(Trade Sanctions Reform and Export Enhancement Act of 2000).

12. The embargo in hands of the Congress
• The total dismantling of this policy does require Congressional
approval.
• Around 40 legal initiatives regarding Cuba have been presented in
Congress. The purpose of some is, though, to reinforce several
fundamental aspects related to the implementation of the
embargo and prevent the approval by the President of new
executive measures and the implementation of those which have
already been adopted.
• The US Congress has not approved any of the bills seeking to
eliminate some of the embargo regulations.

13. What else can President Obama do?
The Helms-Burton Act codified the embargo into
law along with the bundle of executive orders that
sustain it.
Nevertheless, that same law preserved the broad
powers of the President, via the issuance of
licenses to allow different transactions prohibited
by the embargo.

14. Embargo after 17D: nonsenses and contradictions
• The U.S. State Department announced that coffee is among the products
Cuba can export to the U.S. In May, 2016, the National Association of Small
Farmers announced it has been impossible for them to export Cuban
coffee to the U.S. (high tariffs since Cuba has no preferential trade
agreement with the U.S.; impossibility of using U.S. dollars in international
transactions; impossibility of relaying in any Cuban foreign trade
enterprise/institution).
• In May, 2016, the Cuban government confirmed Cuban institutions have
not been able to use U.S. dollars for international transactions in spite of
President Obama announcement during his visit to Havana.

15. • Cuba was added to Twitter’s list
• Netflix and Apple removed Cuba from its restricted country list for foreign trade
• Boost Mobile connects Miami customers with Cuba on new prepaid plans
• Verizon Communications signed a direct interconnection agreement with the Cuban
ETECSA
• T-Mobile signed an interconnection and roaming agreement with Cuban ETECSA
• Priceline Group makes Cuban hotel rooms available to U.S. customers via subsidiary
Booking.com
• Airbnb offers Cuba home-rental facilities
• American Airlines, Delta, JetBlue, Southwest, United Airlines and Alaska Air Group
will operate commercial flights to Cuba
• Feb. 2016: Cuba Cleber LLC was notified that it could open a facility in Cuba to build
tractors
• March 2016: Starwood Hotels and Resorts signed three hotel deals in Cuba
U.S. private sector first steps

16. Consequences of the 17D
A growing interest in Cuba

17. In the U.S.
• American visits rose 76 % to
161,233 in 2015, not counting
Cuban-Americans.
• Until May, 2016: 94,000
Americans visited Cuba.
• U.S. businesspersons and
companies visiting Cuba.
• About 50 American businesses
attended the Havana
International Fair (FIHAV) on
November 2015.
Out of the U.S.
• More tourism: In 2015 Cuba received a record
3.52 million visitors, up 17.4 % from 2014. In
Havana 1,685,381. In the first quarter of 2016,
572,000 visitors in Havana (New 7
Wonders Cities).
• More FDI coming from traditional partners:
hotels, airlines, technology, renewable energy.
• Cruise ships: Ponant, Celestyal Cruises.
• Mariel Special Economic Zone.
• Debt renegotiations: Australia, UK, Spain,
Netherlands, China, Spain, Japan, Paris Club.

18. Why Cuba
NOW?
In the future it is
expected:
1. American
tourists to travel
to Cuba
2. American
companies to
open business in
Cuba

19. Cuba and the rest of the
Caribbean
A threat or a partner?
To compete or to cooperate?

20. Monday, April 6, 2015, The Jamaica Observer

21. A threat?
• The rise of tourist arrivals to Cuba at the expense of other Caribbean
destinations was one of the forecast negative effects, together with
concerns regarding U.S. investments, trade and aid funds deviating to
Cuba.
• According to a survey of Travel Leaders Group of 2015, the number of
Americans interested in travel to Cuba if all U.S. Government restrictions
were lifted is on the rise, with 15% saying they’d go as soon as they could,
compared with 11% in 2014.
• According a IMF study of 2008, Cuba is bracing for as many as 10 million
American tourists per year.
• Cuban officials estimate that 1.5 million Americans would travel to Cuba
annually.

22. Not really…
• According the World Tourism Organization, the Caribbean ended 2015
with a 7.4 percent growth compared to 2014, receiving 24 million tourists.
• Cuba’s main assets as tourist attraction for Americans cannot be provided
by any other destination: old American cars, ‘socialist’ experience (history,
society)
• Caribbean sun and beach destinations (Bahamas, Barbados, Punta Cana)
are well positioned in U.S. markets and Cuba’s resorts cannot compete
with them, still.
To come to Cuba FIRST is the strategy followed by other regions to benefit
from the growing interest and business opportunities in Cuba and get
there before the U.S. Why not the Caribbean?

23. Opportunities for the Caribbean
1. More tourists expected to visit the Caribbean (Cuba
joined the CTO in 1992).
2. Development of multi-destination tourism (cruises).
3. Development of diverse Caribbean tourist attractions:
health tourism, city tourism, cultural tourism
4. Cuba as market for Caribbean products and services.
5. Cuba as hub in the Caribbean (Mariel port’s facilities).

24. Tourism as main interest focus. FITCuba. May 2016
• 36th International Tourism Fair in Havana, Cuba.
• More than 2,000 delegates from 53 countries.
• The fair was dedicated to Havana as a destination.
• The fair was dedicated to Canada as the guest country (Canada is the main source of
tourists to Cuba with 1.3 million in 2015).
• The fair was dedicated to Culture as tourism product.
• Cuba currently has 62,090 rooms in 360 hotels (68 percent four and five-star hotels)
plus other 18,742 in the private sector, a total of 80,832 rooms nationwide.
• In Havana, there are 11,309 rooms in hotels, plus 4,700 in the private sector.
• About 13,688 new rooms will be built for 2016, especially for sun and sea.
• The Cuban government has approved 26 joint ventures, 69 management contracts and
18 international chains.
• Cuban hotel development plans to reach, by 2030, a total of 134,300 rooms out of a
potential 273,500 (the maximum possible for the Cuban hotel industry).

25. Caribbean advantages to benefit from the new
Cuba- U.S. relations 17D
• Cuba’s foreign policy key principles remain the same: International
activism, critic to interventionism and supporter of preventive action
lead by multilateral organizations (UNESCO, FAO, UNDP, WHO, Human
Rights Council), solidarity as main philosophy and cooperation as
implementation mechanism in the search for an international insertion
qualitatively different.
• Long established and strong diplomatic relations (1972).
• Long established cooperation programs: education, health sector, sports.
• 2000 Trade and Economic Cooperation Agreement between CARICOM
and Cuba revised in 2014.

26. • 1991: A CARICOM Commission visited Havana
• 1993: Establishment of the CARICOM-Cuba Joint Commission
• 1994: Cuba joins the Association of Caribbean States (ACS)
• 2000: Trade and Economic Co-operation Agreement between Cuba and CARICOM.
(Two Protocols)
• 2002: First Summit Cuba-CARICOM
• 2005: Second Summit Cuba-CARICOM
• 2008: Third Summit Cuba-CARICOM
• 2009: OAS approves the possibility of Cuba’s return
• 2011: Fourth Summit Cuba-CARICOM
• 2014: Fifth Summit Cuba-CARICOM
• Since 1992: general condemnation to the USA blockade against Cuba
Cuba and CARICOM relations

27. Cuba in the Caribbean: recent developments
• Operation ‘Milagro’ had operated more than 118 000 Caribbean
patients up to October 2014
• Medical Brigades are present in 12 Caribbean countries
• Technical assistance in key areas such as Disaster Risk Reduction
and in the Caribbean Sea protection and preservation
• Cuba was elected Chair of the Association of Caribbean States
(ACS) Ministerial Council for the period 2016
• ACS VII Summit of Heads of State and/or Government to be held
in June 2016 in Cuba

28. Caribbean challenges to benefit from Cuba-US new
relations after 17D
• Inertia on the Caribbean private sector on not developing economic and trade
relations with Cuba.
• Difficulties to do business in Cuba: central-planned model, state-owned enterprises,
bureaucracy, legal and institutional differences
• Because U.S. changes on how to engage with Cuba are so new and untested,
Caribbean companies should approach new Cuban business opportunities with care
and caution.
• Cuba is looking for large investments and join business in sector that bring
technology, build infrastructure and create jobs.
• Similar economic production and export orientation.
• High cost of air and sea transportation within the region.
• Insufficient finance and credit mechanisms to foster trade and investments.

29. The cooperation vision is advancing
• May, 2016: The Chamber of Commerce of Cuba and the Corporation of
Investment and Development in Barbados signed a bilateral cooperation accord
between the chambers of commerce to exchange information on investment
opportunities.
• May, 2016: Cuba and Jamaica signed an agreement this week for Multi-
destination Tourism between the two countries.
• June, 2015: Cuba and Trinidad and Tobago signed a bilateral cooperation accord
between the chambers of commerce to exchange information on investment
opportunities. The agreement will also give access to details about the Special
Development Zone in the Cuban western Mariel Harbor and the portfolio that
contains over 200 investment projects valued at over US$8-billion.
• March 2015: Cuba and Trinidad and Tobago signed a Tourism Cooperation
Agreement.

30. Some recommendations for the rest of the Caribbean
1. To prefer the cooperation vision than the competing strategy, to embrace the
opportunities and cope with the challenges
2. To re-evaluate the existing mechanisms that put CARICOM member states in
an advantageous position to conduct business in Cuba.
3. To use the new context to invigorate the tourism activity in the region and
thinking on a new tourism development agenda (Caribbean Hotels and Tourism
Association, 2015).
4. To effectively involve Caribbean business community on doing business
in/with Cuba.
5. To carefully follow the ‘normalization’ process for correctly assessing new
business opportunities in Cuba.
6. To carefully follow the updating of the Cuban economic model to understand
the changes within Cuba.

31. VII Congress of the Cuban Communist Party, April 2016
Main subjects of
discussion
 The Cuban
Economic Model:
conceptualization,
implementation
 Economic and
Social
Development Plan
2030

32. For the rest of 2016: the process continues
• President Obama’s should not announce too many new measures even if there
is still some room of maneuver to act (not many new changes expected).
• Keep on advancing and developing the bilateral negotiations and business
opportunities already initiated and opened.
• Window of opportunity for third actors on exploring how to establish or
expanding their presence in Cuba will remain opened.
• The Cuba-U.S. normalization process is not expected to act as a major influence
in Cuba’s foreign policy and cooperation orientation towards the rest of the
Caribbean and Latin America.
• Cuba will advance in its domestic reform in order to improve its economic
performance, infrastructure, legal framework and institutions facing the future
increasing of economic relations with the U.S. and other foreign partners.

33. Cuba-US Third Bilateral Commission
• May 16 in Havana.
• To review progress on a number of shared priorities since the last
Bilateral Commission meeting in November 2015, including
progress made during the President’s historic trip to Cuba in March.
• To continue engagements on environmental protection, agriculture,
law enforcement, health, migration, civil aviation, direct mail,
maritime and port security, educational and cultural exchanges,
telecommunications, trafficking in persons, regulatory issues,
human rights.

34. The Rolling Stones in Havana. March 25, 2016.

35. US President´s Committee for Arts and Humanities visit. April, 2016.

36. ‘Fast and Furious’ filming in Havana. April- May, 2016.

37. Chanel sets Havana as scene for its Cruise collection. May 3, 2016.

38. U.S. Reality TV. May, 2016.

39. Images from:
• http://www.nytimes.com/2014/12/18/world/americas/in-us-cuba-embrace-rusty-gears-
of-cold-war-diplomacy-finally-move.html?_r=0
• http://commons.wikimedia.org/wiki/File:Catedral_de_Las_Habana,_Cuba.jpg
• http://www.havanatimes.org/?p=109102
• http://www.bbc.com/mundo/noticias/2016/03/160320_cronica_llegada_obama_cuba_ca
stro_ps
• http://www.bbc.com/news/world-latin-america-36183192
• http://www.incubatoday.com/news/ggwjsf/picture74435742/ALTERNATES/FREE_640/rapi
do2
• http://twt-
thumbs.washtimes.com/media/image/2016/03/26/APTOPIX_Cuba_Rolling_Stones.JPEG-
09d01_c0-326-5760-3684_s885x516.jpg?e6a1da1171f05790a0f16139de2246927e1e8a56
• http://a2.files.fashionista.com/image/upload/c_fit,cs_srgb,dpr_1.0,q_80,w_620/MTM4ND
I3ODE4NDIwNzQxNDQ1.jpg
• http://uscdn02.mundotkm.com/2016/05/kardashians-cuba-12.jpg
• http://uscdn02.mundotkm.com/2016/05/kardashians-cuba-11.jpg