Semantics Are Important... The Words "Blockade" Versus "Embargo"

The government of the Republic of Cuba uses the word "blockade" to describe the impact of United States laws and regulations and policies.

The government of the United States uses the word "embargo" to describe the impact of United States laws and regulations and policies.

Merriam-Webster Dictionary

Blockade
verb block·ade \blä-ˈkād\

Simple Definition of Blockade:

To place a blockade on (a port or country) : to stop people or supplies from entering or leaving (a port or country) especially during a war

Full Definition of blockade

block·ad·ed or block·ad·ing

Transitive verb

To subject to a blockade

Block, obstruct

block·ad·er noun

Embargo
noun em·bar·go \im-ˈbär-(ˌ)gō\

Simple Definition of embargo

A government order that limits trade in some way

Full Definition of embargo

plural em·bar·goes

An order of a government prohibiting the departure of commercial ships from its ports

A legal prohibition on commerce <a trade embargo>

Stoppage, impediment; especially :  prohibition <I lay no embargo on anybody's words — Jane Austen>

An order by a common carrier or public regulatory agency prohibiting or restricting freight transportation

 

 

Interesting Remarks By President Obama During His Visit To Argentina

Remarks on 23 March 2016 by President Barack Obama during his visit to Argentina

"And I think one of the great things about America -- and I said this in Cuba -- is we actually engage in a lot of self-criticism."

"The one thing that I will say is true, though, is that everything we do today is designed to take into account transparency, human rights, to speak out on behalf of those issues.  Even where we don’t feel that we can force changes on a government, we're still going to speak out about them.  So I made a historic trip to Havana, and I said the people of Cuba have nothing to fear from me, but you should know what I really believe.  I believe that democracy is better than a one-party or one-person dictatorship.  I believe in freedom of speech and freedom of assembly, and that people shouldn’t be arbitrarily detained."

"And I said this to President Castro in Cuba.  I said, look, you've made great progress in educating young people.  Every child in Cuba gets a basic education -- that's a huge improvement from where it was.  Medical care -- the life expectancy of Cubans is equivalent to the United States, despite it being a very poor country, because they have access to health care.  That's a huge achievement.  They should be congratulated.  But you drive around Havana and you say this economy is not working.  It looks like it did in the 1950s.  And so you have to be practical in asking yourself how can you achieve the goals of equality and inclusion, but also recognize that the market system produces a lot of wealth and goods and services.  And it also gives individuals freedom because they have initiative."

VIP Services At Jose Marti International Airport

Want To Be A VIP?

Would you like to be a treated like a VIP upon arrival to and departure from Jose Marti International Airport in Havana, Republic of Cuba?

Prior to arrival, send an email to:

salonvip@hav.ecasa.avianet.cu
mario@hav.ecasa.avianet.cu
greity@hav.ecasa.avianet.cu

or telephone 011 53 7 642 0247 or 011 53 7 642 0248 and request the following services:

CUC 25 for arrival assistance for Terminal 2 & Terminal 3
CUC 15 for departure assistance for Terminal 2
CUC 30 for departure assistance for Terminal 2 & Terminal 3

Priority access for Immigration & Customs Control

Priority for obtaining your luggage.

Access to the VIP lounge prior to departure with snacks, beverages, and Wi-Fi (limited thus far to Terminal 3).  There is also a smoking area in the lounges located in Terminal 2 & Terminal 3.

LINK TO DETAILS IN PDF FORMAT

 

President Obama's Speech In Havana, Cuba

REMARKS BY PRESIDENT OBAMA
TO THE PEOPLE OF CUBA
Gran Teatro de la Habana
Havana, Cuba
10:10 A.M. CST

PRESIDENT OBAMA:  Thank you.  (Applause.)  Muchas gracias.  Thank you so much.  Thank you very much.

President Castro, the people of Cuba, thank you so much for the warm welcome that I have received, that my family have received, and that our delegation has received.  It is an extraordinary honor to be here today.

Before I begin, please indulge me.  I want to comment on the terrorist attacks that have taken place in Brussels.  The thoughts and the prayers of the American people are with the people of Belgium.  We stand in solidarity with them in condemning these outrageous attacks against innocent people.  We will do whatever is necessary to support our friend and ally, Belgium, in bringing to justice those who are responsible.  And this is yet another reminder that the world must unite, we must be together, regardless of nationality, or race, or faith, in fighting against the scourge of terrorism.  We can -- and will -- defeat those who threaten the safety and security of people all around the world.

To the government and the people of Cuba, I want to thank you for the kindness that you’ve shown to me and Michelle, Malia, Sasha, my mother-in-law, Marian.

“Cultivo una rosa blanca.”  (Applause.)  In his most famous poem, Jose Marti made this offering of friendship and peace to both his friend and his enemy.  Today, as the President of the United States of America, I offer the Cuban people el saludo de paz.  (Applause.)

Havana is only 90 miles from Florida, but to get here we had to travel a great distance -- over barriers of history and ideology; barriers of pain and separation.  The blue waters beneath Air Force One once carried American battleships to this island -- to liberate, but also to exert control over Cuba.  Those waters also carried generations of Cuban revolutionaries to the United States, where they built support for their cause.  And that short distance has been crossed by hundreds of thousands of Cuban exiles -- on planes and makeshift rafts -- who came to America in pursuit of freedom and opportunity, sometimes leaving behind everything they owned and every person that they loved.

Like so many people in both of our countries, my lifetime has spanned a time of isolation between us.  The Cuban Revolution took place the same year that my father came to the United States from Kenya.  The Bay of Pigs took place the year that I was born. The next year, the entire world held its breath, watching our two countries, as humanity came as close as we ever have to the horror of nuclear war.  As the decades rolled by, our governments settled into a seemingly endless confrontation, fighting battles through proxies.  In a world that remade itself time and again, one constant was the conflict between the United States and Cuba.

I have come here to bury the last remnant of the Cold War in the Americas.  (Applause.)  I have come here to extend the hand of friendship to the Cuban people.  (Applause.)  
I want to be clear:  The differences between our governments over these many years are real and they are important.  I’m sure President Castro would say the same thing -- I know, because I’ve heard him address those differences at length.  But before I discuss those issues, we also need to recognize how much we share.  Because in many ways, the United States and Cuba are like two brothers who’ve been estranged for many years, even as we share the same blood.

We both live in a new world, colonized by Europeans.  Cuba, like the United States, was built in part by slaves brought here from Africa.  Like the United States, the Cuban people can trace their heritage to both slaves and slave-owners.  We’ve welcomed both immigrants who came a great distance to start new lives in the Americas.

Over the years, our cultures have blended together.       Dr. Carlos Finlay’s work in Cuba paved the way for generations of doctors, including Walter Reed, who drew on Dr. Finlay’s work to help combat Yellow Fever.  Just as Marti wrote some of his most famous words in New York, Ernest Hemingway made a home in Cuba, and found inspiration in the waters of these shores. 

We share a national past-time -- La Pelota -- and later today our players will compete on the same Havana field that Jackie Robinson played on before he made his Major League debut.  (Applause.)  And it's said that our greatest boxer, Muhammad Ali, once paid tribute to a Cuban that he could never fight -- saying that he would only be able to reach a draw with the great Cuban, Teofilo Stevenson.  (Applause.)  

So even as our governments became adversaries, our people continued to share these common passions, particularly as so many Cubans came to America.  In Miami or Havana, you can find places to dance the Cha-Cha-Cha or the Salsa, and eat ropa vieja.  People in both of our countries have sung along with Celia Cruz or Gloria Estefan, and now listen to reggaeton or Pitbull.  (Laughter.)  Millions of our people share a common religion -- a faith that I paid tribute to at the Shrine of our Lady of Charity in Miami, a peace that Cubans find in La Cachita.

For all of our differences, the Cuban and American people share common values in their own lives.  A sense of patriotism and a sense of pride -- a lot of pride.  A profound love of family.  A passion for our children, a commitment to their education.  And that's why I believe our grandchildren will look back on this period of isolation as an aberration, as just one chapter in a longer story of family and of friendship.

But we cannot, and should not, ignore the very real differences that we have -- about how we organize our governments, our economies, and our societies.  Cuba has a one-party system; the United States is a multi-party democracy.  Cuba has a socialist economic model; the United States is an open market.  Cuba has emphasized the role and rights of the state; the United States is founded upon the rights of the individual.

Despite these differences, on December 17th 2014, President Castro and I announced that the United States and Cuba would begin a process to normalize relations between our countries.  (Applause.)  Since then, we have established diplomatic relations and opened embassies.  We've begun initiatives to cooperate on health and agriculture, education and law enforcement.  We've reached agreements to restore direct flights and mail service.  We've expanded commercial ties, and increased the capacity of Americans to travel and do business in Cuba.

And these changes have been welcomed, even though there are still opponents to these policies.  But still, many people on both sides of this debate have asked:  Why now?  Why now?

There is one simple answer:  What the United States was doing was not working.  We have to have the courage to acknowledge that truth.  A policy of isolation designed for the Cold War made little sense in the 21st century.  The embargo was only hurting the Cuban people instead of helping them.  And I've always believed in what Martin Luther King, Jr. called “the fierce urgency of now” -- we should not fear change, we should embrace it.  (Applause.)  

That leads me to a bigger and more important reason for these changes:  Creo en el pueblo Cubano.  I believe in the Cuban people.  (Applause.)  This is not just a policy of normalizing relations with the Cuban government.  The United States of America is normalizing relations with the Cuban people.  (Applause.)

And today, I want to share with you my vision of what our future can be.  I want the Cuban people -- especially the young people -- to understand why I believe that you should look to the future with hope; not the false promise which insists that things are better than they really are, or the blind optimism that says all your problems can go away tomorrow.  Hope that is rooted in the future that you can choose and that you can shape, and that you can build for your country.  

I'm hopeful because I believe that the Cuban people are as innovative as any people in the world.

In a global economy, powered by ideas and information, a country’s greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas, cooperatives and old cars that still run.  El Cubano inventa del aire.  (Applause.)  

Cuba has an extraordinary resource -- a system of education which values every boy and every girl.  (Applause.)  And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we've seen how cuentapropistas can succeed while sustaining a distinctly Cuban spirit.  Being self-employed is not about becoming more like America, it’s about being yourself.

Look at Sandra Lidice Aldama, who chose to start a small business.  Cubans, she said, can “innovate and adapt without losing our identity…our secret is in not copying or imitating but simply being ourselves.”

Look at Papito Valladeres, a barber, whose success allowed him to improve conditions in his neighborhood.  “I realize I’m not going to solve all of the world’s problems,” he said.  “But if I can solve problems in the little piece of the world where I live, it can ripple across Havana.”
That’s where hope begins -- with the ability to earn your own living, and to build something you can be proud of.  That’s why our policies focus on supporting Cubans, instead of hurting them.  That’s why we got rid of limits on remittances -- so ordinary Cubans have more resources.  That’s why we’re encouraging travel -- which will build bridges between our people, and bring more revenue to those Cuban small businesses. That’s why we’ve opened up space for commerce and exchanges -- so that Americans and Cubans can work together to find cures for diseases, and create jobs, and open the door to more opportunity for the Cuban people.

As President of the United States, I’ve called on our Congress to lift the embargo.  (Applause.)  It is an outdated burden on the Cuban people.  It's a burden on the Americans who want to work and do business or invest here in Cuba.  It's time to lift the embargo.  But even if we lifted the embargo tomorrow, Cubans would not realize their potential without continued change here in Cuba.  (Applause.)  It should be easier to open a business here in Cuba.  A worker should be able to get a job directly with companies who invest here in Cuba.  Two currencies shouldn’t separate the type of salaries that Cubans can earn.  The Internet should be available across the island, so that Cubans can connect to the wider world -- (applause) -- and to one of the greatest engines of growth in human history.

There’s no limitation from the United States on the ability of Cuba to take these steps.  It’s up to you.  And I can tell you as a friend that sustainable prosperity in the 21st century depends upon education, health care, and environmental protection.  But it also depends on the free and open exchange of ideas.  If you can’t access information online, if you cannot be exposed to different points of view, you will not reach your full potential.  And over time, the youth will lose hope.

I know these issues are sensitive, especially coming from an American President.  Before 1959, some Americans saw Cuba as something to exploit, ignored poverty, enabled corruption.  And since 1959, we’ve been shadow-boxers in this battle of geopolitics and personalities.  I know the history, but I refuse to be trapped by it.  (Applause.)  

I’ve made it clear that the United States has neither the capacity, nor the intention to impose change on Cuba.  What changes come will depend upon the Cuban people.  We will not impose our political or economic system on you.  We recognize that every country, every people, must chart its own course and shape its own model.  But having removed the shadow of history from our relationship, I must speak honestly about the things that I believe -- the things that we, as Americans, believe.  As Marti said, “Liberty is the right of every man to be honest, to think and to speak without hypocrisy.”

So let me tell you what I believe.  I can't force you to agree, but you should know what I think.  I believe that every person should be equal under the law. (Applause.)  Every child deserves the dignity that comes with education, and health care and food on the table and a roof over their heads.  (Applause.)  I believe citizens should be free to speak their mind without fear -- (applause) -- to organize, and to criticize their government, and to protest peacefully, and that the rule of law should not include arbitrary detentions of people who exercise those rights.  (Applause.)  I believe that every person should have the freedom to practice their faith peacefully and publicly. (Applause.)  And, yes, I believe voters should be able to choose their governments in free and democratic elections.  (Applause.)  

Not everybody agrees with me on this.  Not everybody agrees with the American people on this.  But I believe those human rights are universal.  (Applause.)  I believe they are the rights of the American people, the Cuban people, and people around the world.

Now, there’s no secret that our governments disagree on many of these issues.  I’ve had frank conversations with President Castro.  For many years, he has pointed out the flaws in the American system -- economic inequality; the death penalty; racial discrimination; wars abroad.  That’s just a sample.  He has a much longer list.  (Laughter.)  But here’s what the Cuban people need to understand:  I welcome this open debate and dialogue. It’s good.  It’s healthy.  I’m not afraid of it.

We do have too much money in American politics.  But, in America, it's still possible for somebody like me -- a child who was raised by a single mom, a child of mixed race who did not have a lot of money -- to pursue and achieve the highest office in the land.  That's what’s possible in America.  (Applause.)  

We do have challenges with racial bias -- in our communities, in our criminal justice system, in our society -- the legacy of slavery and segregation.  But the fact that we have open debates within America’s own democracy is what allows us to get better.  In 1959, the year that my father moved to America, it was illegal for him to marry my mother, who was white, in many American states.  When I first started school, we were still struggling to desegregate schools across the American South.  But people organized; they protested; they debated these issues; they challenged government officials.  And because of those protests, and because of those debates, and because of popular mobilization, I’m able to stand here today as an African-American and as President of the United States.  That was because of the freedoms that were afforded in the United States that we were able to bring about change.  

I’m not saying this is easy.  There’s still enormous problems in our society.  But democracy is the way that we solve them.  That's how we got health care for more of our people.  That's how we made enormous gains in women’s rights and gay rights.  That's how we address the inequality that concentrates so much wealth at the top of our society.  Because workers can organize and ordinary people have a voice, American democracy has given our people the opportunity to pursue their dreams and enjoy a high standard of living.  (Applause.)  

Now, there are still some tough fights.  It isn’t always pretty, the process of democracy.   It's often frustrating.  You can see that in the election going on back home.  But just stop and consider this fact about the American campaign that's taking place right now.  You had two Cuban Americans in the Republican Party, running against the legacy of a black man who is President, while arguing that they’re the best person to beat the Democratic nominee who will either be a woman or a Democratic Socialist.  (Laughter and applause.)  Who would have believed that back in 1959?  That's a measure of our progress as a democracy.  (Applause.)  

So here’s my message to the Cuban government and the Cuban people:  The ideals that are the starting point for every revolution -- America’s revolution, Cuba’s revolution, the liberation movements around the world -- those ideals find their truest expression, I believe, in democracy.  Not because American democracy is perfect, but precisely because we’re not.  And we -- like every country -- need the space that democracy gives us to change.  It gives individuals the capacity to be catalysts to think in new ways, and to reimagine how our society should be, and to make them better.

There’s already an evolution taking place inside of Cuba, a generational change.  Many suggested that I come here and ask the people of Cuba to tear something down -- but I’m appealing to the young people of Cuba who will lift something up, build something new.  (Applause.)  El future de Cuba tiene que estar en las manos del pueblo Cubano.  (Applause.)   

And to President Castro -- who I appreciate being here today -- I want you to know, I believe my visit here demonstrates you do not need to fear a threat from the United States.  And given your commitment to Cuba’s sovereignty and self-determination, I am also confident that you need not fear the different voices of the Cuban people -- and their capacity to speak, and assemble, and vote for their leaders.  In fact, I’m hopeful for the future because I trust that the Cuban people will make the right decisions.

And as you do, I’m also confident that Cuba can continue to play an important role in the hemisphere and around the globe -- and my hope is, is that you can do so as a partner with the United States.

We’ve played very different roles in the world.  But no one should deny the service that thousands of Cuban doctors have delivered for the poor and suffering.  (Applause.)  Last year, American health care workers -- and the U.S. military -- worked side-by-side with Cubans to save lives and stamp out Ebola in West Africa.  I believe that we should continue that kind of cooperation in other countries.

We’ve been on the different side of so many conflicts in the Americas.  But today, Americans and Cubans are sitting together at the negotiating table, and we are helping the Colombian people resolve a civil war that’s dragged on for decades.  (Applause.)  That kind of cooperation is good for everybody.  It gives everyone in this hemisphere hope.

We took different journeys to our support for the people of South Africa in ending apartheid.  But President Castro and I could both be there in Johannesburg to pay tribute to the legacy of the great Nelson Mandela.  (Applause.)  And in examining his life and his words, I'm sure we both realize we have more work to do to promote equality in our own countries -- to reduce discrimination based on race in our own countries.  And in Cuba, we want our engagement to help lift up the Cubans who are of African descent -- (applause) -- who’ve proven that there’s nothing they cannot achieve when given the chance.

We’ve been a part of different blocs of nations in the hemisphere, and we will continue to have profound differences about how to promote peace, security, opportunity, and human rights.  But as we normalize our relations, I believe it can help foster a greater sense of unity in the Americas -- todos somos Americanos.  (Applause.)    

From the beginning of my time in office, I’ve urged the people of the Americas to leave behind the ideological battles of the past.  We are in a new era.  I know that many of the issues that I’ve talked about lack the drama of the past.  And I know that part of Cuba’s identity is its pride in being a small island nation that could stand up for its rights, and shake the world. But I also know that Cuba will always stand out because of the talent, hard work, and pride of the Cuban people.  That's your strength.  (Applause.)  Cuba doesn’t have to be defined by being against the United States, any more than the United States should be defined by being against Cuba.  I'm hopeful for the future because of the reconciliation that’s taking place among the Cuban people.

I know that for some Cubans on the island, there may be a sense that those who left somehow supported the old order in Cuba.  I'm sure there’s a narrative that lingers here which suggests that Cuban exiles ignored the problems of pre-Revolutionary Cuba, and rejected the struggle to build a new future.  But I can tell you today that so many Cuban exiles carry a memory of painful -- and sometimes violent -- separation.  They love Cuba.  A part of them still considers this their true home. That’s why their passion is so strong.  That's why their heartache is so great.  And for the Cuban American community that I’ve come to know and respect, this is not just about politics. This is about family -- the memory of a home that was lost; the desire to rebuild a broken bond; the hope for a better future the hope for return and reconciliation.

For all of the politics, people are people, and Cubans are Cubans.  And I’ve come here -- I’ve traveled this distance -- on a bridge that was built by Cubans on both sides of the Florida Straits.  I first got to know the talent and passion of the Cuban people in America.  And I know how they have suffered more than the pain of exile -- they also know what it’s like to be an outsider, and to struggle, and to work harder to make sure their children can reach higher in America.

So the reconciliation of the Cuban people -- the children and grandchildren of revolution, and the children and grandchildren of exile -- that is fundamental to Cuba’s future.  (Applause.)  
You see it in Gloria Gonzalez, who traveled here in 2013 for the first time after 61 years of separation, and was met by her sister, Llorca.  “You recognized me, but I didn’t recognize you,” Gloria said after she embraced her sibling.  Imagine that, after 61 years.

You see it in Melinda Lopez, who came to her family’s old home.  And as she was walking the streets, an elderly woman recognized her as her mother’s daughter, and began to cry.  She took her into her home and showed her a pile of photos that included Melinda’s baby picture, which her mother had sent 50 years ago.  Melinda later said, “So many of us are now getting so much back.”

You see it in Cristian Miguel Soler, a young man who became the first of his family to travel here after 50 years.  And meeting relatives for the first time, he said, “I realized that family is family no matter the distance between us.”

Sometimes the most important changes start in small places. The tides of history can leave people in conflict and exile and poverty.  It takes time for those circumstances to change.  But the recognition of a common humanity, the reconciliation of people bound by blood and a belief in one another -- that’s where progress begins.  Understanding, and listening, and forgiveness. And if the Cuban people face the future together, it will be more likely that the young people of today will be able to live with dignity and achieve their dreams right here in Cuba.   

The history of the United States and Cuba encompass revolution and conflict; struggle and sacrifice; retribution and, now, reconciliation.  It is time, now, for us to leave the past behind.  It is time for us to look forward to the future together -- un future de esperanza.  And it won’t be easy, and there will be setbacks.  It will take time.  But my time here in Cuba renews my hope and my confidence in what the Cuban people will do.  We can make this journey as friends, and as neighbors, and as family -- together.  Si Senate puede.  Muchas gracias.  (Applause.)

END
10:48 A.M. CST      

US$800+ Million Potential Savings/Revenues For Cuba From Obama Administration Initiatives

US$800+ Million Potential Savings/Revenues For Cuba From Obama Administration Initiatives
The consequences of decreasing risk.

17 December 2014 through 17 December 2016

When Presidents Obama and Castro announced in 2014 that the countries would re-establish diplomatic relations, a result was a decrease for the Republic of Cuba to the cost of conducting international commerce.  

In 2015, when the United States removed the Republic of Cuba from the Sanctions List and the respective embassies were re-opened, a result was a decrease for the Republic of Cuba to the cost of conducting international commerce.  

In 2016, when the United States authorized the Republic of Cuba to use the United States Dollar for international transactions, a result was a decrease for the Republic of Cuba in the cost of conducting commerce.  

Prior to the March 2016 change relating to use of the United States Dollar, a transaction valued, for example, at US$50 million could be subject to financial institution fees ranging 25 basis points to 300 basis points, translating into US$175,000.00 to US$1.5 million.  With the Republic of Cuba having approximately US$13 billion in imports for 2015, the potential fees could have ranged from US$32.5 million to US$390 million.   

NOTE: A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates and bond yields.

The Republic of Cuba has become less operationally unprofitable due to initiatives by the Obama Administration.  

This unprofitability continues to lessen as a result of the increase in authorized and unauthorized travelers, excluding family visits, from the United States visiting the Republic of Cuba and spending on airfares, accommodations (hotels and private homes), ground transportation, meals, gratuities, communications, sundries, souvenirs and other purchases.  

Visitors from the United States have the highest gross revenues and highest net profit margin of any visitor to the Republic of Cuba.

For 2015, gross revenues from United States visitors (non-family) were estimated at US$350 million to US$400 million.  The government of the Republic of Cuba reported 161,000 visitors (non-family) from the United States in 2015, representing a 76.6% increase in visitors (non-family) compared to 2014.  

In 2016, with an expected percentage increase in visitors at minimum matching 2015. gross revenues from visitors (non-family) from the United States may exceed US$660 million.  

With the arrival of regularly-scheduled air services, expected operational by July 2016, the government of the Republic of Cuba will have a meaningful reduction of ticket revenues with the substantial reduction of charter operations, from which it received a significant percentage from each ticket.  This loss of revenue from airline tickets will be more than compensated for by an increase in the number of visitors to the Republic of Cuba.   

The 10% fee to convert United States currency into CUC (Cuba Convertible Currency), initiated in 2004, is terminating; resulting in a loss to the government of the Republic of Cuba of approximately US$100 million to US$200 million.

What has the Republic of Cuba done with the monies earned as a direct result of initiatives created by the Obama Administration?  

What will the Republic of Cuba do with the monies expected to be earned as a direct result of initiatives created by the Obama Administration?

It has not increased imports from the United States.  Food product/agricultural commodity purchases authorized by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 decreased 41% in 2015 compared to 2014; and decreased 8% in January 2016 compared to January 2015.  Healthcare product purchases authorized by the Cuban Democracy Act of 1992 increased approximately five-fold in 2015 compared to 2014.

In 2002, the primary wire services, Associated Press and Reuters, would generally publish an article within hours of the release of data for United States exports to the Republic of Cuba.  During the last fifteen years, wire services transitioned to publishing quarterly results…. then transitioned to bi-annual results… and finally to only publishing annual results.  In some respects, the lack of interest was a positive- another recognition of the Republic of Cuba taking its proper place within the marketplace.

The 41% decline in United States exports to the Republic of Cuba in 2015 should have, simply due to the size of the decrease, gained national media attention.  However, the decline generated scant reference.  Why?  Because the dynamic of interest has been altered- there is an expectation of decline and a decline in expectation.  The media story would be if there were an increase.  There has been an anesthetization to the anticipation of decline.

The government of the Republic of Cuba is authorizing Obama Administration initiatives that are expected to result in revenues- from visitors: agreements with United States-based hospitality companies to manage properties in the Republic of Cuba are designed to increase the interest by United States residents to visit the country, citizens of other countries to visit, to increase the desire by non-United States-based hospitality companies and, for those companies who are already there, pressure to increase their level of service, expand their operational footprint, and provide more revenue to the government of the Republic of Cuba.

There is also an effort by the government of the Republic of Cuba to encourage, either officially (through law or regulation) or unofficially (lack of enforcement of law or regulation), remittances to Republic of Cuba nationals from family and friends residing in the United States.

There will not be enthusiasm for using funds to make payments for imports from the United States… unless there is a belief that such investments of scarce resources (meaning that someone may not receive payment on time or at all in order to direct funds towards the United States) will have political value.

US Department Of Commerce Lists Obama Administration Successes

DEPARTMENT OF COMMERCE FACT SHEET:

Economic development in the wake of President Obama’s regulatory changes on exports and travel to Cuba

On December 17, 2014, President Obama announced that the United States would change its policies toward Cuba and move toward normalizing relations between the two countries. Since that announcement, departments and agencies have made a series of regulatory changes to allow for increased economic development in Cuba that will continue to empower the Cuban people and advance our enduring objectives of supporting human rights, improving the lives of the Cuban people, and promoting closer ties between our countries.

In October 2015, the Departments of Commerce and the Treasury launched the U.S.-Cuba Regulatory Dialogue. We have made several significant regulatory updates, including: eliminating certain restrictions on remittances, easing limits on exports to and certain imports from the Cuban private sector, facilitating trade in the telecommunication and agriculture sectors, making changes to facilitate authorized travel to the island, and authorizing certain U.S. companies to establish and maintain a business and/or physical presence in Cuba.

With the Administration’s new regulatory updates, the American business community is now permitted in certain areas to work directly with the Cuban private sector, empowering Cuban entrepreneurs on the island.

The following economic development is ongoing, in part, as a result of the Administration’s new regulatory framework and policy toward Cuba:

Examples of Ongoing Economic Development:

Airline expansion: The United States and Cuba in December 2015 reached an arrangement to re-establish regular, direct flights between the United States and Cuba for the first time in more than 50 years. U.S. carriers have applied to the Department of Transportation for an allocation of the new opportunities to provide scheduled flights, which will begin later this year. Thirteen U.S. carriers have applied to provide direct flights to Havana from 20 U.S. gateway cities, as well as one-stop flights from three additional U.S. cities. In addition, seven U.S. carriers have applied to provide scheduled flights to the other nine international airports in Cuba from five U.S. gateway cities. For more information about authorized travel to Cuba, including the 12 categories of travel permitted by statute, please visit the website of the Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Airbnb: Through the new regulatory framework, Airbnb set up service for authorized U.S. travelers to stay in the homes of private Cuban hostel owners – in a year, listings have grown from 1,000 to well over 4,000. Airbnb’s operation empowers Cuban private homeowners and provides an opportunity for authorized US travelers to directly connect with the Cuban people

Carnival: Carnival will soon sign a deal that will allow its cruise ships to dock in Cuban ports and disembark authorized travelers. Carnival has begun selling tickets to authorized travelers for a May 1, 2016 cruise that will stop in Havana, Santiago, and Cienfuegos. The announcement will be made in the next two weeks.

Cisco: Cisco plans to open a Networking Academy in Cuba, in which Cuban students will learn how to set up IT networks and improve their technology skills with the aim of improving the development of a strong Information and Communications Technology (ICT) sector in Cuba.

Caterpillar: Caterpillar announced a $500,000 donation to the Finca Vigía Foundation, a U.S. non-profit working in collaboration with Cuban cultural preservationists and other donors to restore and preserve Ernest Hemingway’s home, documents, and historical artifacts in Cuba.

Cleber: Through the new regulatory framework, Cleber plans to set up a tractor manufacturing facility in Cuba. This would directly employ Cuban workers and produce much needed tractor equipment for agricultural production.

Colgate-Palmolive: Colgate-Palmolive implements its Bright Smiles program, which provides free dental care and dental hygiene products to children in Havana.

General Electric: GE plans to cooperate with the Cuban government on providing products related to aviation, healthcare, and energy products in Cuba.

Marriott: Marriott is seeking to establish a brand presence in the Cuban hospitality sector, while providing supportive career training for Cuban nationals and opportunities for emerging Cuban entrepreneurs to cater to hotel supply needs.

Norwegian Cruise Lines Ltd.: Norwegian Cruise Lines is working closely with the Cuban government to allow passengers to disembark at Cuban ports for educational and cultural excursions; under the new regulations, Norwegian plans to directly employ Cuban workers to assist with the excursions once approved by the Cuban government.

Starwood: Starwood Hotels & Resorts has signed two deals to operate luxury hotels in Havana and a third hotel catering to business travelers. These deals will provide comprehensive hospitality training to Cuban employees working in the hotels.

Stonegate Bank: In November 2015, Stonegate offered a Debit MasterCard card that can be used at the Point of Sale terminal at any of Cuba’s 10,000 hotels, restaurants, and other card-accepting merchants, relieving a significant burden for U.S. travelers.

Stripe: Stripe announced on Friday, March 18, 2016 that Stripe Atlas can now be accessed by Cuban entrepreneurs. This means access to an incorporated U.S. business entity; a U.S. bank account; and a Stripe account to receive payments from customers around the world and basic services they will need to start a business, including tax services from PwC and legal guidance from Orrick, Herrington & Sutcliffe LLP.

Roswell Park Cancer Institute: Roswell Park Cancer Institute in Buffalo, New York has a long-standing academic relationship with the Center for Molecular Immunology (CIM) in Cuba. Roswell Park plans to conduct preclinical research and clinical trials of a lung cancer vaccine developed in Cuba. The institute is about to open a clinical trial in the U.S. for the vaccine this summer.

Royal Caribbean: Royal Caribbean expects to receive official approval from the Cuban government to dock ships in Cuban ports; under the new regulatory framework, Royal Caribbean may allow authorized passengers to disembark and visit Cuba.

Weber Shandwick: Weber Shandwick is pursuing opening operations on-the-ground in Cuba and will proceed with discussions with the Cuban government about how to secure the permissions necessary to be among the first marketing services and global public relations firms to establish an office in Havana.

Wheels Up: Wheels Up operates a commercial airline service between the United States and Cuba for authorized travelers.

US Agricultural Coalition for Cuba (USACC): The USACC intends to advance a Cooperative Food and Agricultural Industry Agreement (CFAIA) between food producers, processors, and supply chain participants both in the U.S. and Cuba.

Verizon: Last week, the U.S.-based carrier Verizon and ETECSA, the Cuban telecommunications company, finalized an agreement for the direct exchange of wireline voice services between the two countries to enhance options for consumers and businesses of both countries.

Western Union: The Western Union Company, a leader in global payments services, announced on March 21, 2016 that it will launch remittance services from across the world into Cuba following U.S. regulatory and policy changes that allow Cubans and non-Cubans to send remittances via Western Union to this island nation.

NOAA Reports On Agreements With Cuba

U.S., Cuba agree on efforts to improve maritime navigation safety

March 21, 2016 Ambassador Jeffrey DeLaurentis, the Chief of Mission at the U.S. Embassy in Havana, and Col. Candido Alfredo Regalado Gomez, Chief of Cuba’s National Office of Hydrography and Geodesy (ONHG), have signed a Memorandum of Understanding to improve maritime navigation safety and related areas of mutual interest to protect lives and property at sea.

“NOAA has a strong interest in both improving navigational safety and in protecting the marine environment in the heavily travelled and vibrant waters between our two countries in the Straits of Florida,” said Russell Callender, Ph.D., assistant NOAA administrator for the National Ocean Service. “We welcome this agreement and the progress it represents.”

In addition to updating data on domestic charts like the NOAA chart above, the U.S. and Cuba agreed to work together on a new international paper chart, INT Chart 4149, which will cover south Florida, the Bahamas, and north Cuba. The memorandum of understanding between the two countries was signed last Friday in Havana.

In addition to updating data on domestic charts like the NOAA chart above, the U.S. and Cuba agreed to work together on a new international paper chart which will cover south Florida, the Bahamas and northern Cuba. (NOAA)

“Improved navigation services are important for commercial mariners and individual boaters alike,” said Ambassador DeLaurentis, “and it is particularly important as authorized trade and authorized travel increase between the two countries.”

The MOU calls for cooperation in the areas of hydrography, oceanography, geodesy and related services of mutual interest. One of the major focuses will be to improve maritime navigation safety including efforts to ensure the accuracy of both electronic and paper charts, eliminate charting overlaps and fill in gaps in navigational chart coverage.

“This MOU will allow us to fill gaps in essential navigational data, working on a practical level with our Cuban counterparts,” said Kathryn Ries, deputy director of NOAA’s Office of Coast Survey. “The U.S. works with hydrographic offices of all nations that have waters adjacent to the United States and our territories, and this agreement improves the exchange of charting information with Cuba as well.”

In February 2015, less than two months after President Obama announced the United States’ new approach toward Cuba, NOAA and ONHG, through a set of reciprocal exchanges, launched what became a year-long effort to formulate the technical exchange that is a normal course of affairs between most of the other maritime nations of the world. Both agencies are working on plans for monitoring and forecasting tides and currents for ports and improving positioning networks among other related scientific and technical activities.

The MOU is the first step in what is expected to be a long-term collaboration between the two countries.

In addition to aligning each country’s navigational charts, NOAA and ONHG are sharing data for the creation of a new international chart (known in mariner’s parlance as “INT chart”) 4149, which will cover south Florida, the Bahamas, and north Cuba. NOAA plans to publish the new chart this year.

NOAA’s Office of Coast Survey, originally formed by President Thomas Jefferson in 1807, maintains the nation’s nautical charts, surveys the coastal seafloor, responds to national maritime emergencies, and searches for underwater obstructions and wreckage.

NOAA’s mission is to understand and predict changes in the Earth's environment, from the depths of the ocean to the surface of the sun, and to conserve and manage our coastal and marine resources. Join us on Facebook, Twitter, Instagram and our other social media channels.

Cisco Systems To Establish Networking Academy In Havana

From Laura Quintana:

Today, we are pleased to announce that Cisco will begin a new relationship with the Universidad de las Ciencias Informaticas (UCI) of Cuba, with the intention of bringing the Cisco Networking Academy program to UCI students.

Networking Academy is an IT skills and career building program for learning institutions and individuals worldwide. It is the first program of its kind to launch in Cuba since restoration of diplomatic relations in December 2014. As part of the Letter of Intent signed by Cisco and UCI, Cisco intends to donate equipment and to provide a grant to train initial instructors at UCI and provide the necessary operational support.

I had the pleasure of visiting Cuba in the fall of 2015. The people were welcoming and warm, and excited about the opportunity to collaborate. Like every country, every city, and every business around the world, Cuba is approaching the challenge of digitizing its economy as an opportunity for its country and its citizens. I met with the UCI leadership team, and their work to accelerate technology-based startups and incubate software applications was impressive.

UCI is a leading national university specializing in software development, key to the digitization of Cuban society. Their mission is to train professionals who are committed to their homeland and highly qualified in the field of computer science. This corps of IT professionals will produce applications and services that are foundational to building Cuba’s technology industry.

It can’t be overlooked that two years ago, Cisco Networking Academy and UCI could not have formed this partnership, which is based on a mutual ambition to make technology education accessible to any student who wants to learn. Digitization is creating a need for true partnerships to solve technology challenges quickly and effectively.

Cisco Networking Academy aims to improve the IT and career skills of millions of people around the world. We accomplish this by delivering our curriculum through partnerships with government agencies; social benefit organizations; and academies in schools, colleges, universities, and communities centers. Over 1 million students worldwide participated in the Cisco Networking Academy program in 2015.

We are proud of the impact that Networking Academy has on students’ lives. In exit surveys of students completing courses through Cisco CCNA 4 or higher, over 90 percent of respondents reported that participating in Networking Academy led to job or educational opportunities including a new job, a better job or promotion, increased responsibilities, deciding on a program of study, or pursuing more education. Also, 94% indicated that the skills they learned were important for their jobs.

We are confident that our partnership with UCI will impact students’ lives in the country and will ultimately result in higher employment opportunities.

USDA Shifting From Passive To Aggressive Interpretation Of TSREEA

USDA Shifting From Passive To Agressive Interpretation Of TSREEA

In 2015, the United States Department of Agriculture (USDA) and United States Department of Commerce (DOC) reported that Republic of Cuba-related activities (and by extension the United States Government) were restricted and/or prohibited not be choice (policy), but law, by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, title IX, Public Law 106-387 [22 U.S.C. 7207(a)(1)] (TSRA).  In 2016, the United States Department of State including representatives of the United States business community in an official delegation to the Republic of Cuba, thus reinterpreting the 2015 positions of the USDA and DOC.  See Full Economic Eye On Cuba Text

§ 7207. Prohibition on United States assistance and financing
(a) Prohibition on United States assistance
(1) In general Notwithstanding any other provision of law, no United States Government assistance, including United States foreign assistance, United States export assistance, and any United States credit or guarantees shall be available for exports to Cuba or for commercial exports to Iran, Libya, North Korea, or Sudan.
(2) Rule of construction
Nothing in paragraph (1) shall be construed to alter, modify, or otherwise affect the provisions of section 6039 of this title or any other provision of law relating to Cuba in effect on the day before October 28, 2000.
(3) Waiver
The President may waive the application of paragraph (1) with respect to Iran, Libya, North Korea, and Sudan to the degree the President determines that it is in the national security interest of the United States to do so, or for humanitarian reasons.

Agriculture Secretary Vilsack Announces Historic Agreements for U.S.-Cuba Agriculture Sectors

HAVANA, March 21, 2016 - As part of President Obama's historic trip to Cuba to further normalization of relations, advance commercial and people-to-people ties, and express our support for human rights for all Cubans, Agriculture Secretary Tom Vilsack today announced several measures that will foster further collaboration between the U.S. and Cuban agriculture sectors. The two neighboring countries share common climate and agriculture related concerns, and the measures announced today in Havana will mutually benefit the Cuban people and U.S. farmers and ranchers.

While in Cuba, Secretary Vilsack announced that USDA will allow the 22 industry-funded Research and Promotion Programs and 18 Marketing Order organizations to conduct authorized research and information exchange activities with Cuba. These groups, which are responsible for creating bonds with consumers and businesses around the world in support of U.S. agriculture, will be able to engage in cooperative research and information exchanges with Cuba about agricultural productivity, food security and sustainable natural resource management. Secretary Vilsack called the announcement "a significant step forward in strengthening our bond and broadening agricultural trade between the United States and Cuba."

During their bilateral meeting today, Secretary Vilsack and Cuban Minster of Agriculture Gustavo Rodriguez Rollero will sign a Memorandum of Understanding that establishes a framework for sharing ideas and research between the two countries. Secretary Vilsack also has invited Minister Rodriguez to join on a visit to one of USDA's Climate Sub Hubs in Puerto Rico in late May, where USDA researchers are studying the effects of climate change in the subtropical region and strategies for mitigating these effects.

"Recognizing the importance of agriculture in the United States and Cuba, USDA is advancing a new partnership for the 21st century between our two countries," said Vilsack. "U.S. producers are eager to help meet Cuba's need for healthy, safe, nutritious food. Research and Promotion and Marketing Order Programs have a long history of conducting important research that supports producers by providing information about a commodity's nutritional benefits and identifying new uses for various commodities. The agreements we reached with our Cuban counterparts on this historic trip, and the ability for our agriculture sector leaders to communicate with Cuban businesses, will help U.S. agricultural interests better understand the Cuban market, while also providing the Cuban people with science-based information as they grow their own agriculture sector."

USDA will review all proposed Research and Promotion Board and Marketing Order activities related to Cuba to ensure that they are consistent with existing laws. Examples of activities that may take place include the following:

  • Provide nutritional research and guidance, as well as participate with the Cuban government and industry officials, at meetings regarding nutrition and related Cuban rules and regulations.
  • Conduct plate waste study research in schools to determine what kids eat and what they discard, leading to improved nutritional information that helps develop the guidance for school meal requirements, ensuring kids are getting adequate nutrition to be successful in school.
  • Provide U.S. based market, consumer, nutrition and environmental research findings to Cuban government and industry officials.
  • Research commodities' role in a nutritious diet that improves health or lowers the risk of chronic diseases.
  • Study the efficacy of water disinfectants to eliminate/inactivate bacteria on commodities.
  • Test recipes and specific products amongst Cuban consumers of all ages, with the goal of increasing product development and acceptance.
  • Conduct consumer tracking studies to measure attitudes when it comes to a specific commodity and consumption and to identify consumer groups based on their behavior, attitudes, and purchasing habits for a particular commodity.

The visit to the Puerto Rico Sub Hub would allow USDA and Cuba's Ministry of Agriculture to exchange information on climate change as it relates to tropical forestry and agriculture, and explore opportunities for collaboration. The two officials would be able to explore tools and strategies to cope with challenges associated with climate change, such as drought, heat stress, excessive moisture, longer growing seasons, and changes in pest pressure.

The Puerto Rico hub is part of the USDA Regional Climate Hub network that supports applied research and provides information to farmers, ranchers, advisors, and managers to inform climate-related decision making. The hubs are an invaluable resource for those seeking to understand the specific risks of climate change, as well as region-specific adaptation strategies.

The agriculture and forestry sectors in the Caribbean are especially vulnerable to the effects of climate change. Not only is the region particularly exposed to extreme weather events, but much of its population and prime agricultural lands are located on the coast. The Puerto Rico Sub Hub is specifically focused on addressing these unique challenges and supporting the people and institutions involved in tropical forestry and agriculture.

While most U.S. commercial activities are prohibited, the Trade Sanctions Reform Act (TSRA) of 2000 permits the export of U.S. agricultural commodities, though U.S. agricultural exports to Cuba are limited by U.S. restrictions on government export assistance, cash payments, and extending credit. U.S. agricultural exports have grown significantly since trade was authorized in 2000. In 2014, Cuba imported over $2 billion in agricultural products including $300 million from the United States. However, from 2014 to 2015, U.S. agricultural exports to Cuba fell 48 percent to $148.9 million, the lowest since 2002, giving the United States just a 10 percent market share as Cuba's fourth largest agricultural supplier, behind the EU, Brazil, and Argentina.

This historic visit to Cuba is the first by a sitting U.S. President in nearly 90 years. It is Secretary Vilsack's second visit and is another demonstration of the President's commitment to chart a new course for U.S.-Cuban relations and connect U.S. and Cuban citizens through expanded travel, commerce, and access to information.

Western Union Expands Remittance Services To Cuba

For the first time Western Union to move money into Cuba from beyond U.S. borders

21 March 2016: ENGLEWOOD, Colo.--(BUSINESS WIRE)-- The Western Union Company (NYSE: WU), a leader in global payments services, announced today that it will launch remittance services from across the world into Cuba following U.S. regulatory and policy changes that allow Cubans and non-Cubans to send remittances via Western Union to this island nation.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160321005381/en/

Western Union Expands in Cuba: Connects the world (Graphic: Business Wire)

For the first time, Cubans and other citizens worldwide will join their U.S. counterparts to send remittances into Cuba within minutes* using Western Union’s cross-border payments platform. The Company expects to activate services in a phased approach by end of second quarter 2016.

“As the first U.S. Company with scale to move money from across the world to Cuba, we welcome the regulatory and policy changes put in place by the U.S. government that allow us to offer these services,” said Odilon Almeida, President of the Americas and European Union.

Remittances can be sent to family members and other Cuban nationals for family expenses and personal support for private economic activity.

“It is a privilege to connect Cubans from almost anywhere in the world in a matter of moments to their home community, and it is even more historic to be associated with the anticipated economic multiplier that will come with new injection of remittance flows into Cuba,” Almeida lauded.

“As we have found in other parts of the world, expanding remittances will provide a vital opportunity to improve the standard of living for Cuban people, contribute to savings and eventually investment towards small-businesses.”

Funds moved by Western Union go directly from the sender to the receiver with no middle intervention. “This represents a powerful catalyst for empowerment and innovation. Our current movement of remittances from the U.S. to Cuba funds regular expenses and micro businesses, driving entrepreneurism, innovation and employment opportunities,” Almeida explains.

Western Union’s global experience has shown that when customers have formalized and convenient access, remittance flows thrive from established and new corridors. Access to convenient financial services in a globalized financial arena is important to the world’s increasingly mobile-workforce and it has proven to be as important to the economic advancement of a nation.

Remittance senders from across the world can expect the same in-minutes money transfer speed into Cuba with local currency payout. They can use Western Union’s omni-channel send options -- retail, digital, mobile or bank, where available -- to send money, and in Cuba receivers can pick-up their funds from more than 490 Agent locations across each of Cuba’s 16 provinces and 168 municipalities. This is a significant presence and it is represented by multiple classes of trade – from retail stores to exchange houses.

Background

The Cuban population outside of Cuba is pegged at 1.4 million as of 2015. They reside across North, South and Central America, the Caribbean, EU and CIS countries. Nearly 96% are concentrated in five countries including U.S., Spain, Italy, Mexico, and Canada. However, Cubans reside in as many as 72 countries1.

Cash remittances to Cuba in 2013 reached US$2.8 billion with 90% originating from the US. Remittances reach 62% of Cuban households, sustain about 90% of the retail market and provide thousands of jobs. #2

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31, 2015, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks, and included the capability to send money to over a billion accounts. In 2015, The Western Union Company completed 262 million consumer-to-consumer transactions worldwide, moving $82 billion of principal between consumers, and 508 million business payments. For more information, visit www.westernunion.com.

Priceline, Through Booking.com, To Offer Cuba Hotel Reservations

Booking.com Has Set the Stage to Become the First Digital Travel Brand to Launch Instantly Bookable Hotels in Cuba

Booking.com will soon make one of the world’s most coveted destinations accessible to U.S. travelers seeking beauty, culture and adventure

NEW YORK– MARCH 21, 2016 – Today Booking.com, the global leader in online travel and part of The Priceline Group [NASDAQ: PCLN], announced that it will become the first online U.S. travel brand to offer instantly bookable hotel properties for certain U.S. citizens traveling to Cuba, one of the world’s most sought-after destinations, globally. After months of work with the Cuban Authorities and local hotels, the first properties will be ready to book in the coming weeks on Booking.com.

The company’s move follows the recent loosening of restrictions for U.S. travelers to Cuba. The announcement means that Cuba will soon become instantly bookable for U.S. travelers that meet the criteria currently approved by the U.S. government for travel to Cuba. At the outset, properties will be available in Havana and consumers can book instantly and avoid the need to rely on a property owner to respond to and accept a travel request. Plans are in place to increase the number of properties in Havana and beyond daily to give U.S. travelers the incredible diversity of choice Booking.com is known for.

“Cuba is a beautiful, culture-rich country that many travelers are keen to visit,” says Todd Dunlap, Managing Director, Americas, Booking.com. “At Booking.com, we are on a constant mission to bring our customers everything they want to help them experience the world. With the news of the easing of U.S. travel restrictions, we began working immediately with the local Cuban government, tourism authorities and our local hotel partners to launch the first platform to allow travelers to book and confirm instantly with the click of a button. They have been great partners for us on this journey and we are thrilled to be able to facilitate new experiences for U.S. travelers.”

The Headline.... "The Revolution 57, Imperialists 0"

There exists no anticipated or created global drama with the visit by the President to the Republic of Cuba- this is not President Richard Nixon traveling to the People’s Republic of China to meet with Chairman Mao Tse-tung; nor is it President Ronald Reagan meeting in Iceland with Mikhail Gorbachev, General Secretary of the Communist Party of the U.S.S.R.. 

However, if Fidel Castro were President of the Republic of Cuba, a meeting between the President of the United States and Dr. Castro would be an event; arguments will be made as to whether a President Fidel Castro would have engaged as has his brother, successor President Raul Castro.

There is no doubt that former President Fidel Castro would welcome a meeting with President Obama; and no doubt that if politics would permit the spectacle, President Obama would meet with former President Castro…. One historical figure to another. 

For former President Castro, however, such a meeting could resemble a scene from the Neil Simon-scripted play which became the motion picture, “The Sunshine Boys.”  In one moment, one character recovering from a medical issue is visited by his comic partner… “Come all the way over here…. Come all the way over here…. You came, you apologized…”

However, whether President Obama meets with former President Fidel Castro [The White House said that he will not] is irrelevant to the narrative that will be created, and with increasing evidence, authenticated, by the government of the Republic of Cuba…. The Revolution Won.

There should be no surprise if the headlines on newspapers published throughout the Republic of Cuba, and in other countries conveyed the following impressions:

“The Revolution 57, Imperialists 0”

“Obama Comes To Apologize”

“Isolating The Revolution Did Not Succeed”

“Fidel & Raul Led Us To Victory”

“We Forgive You”

“It’s Not Over”       

The Republic of Cuba will continue to be less oversold and less undersold; its being perceived for what it is- a country in a somewhat perpetual transition, from identity to identity, seeking the balance between ideology that depends upon the largess of others to pay for it and the new reality that those supporters are fewer... and they now want to be repaid.

What Does Cuba Want... And Need... But May Not Receive For A While

What Does Cuba Want…… And Need... But May Not Receive For A While

Rescind relevant provisions:

Platt Amendment (Lease for Guantanamo Bay) of 1901
Trading With The Enemy Act of 1917
Cuban Democracy Act of 1992
Libertad Act of 1996
Trade Sanctions Reform And Export Enhancement Act of 2000
Cuban Assets Control Regulations (CACR)

Authorize United States companies and the government of the Republic of Cuba to access the following programs, which provide United States government payment guarantees to United States exporters and their customers.  However, given the payment record of the government of the Republic of Cuba to other countries, would United States companies and the United States government accept the risk of non-payment?:

United States Department of Agriculture (USDA)
Commodity Credit Corporation
Export Credit Guarantee Program
Facilities Guarantee Program

Export-Import Bank (ExIm)
Export Working Capital Program
Working Capital Guarantee Program
Loan Guarantee Program
Direct Loan Program
Finance Lease Guarantee Program

Overseas Private Investment Corporation (OPIC)
Direct Loans and Loan Guarantees

Small Business Administration (SBA)
Export Express Program
International Trade Loan Program

 

Important About Starwood's Presence In Cuba? Obama Administration Permits Contract With The Military

Important About Starwood’s Presence In Cuba?  Obama Administration Permits Contract With The Military

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide, Inc., has been authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to sign a management contract with Revolutionary Armed Forces of the Cuba-controlled Grup de Turismo Gaviota SA.

The Obama Administration has recognized, acknowledged, that the military in the Republic of Cuba is in control of desired economic assets and sectors; and that the military in the Republic of Cuba is expected to remain in control of desired economic assets and sectors.

U.S. Clears Marriott to Engage in Business Development in Cuba

U.S. Clears Marriott to Engage in Business Development in Cuba

Company in Discussions to Pursue Hospitality Agreement

BETHESDA, MD and HAVANA, CUBA, March 20, 2016 – Marriott International, Inc. (NASDAQ:MAR) said today that the the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has approved Marriott International’s application to pursue a business transaction in Cuba, and that the company is in discussions to develop a hospitality relationship with potential partners.  The announcement was made during President Obama’s historic trip to Cuba, marking the first time in more than 80 years a sitting U.S. president has visited the country.  Marriott President and Chief Executive Officer Arne Sorenson is traveling with U.S. Commerce Secretary Pritzker during the President’s visit to Cuba.

Marriott’s objectives in Cuba include entering the hospitality sector with Marriott brands, providing hospitality training for Cuban nationals, helping to generate new economic opportunities for businesses supplying the hospitality industry, and as a corporate citizen, supporting opportunities for youth, women and other communities in Cuba.    

Mr. Sorenson said, “We are gratified to receive permission from the U.S. government to pursue business opportunities in Cuba.  While there is still work to do before any agreement is reached, we are actively pursuing relationships in the hospitality sector. We have long been convinced that with the right frameworks in place, new economic opportunities, including dramatically expanded travel, abound in Cuba.  These could deliver real benefits to the Cuban people and also have the effect of bringing both Americans and Cubans closer together.”

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,400 properties in 87 countries and territories.  Marriott International reported revenues of more than $14 billion in fiscal year 2015. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bulgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and Moxy Hotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together comprise nearly 55 million members. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

 

Starwood To Manage Three Hotels In Havana

Starwood Hotels and Resorts Announces Groundbreaking Expansion to Cuba

March 19, 2016

Becomes First Hospitality Company to Obtain U.S. Treasury Department Authorization to Operate In Cuba

Signs Two Agreements and Letter of Intent to Open Hotels in Havana in 2016

HAVANA--(BUSINESS WIRE)-- Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”) (NYSE:HOT) today signed three new hotel deals in Cuba, marking the first U.S. based hospitality company to enter the market in nearly 60 years. This announcement follows receipt of authorization from the U.S. Treasury Department for Starwood to operate hotels in Cuba. Long-time Havana icon, Hotel Inglaterra, will join The Luxury Collection and Hotel Quinta Avenida will become a Four Points by Sheraton. Both hotels will undergo renovations before raising their new brand flags later in 2016. The Company also announced that it has signed a Letter of Intent to convert the famed Hotel Santa Isabel into a member of The Luxury Collection.

Thomas B. Mangas, Starwood’s Chief Executive Officer, said: “Starwood’s history of creativity, innovation, sustainability and being a first mover is core to who we are and what has made us a formidable competitor in the industry with a long, global lead. I am proud of our team who worked tirelessly to make today possible. With Cuba’s rich history, natural beauty and strong culture, there is no question the entire U.S. hospitality industry has watched Cuba with great interest, and we are thrilled to lead the charge and bring our sophisticated, high-end brands into the market at this inflection point.”

Kenneth S. Siegel, Starwood’s Chief Administrative Officer and General Counsel, added: “We are confident Starwood is the right partner to help write the next chapter of relations between Cuba and American business, and we moved quickly and enthusiastically to pursue opportunities following recent government actions. As we’ve seen throughout the world, our entry into new markets has a positive effect on local communities, preserving and protecting the culture and delicate ecosystems while improving employment opportunities, which were driving forces in our discussions.”

Hotel Signings

Jorge Giannattasio, Starwood’s Senior Vice President and Chief of Latin America Operations, said: “We are excited to add this sought-after destination to our growing Latin American and Caribbean portfolio, and offer our loyal guests more choice in this evolving market. Hotel conversions, like those we announced today, allow us to preserve history, architecture and culture while offering a unique branded experience. With our long-standing, locally based and highly experienced team in Latin America and the Caribbean, we look forward to welcoming guests to Cuba for many decades to come.”

Starwood has partnered with owner Gran Caribe to rebrand the renowned Hotel Inglaterra as a member of The Luxury Collection. A national landmark just steps from the Gran Teatro de La Habana in the heart of downtown Havana, the Inglaterra first opened its doors in 1875 and is home to the famed Gran Café el Louvre, which has hosted artists and travelers for over a century. Upon completion of the preservation and conversion projects later this year, the hotel will offer 83 rooms and reopen under The Luxury Collection banner.

Starwood has signed an agreement with Grupo de Turismo Gaviota S.A. , owner of Hotel Quinta Avenida in Havana’s Miramar district, to rebrand the hotel as Four Points by Sheraton Havana later this year. The hotel will cater to business travelers with approximately 186 rooms and state-of-the-art meeting facilities.

The Company also has signed a letter of intent with Habaguanex, owner of the famed Hotel Santa Isabel, to convert the nineteenth century colonial-style palace to a member of The Luxury Collection, pending U.S. Treasury Department approval. Situated on the Plaza de Armas and overlooking Havana Harbor, the Santa Isabel will offer Starwood guests a conveniently situated respite in the heart of Havana’s historic city center, with 27 rooms, including 11 suites.

Steps to Groundbreaking Announcement

On December 17, 2014, President Obama announced plans to normalize diplomatic relations between the United States and Cuba, and in August 2015, the U.S. Embassy in Cuba was reestablished. Then, last month, the U.S. and Cuba signed an agreement that provides U.S. airlines the opportunity to operate up to 110 daily roundtrip flights, which would resume commercial airline service between the two countries for the first time in more than 50 years and promises to vastly increase the number of Americans traveling to Cuba.

Keith Grossman, Senior Vice President and Deputy General Counsel of Starwood, concluded: “Through our discussions and due diligence, it became clear that Starwood was the right choice for its unique approach to hospitality, sustainability and design that would enrich the local communities and enhance the guest experience. We plan to cultivate local talent, provide career enriching opportunities, and locally source art, décor, food, and materials to ensure we deliver authentic experiences.”

Starwood was advised by D17 Strategies, a consulting firm providing strategic counsel to clients seeking to carry out Cuban trade, investment, travel, and exchanges permitted under new U.S. regulations.

About The Luxury Collection® Hotels & Resorts

The Luxury Collection® brand is comprised of world-renowned hotels and resorts offering unique, authentic experiences that evoke lasting, treasured memories. For the global explorer, The Luxury Collection offers a gateway to the world's most exciting and desirable destinations. Each hotel and resort is a unique and cherished expression of its location; a portal to the destination's indigenous charms and treasures. Originated in 1906 under the CIGA® brand as a collection of Europe's most celebrated and iconic properties, today The Luxury Collection brand is a glittering ensemble, set to exceed 100 of the world's finest hotels and resorts in more than 30 countries by the early 2016. All of these hotels, many of them centuries old, are internationally recognized as being among the world's finest. For more information and new openings, visit theluxurycollection.com or follow Twitter, Instagram and Facebook.

About Four Points

Four Points is travel reinvented. With over 200 hotels in nearly 40 countries, Four Points meets the needs of the everyday traveler and offers guests exactly what they need on the road. Four Points combines timeless style and comfort and an authentic sense of the local as well as genuine, always-approachable service, all around the world. To learn more, visit www.fourpoints.com/experience. Stay connected to Four Points on facebook.com/fourpoints.

About Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,300 properties in some 100 countries and approximately 188,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership with Design Hotels™. The Company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitter and Instagram and facebook.com/Starwood.

DHS To Expand Airport Gateways To Cuba

WASHINGTON—The Department of Homeland Security will publish a regulation in the Federal Register Monday, March 21, which includes a change to current travel regulations regarding flights to and from Cuba. As part of this regulatory change, U.S. Customs and Border Protection will immediately remove Subpart O from the current regulations in 19 CFR Part 122.

Under Subpart O, only CBP-approved airports could accept flights traveling to or from Cuba. Airports hoping to accommodate travel to or from Cuba were required to submit a written request to CBP for approval. The written request was required even if the airport already had clearance for international flights.

Besides removing 19 CFR Part 122, Subpart O, the regulatory change also makes adjustments to other provisions which mentioned Subpart O. Flights to and from Cuba are now subject to the same legal requirements under Title 19 as other international flights.

All passengers arriving from Cuba must still complete their immigration and customs inspections prior to being admitted into the United States.

Additionally, the removal of Subpart O of 19 CFR Part 122 does not have any impact upon any other federal agency, carrier or traveler requirements that may be relevant for flights to and from Cuba. An internal review of CBP’s regulations showed no benefits to the agency by continuing to enforce 19 CFR Part 122, Subpart O.

The interim final rule is effective immediately, although CBP will receive public comments on the rule through April 20, 2016.  Public comments can be submitted and viewed on Regulations.gov.

The U.S. Department of State and the U.S. Department of Transportation signed an arrangement with Cuba in February 2016 aimed at re-establishing scheduled flights between the U.S. and Cuba.

For further information, visit DHS.gov.

Does The Obama Administration Want Regime (Behavior) Change? Yes, It Does.

Does The Obama Administration Want Regime Change? Yes, It Does.

The Obama Administration may not specifically want “regime change” to be defined as seeking to replace those who are in the leadership of the Republic of Cuba, but the President does want to change the behavior of those guiding the country of 11.3 million citizens ninety-three miles south of Florida.

It's a soft war… using visitors as the soldiers, commercial airlines as the air force, and cruise ships as the navy.  United States diplomats as the marines.

While President Obama's fifteen-month-and-counting commercially-focused five-act (thus far) regulatory drag race is not nearly at the finish line, there has been at least one significant parallel political shift by the government of Cuba- it has been forced to adapt to the materially impactful irreversible influence that the re-emerging middle class is having on Cuban society.  Approximately 10% of the Republic of Cuba’s official workforce of 5.1 million are registered as Licensed Entrepreneurs.

Reconstituting the middle class that was abridged as a result of the 1959 Revolution is a foundational fulcrum upon which much of President Obama's Cuba strategy has been based since December 2014.

While the government of Cuba commenced changes to the self-employed categories (201+) and acknowledged a need for a reduction in the government payroll prior to President Obama's initiatives announced in December 2014, there are now additional pressures from within for structural changes to the ideological foundation of the country. 

Ironically, these pressures are partly a result of Cuba's outreach in 2015 to the international community- Paris Club of Creditor Nations, governments, companies, financial institutions... because in order for those renewed and new areas of support to be repaid, Cuba must do more than reform the commercial and economic sectors of the country; it must aggressively reform and redefine the "Revolution."

In 2016 and beyond, the Revolution will be defined less by what is desired as by how much there is to spend to support it; the traditional sources of support, the USSR (long gone), Russia (lessening), China (retaining its connection), and Venezuela (lessening) are no longer reliable.  Important to note that the Russian Federation and China view somewhat their outreach to the Republic of Cuba as having a dual result- commerce and annoying the United States.

Cuba has looked as it does primarily because others paid for it... Those customers are no longer as interested and the customers that replaced them are investing for a return of cash, not slogans.

What does this mean for United States-based companies?  The government of the Republic of Cuba will create opportunities to “showcase” its “willingness” to engage with, respond to, the Obama Administration initiatives.  But, that showcase will be small to medium in size and it will be moveable and it will be breakable. 

There will be an effort by the government of the Republic of Cuba to retain the distance between aspiration and operation; by authorizing just enough on-the-ground activity so as to not to render dry the salivary glands of executives from United States companies; as the government of the Republic of Cuba requires those vocal abilities to advocate on their behalf in Washington for additional regulatory and statutory changes preventing an unrestricted North-to-South and South-to-North commercial landscape. 

 

The President's Schedule In Cuba

On Sunday, in the afternoon, the First Family will travel to Havana, Cuba. While in Cuba, the President will work to build on the progress we have made toward normalization of relations with Cuba - advancing commercial and people-to-people ties that can improve the well-being of the Cuban people, and expressing our support for human rights.

Later in the afternoon, the First Family will arrive in Havana, Cuba.

Following the First Family’s arrival, the President and the First Lady will meet with Embassy personnel and families.

Afterward, the President and First Lady will take a walking tour of Old Havana.

The First Family will remain overnight in Havana, Cuba.

On Monday, the President will participate in a wreath laying ceremony and take a tour of the Jose Marti Memorial. Later in the morning, the President will then take an official photo with President Raul Castro of Cuba and participate in an official welcoming ceremony at the Palace of the Revolution. Afterward, the President will hold a bilateral meeting with President Castro. In the afternoon, the President will take part in an event focused on entrepreneurships and opportunity for the Cuban people. In the evening, the President and First Lady will attend a state dinner at the Palace of the Revolution.

On Tuesday, the President will deliver remarks to the people of Cuba at the Gran Teatro de La Habana Alicia Alonso. Later in the morning, the President will meet with members of civil society. Following the President’s meeting, the First Family will attend a Major League Baseball exhibition game between the Tampa Bay Rays and the Cuban National Team at the Estadio Latinoamericano. Americans and Cubans share a love of baseball, and this is yet another powerful reminder of the kinship between our peoples as well as the progress we can achieve when we leverage those natural ties. In the afternoon, the First Family will depart Havana, Cuba and travel to Buenos Aires, Argentina where they will remain overnight.