Francois Hollande in Havana: Cuba and France expands businesses
Transcription
Francois Hollande in Havana: Cuba and France expands businesses
3/2015 OFFICIAL PUBLICATION OF THE CHAMBER OF COMMERCE OF THE REPUBLIC OF CUBA Francois Hollande in Havana: Cuba and France expands businesses ISSN 0864-3857 Cuba-Caribbean Forum in Santiago de Cuba: to bring together the economies of the region CHAMBER OF COMMERCE OF THE REPUBLIC OF CUBA The Chamber is an institution that groups Cuban enterprises from all sectors as its members, with the purpose of supporting their work and promoting, both nationally and internationally, the export goods and services, as well as the business and investment opportunities for the benefit of the national economy. YOUR ENTERPRISE IS OUR MISSION LEGAL SERVICES - Advisory. - International commercial arbitration.- GSI Cuba Bureau. - Functions delegated by the State: . Issue of certificates of origin, force majeure and others. . Administration of the registries of associated enterprises, importers, exporters and branch offices, and agents of foreign mercantile companies. PROMOTIONAL ACTIONS Organization of business missions, business meetings, bilateral committees, cooperation agreements and others. COMMERCIAL INFORMATION Trade Point, Trade Information Bureau, Cuba Foreign Trade magazine, directories and other specialized publications. TRAINING ACTION Conferences, seminars and courses. NATIONAL AND INTERNATIONAL FAIRS AND EXHIBITIONS COMPUTERIZED SERVICES Institutional web site and digital certifications. Calle 21, no. 661, esq. a calle A, El Vedado, La Habana, Cuba. Tel.: (53) 7838 1321 / 7383 1322 E-mail: cch@camara.com.cu Web site: www.camaracuba.cu THE CHAMBER OF COMMERCE MAGAZINE Cuba Foreign Trade (CFT), official publication of theChamber of Commerce of the Republic of Cuba, was created with the purpose of disseminating and promoting the interests of the Cuban enterprises, members of the Chamber, for the benefit of the national economy. PROFILE - Promotion of export products and services. - Foreign investment. - Substitution of imports. - Business opportunities. - Useful information on how to do business in Cuba. - Presentation of economic and commercial enterprises and institutions. - Economic information on Cuba. - International information. - Legal regulations on trade and investment. - Other topics of interest to the business world. CHARACTERISTICS - Bilingual (Spanish / English). - Quarterly issues. - Ninety-six pages, four colours format 21 x 27,5 cm. - Collaborations by outstanding personalities and experts. - Digital version through the Chamber of Commerce website (www.camaracuba.cu) ADDRESSES - Cuban authorities. - Member enterprises in Cuba. - Cuban Embassies and Commercial Offices. - Institutions and personalities from the business world, in Cuba and abroad. Editorial Office: Address: Calle 21, no. 661, esq. a calle A, El Vedado, La Habana, Cuba. Telephones: (53) 7833 8040 / 7837 5116 / 7838 1321 / 7838 1322, ext.: 215 E-mails: cft@camara.com.cu publicaciones@camara.com.cu anuncio@camara.com.cu Advertisings tel.: (53) 7833 8040 Subscriptions tel.: (53) 7837 5116 MESSAGE FROM THE PRESIDENT I n the months that comprise this issue they have continued visits of government and business delegations from various countries, interested in trade, do business and advance investments in Cuba. By representativeness and weight highlights that the President of France, Francois Hollande, who was accompanied by executives from major corporations and during which important agreements were signed; that of Jose Manuel Soria, Minister of Industry, Energy and Tourism of Spain, which arrived with more than 80 entrepreneurs, whose government seeks to consolidate the good level of political, economic, commercial, industrial, tourism and energy policies relations with Cuba. This visit, the second from the Iberian country this year, was very fruitful for both parties. Mario Giro, undersecretary for Foreign Affairs and International Cooperation of the Italian Republic, brought to 139 businessmen and said here, referring to the projects launched during his visit that his country and Cuba “began a common economic adventure”. In this period also were with us representations of Poland, Trinidad and Tobago, Aruba, Bahamas and Singapore, with which a number of agreements were also materialized. Details of all these missions we deployed for you in these pages. Briefings, forums, business meetings, talks and bilateral agendas we have developed with each visiting delegation, in sustain of our strategy to support the business community to achieve the common goal: enabling growth and sustainable economic development of Cuba. Of the actions taken at the international level we record here also. They were, among others, participation in Expo Milan, in ExpoAladi, in Seoul Food and in the Angola Fair. We do not forget the restoration of bilateral relations between Cuba and the United States on July 20, so we address in an article what this means especially for the future, and provide facts and figures of what it has meant for trade, finance, business, finally, to the Cuban economy and society, over five decades of economic, commercial and financial blockade decreed by the powerful neighbor in 1962. New biotech cooperation projects with China, significant events like Cubagua, Cuba is Moda, the Cuba-Caribbean Business Forum held as part of the 500th anniversary of Santiago de Cuba, and anniversaries of the National Center for Scientific Research and different associated enterprises integrate, among others, the articles of our magazine that we put in their hands. Orlando Hernandez Guillén CHAMBER OF COMMERCE OF THE REPUBLIC OF CUBA EXECUTIVE BOARD PRESIDENT Orlando Hernández Guillén VICEPRESIDENT Odalys Seijo García GENERAL SECRETARY Omar de J. Fernández Jiménez BOARD OF DIRECTORS INTERNATIONAL RELATIONS DEPARTMENT Celia M. Labora Rodríguez FAIRS AND EXHIBITIONS DEPARTMENT Miriam Martínez Delgado LEGAL AFFAIRS DEPARTMENT Vacante ASSOCIATES DEPARTMENT Milena Pérez Cepero INFORMATION AND PUBLICATIONS DEPARTMENT Ramón I. Ripoll Díaz INFORMATICS DEPARTMENT Sandra Hernández de la Torre ACCOUNTING AND FINANCES DEPARTMENT Fernando Pérez Sánchez HUMAN CAPITAL AND CADRES DEPARTMENT Yamilsy Figueredo Grille ADMINISTRATIVE SERVICES DEPARTMENT Alberto López Rodríguez CONTENTS OFFICIAL PUBLICATION OF THE CHAMBER OF COMMERCE OF THE REPUBLIC OF CUBA No. 3/2015 DIRECTOR Ramón I. Ripoll Díaz EDITOR Maggie Marín Díaz EDITION ASISTANT Lucila Marlene Domínguez Garcés EVENTS 5 Cuban potential in Expo Milan 2015 7 “We trust that Expo Milan will mark a milestone in the world debate on food and sustainability”: Speech delivered by the president of our Chamber, Orlando Hernández Guillén. 8 Santiago de Cuba hosted the event designed to bring together the economies of the region 12 Expand businesses and commercial ties 14 New agreements for biotechnological cooperation with China 17 Cuba and China project more business in tourism. Signed with Singapore a agreement on free visa 18 Consolidating bilateral, trade and investment relations 20 Another chapter in relations 22 The challenges and benefits are also economic and commercial TRANSLATOR Ana E. Valdés Portela 26 Cuba and Germany relationship and cooperation on ART-DESIGN Yoaima Rodríguez Marín SPECIAL ARTICLES 27 Cuba and its opportunities for foreign investment 32 Significant results in fourth round of talks with new bases COVER Yoaima Rodríguez Marín the European Union 33 The Island makes its debut in the World Economic PROOFREADER Maritza Lam Tajes Forum 35 Cuba-Angola cooperation consolidated ADVERTISING Lucila Marlene Domínguez Garcés CURRENT BUSINESS SITUATION 37 Tourist Fair takes Off 39 CNIC and its valuable 50 years 42 Los Portales: Two decades all around the DISTRIBUTION Lucila Marlene Domínguez Garcés PHOTOGRAPHY archipelago 44 Brascuba arrives at two decades of existence 46 Meliá celebrates 25 years in Cuba opening the DIGITAL: Yoaima Rodríguez Marín largest of its hotels in the world 48 Cubagua 2015 Positive Impacts in vital subjects for Editorial Office Calle 21 no. 661 esq. a A, El Vedado, La Habana, Cuba. the Island and the World 50 Seeking opportunities in a branch with great potential 51 Valuable results in Felti 2015 Phone: (53) 7833-8040 OUR ASSOCIATES 52 New Associates members during the 2nd quarter of 2015 E-mail: anuncio@camara.com.cu Web site: http://www.camaracuba.cu Chamber of Commerce of the Republic of Cuba World Trade Center Havana Member of the International Chamber of Commerce Articles and graphic materials may be totally or partially reprinted provided the source is credited. THE CHAMBER TODAY 53 - Cuban participation in the 4th Session of the Cuba-Italy Business Committee - Agreement of trade cooperation signed with Trinidad and Tobago - Seoul Food 2015: Cuban participation - Cuba-Lebanese Business Forum - Search to strengthen trade relations with Poland - Aruba and Cuba propose complementing their economies - Cooperation agreement with The Bahamas Chamber of Commerce - Results of the Macro round in EXPO ALADI Cuba FOREIGN TRADE No. 3/2015 4 Events Cuban potential in Expo Milan 2015 This time the exhibit has an area of one million m² T his beautiful Italian city will host, until October 31 this year the World Expo Milan 2015 whose doors opened on May 1st with the slogan “Feed the planet, energy for life”. Participating are representatives of more than 140 countries as well as several institutions and international organization to share experience on nutrition and resources for a healthy diet. Science for food security and quality nutrition, Innovation in the of supply chain of agricultural food, Technology for agriculture and biodiversity, Nutritional education, Solidarity and cooperation in food, Food for a better level of life and Food in the world cultures and ethnic groups are also subjects in this event. Expected is the attendance of more than 20 million persons. Our pavilion, with a new image, has as its central theme “Cuba, path towards food sovereignty”. Among the novelties are artists’ performances, tasting events, launching of new products, as well as ease of information on opportunities for trade, investments and characteristics of tourism on the Island. In this installation the visitors will find the history of this archipelago through its cuisine, which fuses that of the aborigines, Spaniards, Africans, French, Chinese and natives peoples (criollos); they will also enjoy a good cigar, rum, coffee and cocoa. The stand is part of a cluster of Cocoa since Cuba also describes research centers of this product. Our exhibition also describes experiences in agricultural biotechnology. Specialists of the Chamber of Commerce of the Republic of Cuba have expressed the hope that our stand be a window open to business of the Island toward the world; an opportunity to stimulate direct foreign investment and impulse the export of products and services and consolidate the Destination Cuba in the European market, particularly in Italy. Miriam Martínez, director of Fairs and Expositions of the Chamber and member of the Cuban mission to the World Expo noted among others actions, exchanges with Italian business persons regarding the opportunities for business and investment in this Caribbean nation, facing its economic development. Cuba held its day in the Expo on July 26, National Rebellion Day and for the occasion travelled to that city a high-level delegation, Cuba FOREIGN TRADE No. 3/2015 Return to context 5 Events These events take place every five years composed by personalities representing sectors such as culture, food industry and foreign trade, among other issues. Between the main activities occurring this day was the conference “Cuba, from cocoa to chocolate” delivered by María Cristina Jorge Cabrera, director of the Research Institute of the Food Industry. Attending the commemorative ceremony were diplomats, heads of the main pavilions, business executives, members of the Italy-Cuba National Friendship Association and associations of Cuban residents in Italy. There was an exchange of messages between the General Commissioner of the Expo, Bruno Pasquino and the President of our Chamber, Orlando Hernández Guillén, who headed our delegation and transmitted to the Italian government and authorities of Milan the appreciation for inviting Cuba to this important event (See full speech below). For his part the Italian Commissioner recognized the cultural values of the Caribbean nation, the high scientific level achieved and its economic model directed towards sustainable development. Then the musical company Ibu Akuaro, demonstrated the Santiago carnival that celebrated, from that Lombardan region, the 500 years of the foundation of Santiago de Cuba and the representation of the island received a globe made with cocoa, which highlights the map of the island, and will be on display at the Cuban pavilion. Afterwards the singer Leo Díaz and the dance corps mentioned above entertained with national rhythms the ceremony of presentation of Cuban products in the cluster box “Cacao and Chocolate”. There was also a concert of Cuban music under the direction of Leo Wilbert and his Cuban Salsa Orchestra that received large public attraction as well as the chance to taste typical products. These exhibitions are held every five years and are considered the most important spaces in which nations exhibit their social policies and results on subjects of great interest for the planet. This is the suggestive tree of life in the Fair Sources: own, AIN and Caribbean News Digital. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 6 Events “We trust that Expo Milan will mark a milestone in the world debate on food and sustainability” Speech delivered by the head of the Cuban delegation, Orlando Hernández Guillén, in celebration of the National Day in the Milan Universal Expo on July 26 of 2015 O n behalf of the Cuban Government and people I wish to express my thanks to the Italian Government, to the authorities of Milan for inviting Cuba to participate in this important event and also for the joint efforts of many Italian and Cuban institutions to make possible the Cuban presence in this beautiful Italian city. The origin of our history in the universal expositions date back to the mid 19th century when what was considered “the gem of the Spanish colony” conquered prizes for its rums, tobacco, sugar and coffee in London’s Crystal Palace, in Philadelphia, in Barcelona and in Paris. Since the triumph of the Revolution in 1959 Cuba has participated in the most important universal expos such as Montreal, Osaka, Vancouver, Sevilla, Lisbon, Hannover, Aichi, Zaragoza and Shanghai. Following this tradition and the special bond of Cuba to agriculture, as an archipelago located at the entrance of the Gulf of Mexico, we arrive at Expo Milan that has become the world capital of nutrition. But not everything is history. Today Cuba is involved in updating its economic model with a view to achieve food sovereignty, which does not happen only from producing more food products but to ensure food security and raising the nutritional levels of the Cuban people. This is done through proper management of land and water, the manner in which are grown, processed and marketed foodand the kind of food companies that we decide to have in our territory. For long time ago Cuba eradicated malnutrition with impressive indicators. Cuba today is a country without hunger or under nourishment, with free health and education, with a high scientific and cultural level. Cubaadvances in the fight against hunger are the result from the continued application of a policy to guarantee availability, access and correct use of foods, a commitment that has been kept for a long time. It indicates that Cuba has known how to grant high political and social priority to guarantee the right to food. Recently in 2013 the United Nations Food and Agriculture Organization (FAO) recognized Cuba as one the countries that has made extraordinary progress to improve food security for its citizens. Also the United Nations Children’s Fund (UNICEF) has declared Cuba as the only country in Latin America and the Caribbean that has eliminated children’s malnutrition. Among other achievements, my country is noted for the reduction of infant mortality that is maintained at 4,2 per thousand livebirths, one of the lowest figures in the world. Cuba today is an example for the Caribbean and is of interest not only the movement of its physicians and its assistance but also withtheir nutritionists, its agriculture and scientific achievements. Referring to nutrition and food hygiene and its relationship to the health of people, our José Martí, the most universal Cuban, with a high philosophy of prevention wrote in the 19th century: “to eat well that is not eat richly but healthy foods, well seasoned is the first necessity for a good maintenance of health of the body and the mind”. Another subject in whom Cuba can contribute its experience is in the development of biotechnology with application in agriculture. The biotechnology of plants is one of the hopes for this overpopulated planet. Cuba has demonstrated the validity of combining the results of agriculture with a sustainable profile increasingly more ecological, with molecular biology to obtain high yields and low costs. No better platform to express the commitment and will of my country to guarantee not only food security for all Cubans but to contribute, with its modest efforts to eradicate hunger and malnutrition, according to the objectives proposed by FAO. How to guarantee food for the 9billion inhabitants foreseen for our planet in 2045? Can we feed this humanity with the current consumption patterns, the natural limits of cultivable lands and drinking water as well as the impact of the climate change? We recognize Italy for the commitment made in the complex and universal subject of food, on which unfortunately has not yet achieved the awareness it deserves. We trust that Expo Milan will mark a milestone in the world debate on food and sustainability and be a platform for reflection and initiatives of policies on this issue to commit the people of today to bequeath a sustainable planet for the citizens of the future. Thank you Milan, thank you Italy! Cuba FOREIGN TRADE No. 3/2015 Return to context 7 INTERNET Distinguished general commissioner of Expo Milan, Distinguished authorities of the province of Milan, Distinguished guests: Events Cuba-Caribbean Business Forum Santiago de Cuba hosted the event designed to bring together the economies of the region W ith bilateral meetings between the 10 participating countries (that included the Dominican Republic, Haiti, Saint Lucia, Bahamas, Belize, Grenada, Saint Vincent and the Grenadines and Trinidad and Tobago) and the signing of several agreements took place in Santiago de Cuba as part of the 500 years celebration of the villa and the 62nd anniversary of the attacks on the Moncada and Carlos Manuel de Céspedes barracks, the Cuba-Caribbean Business Forum, an event organized to promote cooperation, integration and trade. The meeting, organized by the Ministry of Foreign Trade and Investment (Mincex) the Chamber of Commerce of the Republic of Cuba (CCRC) and the local government from July 16 and 17 gathered more than 50 business representatives and 43 international and foreign companies to explore potentialities and unexploited lines in different areas. It allowed the Island to demonstrate to its neighbors the details of the new Law of Foreign Investment and the Special Development Zone Mariel (ZEDM). Mechanisms for establishing alliances and strengthen economic and trade relations between Cuba and the nations of the region, counted on the participation of the Cuban minister of Tourism, Manuel Marrero, the deputy minister of Mincex, Ileana Núñez Mordoche and CCRC president Orlando Hernández Guillén and other authorities of the country as well as ministers of the Bahamas, Saint Lucia and Grenada, diplomats and representatives of commerce of those nations. In the inauguration Marrero explained that Cuban tourism has a new scenario with a growth of 16% this year as compared to the same period in 2014. More than a threat to the other Caribbean islands it is a privileged opportunity to boost multi destination and strengthen ties and businesses between our countries. The purpose of the event was to boost bases to identify our real potential that will allow an approach in the sphere of commerce and joint businesses; he said and added that another objective is to bring together a larger rapprochement and exchange between business executives. Cooperation agreements between our Chamber and their counterparts in the Commonwealth of the Bahamas and Granada were signed / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 8 Events Although we are near we still don’t know us much and have not advanced enough to create economic and productive complimentary ties, Marrero explained and stated that the new Law of Foreign Investment and the ZEDM are opportunities that our neighbors should take to boost commercial exchange and form joint ventures in sectors of mutual interest. The commercial amounts of negotiations are still insufficient and were outlined by Orlando Hernández Guillén. The most recent figures represent 162 million in 2013; 158 in 2014 and approximately 80 in the first six months of 2015 demonstrating that regional trade has not achieved the depth and stability our leaders expect, he added. The Caribbean –he said– is the natural environment for these economic ties between nations of the area and there is the will to increase more businesses and cooperation in the coming years. Ms. Gail Mathurin, general director of the Office of Commercial Negotiations of the Caricom Secretariat insisted on strengthening the platform of economic and business cooperation and identified priorities with an emphasis on transportation, finances and tourism. She affirmed that for the Community this forum is very important for the constitution of a Cuba-Caricom Business Council to establish new bases to strengthen economic cooperation in the area. It is the right time for business persons of the Caribbean to begin to see Cuba as an ideal destination for investments, said Mr. Marcelo Puello vice minister of the Free Zone and Special Regimes of the Dominican Republic: “There has been little trade between the islands of the Caribbean and it is an area we must boost in the coming years for a truly real integration at all levels”. In parallel to the meeting about 48 Cuban companies exhibited their broad range of products and services in 31 stands located in 440 m2 of the Heredia Cultural Complex. There were signed two agreements of cooperation between our Chamber of Commerce and its counterparts from the Commonwealth of the Bahamas and Grenada and a plan of action between the CCRC and the promotion agency of trade Caribbean Export. Exchanged were memorandums of understanding between the Center for the Promotion of Trade and Investments of Cuba (Cepec) and the Agency for the Promotion of Trade of Saint Lucia (Tepa). The participants toured the Eastern Center of Ecosystems and Biodiversity (Bioeco), the Bodegas Don Pancho and other centers of interest. There were also presentations of opportunities for trade and investment in the Caribbean and Mincex exhibited the Santiago de Cuba potential and opportunities. It was presented the Tobacco 500 years, an initiative of the cigar rollers of Santiago. With raw material from Pinar del Rio the cigar band is inserted in an aluminum tube lined with thin slips of cedar to maintain the aroma and taste, in a tobacco flack for 15 cigars. Since 1972 when diplomatic relations between Cuba and the Caribbean nations began, they were based on cooperation between sectors such as health, education, construction, transportation and tourism. Chinese businessmen undertake the construction of a new terminal at the Port of Santiago / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 9 Events Santiago: cradle, bread and more The seventh villa was founded by Diego Velázquez de Cuéllar on July 25 of 1515. The colonization campaign of the governor began in 1511 when he founded Our Lady of the Assumption of Baracoa, originally built as a center of the colonial government; a function later transferred to Santiago. Chroniclers and pedestrians explained that the town maintains a halo of legends and mysteries. It is the most Caribbean of the country and no one denies that it has carried into the present many magical marks of the colonial era when it was known by the gold in its belly and later for copper and coffee. Today Santiago de Cuba is tenth of the provinces in extension with 6 234,16 km2, and 5,7 % of the total surface of Cuba. It is inhabited by more than a million persons and one of its main economic and productive lines is agriculture while the industrial branch is also an important component. In the midst of this it celebrates its birthday with plans and works directed to the economic and social development of the city with an ambitious program that has been doing for some time. According to the web page TV Santiago, the program moves in three fundamental directions. The first, although immaterial, is the possibility of carrying out a successful plan: what must to do and is done every day must be done well, with efficiency and quality. The second is the fulfillment and commitment of the plans made to progressively satisfy the needs of the people and that the entities will be profitable; and thirdly, investments based on projects set down in 16 scenarios of the founding center of the villa as well as its nine municipalities and construction of more than 2 600 homes. Part of these projects is the pedestrian walk of Las Enramadas that connects the Plaza de Marte to the Alameda with a revitalization of important spaces; the Alameda itself with areas of recreation for children, young people and adults; the Route of Coffee with the Museum of Fraternity, the garden and the Gran Piedra; the emblematic Imperial Hotel and Juan Gualberto Gómez-Flor Crombet avenue that restores the Yarayó Avenue and the Crombet itself until reaching the cemetery of Santa Ifigenia, a National monument and one of the historical sites of the south eastern city. Also actions of construction, restoration and maintenance were undertaken in the spheres of health, education, agriculture, commerce, services, industries and others of vital importance such as tourism. Those who visit Santiago perceive and breathe at the sight of a beautiful city that has recovered from the terrible hurricane Sandy of 2012. The year 2014 was complex, tense and hard for the workers in agriculture to recover the productive potential of the region and satisfy the food basic needs of the population. Although still modest, results in some fields have over fulfilled most of the plans of the period. Notable in this manner was the growth experience by varied crops with an accumulation of 387 737.6 t of food, 43 156.2 more than in 2013. The contribution was not higher because of the plan of 40 515.2 t of fruits was only achieved 85 % because the harvest of mangoes was lower than planned. In contrast, the volumes of viands, vegetables and grains surpassed the amounts planned for that period. Other essential factors with notable increases were pork production that supplied 17 689 t of meat (1 394 above expected figures) and honey that broke all predictions with a production of 464.1 t. The emblematic Hotel Casa Granda was overhauled / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 10 Events The purpose to consolidate the Santiago agriculture is closely linked to the recovery of livestock, so it is satisfying to have closed the year at 105% compliance the estimated production of milk and beef, besides obtained favorable indicators such as the behavior of cattle births (102 %), planting grasses (111 %) and production of sheep and goat meat (114 %). However, food demand still exceeds supply, prices still fall short of the purchasing power of the average citizen and although plans are met, there is potential to produce more. Santiago de Cuba also ranks among the top provinces in urban and suburban agriculture, not inconsiderable activity for its influence on the fulfillment of the production plans of the province and especially for its impact at the dinner table of Santiago population. Currently the territory has 80 organoponic farms, 297 intensive orchards, 31 units of semi-protected farming and 7 647 plots, which together cover some 2 554 ha, as referred Werlin Velázquez Herrera, provincial deputy delegate responsible for the task. In addition it has 27 253 courtyards and 8 632 horticultural farms to produce food in the outskirts of cities, towns and communities with more than 1 000 inhabitants. The dwellings are still in the collimator. When in the first half of 2014 only 706 of the program were completed, it was thought to be very difficult to execute in its entirety the 2 683 planned. 1977 houses remain outstanding and are just six months in a territory where “hardly” were built 1 400 annually. Between the main lines of the province excels agriculture Together with Santiago population, support brigades of nine provinces met the plan and delivered even two dwelling places above. What were the adverse factors? Mariana Delis Rojas, director of the Provincial Housing Investor Unit explained: construction began virtually from March, because in the first quarter there was no response to the demand for cement and steel. Another difficulty which increased the implementation period of some works was no specialization of the workforce in the new building systems used the Forsa and Vhicoa Handicap, which must be resolved on the fly. It also suffered from limited availability of equipment, because the Ministry of Construction, leading builder, has technology deficit, concluded the respondent. Since late January enjoy their new houses 272 families, which lost their homes when Hurricane Sandy affected the territory, and other 304 of the neighborhood of San Pedrito, where social transformations take place. Here are some other important facts: the contribution of eight Forza buildings with 160 apartments, made by the Engineering Corps of Ecuador Army; compliance, after many years, to the lodgings planned for health workers; and the construction of 764 dwellings by its own effort through bank credits and subsidies. The happy ending was made possible by the support of a revitalized construction materials industry, with three new arid treatment plants, two bachimplanes for processing concrete, quarry trucks, drilling equipment, loaders, backhoes and improvements in sand plants and blocks manufacturing plants. Clearly, much it remains in the ink by telling. Worth it to travel to Santiago de Cuba and see everything done. Vista makes faith. / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 11 French president visits Cuba Events Expand businesses and commercial ties The President stated that France is a staunch ally of Cuba in their development purposes and reintegration into the world economy / ISMAEL FRANCISCO F rench president, François Hollande witnessed in Havana Malmierca explained that the exchanges between Cuban the signing agreements of great importance to boost and French business executives allowed identifying “common trade and business with Cuba during his official visit (first of interests” to boost cooperation in several sectors. He added a French president in office), accompanied by five ministers, that Cuba is interested in the participation of the oil business parliamentarians and high ranking executives of leading group Total, in a risk exploration and shared production corporations of that country, whose economy experienced a contract, training of Cuban personnel and the modernization of the refinery in Santiago de Cuba. The truth is that although strong industrial development after the II World War. As part of his agenda, the French president participated not yet are reported significant findings of commercial quality, in the Cuba-France Business Forum in which the visitors according to studies by Cuban geologists are reserves of received details of the update of the Cuban economy, new more than 20 000 million barrels in the Exclusive Economic opportunities for investment and about the Special Zone Zone of the Gulf of Mexico. Precisely the extension of a letter of intent was signed with Development Mariel (ZEDM for its acronym in Spanish). Total in terms of marketing and services already existing since This forum was inaugurated by the Minister of Foreign 1993 with the Cuban Oil Company (Cupet) for the sale of oil Trade and Investment, Rodrigo Malmierca in the salon products to Cuba. 1930 of the National Hotel. The forum was divided into four Regarding our relations with France Malmierca explained sectorial workshops: Tourism, Agriculture and Food; Energy, that this country occupies a very important place, fifth among Infrastructure, Transportation and Telecommunications and our European partners. “We hope –he said– that our Portfolio Health and Biotechnology. of Opportunities for Investment encourage the French Malmierca recalled that Cuba has trade relations with business community to accompany us in the development of 75 countries and the amount of exchange has tripled in the country and raise the living standards of the population”. the past 10 years. The blockade of the United States is the For the French part Matthias Feki Secretary of State of main obstacle in the development of the nation, he said, and Foreign Trade, Tourism and French Population Overseas, said: moves in a process of rapprochement between both nations “It is an historical day for both countries and the presence although the measures recently adopted by President Barack of many of you here is live proof of the importance of our Obama are still limited. relations”. In the workshop on tourism the first vice deputy minister of this field, Alexis Trujillo informed that the Island plans to develop its hotel accommodation to 240 000 rooms and today has more than 62 000. “We need to speed up construction of new capacities with the Gaviota Group as the chain with The Minister of Public Health of Cuba, Roberto Morales, and the French head of Social Affairs, Health and Women’s Rights, Marisol Touraine, signed a Letter of Intent to deepen cooperation actions / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 12 Events He asked the United States to lift the blockade on Cuba / INTERNET largest growth in the country. Another purpose in our plans is to increase and diversify the tourism-related services such as nautical sports and golf clubs around tourism centers”. In fact two contracts for administration were signed to open new luxury hotels in Cuba. Accor announced the signing up of one and Warwick International Hotels and Resorts (WIH) reported that will begin operating as manager and marketer in Santa Maria Key and Varadero. Also planned is the construction of five star hotels. Air France airline, for its part, intends to increase its current 14 weekly flights. The Cuban logistics society, Ausa, and the French company of maritime transportation of containers CMA-CGM –one of the world leading groups in the specialty– agreed to manage a logistics platform of 17 hectares that includes 12 000 m2 of warehouses and 5 000 m2 of refrigerated chambers. From the same, which will operate in the ZEDM, the French society will administer the collection and distribution of merchandize in the Island, the collection of cargoes for export destinations, storage of merchandize for imports and exports and the distribution of containers, among other activities. The agreement considered the most important contracted during the visit of the French president, was signed in his presence by Mr. Rodolphe Saadé, CMA-CGM vice president with business in Cuba since 2000. In less than 48 hours the distinguished guest met with his counterpart Raúl Castro and the historical leader Fidel Castro; delivered a master conference at the Aula Magna of Havana University –during which he requested the annulment of the US blockade and assured that Paris will contribute to have those measures eliminated–; inaugurate the new headquarters of the French Alliance in Prado Avenue, previous home of President José Miguel Gómez and closed the Business Forum. France wants to intensify its trade with the Island, which in 2014 registered 180 million Euros, slightly lower than the previous year and separated from the flow with other European partners, such as Spain, Holland or Italy. However, despite the modest trade figures France has third place in European investments in Cuba with the presence of important companies. For example, Soufflet, the French corporation leader in the export of grains has been established in Cuba for 30 years. The group Pernod-Ricard successfully commercialized Havana Club rums, with sales around four million boxes that increase every year. Also important corporations such as Carrefour (international chain of supermarkets) and Orange (telecommunications) wish to take advantage of the opportunities offered by the Cuban market to spread to the rest of the region. In the field of science and higher education, the National Center of Scientific Research of the French Republic signed a cooperation framework agreement with the Cuban Ministry of Science, Technology and Environment and the rector of Havana University Gustavo Cobreiro signed agreements with the universities of Paris-Sud y Paris 1 as well as with the Conservatory of Arts and Crafts of France. These agreements, President Hollande explained, are in advance of new ones that will be promoted between both nations. The Institute Pasteur of Paris and the Finlay Institute of Havana, as well as the Center of Genetic Engineering and Biotechnology (CIGB), the Aviva laboratories and medical universities in both countries will be some of the institutions that will soon establish relations. Francois Hollande acknowledged that the blockade is detrimental to the bilateral exchange but, although trade of goods can be prevented, not stop the ideas, he said and we will continue strengthening cooperation, searching to unite theses in fields such as science, agronomy, physics, administration of the environment especially in Masters and PhD degrees, he added. Hollande starred something not seen in visitors of his level: he shook hands with Cuban attracted by his walk along the Paseo del Prado / INTERNET During the 18th French Film Festival held then in Havana, also the Cuban Institute of Art and Film Industry, ICAIC, and the National Film Centre of France (CNC) signed an agreement to promote the seventh art in both nations. Mrs. Frederique Bredin, president of CNC, said that this is primarily intended to increase the number of co-productions for artistic and technical exchange, since in recent years have been filmed six Franco-Cuban films with great acceptance and restoring films developed -this agreement extends the provisions of the 2012- and the digitization of a cinema in Cuba. Since its arrival in the Greater Antilles as part of his tour of the Caribbean, Francois Hollande, of the Socialist Party, said that France will be a faithful ally of the island in their development purposes and reintegration into the world economic context. Cuba and France established diplomatic relations in 1902. This country ranks today among the top 12 trading partners of the Greater Antilles and is one of the main sources of tourists to the island. Sources: PL, AIN, Granma and Options Cuba FOREIGN TRADE No. 3/2015 Return to context 13 Events Events New agreements for biotechnological cooperation with China Days before, Raul received the Chinese vice prime minister, Wang Yang W ith the signing of eleven agreements for new cooperation projects for the period of 2015-2017, concluded in Havana the 8th Meeting of the Joint Working Group of Biotechnology, demonstrating the interest of Cuba and China to strengthen bilateral cooperation in favor of the development of the biopharmaceutical industry. The first vice president of the Council of State and Ministers and member of the Politburo, Miguel Díaz-Canel Bermúdez, attended the opening of the meeting held in the Meliá Habana hotel on 29th and 30th of June. Its Final Act was signed by the presidents of both delegations, Carlos Gutiérrez Calzado, president of the BioCubaFarma Business Group and Ren Zhiwu, deputy director of the Department of High Technology of the National Commission of Development and Reform. Also letters of intention were signed to establish two joint ventures in the Special Development Zone Mariel: one to produce and commercialize biopharmaceutical products and the other for the cancer vaccine. Today 20 Chinese companies have agreements of cooperation with the Island and in the last two years there was an increase of joint projects and 10 of them were initiated in the period between the 7th work meeting in Beijing (2013) and this meeting. Noteworthy were the links for the development of monoclonal antibodies and poly vaccines for diseases such as cancer and diabetes. Due to the fruitful experience in China with this type of association, the objective now is to increase production in the Island and later diversify distribution of these medicines in the markets of Latin America, according to declarations of the general director of the Center of Molecular Immunology, Dr. Agustin Lage, who represents the Cuban part. Also signed were two contracts for the commercial representation and distribution of bio similar antibodies and the pneumococcal vaccine. An agreement was established for the Comercializadora de Servicios Médicos Cubanos to begin attending Chinese patients in Cuba as well as its rapid introduction in this market and in the rest of Latin America of a vaccine against rotavirus. The Center of Neurosciences of Cuba and the University of Science and Electronic Technology of that Asian giant agreed to establish a joint laboratory and develop five neurotechnological products. Cuba FOREIGN TRADE No. 3/2015 Return to context 14 INTERNET Events During the inauguration of the meeting, Doctor Gutiérrez Calzado reported that cooperation in biotechnology between our countries has been an incentive in bilateral relations and has a great future perspective and thanked the efforts of that Asian nation to take this cooperation to such a high level. Our governments, he said, have given us the task to boost development of the biotechnology industry and place the results at the service of the peoples. We should manage this task to have a favorable impact in the health of both countries. It should be an important contribution for a sustainable development in the quality of life of the peoples and the national economies of Cuba and China. The guidelines of the economic policy of the country give priority to develop results in the field of biotechnology, extend its use and share it with humanity. “Cuba wishes, in this manner, to share with China, as an expression of brotherhood and strengthen the historical and indestructible friendship that unites us” emphasized Gutiérrez Calzado. For his part Lin Nian Xiu, vice president of the Chinese National Commission for Development and Reform emphasized that in the past 10 years cooperation has resulted in mutual benefits and with the implementation of this work group more than 20 Chinese companies have collaborated with Cuba and are prepared to implement several projects of cooperation in biotechnology. He expressed interest to extend collaboration with Cuba, especially in scientific, technological and commercial areas and insisted on the deepening of cooperation for the economic and social development of the peoples. China is interested in planning future projects under this mechanism and also to involve universities and financial institutions, among others. He mentioned that in the past few years China has set aside about 500 000 million dollars for the production and trade in this field. Cuba and China established new methods for innovation and, in my country, set up areas of free trade in Shanghai and other cities, Lin Nian Xiu said. He also noted the advances of BioCubaFarma that exports its products to more than 50 countries. He stressed the need to work to increase the confidence of foreign companies, above all after the inauguration of the Special Development Zone Mariel. Meetings of this kind are held every two years alternating between Cuba and China. On this edition the development of the agreements signed in the previous meeting as well as the achievements and difficulties were analyzed and new projects promoted. For this purpose about 100 representatives from research centers, universities, companies and executives from both countries – 52 for the Asian part and 48 for the Cuban – worked in five main sub commissions: Industry, Sanitary Registration, Health, Science and Neurotechnology and Agriculture. There were also meetings with counterparts of the centers of Molecular Immunology, Genetic Engineering and Biotechnology, Immunoassay, the Finlay Institute and National Center of Scientific Research. The Group will meet again in 2017 in China. Cuba FOREIGN TRADE No. 3/2015 Return to context 15 Events Days before this meeting there was a work visit of a delegation headed by Wang Yang, vice prime minister of the Council of State and member of the Politburo of the Central Committee of the Chinese Communist Party. This high ranking official was received by President Raúl Castro Ruz, occasion in which they expressed the excellent state of bilateral relations, the advance of integral development and celebrate the 55th anniversary of uninterrupted and fraternal diplomatic relations between both states. Previously the Chinese official and the vice president of the Council of Ministers, Ricardo Cabrisas Ruiz held official talks on subjects of the bilateral economic and trade agenda. Participating was Rodrigo Malmierca Díaz, minister of Foreign Trade and Investment. The distinguished visitor also met with our foreign affairs minister, Bruno Rodríguez Parrilla. During this visit an Agreement of Economic and Technical Cooperation was signed relating to a donation of that Asian country to Cuba that will be used to finance projects of cooperation. China is a strategic partner of Cuba that will help its development in the period between 2016 and 2020. Sources: AIN, PL and Granma. Photos: INTERNET China intends to expand collaboration with Cuba in areas of trade, technology and science Cuba FOREIGN TRADE No. 3/2015 Return to context 16 Events Cuba and China project more business in tourism O Signed with Singapore a agreement on free visa r. Kasiviswanathan Shanmugam, Foreign Affairs M Minister of the Republic of Singapore, expressed in Havana in June, during an official visit, that his country n the occasion of the visit to Cuba of Li Jinzao, president of the National Tourism Administration of China, on Sept. 16 was held a bilateral forum, in which Cuba and the Asian giant confirmed their interest in expanding business in the tourism sector with the signing of a Memorandum of Understanding. The visitor and Manuel Marrero, Cuba’s tourism minister signed the document that will accelerate the exchange between authorities and businessmen linked to the socalled leisure industry, with the objective to identify mutually advantageous projects. The Chinese delegation toured Varadero to verify the development of the pole and the multiple offers which in this field are provided in the main resort of the island, located in the province of Matanzas. A note from the Cuban Ministry of Tourism said that this high-profile visit will facilitate the strengthening of ties of cooperation existing between the two distant territories. The issuance of tourists from China to the island has grown steadily over the past three years. In the first seven months of 2015 this indicator increased 15.4 % over the same period of 2014, and at the time of the visit was expected the inauguration in a few weeks of the first direct flight between Beijing and Havana, which will be operated by Air China, and will stop in Canada. Cuba and China explored during the visit of Minister Li Jinzao other business opportunities to extend cooperation in such key sector, and in which the two nations already promote projects linked to the hotel and golf courses development. For example, the company Beijing Enterprises Holdings Limited projects, in conjunction with the Cuban group Palmares, the creation of a large real estate which include a five star hotel and a golf course, in Bellomonte area, east of Havana. Chinese partners also valued with entities of the island to build a hotel in the Residential Marina Hemingway, west of the capital, the foreign investor is the Asian firm Suntime. Source: AIN. Photo: INTERNET and Cuba can strengthen relations in economy, politic and strategy. He noted the active participation of his country in the Special Development Zone Mariel (ZEDM) since the Port Singapore International Authority Group (PSA), one of the leaders in port operations and transfers worldwide, manages byan administration contract the operationsof the newContainer Terminal inthis port, and emphasized that the situation at present is opportune to promote cooperationin all possible areas. The visitor and our Foreign Affairs Minister, Bruno Rodríguez Parrilla, signed an agreement a visa exemption agreement covering exemption of this requirement for the holders of diplomatic, officials, of services and ordinary passports, expression of the interest of both nations to facilitate the free flow of its citizens and promote bilateral collaboration. Rodríguez Parrilla explained that Singapore plays a significant role in the support of Cuba in international organizations and together work on an agenda of international integration. For his part, Shanmugamadded that mutual relations are friendly and that in the United Nations (UN) they always supported the lifting the blockade of the United States against the Island. Shanmugam exchanged impressions with Marino Murilllo Jorge, minister of Economy and Planning and head of the Permanent Commission for Implementation and Development of the Guidelines. He also noted the importance of the meeting at a time when relations between both countries are strengthened. Cuba, Murillo added, works intensely in updating its economic model and a study of the one of Singapore is fruitful. The sea port of Singapore –the independent city state in Southeast Asia is made up of the main island and 59 smaller ones south of the Malacca peninsula– manages the largest cargo volume a year in the world, both in tonnage as in quantity of containers. Also it is an important international financial center and popular tourist destination. Cuba and Singapore established diplomatic relations in 1997 and today has economic and trade ties in the sector of biotechnology and the ZEDM. Source: AIN. Photo: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 17 Spain in Cuba Events INTERNET Consolidating bilateral, trade and investment relations I n July Spain reappeared in the Island with a high level delegation made up of the Minister of Industry, Energy and Tourism, José Manuel Soria and Jaime García-Legaz, secretary of State for Commerce. They were accompanied by 80 business executives from a variety of companies that included construction, tourism, and manufacture of goods, energy, industry and telecommunications. Also in the delegation were Antonio Fernández-Martos Montero, general director of Trade and Investments; Isaac Martín Barbero, head of the Instituto Español de Comercio Exterior, and Alfredo Bonet Baiget, international director of the Chamber of Commerce of Spain. Upon their arrival Soria declared that their objectives were well defined, both to maintain Spanish investment in Cuba –of which the country was a pioneer– as to support the business executives here and boost the opening of investments in traditional and new sectors, including the Special Zone for Development, Mariel (ZEDM). The minister also concluded the Business Meeting that included a Seminar on Financing and Investment, expressing the interest of his government to strengthen the good state of trade relations with Cuba and open routes for future joint businesses in several economic sectors. He assured that he seeks to support Spanish companies interested in establishing in the Island where a new “scenario full of opportunities” is opening up. Jaime García-Legaz who headed a delegation of officials, executives and representatives of 45 leading companies of several activities announced that the line of financing of 25 million Euros, opened months ago by theSpanish Export Credit Minister José Manuel Soria and the Cuban official of Foreign Trade and Investment, Rodrigo Malmierca Agency (CESCE for its acronym in Spanish) to cover Spanish exports to Cuba that is exhausted and will be renewed. “The Bank of Spain has decided to free the credits granted to operations with the Island under extraordinary prohibitions in force to date. This implies that all credits granted, for example, for investments in the Island, will not have an additional charge occurring up to now; this would imply and extraordinary increase of the flow of funds available from Spanish banks to companies wishing to operate here”, explained the high ranking official. Measures that will be Cuba FOREIGN TRADE No. 3/2015 Return to context 18 Events García-Legaz announced the renovation of a financial line of credit for 25 million Euros, opened months before by the CESCE agency to cover exports to Cuba complemented through an open credit by the Company of Financing for Development (Cofides) destined for Spanish organizations interested in placing capital for investment in Cuba. “We are registering a notable interest of Spanish companies to be able to use this line that we expect will soon be exhausted because it would be a sign that we have identified projects of interest for companies in Spain that could be useful for the Cuban economy”, García-Legaz explained adding that investment projects were presented to establish a plant to produce beer and another for construction materials. The visitors met with Ricardo Cabrisas Ruiz, vice president of the Council of Ministers, Rodrigo Malmierca minister of Foreign Trade and Investment (Mincex) and with the vice president of the Council of Ministers and ministerof Economy and Planning, Marino Murillo. They also visited the ZEDM and held meetings with the Association of Spanish Entrepreneurs in Cuba. Informed in the Business Forum were the results of exchanges with Cuban authorities and identified routes to set in motion the largest bilateral exchange that will imply soon, memorandums of understanding. This joint willingness will lead to new projects for the development of strategic sectors for Cuba such as industry, telecommunications and energy in which the Iberian nation has not had to date such as active participation as in tourism. For two days the Spanish business executives held talks with their Cuban counterparts to present there corresponding dossiers of business and offers of investment. They also met with local authorities. In the conclusions of the meeting, Ileana Núñez, vice minister of Mincex recognized the important participation of the Spanish business persons, even during moments of major economic difficulties. She said that the country has been for 20 years one of the main business partnersof Cuba, held in 2014 the thirdplace in trade exchange of the island with the world, also the one with most branches registered here and one of the main emitters of tourists to the Island. “For several years the exchange has surpassed 1000 million Euros and expect that with these agreements we have recently signed should surpass those figures”. The president of the Chamber of Commerce of the Republic of Cuba, Orlando Hernández Guillén, predicted that this 2015 will be a year of intense and profitable exchange with Spanish counterparts. “We can say that this is only a beginning of work to develop and give continuity required to opportunities identified. “We held in May a good business meeting and take for granted, according to the sectors that are at this time, we cannot blame optimistic if we encourage hopes that new businesses between this large Caribbean island and Spain will enrich the near future with important and historical bilateral relations”, he concluded. Also addressing the event were Manuel Teruel Izquierdo, president of the Chamber of Commerce of Zaragoza and Joaquín Gay de Montellá, vice president of the Spanish Confederation of Business Organizations (CEOE). A communiqué of the Ministry of the Economy of Spain confirmed in mid July that as part of the traditional good bilateral relations, Cuba represents a new opportunity for investments and in this context both parties work actively to broaden economic, commercial and financial relations. Today preparations are going forward for a memorandum of understanding for relations between both countries in areas such as industry, tourism, telecommunications and commerce in order to have a clear framework for action with the basic commercial and legal lines. Sources: AIN, Opciones and Caribbean News. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 19 Events With Italy Fruitful agreements in the sectors of energy, agriculture, food, tourism, construction and infrastructure / RAÚL ABREU Another chapter in relations M ario Giro, under secretary for Foreign Affairs and International Cooperation of Italy declared on July 8 in Havana that his country and Cuba have begun a new chapter in bilateral relations: We are embarking – he said referring to the projects put forward during his visit – in a common economic adventure. He was accompanied by a group of 150 business persons – the largest of that country to have visited Cuba and demonstrates the will of Italy to consolidate present and future economic relations – and cabinet officials, seeking to increase bilateral economic and trade relations. He said that the trip “allowed establishing many agreements of mutual interest for both nations” especially in sectors of energy, agriculture, tourism and infrastructure that should be set before October. He referred to the intent of Italy to invest in the Special Development Zone Mariel (ZEDM for its acronym in Spanish) and for this purpose they presented 14 projects from six companies. He considered that in the past two years the Island and Italy have worked intensely to strengthen their ties and in this direction was a “finishing touch” the recent meeting in Rome of the Cuban President and the Italian Prime minister, who he will travel to Cuba next October, reported Giro. Indeed, last May 10 the Cuban President of the Councils of State and Ministers Raúl Castro Ruz expressed in Rome that relations with Italy are very good and expressed the role of that nation in negotiations of the Island with the European Union. Together with the Italian Prime Minister Matteo Renzi, who received him in the Chigi Palace (headquarters of the government) after his meeting with the Supreme Pontiff the Cuban president was assured that with this country and the current government there will be a great advance. There are differences, but we must learn to live with them, as we are doing with the United States, Raúl emphasized. For his part Renzi said that his country wants to be a protagonist in this new page of history and with Cuba we will fight together against injustice and poverty. Two months later in Havana the under secretary Mario Giro qualified the exchange with the Cuban part as fruitful as well as meetings with several ministers and specialists with whom several agreements were made in the sectors of energy, agriculture, food, tourism, constructions and infrastructure. Among the most immediate proposals and of greater interest for the visiting business persons, in addition to the projects for the ZEDM, he mentioned the setting up of three eolic parks in the eastern region of Cuba, in addition to the restoration and design center in the historical center of Old Havana. In addition he announced the opening of a commercial office to boost the continuity of he called historical and common bilateral relation with significant moments such as the visit of Raúl to Rome. Cuba FOREIGN TRADE No. 3/2015 Return to context 20 Events Giro explained that many of these projects are in the study phase and should be concluded on the occasion of the visit of the Italian Prime Minister, Matteo Renzi to Cuba, scheduled for October. He praised the preparation of the Cuban specialists and officials, demonstrated in the presentation of the studies made for each project with a vision of sustainable development. For his part the vice minister of Economic Development of Italy, Carlo Calenda, met with representatives of different sectors of the Island in a business forum and had met with several ministers. It is the interest of the Italian government and business sector to work together with the Cubans constructively to strengthen the already historical bonds. The road Cuba is taking is very respected, Calenda said, and pointed out that the changes the Island is taking in favor of its economic development is a process in which Italy wants to contribute with a larger presence in this market. The vice minister of the Ministry of Foreign Trade and Investment (Mincex), Ileana Núñez, called on both delegations to identify new business and investment opportunities that contribute to diversify commercial exchange and invited the visiting business persons to participate in the upcoming International Fair of Havana. Two Italian banking institutions, Sace and Intensa Sao Paulo signed at the meeting an agreement valued at 80 million Euros to facilitate the emission of letters of credits for Italians residing in the Island. At the opening of this Forum participated Undersecretary Mario Giro; Guido Rosa, president of the Technical Committee of the Banking Association of Italy and Lycia Mattioli, head of the Technical Committee for Internationalization of the Confederation of Industries. They mentioned the importance of this mission to open a new stage in bilateral relations and cooperation in sectors such as tourism and health. The mission was organized by the General Confederation of Italian Industry, the Institute of Foreign Trade, the Banking Association and the Alliance for Cooperatives and Cameral Unions. The delegation visited the ZEDM and its terminal of containers. In these past years Italy has been one of the 10 first trade partners with the Island and second from the Old Continent with an increase of exports. It also occupies second place of the European nations with more branches established in Cuba. This is proof that the business persons of both parts managed to identify mutually beneficial business opportunities and the many possibilities for joint work and credits that help a better insertion in the respective markets. Among other milestones in relations between both nations, let us note that the Mediterranean country was the guest of honor in the past International Fair of Tourism and last March the Island was visited by the Minister of Foreign Affairs and International Cooperation, Paolo Gentiloni who was received by the Cuban president Raúl Castro. Sources: AIN and PL Raúl and Italian Prime Minister Matteo Renzi in Rome last May / INTERNET In the Business Forum both parts managed to identify business opportunities mutually beneficial / INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 21 Events Cuba-United States The lifting of the blockade offers business opportunities to important US companies / JORGE LEGAÑOA The challenges and benefits are also economic and commercial O n January 3, 1961 Washington closed its embassy in Havana, beginning 54 years of harassment and hostilities. After six months of negotiations, on July 20 of 2015 bilateral relations were established between Cuba and the United States according to a simultaneous announcement and exchange of letters on July 1 between our president Raúl Castro Ruz and US president Barack Obama. In their letters both acknowledged the reciprocal intention of developing respectful relations, of cooperation, according with the principlesand purposes of theUnited Nations Charterand International Law, and the spiritandthe rules establishingtheVienna Convention on Diplomatic Relations of 1961andthe Vienna Conventionon Consular Relations of1963, of which both nations are State Part. The Cuban government as affirmed that resume nexus and opening of diplomatic legations as the first stage of a long and complex process towards the normalization of relations that will take more time. It is now necessary to deal with issues derived from the aggressive policies of the northern country against the Island that damaged and even affect the Cuban people and nation. The main issue is the blockade decreed on February 3, 1962 (strengthened latter by other regulations), rejected by almost the totality of the planet and still intact although President Obama has made more flexible some of the measures. Others could also receive the coup de grace but most can only be cancelled by Congress. Cuba FOREIGN TRADE No. 3/2015 Return to context 22 Events Cuba claims that this group of regulations and laws, whose sole purpose is to surrender the peopledue to hunger and diseases, has been the main obstacle for its development and demands its repeal every year since 1992 in the General Assembly of the United Nations (UN). The last report placed before the assembly states: “The economic damage caused to the Cuban people by the application of the economic, commercial and financial blockade of the United States againstCuba, considering the depreciation of the dollar against the value of gold in the international market is about1 112 534 000 000 dollars in spite of the reduction of the price of gold as compared to the previous period. At current prices, during all these years, the blockade has caused damages for more than 116 880 million US dollars”. The demand of the Cuban people against the government of the United States for economic damages to Cuba was sent to court a few years ago by organizations of the civilian society in the First Civil and Administrative Hall of the Provincial Court of the city of Habana, claiming that from the beginning the measures applied by the United States caused market losses for its main exports and its fundamental sources of supply since 70% of its commercial exchange was made with the United States. Experts and witnesses indicated the negative financial effect of having to apply to markets at a long distance to purchase products (including medicines or raw materials to produce them) with the following interruptions in supply, the need to have large inventories and problems derived from the transportation. This demand claims that industrial sectors required millionaire investmentsfor the conversion of production technologies, often in unfavorable situations in vital sectors. The restrictive measures intended to prevent, also, all maritime commerce. The blacklists of ships of any nationality that had commerce with Cuba, in force for 14 years, after a brief suspension were reestablished in 1992 by the Torricelli Law causing between other damages, the increase in freight rates. Added are losses due to the prohibition to US citizens to travel to Cuba; the refusals to Cuban airplanes for commercial flights to the United States; the impossibility of using the shorter routes to a certain destinations; the need of making more stopovers and operating with equipment with technological disadvantages. This Demand states that the radical cuts of traditional financing sources inside and outside of the United States and the enormous loss by freezing funds, exchange rates with the dollar on foreign trade and external debt, damages by prices and interest rates, loss of opportunities to receive credit facilities, are among the many damages to the foreign financial sector. Currently the experts assure that, in spite of the deep divergences, confidence can be built to allow covering the subjects mentioned and others of seriousness and discrepancies such as the occupation of part of Cuban territory in Guantanamo and the need to compensate Cuba for the damages caused in so many years of siege. It will be a long, complex and not lacking of paradoxes process, a reflection of the dichotomy posture in relation to Cuba inside the spheres of power of the colossal country. For example, on May 29 Cuba was removed from the list of countries that promote terrorism, however, to date, enormous fines were applied to two banks for financial relations with the Island. Presidents Raúl Castro and Barack Obama announced on December 17 of 2014 the beginning of a dialogue to reestablish relations Stonegate Bank, of Florida, and the Banco Internacional de Comercio signed an agreement that would allow payment and transactions between both countries Cuba FOREIGN TRADE No. 3/2015 Return to context 23 Events Seven of every 10 Cubans have been born or lived under the economic, financial and trade prohibitions imposed by the United States In addition, it is necessary to act knowing that the potency has changed its failed policy but maintains its strategic objective regarding Cuba. José Luis Rodríguez, a prestigious specialist of the Research Center of World Economy recalled that, although in one direction, there have been tiessince 2001, framed in the approval by the William Clinton administration in 2000 a Law to Reform Commercial Sanctions and Extend ….Exports to permit, exceptionally, the sale of food and medicines. Adopted after the damages cause of several hurricanes, however, it contained important restrictions and did not modify other regulations of the blockade. These purchases required authorization of the US Treasury;operations had to be paid in advancein cash and not in US dollars and transportation had to be done in ships contracted by the sellers in the United States. Added to this law is the additionalprohibition regarding tourist trips to the Caribbean Island. The expert explains that, in spite of these difficulties this trade was beneficial to Cuba. “Cuban purchases of US agricultural products amounted –according to the Cuban Statistical yearbook– 5 802 million pesos in the period between 2002 and 2013 that, however represented 4,7 % of the total imports of the country demonstrating a decreasing tendency after a maximum of 598 million reached in 2008”. Rodríguez also explained that to transcend this limited scenario the blockade must be remove and although President Obama, who has called for its lifting, conserves important faculties to do it, the final decision is in the hands of Congress dominated by a conservative vision and, in many cases, anti Cuban in the Republican Party. He assures that lifting the blockade “offers an opportunity for business with the Island that does not escape the consideration of important US companies and have said so publicly. On the other hand, for Cuba these economic ties with the United States present a business potential and a significant challenge in a series of areas linked to the strategy of development”. Thereon José Luis Pirelli Cabrera, Economic Science PhD from the Center of Tourism Studies of the University of Havana, has commented that commerceand tourism are of mutual interest. “Cuba will buy, from a commercial point of view, a large quantity of products at a lower cost due to the closeness and the United States will sell a large quantity of products to Cuba increasing its market level”. He also pointed out that this Northern nation is the largest emitter of tourism toward this part of the world and is characterized by high levels of expenditures where it visits representing an economic advantage for both countries. In fact, there are many studies and reflections regarding this subject. According to figures mentioned, without the blockade the United States would purchase from Cuba premium cigars for a value of 400 million a year; a Cuba FOREIGN TRADE No. 3/2015 Return to context 24 Events publication of the Spanish credit insurance company Solunion, assures that without the blockade exports to Cuba from the Northerncountry would increase at a rhythm of 1 000 million dollars a year. In the same line, a Forbes magazine report reported that there are innumerable opportunities in Cuba for US manufacturing and service industries but the longer persists the trade embargo, the opportunities will be less. “The United States Chamber of Commerce, representing US companies wants Congress to lift the blockade. The same occurs with most US citizens. Also a report of the Euler Hermes company, world leader in credit insurances indicated that “with the end of the embargo potentially in view, the United States is in a position to be the most important winner, increasing its exports to Cuba on an average of 1 000 million dollars a year”. With offices in more than 50 countries of the Americas, Europe, Africa, Asia-Pacific and Middle East this company estimates “revenues by US exports to Cuba could reach 6 000 million dollars in 2020 representing 25% of the total of imports” of the Island. The report also informs that other important commercial partners would benefit from trade with Cuba, including China, Spain, Brazil and France. A scenario that, as recognized by other economists, companies, institutions and agencies would boost the Cuban economy and stimulate foreign investment that could grow significantly in the coming years. Ignoring calculations and speculations, reality reveals that only with the flexibility of travel to Cuba in January, now allowed for 12 categories, during the first half of the year 88 900 persons traveled to Cuba, representing 54 % more than in 2014. Varioussources refer tothe newForeign Investment Law, the SpecialDevelopment ZoneMarielandits Container Terminal, as partof changes inthe Cuban economythat will benefitthe new contextbetweenCubaand the United States, andthe relaxation ofrestrictions. At the same time mention the potential of the Port folio of Opportunities for Foreign Investment in Cuba, with 246 projects for an estimated value in 8700 million. In fact, the experts consider very important the pressure applied by US companies due to the possibilities of business, trade and investment that Cuba offers and logically, while the blockade persists these areas will be exploited by other countries. For years Venezuela, China, Russia, Spain, Canada, Netherlands, Brazil, Mexico,Italy and France, between other nations have been trade partners, have done business and executed important projects with Cuba. Recently government officials from almost all the continents have come accompanied by business personalities and agents of important companies to gain a foothold in relations and expand economic opportunities. For its part the European Union is rapidly moving to sign in 2015 the Agreement of Political Dialogue and Cooperation with Cuba. After four rounds of talks significant results have been obtained in trade – a subject also covered in this issue. Meanwhile the US media, business personalities, corporations and farmers are dismayed because every day that passes the blockade reduces opportunities for companies and their business executives, and experts from that same country assure that if opposition continues against his strategy, Obama must continue to use his executive faculties to relax prohibitions and settle some trade exchanges that could bring down the siege. That is what it’s about because to reach the total and complete reestablishment of relations between both nations, in addition to policy it must also be economic and trade, the first thing is to eliminate totally and absolutely the blockade. Sources: AIN, PL, Granma and Cuba Contemporánea. Photos: INTERNET From January to June 88 900 visitors from the north arrived in the country, representing 54 % more than in 2014 Cuba FOREIGN TRADE No. 3/2015 Return to context 25 Events Cuba and Germany relationship and cooperation on new bases Steinmeier and Malmierca during talks T he German Foreign Minister Frank-Walter Steinmeier, who visited the island for two days, met on 17 July with our Minister of Foreign Trade and Investment, Rodrigo Malmierca, at which they said their trip meant the relaunch of bilateral relations and facilitated the establishment of the foundations of new mechanisms of political, economic and cultural cooperation. Previously, the distinguished visitor was received by President of the Councils of State and Ministers of Cuba, Raul Castro Ruz, with whom he discussed the "broad potential" for mutual development of economic , trade and cooperation ties and issues of the international agenda. During the cordial meeting, both stressed the importance of this first visit to Cuba of a German Foreign Minister, who stressed his interest in strengthening exchange and to open here a commercial representation, aspect discussed at a meeting with his counterpart Bruno Rodríguez, and about which they agreed specify the basis for such a facility Indeed, commercial interests were an important part of this visit, reason that Steinmeier came with a delegation of representatives of the Teutonic economic sector. With Cuban Foreign Minister also established the basis of the political, economic cooperation and cultural exchange, signed a Joint Declaration on Cooperation between Governments and a memorandum on the establishment of a Political Consultations Mechanism. "It's a historic moment we are living now," said Steinmeier, member of the Social Democratic Party (SPD) and who also visited projects with German cooperation. The last visit by a representative of the German Federal Government dates back to the times of the coalition of Social Democrats and Greens led by Chancellor Gerhard Schröder, 14 years ago. At that time in our country were the then ministers of Economic Cooperation and Development Heidemarie WieczorekZeul and Economy Werner Müller. Cuba occupies a modest 101 place in the ranking of German exports and 125 regarding imports. Sources: ACN and PL. Photo: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 26 Special Articles Cuba and its opportunities for foreign investment By Dr. Elvira Castro Cossío General Director of Associate Consultants (Conas) The Cuban market as a plaza for investments T he Cuban archipelago is located at the entrance to the Gulf of Mexico, in the Caribbean Sea. It is formed by the largest island, Cuba, the Isle of Youth and other 4 195 keys, islets and adjacent islands with a total surface of109 884,01 km². Most of the territory is formed by plains. Noteworthy is the beauty of the beaches and work being done to conserve the historical and cultural heritage from the early towns founded during colonial times until to events of our times. It has a subtropical climate with an average temperature of 25o C in summer and 22o C in a short winter. According to the last census, the population is about 11 million inhabitants with a high educational level and mostly concentrated in urban regions. It has reached indexes of human development similar to those of developed nations. Also converge in the market about three million tourists per year, mostly from European countries, Canada and Latin America. A rise is foreseen in the near future. Cuba is part of the Bolivarian Alliance for the Peoples of Our AmericaTreaty of Trade of the Peoples (Alba-TCP for its acronym in Spanish) together with Venezuela, Bolivia, Nicaragua, Dominica, Ecuador and other Caribbean nations participating in integration agreements adopted. At the same time it is a member of the Community of Latin American and Caribbean States (Celac), of the Latin American Association of Integration (Aladi), of the Latin American Economic System (Sela) of the Economic Commission for Latin America and the Caribbean (Eclac), of the Association of Caribbean States (AEC) and the Caribbean Forum (Cariforum). It has 25 airports, 10with category of international operations and 32 trade ports distributed throughout the country. About 45 km west of Havana is the Special Development Zone Mariel, which has among its objectives is to create a logistic system that allows high levels of efficiency in the import, export and distribution of products. For this purpose it has a modern terminal of Containers equipped with state of the art technology and aims to set up air-port installations in the Zone and neighboring regions and interconnection with national territory through roads and railroads and communications infrastructure. The country is immersed in a process of updating its economic model to construct a more efficient and sustainable economy to guarantee a rise in the level of life and welfare of the population. A very important part in the strategy of Development is foreign investment, according to a group of Guidelines of the Economic and Social Policy approved in the 6th Congress of the Cuban Communist Party (CCP). A significant level of investments is required for the modernization of the industry, to increase production of food and other goods that could substitute imports, the development of renewable energies, improvement of the infrastructure (including technologies of information) and the production of goods and services with a high added value that would increase the level of exports of the country. In correspondence with the above mentioned, this study aims to guide business persons on how to have access to these business opportunities in Cuba, the legal framework Cuba FOREIGN TRADE No. 3/2015 Return to context 27 Special Articles applied, the attractions of the market and the role in this process of specialized consultancy services, especially Consult ores Asociados. (Conas), constituted in 1991 and associate member of the Chamber of Commerce of the Republic of Cuba (CCCR). Its main mission is to guide its clients towards a better professional services of consultancy and auditing, with a focus on a competitive management based on a multidisciplinary team, integral and innovative, able to satisfy the expectancy of the interested parties. Foreign Investment in Cuba For more than 20 years Cuba counts on foreign investment in several sectors of the economy, mainly in oil, mining, tourism, industry and others, with participation of several well-known international companies. Its legal framework is founded on the Constitution of the Republic of Cuba, which states among other forms of property, joint ventures, societies and economic associations. On March 29 of 2014 the National Assembly of Popular Power approved Law no. 118 of Foreign Investment which defined that foreign investment in the country be directed to the diversification and enlargement of the export markets, access to advanced technologies and the substitution of imports giving priority to food. In the same manner, obtain foreign financing; to create new sources of work, attracting management methods and linking it with the development of productive chains as well as the change in the energy matrix of the country through taking advantage of renewable energy sources1. In addition through Decree no. 325/2014 was approved the Regulation of the Law of Foreign Investment and complementary measures has been issued by the Ministry of Foreign Trade and Investment (Mincex), the Central Bank of Cuba and the Ministry of Labor and Social Security as well as Agreement no. 7567/2014 of the Council of Ministers. The law recognizes the existence of the following modes of foreign investment: 1) Joint Venture. Its constitution implies the formation of different corporate body to the parties, adopting the form as an anonymous owned company through nominal actions. 1 The structure of the participation of the parties in social capital is agreed upon by the partners and established in the governmental authorization. 2) Contract of international economic association, IEA. This includes risk contracts for the exploration of non-renewable natural resources, for the construction, agricultural production, hotel, productive or services administration or contracts to offer professional services. 3) Total foreign capital Company in which the foreign investor can establish in national territory as: a) Private person, acting for themselves. b)Juridical person, beinga Cuban branch of a foreignentity of which it is the owner under the form of anonymous owned company by nominal actions. c) Juridical person, establishing a branch of a foreign entity. Three levels of government approval are established regarding business projects with foreign investment: 1. The Council of State approves foreign investment when done for management of public services or when there is an intention of exploiting non-renewable natural resources through a modality that is not a Risk Contract of International Economic Association. 2. The Council of Ministers approves authorization of foreign investment in the remaining cases except those that have expressly delegated this power to certain heads of the bodies of the Central Administration of the State on sectors and modalities of its competence. 3. Currently delegation of faculty approval mentioned in the previous item have been done to: a) The minister of Foreign Trade and Investment for contracts of international economic association whose intention is the productive and services administration and offer of professional services. b) The minister of Tourism for international economic associations for hotel administration. Article 3. Law no. 118/2014, Law of Foreign Investment. Cuba FOREIGN TRADE No. 3/2015 Return to context 28 Special Articles Attractive investment legal framework for foreign Among these attractions of the legal framework are: - Guarantees offered to foreign investors in terms of noexpropriation. - Possibility of Investments in all sectors except in services of health and education in the population and armed forces. - General and sector policies for foreign investment and with a Portfolio of Opportunities for Foreign investment published by Mincex, previously approved by the Council of Ministers and based on the technical and economic feasibility of each Project object of promotion. - The special system of taxation is similar to other countries that are among themain recipients of foreign investment in the region of Latin America and the Caribbean. Among these incentives are: a) Exempt of taxation on utilities during the first eight years of the constitution of the business with the possibility of an extension as well as when a reinvestment of utilities is approved. Afterwards a general rate applicable is 15 % except for companies of total foreign capital and some IEA contracts or could be increased in the cases of exploitation of natural resources. b) Exempt of custom tariff on imports of equipment, machinery and other articles during the investment process. c) Exempt of payment of territorial contribution for local development during the investmentrecovery period. d) Exempt of payment of taxation of the repatriation of dividends or benefits of the business. - Attention is given to the Protection of intellectual property, conservation of the environment and rational use of natural resources. Policy of foreign investment In the policy of Foreign Investment approved are general and sector principles. These general principles are2: 1. Consider foreign investment as a source of economic development for the country. 2. Encourage the diversification in the participation of business persons from different countries. 3. Give priority to the promotion of the Special Development Zones beginning work in the Mariel Zone. 4. Guide most of the Foreign Investments towards sectors of exportation. Additionally direct then to the elimination of bottlenecks in the productive chain, favoring the 2 modernization, infrastructure and change in the technological pattern of the economy as well as guaranteeing the efficient satisfaction of the necessities of the country in the aim to substitute imports. 5. Contribute to the change of the energy matrix of the country taking advantage of renewable sources of energy with the use of solar energy, eolic and hydraulic as well as the use of bio mass that includes cane, forest and marabou as well as other sources such as biogas. 6. Maintain the figure of the employment entity for contracting work force. The salary will be conditioned to the work done, the efficiency and added value that the company generates. 7. Deficit of constructive capacity of the country cannot prevent the development of the investment process with foreign capital. Consequently alternatives can be evaluated that would be more convenient. 8. No exclusive rights in the Cuban market are granted to the foreign partner who, under equal conditions with third parties, could be supplied and be the client of the business. Defined as priority sectors for foreign investment are; agricultural production and food industry; tourism including of health, and export of medical services; development of sources of energy specially renewable; exploration and exploitation of hydrocarbons and mining resources and construction or improvement of industrial infrastructures (sugar, light, chemical, electronic, pharmaceutical and bio technology industries). Also promoted are projects related to construction, transportation and wholesale commerce. For each of these sectors were set up the activities that are of interest to develop with foreign investment. This does not exclude the possibility of evaluation punctually other projects of investment complying with the regulations of the Law of Foreign Investment. Foreign investment in the Special Development Zone Mariel (ZEDM for its acronym in Spanish) Decree Law no. 313/2013 decides the creation of the ZEDM conceived with an integral and harmonious character bonded to the rest of the economy. The functioning of the Zone is ruled by its Regulation, Decree no.316 of the Executive Committee of the Council of Ministers and complementary resolutions of the Central Bank of Cuba, the General Customs of the Republic and several ministries. Among the objectives planned for the ZEDM is the attraction of foreign investment using clean technologies and the production of goods and services of added value based on knowledge and innovation. Investments made by national entities or of any modality of foreign investment foreseen by the Law through its establishment as concessionaire or as user. Promoted are the development of new businesses in infrastructure development of the Zone, real estate, biotechnology, development and production of medicines, industry of packaging, renewable energies, agriculture, the light industry, telecommunications and computer sciences. Portfolio of Opportunities for Foreign Investment. Year 2014. Mincex. Cuba FOREIGN TRADE No. 3/2015 Return to context 29 Special Articles For the administration and conduction of its Program of Development and Business, through the Territorial and Urban Order Plan, was created the Office of the Zone that has among its functions to evaluate applications presented for the establishment such as concessionaires and users. The General Director of the Office, aided by a commission, evaluates the documents presented and submitted to the Council of Ministers for the approval the applications of foreign investment that should be authorized by this body or proceed to approve or deny those that it should resolve. The ZEDM is noteworthy due to the concession of an attractive tax and salary system as well as incentives given to the investor that are higher in relation to anywhere else in the country. Among these benefits are: - Special salary regime. The salary for workers contracted by concessionaires and users of the ZEDM are higher taking as reference the rest of the country. - Special tax regime. The concessionaires and users are exempt from the following obligations: a) Tax on utilities during 10 years that can be extended prior approval of the Ministry of Finance and Prices (MFP for its acronym in Spanish) in cases of interest for the country. b) Customs tax for articles, equipment and goods imported for the investment process in the Zone. c) Tax on sales or on services during the first year of operations. d) Territorial contribution for local Development. Fiscal obligations applicable after a period of extension are: a) Tax rate of a 12 % on utilities tax. b) A 1 % tax rate for payment of taxes on sales ore services. - Special custom’s treatment with the aim to simplify procedures and terms for the registration, request and granting of custom’s regimes. Currently are under evaluation the placements of concessionaires and users in the northern part of Sector A of the ZEDM. For the development of negotiations minimum values of land were issued in correspondence to the level of urban development of each zone of that part as well as coefficients to apply according to the projected year life business years for the determination in each case of the value of the land in surface rights or usufruct. To determine the value of land an evaluation is required that should be certified by the MFP. How to undertake a project of foreign investment? In summary to commence a project of foreign investment in Cuba the following procedures should by followed in stages: In the exploratory period should be consulted in the first instance the promotional materials presented on Cuba as a destination for investment, the main regulations in force, general and sector policies for foreign investment and opportunities of investment identified in the Portfolio of Investments of the country. This information can be obtained in Internet and/or contacting the specialized entities such as the Center for the Promotion of Trade and Foreign Investment (Cepec), the Chamber of Commerce of the Republic of Cuba and consultants established in Cuba. Afterwards communication must proceed with national entities that promote investment projects in portfolio and/or with business groups that develop economic activities intended to carry out in Cuba, to evaluate the beginning of negotiations. During development of negotiations documents are made that become the file to submit to the government approval that should include, primarily: - A study of the technical and economic feasibility of the project that should comply with Cuba FOREIGN TRADE No. 3/2015 Return to context 30 Special Articles the methodological bases established in Resolution 129/21014 of Mincex. Within particularly important is the market research study made as the basis of the project of investment. - Proposal of constitutive legal documents of the business. a) In the cases of joint ventures refers to the Agreement of Association and Social Statutes. b) In IEA contracts, the Contract itself. c) In totally foreign capital companies, would be the Social Statutes, if it is pertinent. - Valuations of the contribution of assets of the parties in the case of proposing a joint venture or contribution of each referred in an IEA Contract. - Documents established by Law that accredits the identity and solvency of the foreign investor as well as the legal power or representation when pertinent, duly legalized and notarized to take effect in Cuba. Valuation of the assets that provide national and foreign investors should be made by an independent entity. In Cuba are entitled to it the following enterprises: Conas, Intermar, Bandec and Adesa. Also the Ministry of Finances and Prices can authorize a foreign company of well-known prestige to make such valuation. Economic studies and legal documents required can be made by the parts or partners during the negotiation process; although it is recommended to contract the services of independent consultants specialized in the constitution of international businesses. Therefore the constitutive documents, study of technical and economic feasibility and valuation of the actives can be made at the same time and are intimately related with an improvement of the efficiency of the process. Contribution of Conas to the development of foreign investment in Cuba Conas is a mercantile society that offers professional services through the application of standards commonly accepted in international practice. In its list of clients are included the main businesses for foreign capital established the country, among which are: Etecsa; Havana Club; Habanos; PDVSA Cuba; Cuvenpetrol; Banco Industrial de Venezuela; Sherrit Oil & Gas; Castrol; Iberostar hotel chain and Cervecería Bucanero, as well as institutions of the national banking system and industries of biotechnology, oil, mining, food and others. It has offered services for the constitution of significant part of the businesses with foreign capital that operate in Cuba and abroad. More than 35 % of professionals hold masters, specializations and PhD in Sciences. It has a network of offices in the provinces of La Habana, Matanzas, Cienfuegos, Camagüey, Holguín and Santiago de Cuba. Conas can help business persons interested in the Cuban market in: 1) The organization of events and/or meeting programs, visits for exploration and beginning of negotiations. 2) Execution of migration procedures either immediately or not for foreigners and modalities of foreign investment based in Cuba. 3) Advice services regarding foreign trade, foreign investment and business management. 4) Elaboration of market studies and economic and financial feasibility necessary for the foundation of a business proposal. 5) Valuations of the actives that contribute to the business, for their later certification by MFP. 6) Services of consultation, training and auditing for an improved management of ongoing business. 7) Technical opinions on issues above mentioned. The Consultancy has a broad volume of knowledge that allows differentiating itself as a Consultancy par excellence for foreign investment and international business in Cuba. For more information contact us in: Ave. 5ta. no. 2201 esq. a 22, Miramar, Playa, La Habana, Cuba Telephone: (53) 72042988 / 72044116 Emails: conas@conas.cu / elvira@conas.cu Web: www.conas.cu References: - Official Gazette of the Republic of Cuba - Cuban Communist Party. Guidelines of Economic and Social Policy of the Party and Revolution, 2011. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 31 Special Articles Near Cuba and the European Union to achieve political agreement ith substantial progress on various issues and W exchanges on more specific bases in the political dialogue, concluded in Havana on September 10 the V round of negotiations between Cuba and the European Union (EU), at which the parties said they were very close an understanding on almost all elements related to the trade chapter, and worked in a respectful, constructive and professional manner, reflecting the commitment to further deepen relations and moving towards the conclusion of the Bilateral Agreement on Political Dialogue and Cooperation. The Deputy Foreign Minister and head of the Cuban delegation, Abelardo Moreno said that in aspects of cooperation “there are onlydetails”; results that correspond to expectations, because the issues that concern both the EU and Cuba are present in the projects. They began, he said, a detailed analysis about the political dialogue and identified the key issues that will be discussed: the fight against discrimination, human rights and trafficking in small and light weapons. The Executive Director for the Americas of the European External Action Service of the EU, Christian Leffler, in front ofthe community representation, said that strengthened and solidified the texts of cooperation, trade and economic exchange, that which all proposalstextssubmittedwere reviewed and that this round allowed to increase mutual understanding. “We are ingood position – he said -for in the next round to achieve progresson issuesof politicaldialogue.” Both agreed that there are different opinions in many respects, but they approach positions, because there are notpoints of disagreement but rather differences in points of view. Moreno said that there is an almost endless list of items that may enhance, expand and deepen cooperation. The heads of both teams of negotiators Leffler reported that as of progress is on track to achieve a comprehensive understanding on cooperation. For the first time deepened as regards the political dialogue on more specific bases, he said, “which allowed clarifying the scope of that chapter and a significantly closer to what we want to do in this context.” The developed work puts us in a good position to progress in the next round on the political issue, as was done this time in the areas of trade and cooperation, the European representative said, and mentioned the good atmosphere of discussion and mutual commitment to move forward to conclude a firm agreement, which lasts for years. Isworth noted that both parties have trade and cooperation, and many EU members’countries have embassies in Cuba. According to Leffler, do not try to impose models or speeches, but to establish a framework to help consolidate multilateral exchanges, and in a debate in the Foreign Affairs Committee of the European Parliament on October 12, said that progress it has been very good in the commercial pillars and cooperation, and considered “technically possible” a deal in the next meetings. During the IV round, held in Brussels on 15 and 16 June, significant results were achieved in the area of trade, virtually the substantive part of this point in the Agreement was concluded, and important results were achieved with regard cooperation. The meetings were carried out on the agreed basis of mutual understanding agreement in 2008, including: the unconditional, reciprocal and non-discriminatory full respect for the sovereign equality of States, to the legal framework and the institutional order of the parties and total respect for the principle of non-interference in the internal affairs of States. Days before the V round Miguel Diaz-Canel, first vice president of the Councils of State and Ministers of Cuba, who led the delegation the Caribbean island to CELAC-EU Summit II was received in Brussels by Federica Mogherini, High Representative of the Union for Foreign Affairs and Security Policy. This process began in April 2014, following the decision of the Council of Foreign Ministers of the block to invite Cuba to begin talks, and subsequent acceptance of the Island. The meetings have taken place in Havana (I and III) and Brussels (II and IV). The VI will be in the Belgian capital in late November. Sources: Cubaminrex, Cubadebate, AIN and Granma. Photo: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 32 Special Articles The Island makes its debut in the World Economic Forum F ar from other times when their realities were debated without counting on it, Cuba was the star in the panel “Economic update of Cuba and opportunities for investment” that was included in the program of the tenth World Economic Forum for Latin America held in Cancun between May 6 and 9. Participating were presidents, prime ministers, officials of world companies and other personalities from 45 nations. Designed especially to present the business opportunities arising from the new Law of Foreign Investment and the update of its economic model, it was led by the Cuban minister of Finances and Prices, Lina Pedraza with the collaboration of the general director of Foreign Investment of the Ministry of Foreign Trade and Investment (Mincex for its acronym in Spanish), Déborah Rivas, constituting the debut of the Caribbean Island in this Forum. In the inauguration, the President of the host nation, Enrique Peña Nieto, expressed pleasure over the presence of a Cuban delegation and other officials responsible for the organization of the continental event made similar statements. The president confirmed that, in general, the participants demonstrated attraction for the Island: “There is a great interest of business person from the United States and Latin America regarding investment opportunities in Cuba”. The head of Mexican diplomacy, José Antonio Meade, pointed out that “Mexico accompanies and supports the process of updating the Cuban model and hopes that Mexican and Latin American business persons take advantages of the opportunities generated by the new Law of Foreign Investment in the Caribbean nation”. For his part the secretary of Economy of the host nation, Ildefonso Guajardo, widely explained the “opportunities open to investors of the region following the implementation of the process of updating the economic model in this Caribbean nation”. Lina Pedraza said that the Cuban model is “an economy with socialist character based on protects state ownership of the basic, strategic means of production” and that her government “has reached a stabilization of macroeconomic indicators, is participating in productive negotiations with foreign creditors and advances to eliminate its dual currency system.” She said that in the updating process of the Cuban economy, foreign investments are fundamental to curtail inflation, maintaining a surplus in foreign trade balance, lower dependence on food imports and give priority to tourism, medical services and biotechnology. She also explained that Cuba is “optimistic about the revival of the island in the Latin American community” and have received many expressions of support and proposals of working together, especially with Mexican businessmen. She said Cuba’s first participation in this forum has exceeded all expectations. “We were surprised, has far exceeded what we expected”, she explained. In an exclusive interview for Prensa Latina (PL) the Minister of Finances and Prices mentioned that in the plenary and bilateral meetings there was much interest expressed about the process of updating the Cuban model and enthusiasm to learn the possibilities of investment and even this be quick, and also referred to the willingness of US business persons to accelerate its ties with Cuba. “We were asked what to do and have answered that it is necessary to work within their country to speed up the end of the economic, financial and commercial blockade of the United States against Cuba that, in the case of the US companies, remains intact”. She explained that the presentation of the Cuban Portfolio of Business was attended by hundreds of entrepreneurs that required opening an adjoining hall with closed circuit television. “Mexico is very interested in participating with Cuba in the tourism market as well as other sectors in which we need foreign capital”. Rivas explained the opportunities of the agro food sector and that represents an imports bill in our country for more than 2 000 million dollars a year. The agro food sector is vital for us; she emphasized and recalled that the first user that operates direct foreign investment in the Special Development Zone Mariel is a Mexican company that is going to produce food. Pedraza qualified as very positive the Cuban participation in this event of the Forum “in which prevailed respect to Cuba and the interest of the Latin American and the United States business persons over the opportunities of investment in our country”. It should be remembered that this special meeting for Latin America joins other regionals worldwide to the world famous Davos Forum which gathers the most powerful economic and financial interest in the planet. Sources: PL and Cubadebate . Photo: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 33 Special Articles Moments of the panel on Cuba. Present at the event were more than 700 business persons, executives of multi nationals and leaders of opinion Cuba FOREIGN TRADE No. 3/2015 Return to context 34 Special Articles With the minister of Foreign Affairs, Georges Rebelo Chikoti Cuba-Angola cooperation consolidated T he vice president of the Cuban Council of Ministers, Ricardo Cabrisas Ruiz concluded, on July 17, a four day visit to Angola in which he ratified the political determination of both governments to systematize actions for the consolidation of bilateral cooperation. Cabrisas spoke with the vice president Manuel Domingos Vicente with whom reviewed actions in priority sectors; with the minister of Foreign Affairs Georges Rebelo Chikoti; with representatives of the ministerial departments of construction, health, finances, transportation, energy and water, education, higher education and national defense. He also met with Edeltrudes Costa, minister of State and head of the Presidential Civilian House as well as with major general Geraldo Sachipengo Nunda, head of the General Command of the Angolan Armed Forces. He was also received by Francisco de Lemos, president of the Administration Council of the State owned Sociedad Nacional de Combustibles (Sonangol) and Paixão Júnior president of the Credit and Savings Bank (BPC). He visited the logistic base Sonils of the Sonangol Company and, after toured the installations, described as strong and secure cooperation between both nations in the oil sector and corroborated the perspectives for broad exchanges. In addition he met with Cuban collaborators and staff of the Embassy in Luanda. Cabrisas and Angolan vice president, Manuel Domingos Vicente Cuba FOREIGN TRADE No. 3/2015 Return to context 35 Special Articles There were 930 exhibitors from 40 countries participating in Filda 2015 In declarations to Prensa Latina, after the work meeting of both delegations Cabrisas pointed out that there was a “clear and precise evaluation of our relations in general and particularly in cooperation”. Cuba and Angola, he said, are committed to an important effort that is represented in all sectors where collaboration has been developed in recent years. “We have also reviewed difficulties of both parts but, above all, have confirmed the will to continue moving forward in the different sectors we have chosen for our bilateral cooperation”. Referring to the defiance and challenges, the Cuban official responded that we all have them and both nations suffer the impact of the global crisis. “In the case of Cuba it determined limitations on access to markets and finances”. In the case of Angola, he added, the prices of oil have meant an important impact on its economy and it affects the relations as a whole. “But the highlight is the will, the decision to continue moving forward”. He noted that “we have overcome together major difficulties and this be no exception”. On the Angolan part the talks were headed by the Minister of State and of the Presidential Civilian House Edeltrudes Costa accompanied by other high ranking Angolan officials and secretaries of State in several sectors. “This visit is part of the strengthening of the historical collaboration between both countries that requires regular consultations”, also told Prensa Latina Francisco José Da Cruz, Director for America in the Foreign Affairs Ministry of Angola, He mentioned the dynamism of relations between both countries that ‘justifies this kind of contact with specific priorities in an attempt to achieve significant progress of cooperation”. He added that existing projects of collaboration were analyzed and recalled that in less than a year President José Eduardo dos Santos visited Cuba and was the proper time to sign agreements in the sectors of transportation, civilian construction and public works for the 2014-2017 period. It was important to analyze how this agreement was to be implemented and said “we have had financial delays in Angola due to the sudden fall of oil prices in the international market”. Previously Cuba participated in the Luanda Fair The commercialization of Cuban products and services as part of the collaboration with Angola predominated in the participation of Cuba in the 32nd International Fair of Luanda (Filda 2015) held from June 14 to 19. “This year Antex strengthened cooperation work but also intends to broaden and diversify sectors of the economy in which it works”, Axel Mulet, business director of Imbodex of this corporation, told Prensa Latina. Added to the previous factors is “the commercialization of products and services developed in our country in the fields of medicines, technology and communication, among others” said Mulet. “Angola is a market with broad possibilities and we are obviously in a position to gradually incorporate new products to services we perform as part of technical assistance”. We can sell, he explained, what we produce: medicines, vaccines, technological products and also application of computer sciences because practice has shown that we are competitive and have quality products that can be inserted in this market. He predicted that future development of cooperation and relations of the Island with Angola are moving towards integral packages of services and trade, not only in technical assistance but in the work and associations for projects. During Cuba Day in the Fair there were many exhibitions of products and services, such as one by Dr. Yanio Hernández who designed software for the System of Hospital Management and Dr. Iván Díaz who presented Heberprot-P, a leading product of the Cuban Center of Genetic Engineering and Biotechnology. There were presentations in the Antex pavilion on the impact of Cuban cooperation in Angola and shown the progress of the Island in several sectors such as health and education. Angola and Cuba established diplomatic relations on November 15, 1975 and a year later signed a General Cooperation Agreement, on which basis was established the Bilateral Commission. The governments of both countries signed in 2014 a Memorandum of Understanding that has an effect, basically, on the construction by Cuba of airports in Angolan national territory scheduled for three years. In our brother country they are assisting more than 4000 Cubans in various sectors, particularly in health with 1800 doctors and 1400 teachers in education. Sources: AIN, PL and Granma. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 36 Current business situation Tourist Fair takes off Minister Marrero Cruz inaugurates the Fair A t the end of June, a news attracted considerable attention: the Cuban tourist sector obtained an income of more than 1700 million dollars in the first half of the year; and the interest for Cuba destination and for the country explains that the Island has acquired the second position in the Caribbean, center of the smokeless industry. Today tourism is the third source of income of the Cuban economy and as such it is expected to pass in 2015 the record of more than three million travelers in 2014 and with it, the financial contribution of the sector, calculated in 2 700 million dollars this year. Just over a month before the release of these figures, was inaugurated in the Meliá Jardines del Rey hotel –the last premiere of the Cuban Gaviota group in the keys north of Ciego de Ávila and administered by the Spanish chain- the 35th International Tourism Fair. It is the most important event of the sector in Cuba. More than 1 800 tour operators, business persons, travel agents, representatives of airlines and journalists from 53 nations participated in FitCuba 2015 and were received by the minister of the sector, Manuel Marrero, accompanied by Ms Francesca Barracciu, undersecretary of State of Italy and Mr. Carlos Vogeler, high ranking official of the World Tourism Organization (WTO). Marrero greeted the delegation of about 120 professionals of the sector in the United States, pioneer in the event. Tourism in Cuba changes and develops without renouncing its principles and history and with the commitment to receive, equally, each and every visitor, Marrero explained in the inauguration of the Fair. He listed the current and future changes undertaken to diversify the tourism product and placing Cuba as one of the best in the Caribbean, and that this event takes place when tourism here is growing more than 4 % in the arrival of international travelers and attracts worldwide interest with new opportunities for business and investment. He mentioned that records were broken in the emission of visitors from Canada, Chile, China, Switzerland, Colombia and Uruguay; the income from this activity in 2014 was about 2 000 million dollars and continues the upward tendency of national tourism, which already occupies second place among the market issuers of vacationers in the island. Referring to foreign investment he explained the interest of doing business with foreign companies of international prestige to administer and develop products in hotel and other activities related with the sector, and which contributes with their management to a better placement of the destination in the world. He announced that negotiations are developing with Spanish companies to establish in the coming months, two new joint ventures to develop real estate complexes associated to golf courses in the areas of Las Coloradas and El Salado. Cuba FOREIGN TRADE No. 3/2015 Return to context It is intented to place Cuba as one of the most popular destinations in the Caribbean 37 Current business situation With the incorporation of three new chains as operators of hotels there are now 18 functioning that have chosen this market, headed by the Spanish Meliá present in eight of the main Cuban touristic poles, he explained. Marrero explained the advance and consolidation of the private sector as a complement to the state offer, with high quality gastronomic and accommodation services. Already there are more than 11 000 houses that rent rooms for tourism. The minister of Tourism emphasized that achieves high standards of quality is a priority in the sector. However, he added, the persistence of the economic, financial and commercial blockade affects the development of Cuban tourism and, especially forbids citizens of that nation travel to Cuba for tourism purposes. This edition of the largest Cuban tourist fair was dedicated to nautical product, and the invited country as guest of honor was Italy for continuing maintained between traditional markets in issuing travelers to Cuba. In the Meliá Jardines del Rey there was a broad program of conferences by Cuban and foreign personalities, exhibition of nautical equipment, gastronomic festivities, presentation of goods and services, business rounds and visits to installations of the region of Ciego de Avila. With 16 hotels and more than 16 000 rooms, Jardines del Rey concluded the winter season with the largest arrivals in its history and was listed in the preference of markets such as Canada and the United Kingdom. Work is ongoing in the repair of roads, improvement and expansion of the hotel infrastructure and creation of facilities in the sea resort. FitCuba 2015 inaugurated two new spaces: one devoted to business, announced the projects that Cuba is offering to foreign capital to boost growth in the sector and the other was an expo-fair of suppliers of several nations which exhibited goods and useful services to enrich offers in the so called leisure industry. In the closing event the trade director of the Ministry of Tourism (Mintur), María del Carmen Orellana, explained that the business expo left contracts for administration and commercialization of hotels and the development of other products. One established the creation of a joint venture between Cuba and China to undertake the real estate complex associated to the golf course in Bello Monte Bello, east of Havana. The business director of Mintur, José Reinaldo Daniel Alonso, and the president of Beijing Enterprise Group, Mr. Wuang Dong, signed the document to begin a project that is part of the alternatives to diversify tourism offers. This fair will also be remembered for the opening up of the climb park Tower of Glass, first of its kind in the Caribbean, with a circuit of ropes in three levels –that reaches 16 meters in height– with 90 different attractions of different degrees of difficulty. Sights will be directed at Havana, to host the 2016 event dedicated to cultural products and with Canada as the guest of honor country. Sources: AIN and Xinhua. Photos: INTERNET Climb park Tower of Glass, first of its kind in the Caribbean Expo-fair, a new space Cuba FOREIGN TRADE No. 3/2015 Return to context 38 Current business situation CNIC and its valuable 50 years Miguel Díaz-Canel received special recognition for Fidel / JORGE LUIS GONZÁLEZ T he National Center of Scientific Research (CNIC for its acronym in Spanish), an institution with a high degree of development in natural, biomedical and technological sciences, celebrated its half century on July 1 inspired by the challenge and purpose of continued work to improve human health and welfare. Founded in 1965 by the historical leader of the Cuban Revolution, Fidel Castro, the institution significantly marked the history of sciences in this Island. It has trained more than 30 000 workers of the scientific and productive fields (389 of whom are 389 PhDs in Science) and has promoted seven research centers. Celebrating its anniversary was the 16th World Congress of CNIC in the Havana Conventions Palace from June 22 to 26 that meets every five years. This time there were 600 experts from more than 30 countries. Planned for the exchange between specialists on subjects developed by the Institution this time were technologies for the manufacture of modern medical equipment, laser surgery, equipment for the diagnosis of diseases and microbial agents and technologies for the treatment of water. The program included, among others, symposiums on infectious diseases and vaccines, natural and traditional medicine and natural products as well as forums on the medical application of ozone and the environment. Also there was an exposition and commercial fair that exhibited novel biopharmaceutical products and were promoted the most advanced lines in Cuba and the world, supporting the establishment and/or strengthening of cooperation between specialists and researchers. During the event opening ceremony the director of the center Dr. Blanca Rosa Hung recalled the words of Fidel in its inauguration: the future of Cuba must be of men of science, of men of thought. CNIC was undoubtedly one of the pillars that allowed turn that dream into reality, she said. She recalled that since its beginning it had important results in the development of medicines and nutritional supplements, in research of the science of food and livestock, in neurosciences, the protection of the environment and emphasized the use of ozone for therapeutic purposes, the creation of electronic equipment used in biomedicine, the development of molecular markers for genetic improvement and resistance of plants and set the bases for the first biotechnological research in Cuba. She mentioned the advances made to obtain nutritional supplements with anti-spore and gastro-protecting effects and the experience achieved in the development of medical equipment of high technology such as the Suma system for massive surveillance of congenital malformations; the first Cuban automated electroencephalograph and Cuba FOREIGN TRADE No. 3/2015 Return to context 39 Current business situation In CNIC was conceived Cuban biotechnology, today among those existing in industrialized nations electromyography; an artificial heart; equipment to generate ozone for medical, industrial and domestic use; the Diramac system for rapid microbiological diagnosis of infectious agents and the identification of the specific antibiotic required, winner in 2007 of the gold medal awarded by the World Organization of Intellectual Property (WIPO). The first vice president of the Councils of State and Ministers, Miguel Díaz-Canel Bermúdez referred, in his closing speech in the conference, that have actively participated in the foundation of Cuban revolutionary science; being pioneer and protagonist of the work and see the fruit of the strategy set forth by Fidel that are reasons for CNIC to be proud and strengthen a commitment with the future. Imposed in the anniversary, he said, is to analyze the repercussion of science in Cuba and project the future of the center and the organization it belongs to: the Business Group of Biotechnological and Pharmaceutical Industries (BioCubaFarma). He called to increase management of business through the diversification of products and markets, sustain a growth of exports and guarantee the supply of medicines for the national health system. He also noted the importance of offering special attention to the investment process, indispensible to achieve higher goals, to boost research and develop activities and raise competitiveness for the products to meet standards of international quality on the basis of complying with good practices. The also member of the Politburo of the Party recalled that in CNIC battles were fought to eliminate African Swine Fever and participated in the experiment for the first visit of a Cuban to the cosmos. He advocated BioCubaFarma to concentrate its efforts and potential strengthening human resources, diversifying products and markets and raise competitiveness of its lines. Recognized as the father of sciences in Cuba CNIC has a mission to solve, with quality, biomedical and technological problems of economic and social importance and create advanced scientific products capable of competing in the markets of the world. For this purpose it works in a complete cycle: research-production-commercialization of its principal products. Located in the capital municipality of Playa it was the first Cuban institution conceived and built with the required conditions to promote the formation of specialists and high level research. The study program included a strong preparation of basic sciences, in experimentation and post graduate education. At the beginning it was mostly staffed by recently graduated doctors and, to a lesser extent, graduates of other specialties. Many of those prepared there have become recognized figures of Cuban science and quite a few founded important research center such as The National Center of Agriculture and Livestock Health, Immunoassay, the Engineering Genetic and Biotechnology Center and the Center of Neurosciences of Cuba. CNIC also set the bases to organize the system of scientific degrees that rule in Cuba and was a pioneer in the use of electronic scanning microscopy and mass spectrometry and high resolution resonance that allowed breaking into new lines of work. Also among its important contributions are the automated equipment Neurocid-M and Medicid-03 and the coralline hydroxipatite HAP 200, a biomaterial used in reconstructive bone implants or substitution of damaged bone as well as for eye prosthesis. Among its priorities today are the search and development of medicines of natural origin such as the nutritional supplements Abexol and Prevenox and continued advance in clinical trials of Palmex for the treatment of benign prostate hyperplasia. In the environment there are notable works on the protection against corrosion of state buildings and housing as Cuba FOREIGN TRADE No. 3/2015 Return to context 40 Current business situation It was the first institution created to foster the training of specialists and carry out high level research / ROBERTO SUÁREZ Undoubted protagonism in the training of scientific personnel and obtain results of impact / YÁNDER ZAMORA The congress was attended by 600 experts from more than 30 countries / CESAR RODRÍGUEZ well as the project Study of the aggressive coastal environment in Havana and its impact on structures of reinforced concrete, with experts of the Faculty of Civil Engineering of the José Antonio Echevarría Higher Polytechnic Institute and the collaboration of other institutions. The first result is the Map of Corrosive Aggression of the Atmosphere, specific for this material that has allowed designing Cuban norms related to its quality, research that deserved one of the national prizes of the Academy of Sciences in 2014. Undoubtedly CNIC arrived at its 50th year as a paradigm of the clear will of Cuba to transform science into a dynamic productive force that substitutes imports, generates exportable products and contributes to the welfare of Cubans and obtains technological sovereignty. Sources: AIN and Granma. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 41 Current business situation Los Portales: Two decades all around the archipelago Organization, control, security and protection D uring the early years of the 19th century was found the first evidence regarding the medicinal waters of Ciego Montero in Palmira in the central province of Cienfuegos. In 1836 the waters were analyzed by the owner of the farm site of the springs, engineer Diego Elbicio and found that one was thermal-sulfurous with healing properties and the other of digestive waters. After twists and turns of time, today Cuba explodes commercially two of its most plentiful sources of mineral water: from Ciego Montero and Los Portales in Guane, Pinar del Rio in the eastern region of the island. In these sources are installations with a high technological development guaranteeing products with top quality and excellent presentation. Both springs are exploited by a joint venture between Corporación Alimentaria de Cuba (Coralsa) and the Nestle Waters Group that guarantees leading edge technology. We are mentioning Los Portales, association in which financial and social interests are linked. Last June it completed 20 years of operation. First we must note that the company reaches this anniversary as a pillar of the economy, the environment and as a leading producer and trader in the Island of natural mineral waters, carbonated and beverages with a large variety of flavors covering 80 % of the national demand. Precisely this association is able to satisfy the growing needs of the national market and substitutes millionaire purchases made by Cuba abroad. Its purpose is to b brings Advanced technology and high productive capacity / Cuba FOREIGN TRADE No. 3/2015 Return to context 42 Current business situation products to every corner of the country and that they receive good reception. Very near to the springs of Ciego Montero and Los Portales –of light water and few minerals– are the factories with up to date technology and high productive capacity. The Ciego Montero mineral water is sold in PET bottles of 500 and 1 500 ml and 5 l (natural) and 330 and 1500 ml (carbonated). It is noted for its low mineralization and supported by clinical and pharmacological studies that demonstrate its positive action on human health. Its excellent quality from the physical and chemical and bacteriological point of view is certified by specialized national and international laboratories. The Ciego Montero beverages are sold in six flavors: cola (Tukola), orange, lemon-lime, pineapple, mate and diet Tukola, in PET bottles of 330 and 1 500 ml and cans of 335 ml. Also produced are canned soft drinks in the PET modality of 1 500 ml with trademarks of Cimex Corporation (Cachito, Najita, Tropicola and Ironbeer) and mineral water Naturaleza as well processing Ciego Montero tonic water, ideal for cocktails. There is organization, control and security and protection in the manufacturing installations that promote a high productivity. Both have implemented the Integrated System of Management certified by the National Office of Norms and the Bureau Veritas, with the norms NC ISO 9001 (Quality Management System), NC ISO 14001 (Environmental Management System), NC ISO 18001 Management System for Safety and Health at Work and NC ISO 22000 (System of Innocuous Management of Food) and their products are certified with the Cuban Label of Conformity. The director of the factory in Guane, engineer Mario Venero Bencomo, informed that their immediate projects are aimed at sustainability, to maintain daily production and for 2017 they will start to produce flavored water. These projects are well sustained since, according to Doval Martínez González, Quality coordinator of the Los Portales company and geologist who attends the exploitation, protection and conservation of the sites “that have extraordinary reserves of water; today we are not exploiting the springs nor at 10 % of their capacity”. The company has representatives in the provinces of Havana, Matanzas, Villa Clara, Camagüey, Holguín and Santiago de Cuba that distribute the products directly to their retail clients using equally the wholesale chains that exist for this purpose. In this manner they guarantee that the products are delivered to the store networks and hotels and other chains in the country. The company and its installations have received acknowledgement repeatedly and their products are awarded prizes for quality and design in main fairs and expos. Sources: Opciones, Negocios en Cuba, Bohemia and www. losportales.cu. Photos: INTERNET Twice a year the Pasteur Institute of France certifies the quality of the waters Cuba FOREIGN TRADE No. 3/2015 Return to context 43 Current business situation Brascuba arrives at two decades of existence O n April 21 Brascuba Cigarrillos –Cuban- Brazilian jointventure, one of the first set up with mixed capital in the island– now celebrates 20 years of existence with considerable stability and growth in production, efficiency and utilities, which has enabled the contribution of 200 million dollars to the Cuban economy in its two decades of work. In 2014 it produced 3 400 million cigarettes surpassing the plan and achieved a productive record; this years it expects a higher amount through the incorporation of new offers. Just to ensure the demand for 2015 investments are made in the amount of 10 million dollars and its more than 500 employees work in three shifts of eight hours, surpassing the productive, efficiency and discipline indicators. At a press conferences held on the occasion of the anniversary, the co presidents of Brascuba, the Cuban Increased production and diversity of offers and, consequently, increased profits. In the photograph are the co presidents /MARCELINO VÁZQUEZ Jorge Abraham Maluf and the Brazilian Alexander Carpenter explained that in these years the company has been characterized by the growth in the volumes of production and incomes, by the high quality labels of its dossier of cigarettes –these include Popular, H. Upmann, Monterrey, Vega, Hollywood, Lucky Strike y Cohiba– and, above all through its high acceptance in the Island and abroad. Maluf assures that both parts are satisfied with the business that covers the demand of the cigarettes sold in the internal market and in foreign currency and exports to Spain, Brazil, Hong Kong, Iraq, Mexico, Panama, nations of the Middle East and other countries that represent 10 % of its production. Cuba FOREIGN TRADE No. 3/2015 Return to context 44 Current business situation More than 50 employees work in three eight hour Therefore they intend to grow in the near future. If its harvesters, its knowledge of black cigarettes, a qualified approved a feasibility study they will build, for 2018, a modern staff and trademarks and the Brazilian Souza Cruz, member manufacturing installation in the Special Development Zone of British American Tobacco, leader in the Brazilian market of Mariel with advance technology and more productive capacity cigarettes, which offers to the fusion its experience of over 100 that will make it possible to expand production, increasing years as a producer of cigarettes, capital, technical support, exports fivefold and satisfy the growing demand of the advanced technology, Virginia tobacco and trademarks. markets. In this association Cuba used one of its factories: the René A modern form of presentation linked to the demands Arcay of Luyanó (1883) considered an emblem in the sector. made by smokers in periodic studies of the market and When the company was created capital remodeling of the the constant search for new products such as the Cohiba building was undertaken, respecting the architectural style and cigarettes, favored placement in a good position of the label. important steps were taken: selection, preparation and training Carpenter assures that the strategy will contribute to of personnel; market research; determination of trademarks, satisfy the expectations of the Cuban consumer as well as areas of sales, systems and procedures that should be used tourists and foreign visitors. He also refers that the quality and everything related to the future of the company. and prestige of Cuban tobacco in the world makes possible At the beginning of 1996 arrived the machines and Brazilian the creation and acceptance of varieties of lighter blend technicians began setting them up, while the Cubans were cigars, according to the current international tendencies. trained in the new technologies. Later the Brazilian monitor Brascuba Cigarrillos has today about 7 000 points of sale -operators came– to train their Cuban counterparts indicating throughout the Island, but the demand surpasses the offer. that all the workers of Brascuba Cigarillos have received an However, in this 2015, it surpassed by 7 % the plan of income integral training that allows them to work in any machine of the first quarter in the domestic market and 16 % in incorporated in the productive process. exports as compared to the same period last year, according The factory began functioning in June 15 of 1996 and also to information given to the media by the co-presidents. initiated its trade operations on the 20th of that month As part of the celebrations for the past 20 years the when the society announced its first creation: black Popular company intends to surpass its exports program in 2015 cigarette was placed in the Cuban market with a quality filter representing four million dollars. Déborah Rivas, general and polypropylene film to protect the packet. With the trade director of Foreign Investment of this Ministry has assured slogan “I am Cuban, I am Popular” it reached immediate that the company fulfills its productive growth according to acceptance and placement among local consumers. the objectives of the Cuban policy of foreign investment with Every year important technological updates are performed; joint capital companies. national and international trademarks introduced and have Among the activities developed to celebrate its anniversary made up a solid dossier that satisfies the different segment are the cancelation of an allegorical postage stamp, a of consumers. photography exhibition, meetings with foreign partners Its products have received gold medals for quality awarded and a limited emission of the famous trademark of Popular by Cuban authorities and has received the certification of cigarettes. ISO 9001 norms awarded in 2007. All thanks to the clear The Cuban-Brazilian company was founded in April 21 fulfillment of its mission and vision governed by transparency of 1995 through the integration of the Tobacco Enterprises and mutual respect for the clients. Union –Uneta, now named Tabacuba– belonging to the Ministry of Agriculture, which brings its century’s old tradition Sources: AIN, PL, Trabajadores, Granma, Opciones and www. as producer of the best tobacco in the world, the secret of brascuba.cu. Photos: INTERNET Markets in the world Cuba FOREIGN TRADE No. 3/2015 Return to context 45 Current business situation Meliá celebrates 25 years in Cuba opening the largest of its hotels in the world T hey are given to the good news, so last December, on the threshold of the year that marks a quarter of a century in Cuba, hotel transnational Meliá Hotels International, the main hotel chain in Spain, announced it will have in Cuba its largest hotel. “In September we will open completely”, said in Madrid Gabriel Escarrer, Vice President and CEO of the famous company founded in 1956 on the island of Mallorca by Gabriel Escarrer Julia. This is the Meliá Jardines del Rey, with 1 176 rooms, a fivestar all-inclusive resort, located in Cayo Coco, north of central Cuba. The hotel began operations on December 24 when it opened its right section, which has 624 rooms overlooking the pool, sea and gardens. Its gastronomic offer has two restaurants with buffet service, a snack bar, five restaurants to the carte specialized in Mediterranean, oriental, Cuban, International and seafood cuisine, beach shack, ice cream shop and four bars. There was held in May FitCuba International Tourism Fair 2015, and when it reaches its best will provide panoramas and services of infarct. During these 25 years Meliá was forming an establishment and today manages in Cuba 28 hotels with approximately 13 000 rooms. The facilities are divided as follows: 10 in Varadero, four in Cayo Coco, four in Cayo Santa Maria, two in Cayo Guillermo, two in Cayo Largo, two in Holguin, one in Santiago de Cuba and three in Havana. Never have thought from closing doors and goes, unlike things and so today the Cuban market is the third largest for the group after Spain (163 hotels) and Germany (33). “Our commitment for Cuba remains unconditional, as we have demonstrated for 25 years”, said Escarrer. Of the 378 hotels that account Meliá in 41 countries, over 60% operate in the leisure segment and the rest in the urban business. In Spain, four in 10 hotels are in the group and in these months complete the renovation of its hotel complexes in Calviá (Mallorca), which will mean increased four-star to two of its hotels. This year, while continuing the process of modernizing and improving its facilities on the peninsula, he has put the emphasis on new openings, practically all abroad. The process began in January with the inauguration in Qatar of a 39-storey hotel. New facilities will follow in Europe, Jamaica, United States and Brazil. “The pipeline for the next two and a half years is 70 hotels with 18 000 rooms,” said Escarrer. In Cuba it is in the hotel sector where Spain’s presence is more visible and the award-take precisely the Meliá chain, now operates one out five rooms of the Island and hopes to continue growing in a market where trust is mutual. Well it is said that to the company must recognize the long light that illuminated their activity in the greater Antilla 25 years ago. It certainly was a brave and risky decision, because beyond the logical uncertainty of a business in its infancy, passed the crisis of the nineties, when there few predicted the end of history and the apocalypse for the island. At the beginning it was not all plain sailing. The many difficulties could discourage them. But instead, Meliá was opening niches and gaps. Its current position in the Cuban tourism market was won therefore to blow obstinacy, audacity and confidence. Currently in Cuba destination are working 17 international channels (13 of them from Spain), which is responsible for Efficiency, comfort, professionalism Cuba FOREIGN TRADE No. 3/2015 Return to context 46 Current business situation The wonder of Meliá Las Américas in Varadero overall management of 62 properties (31 000 rooms) in modern and colonial cities, beaches and cays. At the head is Meliá, a quarter century after its arrival does not hide his vocation by Cuba and determination to continue to grow. The first of their hotels here was the Sol Palmeras in Varadero opened in 1990. He was the first in the country managed by Sol Meliá Cuba resulting from the initial joint venture incorporated in the archipelago, and the first accommodation under a management and marketing contract by a foreign chain. Meliá brand comes exactly a year later, with the opening of Meliá Varadero, first five-star of the company in the insula. In 1995 it opens doors in Havana Meliá Cohiba, nothing less than the first intelligent building of the company in the world. This establishment just turned two decades, began the road to the luxury segment and business. Then came the strengthening of ties with Cuban proprietary establishments chains: Gran Caribe, Cubanacán and Gaviota. In 2012 came the new brand name of the company: Meliá Hotels International Cuba. Twelve months later is the opening of Marina Meliá Varadero Hotel & Apartments, unique of its kind in the homonymous pole to have 126 condominium apartments and five-star accommodation surrounded by a tourist village and a marina. Thus we come to the twenty-seventh and the last surprise that gave us the group: the opening of the Jardines del Rey cited above, and that’s not all for this 2015 Two other important purposes will undertake the Cuba Division: International Meliá International, with 900 rooms (in the area where today is the International Hotel of Varadero) and Paradisus Cayo Santa Maria, the fourth operated here under the brand Paradisus Resorts. No wonder, after the announcement of 17 December 2014 on the start of talks between Cuba and the United States, rebounded in the Bourse traded shares of Meliá Hotels, which wants to continue as pointer, and for this, apart from the usual offers of sun and beaches, offers new promotional packages that encourage visitors to discover other riches of Cuba and its culture. Speaking of news: Meliá Hotels International Cuba has achieved that over 60% of its establishments received the Certificate of Excellence 2014 awarded by TripAdvisor, the world’s largest travel web. The winners are: Havana Meliá, Paradisus Varadero, Meliá Las Américas Meliá Varadero, Sol Palmeras, Sol Pelícano, Sol Cayo Largo, Meliá Buenavista Meliá Cayo Santa Maria, Meliá Cayo Coco, Sol Cayo Coco, Meliá Cayo Guillermo, Sol Cayo Guillermo, Paradisus Río de Oro, Sol Río de Luna y Mares, and Meliá Santiago de Cuba. La Habana Café nightclub of the Meliá Cohiba, also won the important recognition that is based in the opinions of discerning arbiters: the travelers themselves. Sources: AIN, cubasi.cu and The Economist Spain. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 47 Current business situation Cubagua 2015 There were conferences on experiences and good practices of the nations W Positive Impacts in vital subjects for the Island and the World ith a master conference on the application of efficient and sustainable solutions for the management of residual waters, the international event Cubagua 2015 was inaugurated on June 9 in the Conventions Palace. It was a space to exchange knowledge, for the promotion of new technologies associated to the administration and management of water resources worldwide and coordination of businesses. The forum lasted until the 13th and at the same time were held technical-commercial meetings and an exposition fair with the participation of 73 companies, national institutions and 14 countries that exhibited their best products and technologies linked to the subject of water in the planet. Sponsored by the National Institute of Hydraulic Resources (INRH for its acronym in Spanish) and the Cuban National Union of Architects and Construction Engineers, Cubagua promoted the diffusion of updated information on the subject and sought to boost negotiations between Cuban and foreign companies. During the event in general, more than 500 Cuban and foreign representatives of 24 nations exchanged opinions on the equipment used for the treatment and purification of water, repair of water conducts and networks as well as the integral management of water basins, protection of swamp lands and ecosystems and the early warning systems in case of extreme weather events. More than 70 companies from 14 nations exhibited their new technologies for the sustainable management of water / ABEL PADRÓN Present were experts and professionals from 24 nations Cuba FOREIGN TRADE No. 3/2015 Return to context 48 Current business situation Foreign businessmen expressed interest in what happens in Cuba in this subject. In the photo the Albear Aqueduct In the forum, the first of its kind in Cuba, important were the speeches delivered by representatives and officials of the United Nations (UN) and several international financial institutions that promote the development of water resources, signing off until 2017 after five days of exchange and socialization of experiences and practices in different subjects. During the closing ceremony, the Organizing Committee delivered five prizes and three mentions in which the Entrepreneurial Group of Engineering and Hydraulic Logistic of Cuba was awarded for the Best Design of the Modular Stand while the German Waters Partnership consortium won the prize for Grouped Firms for representing nine companies in charge of producing different equipment used in the water operation processes. INRH vice president, Abel Salas García, assured that Cubagua surpassed the expectations of participation –both national and foreign– and in quality of the exhibitions and information, and among its main achievements was the signing of five memorandums of understanding by entities belonging to the Institute with different foreign companies, with the aim to strengthen capacities in the business sector of the Island in the maintenance and repair of pumping equipment. This allows, the executive said, to increase our technical skills in order to achieve greater efficiency in actions of rehabilitation of supply systems, incorporating new technologies for the purification and treatment of residual waters and facilitate the promotion of cooperation relations with Cuban industries to create new products in this sector. Also the INRH has been working in other projects through international cooperation such as those done with the support of the OPEC Fund for international development and the Kuwait Fund for Arab Economic Development. In Havana 53 works are carried out while Holguín has 15. Trinidad, Bayamo, Las Tunas and Palma Soriano also receive the direct impact of these agreements. Referring to the collaborations the expert of the Japanese International Cooperation Agency, Shigeki Kihara, said in his conference that Japanese representation work since 2013 in the southern basin of the Provinces of Artemisa and Mayabeque to improve prospection and management of underground water sources, work that should conclude by the end of 2016. Germany, Spain, France, Mexico, Italy, Panama, Ireland, Israel, Kuwait, Japan, the Dominican Republic and Venezuela were represented in the event, whose climax was a technical visit to the Albear Aqueduct –one of the marvels of Cuban engineering– and the Special Development Zone Mariel. Water resources are scarce on Earth, where 2 600 million persons do not have access to safe drinking water while disease related to this priceless liquid are the second cause of infant deaths worldwide. A better water culture is needed. Sources: AIN, Granma and Juventud Rebelde. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 49 Current business situation Cuba Fashion Seeking opportunities in a branch with great potential The Light Industry, Cuban Fund of Cultural Goods and artisans showed their articles T he fairgrounds of Pabexpo hosted from 8 to 11 June the first trade fair of fashion. It seeks opportunities to diversify the presence of textiles, footwear, cosmetics and several clothing manufacturers in the national market. Cuba is Fashion –where our business representatives and others from Italy, Spain and other nations met interested in taking advantage of opportunities here offered– was the first step to promote our trade relations with exemplary countries in that industry and thereby help development in this sector. Abraham Maciques, president of the Palco Group explained that in its organization played an important role the Italian Association of Women Entrepreneurs, and especially its president Franca Audissio, convinced of the potential of the Island to boost the fashion industry. He pointed out that Italy, one of our main trade partners and emitters of tourists, is a world reference in this field with products of high standards; therefore the need to strengthen ties, learn and search for new businesses that stimulate development of this sector in Cuba. Carmine Robustelli, Ambassador of that European nation, in the inauguration of the forum mentioned the interest and long range commitment of his country to be one of the main contributors to development in this field of the national market and his diplomatic mission is prepared to offer all the possible support to this endeavor. Nine enterprises of the Cuban light industry dedicated to produce and commercialize textiles, leather goods, beauty and hygiene products and footwear participated in the fair to promote their business opportunities. Cuba open to foreign capital a diverse portfolio of projects in this sector aimed at diversifying the production lines, said Mario López, technical director of the Entrepreneurial Group of the Light Industry. There seminars, workshops, specialized conferences, fashion shows and presentation of products and services to promote new trade agreements and identify potential partners. Several subjects were dealt with, such as production and commercialization of the Cuban guayabera and the possibilities of producing cotton fibers in the country, a project aimed at import substitution in the textile industry. Future development in productions of the Suchel group and the design of leather goods and footwear also reflected the projections outline in the medium and long range periods to revive the light industry and in this sense will be crucial the role of the foreign investment in the injection of capital and technologies to supply dynamism to one of the most affected sectors of the country. Another subject debated was the phenomenon of fashion in Cuba and its separation from national identity. The second edition of Cuba is Fashion will be in June of 2016 and is expected to be larger since there are now contacts with big names in Italy that were unable to be present this time due to organizational problems but expressed interest in participating. Sources: AIN and Opciones. Photos: INTERNET Cuba FOREIGN TRADE No. 3/2015 Return to context 50 Current business situation Valuable results in Felti 2015 R epresentatives of 50 companies from 12 nations – Argentina, Brazil, Peru, Puerto Rico, Ecuador, Uruguay, Venezuela, Canada, Bolivia, France, Colombia and Spain– attended the international forum of entrepreneurs and leaders in technologies of information Felti 2015 that met in the Center of Integrated Technological Research of the José Antonio Echeverría Higher Polytechnic Institute in Havana from May 18 to 23. Jany Picó, commercial specialist of the Cuban company of computer sciences Datys (Development of Technological Applications and Systems) that organizes these events every year together with other institutions of the sector in Cuba said that its main objective is to help the integration of Latin American countries in these technologies. The purpose is to insert the enterprises of the Cuban information Industry in the Latin American market, establish networks and boost collaboration and integration in this field. Datys presents several lines of businesses in the world of computer sciences with products deployed in countries such as Argentina, Bolivia and Nicaragua with very good acceptance. To broaden commercial exchange of informatics goods and services and boost synergies of work, networks of collaboration, bilateral agreements and exchanges of information on tendencies, know-how and advances in the sector are other objectives of the event. The debates of Felti 2015 focused mainly on the information technologies (IT) applied in businesses and education, the electronic government and future of these technologies including other subjects of interests for companies of software in Cuba and Latin America. The meeting also discussed potential of the Island in the industry of IT and evaluated opportunities of business and links between the participating organizations. Meeting point for IT executives, investors and entrepreneurs in our region, in this event were signed trade agreements and letters of intent. The participants considered the event impeccable and magnificent, committing to work to achieve a regional union. Felti 2015 demonstrated how to share resources, knit networks of contacts and organize synergies of work in subjects of high complexity and made possible a number of meetings between foreign and Cuban companies contributing to form alliances and establishing joint strategies to penetrate the markets. Through this space has been forging the desire for real integration of the Cuban information industry and allows setting higher goals and objectives that can be done jointly to achieve the required jump. Sources: PL, web site datys.cu. Photo: INTERNET Business management and IT use are intimately related Cuba FOREIGN TRADE No. 3/2015 Return to context 51 Our associates New associate members during the 2nd quarter of 2015 Hydraulic Exploitation Enterprise of Villa Clara National Institute of Water Resources Address: Ave. Libertadores no. 201 e/ Jesús Menéndez y Danielito, Santa Clara, Villa Clara Tel.: (5342) 205615. E-mails: tayruma@vc.hidro.cu / direccion@vc.hidro.cu Social purpose: Water supply services, maintenance and building of hydraulic infrastructure of Villa Clara territory, control and monitoring of the parameters of water quality and hydrological cycle, economic activities in the public sector that could be linked to foreign trade in relations of collaboration and exchanges in strategic alliances of professional multi-disciplinary engineering services, in the management of resources and maintenance of engineering works in the hydraulic field. Metal and Electric Constructions Enterprise Ministry of Food Industry Address: Hacendados no. 16 (altos) e/ Ave. La Pesquera y Línea del Ferrocarril, La Habana Vieja, La Habana Tel.: (53) 78621670 / 78630849. E-mail: leonardo.pg@comelec.alinet.cu / maydelin.gp@comelec.alinet.cu / eliet.at@comelec.alinet.cu Social purpose: Production, assembly, installation, repairs, maintenance, commercialization of furniture and non-oxidizing steel structures and carbon steel, technological equipment, electrical boards and photovoltaic systems. Base Entrepreneurial Unit Nuevitas Ministry of Transport Address: María Luisa no. 18, Reparto Tarafa, Nuevitas, Camagüey Tel.: (5332) 414117 / 412379 / 412523 E-mails: jadrian@puertonv.transnet.cu / luis.juridico@puertonv.transnet.cu / director@puertonv.transnet.cu Social Purpose: Offer of facilities for loading and unloading of ships during the process of import and export of merchandise as well as offers of services for the right to dock in their installations of means of maritime transportation, move from dock or transference through port installations or through those required by the importers, exporters or other private or corporate persons either national or foreign, linked to foreign trade. Coffee Processing Enterprise Rolando Ayub (Lideca) Ministry of Agriculture Address: Calle 36 no. 18 e/ 25 y Carretera Central, Reparto Cabrera, Santiago de Cuba Tel.: (5322) 589261 / 587551/ 587636. E-mails: hsl2308@enet.cu / cafera@enet.cu Social Purpose: Production and commercialization of improved and processed coffee beans for clients of Cubaexport, Comercial Café and Cimex that at the same time send it to foreign trade and internal foreign currency markets. They are linked to foreign trade through the production of function as well as through direct ties with bean exporter’s enterprises. Unevol Joint Venture Ministry of Industries Address: Calle 240 esq. a 81, La Lisa, La Habana Tel.: (53) 72614248-56, ext. 135 E-mails: perhundervad@unevol.cu / gmara@unevol.cu / wrodriguez@unevol.cu Social Purpose: Production and commercialization of systems of marine propulsion, marine engines, industrial engines: versatile and of generation, as well as sale of parts, spare parts and accessories. Services of projects and engineering solutions, selection of products, equipment repowering, three dimensional projects and models of installation of motors, services of warranty and post-sale as well as services of repair, maintenance and technical assistance. Genetic Pork Enterprise Ministry of Agriculture Address: Ave. Independencia no. 28510 e/ 281 y 289, Reparto Consuelo, Boyeros, La Habana Tel.: (53) 76461631 / 76461104 / 76461101 E-mails: pena@ge.grupor.cu / carlos@ge.grupor.cu / jorge@ge.grupor.cu Social Purpose: Production and commercialization genetically improved pigs, pork meat and by products. Services linked to the genetic improvement of pigs. Cuba FOREIGN TRADE No. 3/2015 Return to context 52 The Chamber today Seoul Food 2015: Cuban participation in the 4th Session of the Cuba-Italy Cuban participation Business Committee rganized by the Agency I n answer to the invitation of Padova Promex, promotion institution of the Chamber of Commerce of Padova and the Italian section of that Committee, a Cuban mission headed by Omar Fernandez Jimenez, secretary general of our Chamber of Commerce, participated in the 4th Session of the Cuba-Italy Business Committee, held from June 30 to July 4. In this event the Cuban side made presentations on the work of promoting foreign investment by the Chamber of Commerce and its main functions, and on foreign investment: policies, legal framework and new opportunities by sector, while the Italian side made in relation to the Support of Simest to the overseas development of the Italian enterprise, Sace and the new Cuba and Opportunity of establishing cuban-italian joint ventures. Also a Plan of Activities was signed for the period of 2015-2016 that includes systematic exchanges on investment and trade opportunities, monitoring of investment projects (new and in process) and the participation in fairs and expos in Cuban and Italy. The Cuban delegation visited the headquarters of the General Confederation of Italian Industry (Confindustria) in the regions of Venezia Giulia and Emilia (CNA) and Expo Milan 2015, whose conference hall were presented the new investment opportunities in the island. Agreement of trade cooperation signed with Trinidad and Tobago T he Chambers of Commerce of Cuba and Trinidad and Tobago signed on June 11 in Havana a cooperation agreement that will allow the exchange of information on opportunities for investment and the main products in their markets. These were signed by the Executive Director of the Trinitarian institution, Ms. Catherine Kumar and our director of international Relations Celia Labora, during the meeting between delegations of both countries that explores their respective trade profiles aiming to establish future negotiations. Through this agreement entrepreneurs sister nation provide information related to the new open here for foreign investment stage. The document also envisages providing information on services and products that the island exported, the participation of companies in national and international trade fairs and exchange of business delegations. They attended by representatives of 17 firms Trinidadian the food, transport, packaging, financial services, construction, manufacturing, tourism, telecommunications and real estate cites, among others. Cuba attended by members of companies in charge of tourism, construction and services. Source: PL O for the Promotion of Trade and Foreign Investment of South Korea (Kotra), the Korean Food Industry Association (KFIA, the International Exemption Exhibition (KEM) AND All World Exhibitions, the 33rd edition of the International Food Industry, Seoul 2015, took place in the Kintex fair grounds. For the third consecutive year Kotra sent an invitation for a Cuban business delegation to participate in this important international fair and the coordination corresponded to the Cuban Chamber of Commerce. The participating companies for the event from May 12 to 15 were Caribex, Cubaron and Cubaexport. The results of the Cuban participation were satisfactory, especially by the interest shown by the Korean business persons and the public attending the fair for Cuban products and to develop trade ties with our country that was ratified by the executives of Kotra with whom was exchanged. Cuba and Belgium explore opportunities H avana hosts on August 27 a Cuba-Belgium business forum, where interests were examined to promote and diversify trade and new business opportunities and investment n Cuba in the areas of construction, telecommunications, pharmaceuticals and in the Special Development Zone Mariel. Participants were Cuban officials and businessmen to explore the possibilities offered by visitors and agents of 12 Belgian private companies, in what was the first mission of its kind to visit us looking for foster strategic alliances with Cuban entities. Guy Bultynck, president of the Chamber of Commerce of Belgium and Luxembourg (CBL-ACP), explained that the objective of the representatives of the sectors of construction and infrastructure, telecommunications, pharmaceutical and banking in that country was to strengthen economic ties between companies and promote exchange. His associates also have an interest in investment opportunities offered by the new Law no.118. Omar Fernandez, general secretary of our institution, urged the parties to identify the large existing potential in both markets that to date have not been exploited. He explained the functioning of the Cuban economy and the current economic renovation process, and gave details of the projects and opportunities for foreign investment in the island. About the bilateral exchange he said that Belgium occupies the 6th place among the major trading partners in Europe, and the fifteenth globally. The island exports to Brussels petroleum, coffee, honey and other products, and imports milk powder, lubricants and chemicals. The forum ended with bilateral meetings between businessmen. Sources: ACN and Options Cuba FOREIGN TRADE No. 3/2015 Return to context 53 The Chamber today Cuba-Lebanese Business Forum Aruba and Cuba propose Cuba-Lebanon complementing their economies A Business Forum was held on June 4 coinciding with the visit of a delegation headed by Mr. Ali Kazma, president of the Cuban-Lebanese Council of Business persons which included more than 20 business persons of that country interested in trade and investments in the Island. The Chamber of Commerce of the Republic of Cuba and the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon signed on the occasion a cooperation agreement, expression of the trade interests generated by the Island and business opportunities offered, not only in the nearest regions or in Europe but also in the Middle East. The agreement will allow exchanging economic information and reciprocate business contacts and was signed by Orlando Hernández Guillén, president of our Chamber and Ali Kazma on behalf of the Lebanese institution. Also bilateral meetings were held with the presentation of opportunities for foreign investments and the Special Development Zone Mariel, and information was given regarding the First Cuban-Lebanese Business Forum to be held September 29 in Beirut. A ccompanied by executives of the Chamber of Commerce and Industry of that Caribbean island, business persons of 22 companies of Aruba, belonging to the group of the Netherlands Antilles (with Curaçao and Bonaire) met with their Cuban counterparts from June 8 to 9. Odalys Seijo, acting president of the Chamber of Commerce of the Republic of Cuba welcomed the guests. “Caribbean states seek to complement their economies and in the case of Aruba with which Cuba has no trade exchange, with more reason”. She also said that both parts have the will to boost exchange and identify business and investment opportunities that most contribute to the development of their economies. Ms. Daphne Agius, president of the Board of the Aruba Chamber of Commerce thanked the attentions received. Although our islands are very different, Aruba has about 100 000 inhabitants and Cuba 11 million and with scarce possibilities of developing agriculture which is not the case of Cuba, we do have areas in common which is tourism –Agius explained– and added that 80 % of the population of the country lives from tourism, that represents 70 % of the GDP of the island. Most participating companies in the forum are related to tourism, from suppliers of hotel inputs and clothing to real estate. At the end of the meeting Odalys Seigjo and Daphne Agius signed an agreement of cooperation between both Chambers of Commerce. Search to strengthen trade relations with Poland anagers and business persons of an entrepreneurial mission M of the Polish Chamber of Trade and Industry composed of representatives of nine companies of this country participated in a business forum with their Cuban counterparts to promote more exchange of information and an approach between the two markets. Omar Fernández, secretary general of our Chamber of Commerce recalled that the first agreement between the two chambers was signed in 2001 and ratified in 2009. “Since then it has been a regulatory framework for contacts held in this time. However, we can state that although there are still many actions to undertake for the development of trade between our two nations. Actions such as these business meetings are fundamental to promote and increase trade. Consequently our Chamber has stated its willingness to support in the organization and reception of trade missions to our market”, he said. Ms. María Nowakowska, director of International Relations of the Polish Chamber of Trade and Industry explained some of the characteristics of her country that could be attractive for business, such as its geographic location in the center of Europe and an environment of economic stability. Source: Opciones. Photo: INTERNET Cooperation agreement with The Bahamas Chamber of Commerce O n July 17 an Agreement of Cooperation was signed between the Chamber of Commerce of the Republic of Cuba and the Chamber of Commerce and the Employers’ Confederation of the Commonwealth of The Bahamas as part of the Cuba-Caribbean Business Forum held those days in the city of Santiago de Cuba. After signing the document the presidents of both institutions expressed the interest of their governments and business persons they represent to continue developing and strengthening economic and trade relations between both countries. As part of his participation in the forum, the President of The Bahamas Chamber of Commerce, Mr. Gowon Bowe, carried out a broad program that included the presentation of opportunities for business and investment in the Bahamas. He also met with his Cuban counterpart, Orlando Hernández Guillén, with whom he also exchanged opportunities of investment in both countries. Source: Cubaminrex Cuba FOREIGN TRADE No. 3/2015 Return to context 54 The Chamber today Results of the Macro round in EXPO ALADI Participation of representatives from 13 member nations of Aladi I t is one of the main trade meetings in the continent, aimed at increasing, strengthening and setting trade agreements among the 13 member countries of the Association of Latin American Integration (Aladi for its acronym in Spanish) and promotes opportunities for companies, particularly MSMEs (micro,small and medium enterprises) for increasing their participationin the regional market. For this purpose EXPO ALADI Argentina 2015 –a Macro Round for Food Businesses– met from June 4 and 5 in Buenos Aires gathering more than 500 companies of the sector in the region. As part of the RAÍZ Festival, the most important gastronomic and cultural meeting in the country unfolded two complementary activities: several actions of promotion and the Macro Round of Businesses. The Cubans promoted subjects of economic, trade and tourism in the Island Cuba FOREIGN TRADE No. 3/2015 Return to context 55 The Chamber today EXPO ALADI 2015 was structured in three spaces: exhibition space with 13 stands of the Governmental agencies of promotion and a stand of Aladi; the above mentioned round of businesses and an area for exhibiting samples of the participating companies. In 2016 the event will be held in Torreón, the Mexican city of the state of Coahuila from October 19 to 21. The sectors dealt with shall be: processed food and beverages, auto parts, pharmaceuticals and manufacture of steel, electricity, leather (shoes and goods) and plastic articles. For more information see web sites www.expoaladi.org y www.aladitorreon.org. Sources: own and AIN. Photos: INTERNET Participating in the Macro Roundwere 800 representatives of export and import companies An opportunity to settle trade agreements and establish strategic alliances Cuba FOREIGN TRADE No. 3/2015 Return to context 56 Cuba FOREIGN TRADE No. 3/2015 Regresar al Índice 57