Cuba Again Mentioned During Press Briefing At The White House

THE WHITE HOUSE
 
Office of the Press Secretary
For Immediate Release
May 30, 2017
 
PRESS BRIEFING BY PRESS SECRETARY SEAN SPICER
 
James S. Brady Press Briefing Room
 
2:11 P.M. EDT  

And my second question, I did want to mention that before he left to go abroad, the President praised Philippine President Duterte for his action against drug dealers and dealing with them. Various human rights groups have condemned President Duterte, saying that a lot of the executions of drug dealers have been done without trial.  Does the President stand by his words of praise for the Philippine President?
 
MR. SPICER:  I think the President recognizes the need to combat drugs, but he also believes in human rights.  It's something that he’s worked with several countries -- it's one of the reasons that he’s reviewing the Cuba policy, et cetera.  He wants -- human rights is something that’s very strong to him.  It's something that he’s discussed in private with several countries.

Statements From The White House About Cuba.... Chronology
http://www.cubatrade.org/blog/2017/3/12/6rhpts5hb63h4xirou3am6ycrexpbk

THE WHITE HOUSE
Office of the Press Secretary
19 March 2017
 
Readout of the President’s Day        
 
....  He spoke to President Michelle Bachelet of Chile to discuss our bilateral relationship, including our close cooperation on trade and security issues.  President Trump expressed concern over the situation in Venezuela, and the leaders agreed on the importance of advancing democratic principles throughout the Western Hemisphere. 

EFE
Washington, DC
8 March 2017

Excerpts from interview with Ms. Helen Aguirre Ferre, Special Assistant to the President and Director of Media Affairs at The White House....

"The president has been very clear that they are going to evaluate all the agreements that the prior administration (of Barack Obama) made with Cuba," said Aguirre Ferre, who is of Nicaraguan heritage.

...in Trump's judgment, "Cuba did not offer any concessions, with all that it was given in what has been the normalization and reestablishment of agreements and diplomatic behavior."

Cuba is hosting "fugitives from US justice, it has to turn over those people and also talk about the importance of free elections and free political prisoners," Aguirre Ferre said.

Trump's adviser avoided commenting on whether there has been any contact as yet between the Trump administration and Cuba, saying that that it a question for the State Department.

The White House
Office of the Press Secretary
For Immediate Release
16 February 2017
Remarks by President Trump in Press Conference

East Room
12:55 P.M. EST

THE PRESIDENT:  ... We had dinner with Senator [Marco] Rubio [R-Florida] and his wife, who is, by the way, lovely.  And we had a really good discussion about Cuba because we have very similar views on Cuba.  And Cuba was very good to me in the Florida election as you know, the Cuban people, Americans.  

The White House
Office of the Press Secretary
3 February 2017

Press Briefing
12:37 P.M. EST

Mr. Spicer:  With that, I’m going to go my first Skype question seat.   Jackie Nespral from NBC 6 in South Florida.  Jackie.

Question:  Good afternoon.  On behalf of the viewers of South Florida, thanks so much for this opportunity.  You know, a lot of focus on foreign affairs this week, a new sanctions announced today against Iran, and of course Miami, as you know, is home to the largest Cuban-American community in the country.  And during the campaign, President Trump talked about his discontent with the warming of U.S.-Cuba relations implemented by President Obama.  And in the last days of his administration, he ended the "wet foot, dry foot" policy, leaving thousands of Cubans in limbo.

So my question is twofold.  A, has there been any contact between your administration and the Cuban government?  And B, are there any plans to change the current policy right now?

Mr. Spicer:  Thanks, Jackie.  We are in the midst of a full review of all U.S. policies towards Cuba.  The President is committed to an agenda of ensuring human rights for all citizens throughout the world.  And as we review those policies in Cuba, that will be forefront in their policy discussions, but there is nothing that we have on that front at this point.

The White House
Office of the Press Secretary
Washington, DC
24 January 2017

Press Briefing
36:18 of 45:26

Question:  Does the President have any plans to change US policy towards Cuba there are a lot of changes that took place during the last Administration and the Executive Orders as it relates to US-Cuba relations?

Mr. Spicer:  I have to follow-up with you we've got nothing that we're ready to announce at this point.

Committee on Foreign Relations
United States Senate
Washington, DC
21 January 2017

Written answers by Mr. Rex Tillerson, nominee to be United States Secretary of State, as published by the Committee on Foreign Relations.

Question: Despite the Obama Administration’s controversial and misguided decision to normalize relations with Cuba and its hope that this could lead to improved governance and human rights, Cuban officials continue to arrest dissidents and violate the rights of citizens, and tourism revenues benefit only government officials and a small minority of the population. How do you plan to approach the United States’ relationship with Cuba? How will you support human rights defenders and democracy activists in Cuba? What bilateral and/or multilateral pressure will you exert to lessen authoritarian rule in Cuba?

Tillerson: If confirmed, I will engage with Cuba but continue to press for reform of its oppressive regime. I will support human rights defenders and democracy activists in Cuba, empower civil society, defend freedom of expression, and promote improved Internet access and I will ask our allies to do the same.

Will you continue to support programs that promote democratic voices and initiatives in Cuba like Radio and TV Marti?

Yes, if I am confirmed.

What steps will you take to pressure the Castro regime to return American political fugitives like New Jersey cop-killer Joanne Chesimard?

If confirmed, I will engage bilaterally and multilaterally to bring these fugitives to justice.

Will you work with the Treasury Department to ensure that no revenue from American businesses goes directly toward supporting the Cuban military and the regime?

Yes, if I am confirmed.

NOTE: On 9 June 2016, The Honorable Paul Ryan (R-WI), Speaker of the United States House of Representatives, issued a statement entitled, "Achieving U.S. Security Through Leadership & Liberty"  The second paragraph of the document included this sentence: "A first step should be to ban financial transactions with the Cuban military."  http://www.cubatrade.org/blog/2016/6/11/speaker-of-the-house-paul-ryan-wants-to-rescind-starwood-hotel-management-agreement?rq=Paul%20Ryan

What steps will you take to encourage the government of Cuba to release political prisoners, artists, journalists, and other Cubans being detained for politically-motivated reasons?

If confirmed, I will press Cuba to meet its pledge to become more democratic and consider placing conditions on trade or travel policies to motivate the release of political prisoners.

What steps will you take to promote judicial reform in Cuba?

I will work bilaterally and multilaterally to identify training and technical assistance opportunities to assist with judicial reform, if I am confirmed.

On October 12, 2016, PEOTUS Donald Trump stated, “The people of Cuba have struggled too long. Will reverse Obama’s Executive Orders and concessions towards Cuba until freedoms are restored.” Do you stand by PEOTUS Trump’s commitment to reverse the Obama Administration’s Cuba regulations until freedoms are restored on the island?

Yes. There will be a comprehensive review of current policies and executive orders regarding Cuba to determine how best to pressure Cuba to respect human rights and promote democratic changes.

On October 14, 2016, VPEOTUS Mike Pence reiterated this commitment by stating, “When Donald Trump and I take to the White House, we will reverse Barack Obama’s executive orders on Cuba.” Do you stand by VPEOTUS Pence’s commitment to reverse the Obama Administration’s Cuba regulations?

Yes, if I am confirmed.

United States Secretary of State Designate Rex Tillerson
United States Senate Committee on Foreign Relations
Confirmation Hearing Opening Statement
11 January 2017

Excerpts…..

Good morning.

I am honored to have the backing of Senator Cornyn and Senator Cruz from my home state of Texas. I also want to thank Senator Nunn for his commitment to nuclear non-proliferation, and Secretary Gates for his service to eight presidents and his own leadership as President of the Boy Scouts of America.

Chairman Corker, Ranking Member Cardin, and Members of the Committee, it is an honor to appear before you today as President-elect Trump’s nominee for Secretary of State and to seek the approval of this Committee and the full Senate for my confirmation.

But our leadership demands action specifically focused on improving the conditions of people the world over, utilizing both aid and economic sanctions as instruments of foreign policy when appropriate.

And we must adhere to standards of accountability. Our recent engagement with the government of Cuba was not accompanied by any significant concessions on human rights. We have not held them accountable for their conduct. Their leaders received much, while their people received little. That serves neither the interest of Cubans or Americans.

Abraham Lincoln declared that America is “the last best hope of Earth.” Our moral light must not go out if we are to remain an agent of freedom.
 

2% Tax on US Exports To Cuba To Compensate Certified Claimants Is Foolish

When A Politician Negotiates A Business Deal
Unintended (For One Side) Consequences To Find “A Proper Path Forward”
Not A Poison Pill- A Poison Fee
How To Define An “Elegant Solution”
133 Years to 1,723 Years For Repayment
The Hurry To Lose?  Repeating The Mistake Of 6,000 Days Ago

A proposal by The Honorable Rick Crawford (R- 1st District, Arkansas) to require by statute a 2% transaction fee for agricultural commodity and food product exports from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 in return for statutorily authorizing private-sector payment terms for those exports is not a solution to a problem- it is an affront to the 5,913 companies and individuals who have waited nearing fifty-seven (57) years for an equitable resolution to the expropriation of assets (29 June 1960).

Representative Crawford is not solving a problem; he is making the existing problem worse and creating additional problems.  He may believe that his efforts at bipartisan engagement are creating a space for bipartisan dialogue with a goal of closure.  He is not.  He is solidifying delay and distraction.  Rice from Arkansas will not be flooding the Republic of Cuba marketplace because of his efforts.

United States agricultural commodity and food product exports are approximately US$5.3 billion since the first deliveries in December 2001 under provisions of the TSREEA.

If the proposed 2% had been collected since the first TSREEA-related exports to the Republic of Cuba, the total thus far would be approximately US$106 million- which equates to approximately 6% of the initial value of the certified claims and approximately 1% of the current value of the certified claims.

United States citizens, owners of privately-held companies, and shareholders of publicly-held companies should not be required to make (reimburse) payments for actions by the government of the Republic of Cuba. 

Why would the Trump Administration, which extols the role of exporters in the United States economy, support creating an additional impediment to the one statutorily-permitted category with the greatest history and greatest potential? 

Will imports from the Republic of Cuba, for example currently authorized coffee and charcoal, be subject to financial penalties?  Will there be a Nespresso-tax?

The “long-term solution” advocated by grass-roots activists/lobbyists in July 2016 (see below) is not accomplished through the creation of an onerous new statute.  This new statute would only serve as a platform for individuals and organizations to seek additional funds to lobby for the repeal of a previous statute.  And, that helps companies in what way?    

For the privilege of exporting agricultural commodities and food products to the Republic of Cuba, United States companies will be required to earn less for their efforts.  This is foolish logic.  Through courage of ignorance, the result is a further delegitimization of the bilateral commercial process. 

To remind: When Members of Congress and their advocates and their lobbyists had an occupant of the Oval Office from 20 January 2009 to 20 January 2017; and who in 2014 (December), 2015, 2016 and 2017 (January) had a focus upon the Republic of Cuba, and could have, by directive, increased the efficiency (by lessening costs) of transactions by authorizing direct correspondent banking- nothing was done.

United States companies which may not have a certified claim will be making payments to those who have certified claims.  This is fair?

Representative Crawford is advocating absolution for the government of the Republic of Cuba of responsibility for its expropriations.  He is advocating for a transfer of responsibility from the government of the Republic of Cuba to a new class of creditors- the 325 million population of the United States who without recourse would indirectly reimburse the government of the Republic of Cuba for expropriating the assets of 5,913 companies and individuals.  This is right?

There were 8,821 claims of which 5,913 awards certified by the United States Foreign Claims Settlement Commission (USFCSC) were valued at US$1,902,202,284.95.  Of these certified claims, thirty (30) United States-based companies hold 56.85% of the total value.  The USFCSC permitted interest to be accrued in the amount of 6% per annum; the current value is approximately US$8 billion.   

As reported in on 27 May 2017 in The Miami Herald: “Every transaction will have a two percent excise fee that would be collected and administered to certified claimants through the Treasury Department,” he said.  “The 2% user fee functions like an excise tax on the total sale, and it is paid by the seller of the agricultural product,” added a staffer from Crawford’s office….  “an end thanks to an “elegant” solution that is part of proposed legislation: a 2 percent user fee on agricultural products sold to the island that would be used to compensate those who have certified claims of properties confiscated by the Cuban government.”

In an eagerness to “accomplish” something, the result may be the creation of a statutory template and judicial precedent impacting United States bilateral and multilateral relationships, as well as, complicate the commercial, economic and political landscape from which to resolve other United States-Republic of Cuba issues.  Representative Crawford would be best advised to await 24 February 2018, the inauguration of the next president of the Republic of Cuba, when the bilateral dynamic may well be more… dynamic.  Change for the sake of change is not always productive- and can be harmful.

What is unknown- thus far, is if the legislation would define “certified claimants” as those among the 5,913 or those whose claims are not among the 5,913. 

The definition is critical to determining the value (and legitimacy) of the legislation- and to whom it has value.  The 5,913 certified claimants have endured previous occupants (Democrat and Republican) of The White House negating the value and importance of the certified claims and redirecting funds reserved for repayment of the certified claims to satisfy civil judgments unrelated to the certified claims; and the invasion of those funds was supported by those with whom Representative Crawford is negotiating his legislation.  He has been “rolled” in the political context of the term.

How does creating another statutory requirement; impediment to a “normalized” bilateral commercial environment positively impact the existing commercial environment? 

What is the mechanism for removing the 2% transaction fee from the statute?  Until the value of the “certified claims” have been repaid?  Which value- the original US$1.9 billion or the current US$8 billion? 

Let’s examine the data: 

In 2016, the value of TSREEA-related exports was US$232,064,645.00; and 2% is US$4,641,292.90.  If the highest value TSREEA-related export year is used, US$710,086,323.00 in 2008; then 2% is US$14,201,726.46. 

At this rate, repayment of the original value of the certified claims, US$1,902,202,284.95, would take approximately 400 years based upon the 2016 value and approximately 133 years based upon the 2008 value. 

If the approximate US$8 billion current value of the certified claims is used, the repayment schedule ranges from approximately 563 years (2008) to 1,723 years (2016).

There are credible individuals, organizations and other entities who estimate unfettered TSREEA-related (meaning no restrictions) exports to the Republic of Cuba could be US$2 billion annually (equating to approximately 100% of current and 70% of potential agricultural commodity and food product imports by the Republic of Cuba).  Using that valuation, the 2% fee would be US$40 million; and certified claimants could be repaid in approximately 47 years to 200 years depending upon which certified claim total value is used in the calculation.

NOTE: Each of the previous analyses do not account for a continuation of the 6% per annum interest permitted by the FSFCSC.

Those members of the United States Congress with whom Representative Crawford has “negotiated” thus far succeeded in creating the same type of unrelated trade-off as those who negotiated the TSREEA…. a statutory codification of twelve (12) categories of authorized travel to the Republic of Cuba and a specific prohibition on travel related to tourism.  Representative Crawford is making the same poorly-thought-out agreement as did his Republican colleagues more than 6,000 days ago.

With agricultural commodity and food product exports a low-profit margin exercise, often with margins in the low single digits, how does adding 2% to the pricing of an export assist with increasing the quantity and value of exports?  And, there would be additional transaction costs to the exporter to transfer the funds to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury; and there would be costs to the OFAC to manage and audit the statutory requirement.  Meaning an increased budget and increased cost to the United States taxpayer.

Representative Crawford may be seeking to create a socialist (collective) solution to what was considering by many to be a communist-inspired problem from 1960: He wants those who had nothing to do with the problem to pay for its resolution.  Person A steals from Person B and then Person A requires Persons C, D, E, F, etc., to repay Person B; and those persons had nothing to do with the original transgression.

There Are Other Ways

United States companies have identified reasonable options for resolving the 5,913 certified claims, including the retention of an outside specialist:

http://www.cubatrade.org/blog/2016/12/1/zigs56x0gme3a9rqg7aecx9vf2gqgk?rq=feinberg

Background- U.S. Food Product/Agricultural Commodity Exports To Cuba

Since December 2001, more than US$5.3 billion in agricultural commodities and food products have been exported directly from the United States to the Republic of Cuba on a cash-in-advance basis as required by the TSREEA.  

No United States company which has exported product(s) to the Republic of Cuba since 2001 has publicly stated what payment terms it would currently provide if authorized by statute.  No United States financial institution has publicly stated that it would provide financing for those exports.  

The government of the Republic of Cuba prefers to purchase food products and agricultural commodities from government-operated exporters where either the exporter or the government of the Republic of Cuba accesses government export-payment guarantee programs.  Requesting payment terms of one-year to three-years is not uncommon.

Government of Vietnam-operated Vinafood (1 & 2) have provided payment terms to Republic of Cuba government-operated Alimport of two (2) years to pay for rice (25% to 30% broken).  The Republic of Cuba annually imports approximately 200,000 metric tons to 400,000 metric tons of rice, primarily from Vietnam and People's Republic of China.  Republic of Cuba annual domestic requirements are approximately 700,000 metric tons.  The Republic of Cuba does grow a small quantity of rice.  United States producers can provide this product; however, payment terms, if statutorily permitted, without the use of United States government guarantee programs, would be cash-on-delivery to 30 days; and for credit-worthy customers, generally not exceed sixty (60) days to ninety (90) days according to United States exporters.

12 July 2016 (Blog Post)

"There is real momentum," said The Honorable Mark Sanford (R- South Carolina), a member of the United States House of Representatives, last week.  He then had no mention of the events of last week on his www.house.gov page as of 9 July 2016. 

“…a proper path forward and we agreed to find a solution that does a number of things,” said The Honorable Rick Crawford (R- Arkansas), a member of the United States House of Representatives, last week.  He also shared “a long-term solution,” “thorough examination,” and “deliberative process across each relevant committee of jurisdiction.” Representative Crawford then had no mention of the events of last week on his www.house.gov page as of 9 July 2016.  

“… a historic compromise” and “major step forward,” said Washington, DC-based EngageCuba, adding “reached an agreement to find a long-term solution to provide credit for the export of agricultural commodities to Cuba.”  And, the organization’s president offered this to those who have opposed his efforts, “their position is no longer tenable.”  Is this a winning-votes strategy by a grass-roots organizer or a self-professed effective advocate/consultant/lobbyist?

“…redouble its efforts with this Congress,” said the Washington, DC-based U.S. Agriculture Coalition for Cuba.  Would this be the 114th Congress about to recess for the upcoming elections, with few remaining legislative days before formally adjourning in December 2016? 

The government of the Republic of Cuba could not have been enthusiastic when their advocates engineered not one, but two, legislative failures within twenty-four (24) hours. 

The result all but assures no legislation in the 114th Congress and simultaneously harms the foundations for advocacy in the 115th Congress- during which issues relating to the Republic of Cuba will again not be a priority for the leadership in either the United States House of Representatives or the United States Senate; or probably the next president.

Why are advocates focusing upon legislation when regulation and policy change are more efficient mechanisms by which to expand the commercial, economic and political relationship between the United States the Republic of Cuba during the remaining 192 days of the Obama Administration? 

One reason, jobs- their own that is.  Did the Members of Congress coordinate their efforts with the self-appointed Republic of Cuba policy advocates?  If so, how should responsibility for the failures be apportioned?

Links To Relevant Blog Posts

https://static1.squarespace.com/static/563a4585e4b00d0211e8dd7e/t/57863b1d15d5dbb0fab811e3/1468414753520/CrawfordSanfordCubaAdvocacy.pdf

http://www.cubatrade.org/blog/2016/7/12/cuba-last-weeks-mistakes-by-members-of-congressadvocates-could-hurt-us-companies?rq=crawford

http://www.cubatrade.org/blog/2016/12/1/zigs56x0gme3a9rqg7aecx9vf2gqgk?rq=certified%20claims

http://www.cubatrade.org/blog/2017/3/23/bs7tttl7jsf0bkyle6b4kitf69whwj?rq=crawford

http://www.cubatrade.org/blog/2016/8/6/obama-administration-wont-seek-dismissal-of-civil-judgements-against-cuba-to-help-certified-claimants?rq=certified%20claims

https://static1.squarespace.com/static/563a4585e4b00d0211e8dd7e/t/57a09f6e03596ed4bfa62f07/1470144370494/2829July2016USCubaClaimsMeetingAnalysis.pdf

Complete Analysis In PDF Format

Cuba Nearing Half Billion Dollar Marketplace Valuation For Cruise Lines

As Of 27 May 2017, The Three Largest United States Cruise Lines Could In 2017/2018/2019:

Deliver 372,000 Passengers During 222 Sailings To Cuba

US$450 Million In Gross Revenues To The Companies

US$52 Million Spent In Cuba By Passengers

US$14 Million In Port Fees To Cuba

And, transporting, housing, and feeding those potential passengers could mean an additional US$110+ Million to United States airlines and US$45+ million to hotels and restaurants located in South Florida.  Gross United States airline revenues for 2017, excluding the cruise-related revenues, are projected to be US$172 million for United States-Republic of Cuba routes.

The three (3) largest United States-based cruise lines have announced more than 222 itineraries amongst their brands for the 2017, 2018 and 2019 sailing seasons which include the Republic of Cuba.  Additional itineraries are expected to be announced.  And, smaller cruise lines are also operating in the Republic of Cuba marketplace.   

Are the three CEO’s: Mr. Frank J. Del Rio (Miami, Florida-based Norwegian Cruise Lines Holdings Ltd), Mr. Arnold W. Donald (Miami, Florida-based Carnival Corporation & plc) and Mr. Richard D. Fain (Miami, Florida-based Royal Caribbean Cruises Ltd) presenting a dare to the President of the United States or enticing the President’s corporate salivary gland?

In 2016, the three cruise lines combined operated a fleet of approximately 144 vessels, managed approximately 14 brands, earned approximately US$28.8 billion in gross revenues, and employed approximately 218,000 men and women.

If each vessel sails at capacity, a total of more than 372,000 passengers will visit the Republic of Cuba from 2017 through 2019.

The gross revenues to the cruise lines from the 222 Republic of Cuba sailings would be projected to exceed US$450 million from 2017 through 2019.

The 372,000 passengers would be projected to spend approximately US$52 million while in the Republic of Cuba [approximately US$140.00 per person in expenditures and organized/non-organized excursions including cost(s) for tour(s), meals (government-operated and privately-operated), ground transportation (privately-operated classic car tours), sundries and souvenirs (including spirits, coffee, tobacco, artwork and crafts)].  Some passengers could spend considerably more (cigars for example) given the United States duty-free personal exemption of US$800 per person.  

Vessel port charges in the Republic of Cuba may exceed US$14 million, ranging up to approximately US$79,000.00 for the largest vessels (684-passenger to 2,052-passenger).

United States-based airlines may benefit from gross revenues of more than US$110 million from transporting passengers to/from Florida in conjunction with the cruise schedules.  Hotels and restaurants in South Florida could benefit from an additional US$45 million in gross revenues from guests arriving for and/or departing from cruises.

This Analysis In PDF Format

Related Links:

http://www.cubatrade.org/blog/2017/5/11/51crppkum1ulnb9icv89r9b4y6ewjx

Previous Analysis In PDF Format

We’ve (With A Lot Assistance) Finally Solved The Mystery Of The February Rice Export To Cuba

In February 2017, data published by the United States Census Bureau of the United States Department of Commerce included from the Houston/Galveston, Texas, District (Ports) a shipment of rice valued at US$252,000.00 to the Republic of Cuba. 

However, data from Newark, New Jersey-based PIERS (Port Import/Export Reporting Service) did not report rice exported from the Houston/Galveston, Texas District (Port) to the Republic of Cuba.  

As reported by the United States Census Bureau, the shipment (independently calculated as 157.8 metric tons) contained US$126,000.00 of semi/wholly milled, parboiled, inc mixs and US$126,000.00 of semi/wholly milled, mixtures of grains.

This would be the first commercial (non-donated) export of rice from the United States to the Republic of Cuba since 2008. 

From 2002 through 2008, rice exports from the United States to the Republic of Cuba were US$190,737,079.00.  The primary rice-growing states are Arkansas, California, Louisiana, Mississippi, Missouri, South Carolina and Texas.

In May 2016, Bernie, Missouri-based Martin Rice Company donated 20 metric tons (one container valued approximately US$18.000.00) of long grain enriched rice sourced from the State of Missouri to Republic of Cuba government-operated Empresa Cubana Importadora Alimentos (Alimport), under the auspice of the Ministry of Foreign Trade of Cuba (MINCEX), for distribution to charities within the Republic of Cuba.

For the February 2017 export of rice, the United States exporter neither publicized the transaction nor informed Arlington, Virginia-based USA Rice (www.usarice.com), an organization which was the leader in advocacy for the enactment of the Trade Sanctions Reform and Export Enhancement Act of 2000.  USA Rice is “the global advocate for all segments of the U.S. rice industry with a mission to promote and protect the interests of producers, millers, merchants and allied businesses.” 

While there is no requirement for an exporter to inform any entity (other than the United States government) of an export from the United States to the Republic of Cuba, there has generally been, during the last sixteen years (the first TSREEA exports were in December 2001), an effort by United States-based agricultural interests to publicize transactions to increase United States-based political advocacy.

Due to sustained efforts by the United States Census Bureau, PIERS and third parties, there is confirmation that an export of rice from the United States to the Republic of Cuba did transpire, as reported, in February 2017.

However, the following information has not been confirmed: 1) the identity of the exporter- although representatives of the United States Census Bureau did directly communicate with the exporter to obtain confirmation 2) the routing of the rice from the United States to the Republic of Cuba; PIERS reported rice exported to Caribbean Sea-area countries in February 2017, but not to the Republic of Cuba- thus, a conclusion is the rice may have been transshipped through a third country and 3) whether the export was commercial (paid) or a donation; the export was likely a donation.  The government of the Republic of Cuba has not reported (publicized) the rice shipment.

Background- U.S. Food Product/Agricultural Commodity Exports To Cuba

Since December 2001, more than US$5.3 billion in agricultural commodities and food products have been exported directly from the United States to the Republic of Cuba on a cash-in-advance basis as required by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.  

No United States company which has exported product(s) to the Republic of Cuba since 2001 has publicly stated what payment terms it would currently provide if authorized by statute.  

The government of the Republic of Cuba prefers to purchase food products and agricultural commodities from government-operated exporters where either the exporter or the government of the Republic of Cuba accesses government export-payment guarantee programs.

Government of Vietnam-operated Vinafood (1 & 2) have provided payment terms to Alimport of two (2) years to pay for rice (25% to 30% broken).  The Republic of Cuba annually imports approximately 200,000 metric tons to 400,000 metric tons of rice, primarily from Vietnam and People's Republic of China.  Republic of Cuba annual domestic requirements are approximately 700,000 metric tons.  The Republic of Cuba does grow a small quantity of rice.

United States producers can provide this product; however, payment terms, if statutorily permitted, without the use of United States government guarantee programs, would be cash-on-delivery to 30 days; and for credit-worthy customers, generally not exceed sixty (60) days to ninety (90) days according to United States exporters.   

RELATED BLOG POST LINKS: 

http://www.cubatrade.org/blog/2016/6/16/martin-rice-of-missouri-donates-rice-valued-at-us1800000-to-cuba?rq=rice

http://www.cubatrade.org/blog/2016/5/11/want-to-have-a-legislative-victory-then-be-specific-define-payment-terms?rq=payment%20terms

http://www.cubatrade.org/blog/2017/3/19/i7zxic4x9yweb1q0u1fqn6idmstyko

http://www.cubatrade.org/blog/2017/3/8/naqwf4sownekzbxahs76oysizs5p20

http://www.cubatrade.org/blog/2017/3/1/u4m9xhe3bc9iurkasacffinm2pc12m

13 US Senators Supporting Legislation To Remove Restrictions On Transactions With Cuba

On 25 May 2017, The Honorable Amy Klobuchar (D- Minnesota), a member of the United States Senate, introduced S. 1286 ("A bill to lift the trade embargo on Cuba").  The legislation has thirteen (13) co-sponsors.   The text is not yet available.  Co-Sponsors:

Sen. Enzi, Michael B. [R-WY]*
Sen. Leahy, Patrick J. [D-VT]*
Sen. Flake, Jeff [R-AZ]*
Sen. Durbin, Richard J. [D-IL]*
Sen. Gillibrand, Kirsten E. [D-NY]*
Sen. Warren, Elizabeth [D-MA]*
Sen. Whitehouse, Sheldon [D-RI]*
Sen. Shaheen, Jeanne [D-NH]*
Sen. Stabenow, Debbie [D-MI]*
Sen. Bennet, Michael F. [D-CO]*
Sen. Murphy, Christopher [D-CT]*
Sen. Paul, Rand [R-KY]*
Sen. King, Angus S., Jr. [I-ME]*

Link To Analysis As To Why Legislation Of This Type Has Failed During Previous Efforts
 

55 US Senators Supporting Legislation To Remove Restrictions On Travel To Cuba

On 25 May 2017, The Honorable Jeff Flake (R- Arizona) and The Honorable Patrick J. Leahy (D- Vermont), members of the United States Senate, introduced S. 1287 ("Freedom for Americans to Travel to Cuba Act of 2017").  The legislation has fifty-five (55) co-sponsors.  Link To Text of Legislation In PDF Format.  Co-Sponsors:

Sen. Moran, Jerry [R-KS]*
Sen. Durbin, Richard J. [D-IL]*
Sen. Enzi, Michael B. [R-WY]*
Sen. Udall, Tom [D-NM]*
Sen. Boozman, John [R-AR]*
Sen. Whitehouse, Sheldon [D-RI]*
Sen. Collins, Susan M. [R-ME]*
Sen. Klobuchar, Amy [D-MN]*
Sen. Merkley, Jeff [D-OR]*
Sen. Reed, Jack [D-RI]*
Sen. Stabenow, Debbie [D-MI]*
Sen. Murphy, Christopher [D-CT]*
Sen. Coons, Christopher A. [D-DE]*
Sen. Cardin, Benjamin L. [D-MD]*
Sen. Feinstein, Dianne [D-CA]*
Sen. Shaheen, Jeanne [D-NH]*
Sen. Heitkamp, Heidi [D-ND]*
Sen. Brown, Sherrod [D-OH]*
Sen. Baldwin, Tammy [D-WI]*
Sen. Hirono, Mazie K. [D-HI]*
Sen. Schatz, Brian [D-HI]*
Sen. Markey, Edward J. [D-MA]*
Sen. McCaskill, Claire [D-MO]*
Sen. Paul, Rand [R-KY]*
Sen. Wyden, Ron [D-OR]*
Sen. Kaine, Tim [D-VA]*
Sen. King, Angus S., Jr. [I-ME]*
Sen. Franken, Al [D-MN]*
Sen. Warren, Elizabeth [D-MA]*
Sen. Bennet, Michael F. [D-CO]*
Sen. Heinrich, Martin [D-NM]*
Sen. Sanders, Bernard [I-VT]*
Sen. Tester, Jon [D-MT]*
Sen. Warner, Mark R. [D-VA]*
Sen. Cantwell, Maria [D-WA]*
Sen. Blumenthal, Richard [D-CT]*
Sen. Murray, Patty [D-WA]*
Sen. Schumer, Charles E. [D-NY]*
Sen. Gillibrand, Kirsten E. [D-NY]*
Sen. Nelson, Bill [D-FL]*
Sen. Donnelly, Joe [D-IN]*
Sen. Cassidy, Bill [R-LA]*
Sen. Peters, Gary C. [D-MI]*
Sen. Carper, Thomas R. [D-DE]*
Sen. Manchin, Joe, III [D-WV]*
Sen. Van Hollen, Chris [D-MD]*
Sen. Harris, Kamala D. [D-CA]*
Sen. Casey, Robert P., Jr. [D-PA]*
Sen. Crapo, Mike [R-ID]*
Sen. Duckworth, Tammy [D-IL]*
Sen. Daines, Steve [R-MT]*
Sen. Hassan, Margaret Wood [D-NH]*
Sen. Heller, Dean [R-NV]*

Holland America Line Adds Potential 14,850 Passengers To Cuba in 2017/2018

Seattle, Washington-based Holland America Line (a subsidiary of Miami, Florida-based Carnival Corporation & plc; 2016 revenues exceeded US$16 billion), has announced sailings from the United States to the Republic of Cuba commencing in December 2017.

Holland America Line to Sail to Cuba on Roundtrip Fort Lauderdale Itineraries Aboard ms Veendam Beginning in December 2017
   
Premium cruise leader to offer an extended call at Havana and visit to Cienfuegos on seven-, 11- and 12-day Caribbean itineraries

Demand expected to be high when Cuba cruises open for booking on May 26, 2017

SEATTLE, May 24, 2017 /PRNewswire/ -- Holland America Line has received approval to begin sailing to Cuba from Fort Lauderdale, Florida, starting with the Dec. 22, 2017, 12-day holiday cruise aboard ms Veendam. Holland America Line becomes Carnival Corporation's third cruise line to be approved to sail to Cuba following the company's historic inaugural sailings to the island last year.

The addition of Veendam itineraries will help meet the growing demand for premium cruise experiences to Cuba. Nine seven-day itineraries will feature the capital city Havana, and three of these will add another Cuba call at Cienfuegos, known as the model of early 19th century urban planning in Cuba. The 12-day holiday cruise showcases both Cuban ports. Depending on the departure day, cruises include the Cuba ports, as well as a combination of Caribbean ports, including Amber Cove, Dominican Republic; Belize City, Belize; Costa Maya and Cozumel, Mexico; George Town, Grand Cayman; Grand Turk, Turks and Caicos; Key West, Florida; and Montego Bay, Jamaica.

"For many, travel is about seeking new places to explore and discovering meaningful new cultural opportunities, and Cuba is one of the most sought-after new destinations for many of our guests," said Orlando Ashford, president of Holland America Line. "We are excited to finally be able to include Cuba in our itineraries, and our guests and travel partners have been anxiously awaiting a premium cruise experience to this relatively undiscovered Caribbean treasure."

As leaders in destination immersion and experiential travel, Holland America Line adds Cuba to its itineraries in order to provide guests with a thoughtful cultural exchange experience. Most itineraries include an extended call at Havana, allowing guests the time to explore the UNESCO World Heritage Site and immerse themselves in a wide array of historical and cultural adventures. Additionally, a stop at Cienfuegos presents the opportunity for a special visit to Trinidad, a UNESCO World Heritage Site in Cuba's province of Sancti Spíritus.

The series of Cuban cruises will debut with the Dec. 22, 2017, 12-day holiday sailing roundtrip from Fort Lauderdale. In addition to the seven-day cruises, an 11-day spring cruise sails March 17, 2018, and also features the Cuban ports of Havana and Cienfuegos, as well as Key West, Cozumel, Montego Bay and Georgetown. The final seven-day Cuba sailing departs on April 18, 2018.

On board, the Cuba experience will be enhanced through the line's Explorations Central, or EXC, program, featuring EXC Guides who will bring the destination to life through presentations and EXC Talks that will enable guests to deepen their understanding of the Caribbean's largest island. Also enriching the Cuba experience for guests are EXC Port Maps created for the Cuban calls, EXC Encounters that will showcase the culture and history of Cuba to guests before they visit the ports, and much more. In addition, educational and cultural EXC Tours are being developed in and near Havana and Cienfuegos with a highlight being Trinidad, one of the best-preserved historic towns in the Caribbean.

Bookings for Holland America Line's cruises to Cuba will open May 26, 2017. Guests booked on Veendam's previous deployment will be given a full refund and opportunity to book on another Holland America Line voyage. Fares for Cuba cruises begin at $899 per person, double occupancy. Taxes, fees and port expenses are additional.

The visits to Havana and Cienfuegos comply with regulations of the U.S. Department of Treasury that permit travel operators to transport approved travelers to Cuba to engage in activities as defined by the U.S. Department of Commerce, Office of Foreign Assets Control. All information about special requirements for travel to Cuba is available at hollandamerica.com.

The deployment of the 1,350-guest Veendam to Cuba adds Holland America Line to the historic launch of cruises to the island nation from the U.S. by Carnival Corporation sister brands Fathom and, more recently, Carnival Cruise Line.

For more information about Holland America Line, consult a travel professional, call 1-877-SAIL HAL (1-877-724-5425) or visit hollandamerica.com.

Editor's note:  Photos are available at https://www.cruiseimagelibrary.com/c/xdesj1ku.

Find Holland America Line on Twitter, Facebook and the Holland America Blog. Access all social media outlets via the Online Communities quick link on the home page at hollandamerica.com.

About Holland America Line [a division of Carnival Corporation and plc (NYSE:  CCL and CUK)] 

Holland America Line's fleet of 14 ships offers more than 500 cruises to more than 400 ports in 98 countries, territories or dependencies around the world. From shorter getaways to 113-day itineraries, the company's cruises visit all seven continents with highlights including Antarctica explorations, South America circumnavigations and exotic Australia/New Zealand and Asia voyages; four annual Grand Voyages; and popular sailings to the Caribbean, Alaska, Mexico, Canada/New England, Bermuda, Europe and the Panama Canal. The line welcomed ms Koningsdam in 2016 and has a as second Pinnacle Class ship, ms Nieuw Statendam, to be delivered in December 2018. A third Pinnacle-class ship, due for delivery in 2021, recently was announced.

The company is undergoing $300 million in brand enhancements to secure its position as the leader in premium cruising. Fleetwide, the ships feature innovative initiatives and a diverse range of enriching experiences focused on destination immersion and personalized travel. Guests can expand their knowledge through an exclusive partnership with O, The Oprah Magazine; during an America's Test Kitchen show; at Explorations Café presented by The New York Times; and by taking a Digital Workshop powered by Windows. Outstanding entertainment fills each evening at venues including Lincoln Center Stage, Billboard Onboard and B.B. King's Blues Club. The dining experience can be savored at a variety of restaurants with menus that feature selections from Holland America Line's esteemed Culinary Council that comprises world-famous chefs who design dishes exclusively for our guests. 
 

Expedia.com Joining Booking.com With Cuba Accommodation Booking Platforms

Your Room in Cuba is Ready: Expedia Opens Cuba Hotel Market for Consumers Worldwide

Travelers can now book hotels in Cuba through global Expedia, Inc. websites

SEATTLE, WA – May 23, 2017 – Expedia, Inc., the world’s largest online travel company, announced today that travelers can now book hotels in Cuba on its global points of sale, including Expedia.com®, Hotels.com®, Travelocity®, Orbitz®, and CheapTickets®. Cuba continues to generate interest as a hot destination among travelers; its Ministry of Tourism reported more than four million foreign visitors in 2016, with the biggest increase in visitor numbers from the U.S.[i]     

From the colorful and historic streets of Havana and Hemmingway’s homestead in San Francisco de Paula, to the cobbled colonial town of Trinidad and beyond, travelers from around the world can today leverage Expedia sites to research and book properties throughout Cuba. With hotel options spanning from the east to the west side of the island, there will be no shortage of accomodations for consumers to choose from, including Pinar Del Rio, Camaguey, and Santiago de Cuba. Expedia has been closely working with local Cuban partners to bring travelers to this widely-anticipated market, and make the hotel booking process as easy as possible.

“We’ve been working around the clock with our partners to be able to offer this iconic, culture-rich destination to our global customers, with the added convenience of online booking through a trusted travel partner,” said Mario Ribera, vice president of market management for Latin America. “As one of the first U.S. companies to offer hotel bookings in Cuba for individual travelers, we’re well-poised to bring new consumers into the market, further strengthening the value proposition with our partners.”

“We are excited to make Barceló properties in Cuba accessible to travelers on Expedia platforms around the world,” said, Josep Brichs, Corporate Commercial Director for Barceló Hotel Group Latin America. “We are very proud Barcelo Solymar and Barceló Arenas Blancas in Varadero have been one of the first bookings made on Expedia upon the opening of the destination.  Expedia is a key partner and our priority is to develop new opportunities on the international travel industry together."

Both U.S. and non-U.S. travelers can research and book their Cuba accommodations in compliance with OFAC regulations on Expedia points-of-sale globally with U.S. travelers certifying thattheir travel falls under one of 12 categories of authorized travel, including family visits, travel for government work, journalism, professional research, humanitarian work and educational activities, and “people-to-people” educational travel, among others and with non-U.S travelers confirming that they are not subject to U.S. jurisdiction.

About Expedia, Inc.

Expedia, Inc. (NASDAQ: EXPE) is the world’s largest online travel company, with an extensive brand portfolio that includes leading online travel brands, such as:

• Expedia.com®, a leading full-service online travel brand with localized sites in 33 countries
• Hotels.com®, a leading global lodging expert operating 89 localized websites in 39 languages with its award winning Hotels.com® Rewards loyalty program
• Expedia® Affiliate Network (EAN), a global B2B brand that powers the hotel business of hundreds of leading airlines, travel agencies, loyalty and corporate travel companies plus several top consumer brands through its API and template solutions
• trivago®, a leading online hotel search platform with sites in 55 countries worldwide
• HomeAway®, a global online marketplace for the vacation rental industry, which also includes the VRBO®, VacationRentals.com® and BedandBreakfast.com® brands, among others
• Egencia®, a leading corporate travel management company
• Orbitz.com® and CheapTickets.com®, leading U.S. travel websites, as well as ebookers®, a full service travel brand with websites in seven European countries
• Travelocity®, a leading online travel brand in the U.S. and Canada delivering customer service when and where our customers need it with the Customer First Guarantee
• Hotwire®, inspiring spontaneous travel through Hot Rate® deals
• Wotif Group, a leading portfolio of travel brands including Wotif.com®, Wotif.co.nz, lastminute.com.au®, lastminute.co.nz and travel.com.au®
• Expedia® Media Solutions, the advertising sales division of Expedia, Inc. that builds creative media partnerships and enables brand advertisers to target a highly-qualified audience of travel consumers
• CarRentals.com™, a premier online car rental booking company with localized sites in 13 countries
• Classic Vacations®, a top luxury travel specialist
• Expedia Local Expert®, a provider of online and in-market concierge services, activities, experiences and ground transportation in over a thousand destinations worldwide
• Expedia® CruiseShipCenters®, a provider of exceptional value and expert advice for travelers booking cruises and vacations through its network of over 235 retail travel agency franchises across North America

Blog Post Relating To Booking.com Presence In Cuba

Statement from President Trump on Cuban Independence Day

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE
May 20, 2017
 
Statement from President Donald J. Trump on Cuban Independence Day
 
On Cuban Independence Day, I extend my warmest wishes to the Cuban American community and the people of Cuba as our whole Nation joins you in celebrating the anniversary of Cuban Independence.
 
Americans and Cubans share allegiance to the principles of self-governance, dignity, and freedom.  Today, we remember patriots like José Martí, who devoted himself to making Cuba an economically competitive and politically autonomous nation.  

He reminds us that cruel despotism cannot extinguish the flame of freedom in the hearts of Cubans, and that unjust persecution cannot tamper Cubans’ dreams for their children to live free from oppression.  

The Cuban people deserve a government that peacefully upholds democratic values, economic liberties, religious freedoms, and human rights, and my Administration is committed to achieving that vision.
 
Today, we also honor the generations of Cuban Americans who have made outstanding contributions to our country by sharing their culture and talents.  Cuban Americans have distinguished themselves in literature, the arts, business, sports, the courts, Congress, and within my Administration.  

We are especially thankful to the Cuban Americans who serve in our military and who have sacrificed in defense of our freedom.
 
Melania and I send our best wishes on this important day in history for the Americas.  God bless the people of Cuba and our Cuban American friends who call the United States home.

Southwest Airlines CEO Speaks Of "Pulling The Plug" On Non-Havana Flights

Tampa Bay Business Journal
Tampa, Florida
18 May 2017

By Frances McMorris

After several other airlines recently announced they were cutting back their flights to Cuba, Southwest Airlines, which began flights between Tampa and Havana late last year, is also watching how that new market is doing, said the airline’s chief executive.

“We’re very carefully monitoring our developing markets; Cuba is something we’ll have to continue to watch,” Southwest CEO Gary Kelly, said Wednesday at the carrier’s annual shareholder meeting being held in downtown Phoenix.

“Havana looks like a normal developing market, and the other two cities have very modest traffic demand at this point," he said. "So that’s something we’ll need to continue to watch. I don’t want to pull the plug yet, but the demand is going to have to pick up to sustain those flights.”

Including Havana, Dallas-based Southwest Airlines’ (NYSE: LUV) has three destinations to Cuba.

Southwest's new route between Tampa International Airport and Havana that began December 12 helped drive TIA's Cuba traffic in January up by approximately 10 percent. That traffic has been rising steadily ever since with a nearly 32 percent jump from February through April. In February, traffic for Cuba was 6,968 rising to 9,627 in March and 9,187 in April. Between 2012 and 2015, there has been a 65 percent increase in TIA-Cuba passenger traffic, reaching nearly 37,000 passengers last year.

Just as significant, TIA’s annual revenue from Cuban air traffic rose by 23 percent to $1.4 million for 2016; up from $1.13 million in 2015. In 2014, that revenue was $970,000.

Tampa Bay is home to the third largest Cuban-American population in the country with Cuban ancestry representing one-fifth of Tampa’s Hispanic population. With approximately 170,000 Cuban-American residents in the region, Tampa was one of only 10 U.S. cities to win direct commercial flights to Havana.

However, the pursuit of flights to Cuba by U.S. carriers has seen a dramatic turnaround in recent months.

Consider the decision of Spirit Airlines (Nasdaq: SAVE). In April, the Miramar-based ultra-low-cost carrier said it would end its service between Fort Lauderdale and Havana on May 31.

Then there is Denver-based Frontier Airlines and Fort Lauderdale-based Silver Airways. In March, the two carriers said they would be exiting the Cuba market. Both airlines attributed the change to lower-than-expected demand and over-capacity on routes between Florida and Cuba. Frontier, which also noted high costs, said it would end its daily Miami-Havana service on June 4.

Late last year, Fort Worth-based American Airlines (Nasdaq: AAL) said that starting in February it would reduce the amount of flights to Cuba by 25 percent. American was the second U.S. airline to announce its service to Cuba.

New York-based JetBlue Airways Corp. (Nasdaq: JBLU) was the first airline to announce that it was launching flights between the U.S. and Cuba. Last month, JetBlue filed an application to add more flights between Fort Lauderdale and Havana, and to launch what it says would be the first-ever nonstop service between Boston and Cuba’s capital city. Jetblue’s latest move comes after it said in February that it would be pulling back on its Cuba service.

Officials for the U.S. and Cuba signed a deal last year to restore commercial air service between the two countries for the first time in decades.

In 2014, former President Barack Obama first announced more lenient travel restrictions on traveling to Cuba. He had repeatedly called on the Congress to lift the Cuban embargo. His administration said that authorized travel to Cuba increased by more than 75 percent from 2014 to 2015.

Obama became the first sitting U.S. president to visit Cuba since 1928 when he went there last year. The Tampa Bay Rays also went on that trip, playing a game against the Cuban National baseball team.

Despite the death in December of former Cuban leader Fidel Castro and the easing of trade and travel restrictions under Obama, uncertainty surrounds the future of U.S.-Cuba relations in light of the hard-line campaign rhetoric about Cuba from President Donald Trump.

Will DOT’s Decision About BOS-HAV Flight Signal Trump Administration’s Enforcement Of "People-To-People" Travel?

If the Trump Administration does not object to a request by Jet Blue Airways Corporation (with lesser significance for a United Airlines route request) for a BOS-HAV route, the conclusion by United States companies focusing upon Republic of Cuba travel-related activities will be the Trump Administration is likely to manage its policies and regulatory environment within the context of a commercially-centered holistic approach; unlikely to constrain commercial activities that are operational or those considered tangential to previously-authorized commercial activities while advancing decisions relating to post-24 February 2018 when a new president is inaugurated in the Republic of Cuba.

On 20 April 2017, Long Island City, New York-based JetBlue Airways Corporation (2016 revenues exceeding US$6.4 billion) for the second time requested the United States Department of Transportation (USDOT) to authorize “the first-ever non-stop service between Boston, Massachusetts [Logan International Airport- BOS], and Havana, Cuba [Jose Marti International Airport- HAV]” commencing on 1 November 2017. 

Jet Blue Airways Corporation had first requested the route on 2 March 2016.  The once-per-week flight, using a 162-seat Airbus A-320 aircraft, would operate on Saturdays with departure at 9:45 am and arrival at 1:45 pm.  The request by Jet Blue Airways Corporation to the USDOT was to transport “persons, property and mail.”

If the once-per-week flight operated at capacity on an annual basis, the service would transport 8,424 passengers.  Approximately 10,000 individuals of Cuban decent reside in the Commonwealth of Massachusetts. 

If the USDOT grants the request by Jet Blue Airways Corporation, given the low number of potential passengers of Cuban descent, the service would be overwhelmingly focused upon “people-to-people” and “educational activities” given the large number of educational institutions located in Massachusetts, New Hampshire, Vermont, and northern Connecticut that would use BOS as a departure point to HAV.  

NOTE: On 5 May 2017, Chicago, Illinois-based United Airlines, Inc. (2016 revenues exceeded US$36.6 billion) requested the USDOT to authorize a once-weekly flight from George Bush Intercontinental Airport (IAH) to HAV to daily service commencing on 28 October 2017 using aircraft with capacity of 70 seats to 160 seats; representing an annual at-capacity range of 25,550 to 58,400 passengers.  IAH is a hub for United Airlines; there are approximately 50,000 individuals of Cuban descent residing in the state of Texas.

During the Obama Administration and continuing through the first months of the Trump Administration, Members of Congress, White House staff, employees at the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and U.S. Customs and Border Protection (CBP) of the Department of Homeland Security (DHS), determined that there was and remains considerable abuse of the “people-to-people” and “educational activities” provisions relating to authorized travel.

Airlines require authorization(s) from the USDOT to service new routes.  Cruise lines do not require additional authorizations from the United States Department of State, USDOT, OFAC or United States Department of Commerce to change their schedules.

As of 10 May 2017, the three largest united states cruise lines could deliver 357,000 passengers during 211 sailings to the Republic of Cuba in 2017/2018/2019, earning gross revenues of US$422 million; with US$50 million spent by passengers in Cuba and approximately US$13 million in port fees to the Republic of Cuba.  Additional itineraries are expected to be announced soon.  And, smaller cruise lines are also operating in the Republic of Cuba marketplace.  

However, while airlines and cruise lines are increasing or seeking to increase their United States-Republic of Cuba schedules, the second hotel in the Republic of Cuba to be managed by a United States-based company has delayed its transfer from December 2016 to December 2017 to December 2019. 

An article published by The New York Times on 10 May 2017, "Cuba's New Luxury Hotels Look to Lure Waves of U.S. Tourists" referenced that the Hotel Inglaterra in the city of Havana, Republic of Cuba, will not transition to management by Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) until December 2019.  No reason(s) have been provided for the thirty-six (36) month delay.  Starwood Hotels & Resorts International commenced management of the Sheraton Four Points Havana in June 2016.

OFAC Regulations

“OFAC has issued general licenses within the 12 categories of authorized travel for many travel-related transactions to, from, or within Cuba that previously required a specific license (i.e., an application and a case-by-case determination).  

Travel-related transactions are permitted by general license for certain travel related to the following activities, subject to the criteria and conditions in each general license: family visits; official business of the U.S. government, foreign governments, and certain intergovernmental organizations; journalistic activity; professional research and professional meetings; educational activities; religious activities; public performances, clinics, workshops, athletic and other competitions, and exhibitions; support for the Cuban people; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation, or transmission of information or information materials; and certain authorized export transactions. 

“OFAC has issued a general license that incorporates prior specific licensing policy and authorizes, subject to conditions, travel-related transactions and other transactions that are directly incident to people-to-people educational activities in Cuba. Among other things, this general license authorizes, subject to conditions, persons subject to U.S. jurisdiction to engage in certain educational exchanges in Cuba either individually or under the auspices of an organization that is a person subject to U.S. jurisdiction and sponsors such exchanges to promote people-to-people contact. Travelers utilizing this general license must ensure they maintain a full-time schedule of educational exchange activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities, and that will result in meaningful interaction between the traveler and individuals in Cuba. The predominant portion of the activities must not be with a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, or a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338.  

For travel conducted under the auspices of an organization, an employee, paid consultant, or agent of the sponsoring organization must accompany each group traveling to Cuba to ensure that each traveler has a full-time schedule of educational exchange activities. In addition, persons relying upon this authorization must retain records related to the authorized travel transactions, including records demonstrating a full-time schedule of authorized activities. In the case of an individual traveling under the auspices of an organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, the individual may rely on the entity sponsoring the travel to satisfy his or her record-keeping obligations with respect to the requirements described above.  

For UPDATED JANUARY 6, 2017 5 a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.565(b).  

What is an “organization” in the people-to-people context? In the people-to-people context, an organization is an entity subject to U.S. jurisdiction that sponsors educational exchanges that do not involve academic study pursuant to a degree program and that promote people-to-people contact. For a complete description of what this general license authorizes and the restrictions that apply, see 31 CFR § 515.565(b).”

Related Blog Post:

http://www.cubatrade.org/blog/2017/4/22/what-does-jetblue-know-or-doesnt-know-seeking-additional-routes-to-cuba

Wyndham’s Super 8 Worldwide Will Not Manage Resort Property In Cuba

Parsippany-Troy Hills, New Jersey-based Super 8 Worldwide, a subsidiary of Parsippany, New Jersey-based Wyndham Worldwide was to replace Ile-de-France, France-based AccorHotels as the management contract holder for the Playa de Oro Hotel in Varadero, Republic of Cuba, owned by Republic of Cuba government-operated Grupo Hotelero Gran Caribe.  Super 8 Worldwide was expected to commence operations in April 2017.

The management contract was reportedly through a Quebec, Canada-based consortium within which one of the members has a partnership with Wyndham Worldwide brands operating in Canada.

Wyndham Worldwide has not reported if the company obtained (or required) a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to manage a property(s) in the Republic of Cuba.  Licenses from the OFAC are generally valid for two (2) years.

For reasons that neither Wyndham Worldwide nor Grupo Hotelero Gran Caribe have disclosed, the companies reportedly terminated the management contract and/or discussions for a management contract and Grupo Hotelero Gran Caribe has decided to self-manage the property.  Uncertain as to which party initiated the discussion relating to the termination.

If accurate, the only United States-based hotel brand with a presence in the Republic of Cuba is Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International) which manages The Hotel Quinta Avenida (re-branded as Four Points Sheraton Havana on 27 June 2016), expects to manage the Hotel Inglaterra (delayed from December 2016 to December 2019), and had reported a Letter of Intent to manage a third property, the Hotel Santa Isabel, but no information has been provided about that property since 2016.  

If the OFAC issued a license to Starwood Hotels & Resorts/Marriott International in 2016, it would generally expire in two (2) years; thus, if OFAC issued a revised license on or before 20 January 2017, the license would generally expire prior to December 2019.  There is a possibility that the OFAC provided a license of indefinite length.

The decision by Grupo Hotelero Gran Caribe may be a result of the company believing that whatever marketing and operational value Wyndham Worldwide would deliver was not worth the management fee(s) that would be paid to Wyndham Worldwide.  More likely, however, is given the low demographic guest profile for the Playa de Oro Hotel, Grupo Hotelero Gran Caribe believes that guests will continue to be attracted to a low-cost vacation opportunity regardless of the increased guest experience (and personnel training opportunities) that would result from a management contract with Wyndham Worldwide.  

In addition, with the government of the Republic of Cuba’s chronic shortage of foreign exchange, saving the management fee was enticing from a financial perspective.  There is also a belief by Grupo Hotelero Gran Caribe that another non-Republic of Cuba-based hotel management will be attracted to the property whenever it becomes available for a management contract.  Another issue for non-Republic of Cuba-based hotel management companies is the desire by the government of the Republic of Cuba for hotel management contracts to include a provision that the holder of the hotel management contract will provide financing for the property; a provision that most hotel management companies reject.

An anomaly to the Republic of Cuba hotel management marketplace is a requirement for those non-Republic of Cuba-based companies with a management contract to obtain their operating funds from the owner of the property, rather than directly from guests into an operating account controlled by the holder of the management contract.  Due to the government of the Republic of Cuba's chronic shortage of foreign exchange, it desires immediate access to funds and then distributes payments, as required by a management contract, but often delayed, to the holder of the management contract.  This is an unsustainable financial management modality.  

From the company: "Super 8 ® Worldwide is the world's largest economy lodging chain with over 2,200 properties in the U.S., Canada and China.  Super 8 has recently launched a brand refresh with a new logo and a fresh, new interior and exterior design program.  Guests can depend on every Super 8 to deliver a complimentary SuperStart breakfast, free high-speed Internet access, upgraded bath amenities, free in-room coffee and free premium cable or Satellite TV.  Kids under 17 stay free at Super 8."

In September 2016, Geoff Ballotti, President and Chief Executive Officer of Wyndham Worldwide:

“We are working on opportunities there,” Loewen said. “Our teams have been there. We have partners that we’re talking to. We’re looking to bring some more brands there. We’ve talked both to people who want the upscale side and some who really see the need for good solid economy hotels.” The biggest challenge, of course, is utilities and other infrastructure. “The government’s got a lot of work to do down there, I think. But it will be a great location.” 

Mr. Robert Loewen, Executive Vice President And Chief Operating Officer of Wyndham Worldwide:

"We always look at every opportunity, and we think Cuba and the Caribbean in general are going to be big opportunities. I’m excited from a personal standpoint because 25 years ago I worked in the Caribbean doing yacht charters. And every year, it was a story of, 'Cuba’s going to open up, and we can finally take sailboats to Cuba.' It looks like it’s finally broken down and is opening up, and the infrastructure is not there."

In May 2016, Hollywood, Florida-based RCI (a subsidiary of Wyndham Worldwide), reported that it would offer travel options to the Republic of Cuba for its timeshare owners.

"RCI is the worldwide leader in vacation exchange with approximately 4,300 affiliated resorts in more than 100 countries. RCI pioneered the concept of vacation exchange in 1974, offering members increased flexibility and versatility with their vacation ownership experience. Today, through the RCI Weeks® program, the week-for-week exchange system, and the RCI Points® program, the industry’s first global points-based exchange system, RCI provides flexible vacation options to its 3.8 million RCI subscribing members each year. RCI’s luxury exchange program, The Registry Collection® program, is the world’s largest program of its kind with approximately 200 affiliated properties either accessible for exchange or under development on six continents. RCI is part of Wyndham Destination Network and the Wyndham Worldwide family of brands (NYSE: WYN)."

LINKS TO WYNDHAM-RELATED BLOG POSTS:

http://www.cubatrade.org/blog/2017/2/11/wydham-worldwides-super-8-worldwide-replaces-accor-to-manage-cuba-property?rq=wyndham

http://www.cubatrade.org/blog/2016/10/20/wyndham-worldwide-actively-seeking-management-opportunities-in-cuba?rq=wyndham

http://www.cubatrade.org/blog/2016/12/28/seeking-better-roi-cuba-hospitality-companies-to-become-landlords-rather-than-managers?rq=wyndham
 

Nestle got Cuban coffee for Nespresso. Will Nestle get Cuban coffee for Haagen-Dazs, Dreyer’s & Edy’s?

Could green coffee beans from the Republic of Cuba be imported directly to the United States and then roasted, processed and distributed to flavor ice cream for these brands (and potentially others- see images below)?  

365 (owned by Texas-based Whole Foods)
Ben & Jerry's (Vermont-based; owned by United Kingdom-based Unilever)
Haagen-Dazs (owned by Minnesota-based General Mills; distributed by Nestle)
Breyers (New Jersey-based; owned by United Kingdom-based Unilever)
Starbucks (owned by Washington-based Starbucks Corporation)
Dreyer's (California-based; owned by Nestle)
Straus (owned by California-based Straus Family Creamery)
Blue Bell (owned by Texas-based Blue Bell Creameries)
Edy's (California-based; owned by Nestle)

Or, will the green coffee beans be transported 5,000 miles from the Republic of Cuba to Switzerland and roasted and/or transformed into extract for flavoring before another 5,000-mile (or more) return journey to the United States? 

Thus far, Republic of Cuba government-operated Cubaexport, which manages the export of some agricultural products (including coffee and charcoal- which was directly exported to the United States in 2017), has declined authorize a United States-based company to directly import green coffee beans, despite the bilateral commercial interest, bilateral commercial value and bilateral political benefit.

Not lost on management of United States-based companies is a preference by the government of the Republic of Cuba to permit a non-United States-based company to do first what in 2016 the Obama Administration authorized United States-based companies to do with respect to the direct importation of agricultural commodities from the Republic of Cuba.

One reason, perhaps the reason, is the role of Vevey, Switzerland-based Nestle SA (2016 revenues approximately US$94 billion) in the economy of the Republic of Cuba.

The likely first beneficiaries for Cuban coffee-infused ice creams are Oakland, California-based Dreyer’s Grand Ice Cream Holdings, Inc., and Oakland, California-based Edy’s Grand Ice Cream which are wholly-owned by Nestle SA; and Oakland, California-based Haagen-Dazs which is distributed by Nestle SA.

Nestle SA is positioning itself to be an importer to the United States of confections, coffee, ice cream, beverages, and other consumables sourced in the Republic of Cuba.  

Nestle SA has a multi-decade interest in the Republic of Cuba.  The company has a representative office in the city of Havana.  Since the 1990's, Nestle S.A. has been involved with Republic of Cuba government-operated companies to develop the confection industry (a twenty-year joint venture producing ice cream); has investments in bottled water production (Ciego Montero) and beverage production; and imports products for sale at retail stores.  In 2014, Nestle Nespresso released “Limited Edition Cubanía; Inspired by the passion and intensity of Cuban coffee ritual” that did not contain coffee from the Republic of Cuba.  In 2016, "Cuban Nespresso Grand Cru Cafecito de Cuba" capsule (which would include coffee from the Republic of Cuba) was to be available outside of the United States, but with the 22 April 2016 changes in United States regulations, the opportunity was created to add the United States to global distribution channels.

In 2017, Nestle SA reported the company would invest approximately US$55 million to create a joint venture (of which it will own 51%) potentially employing 300 Republic of Cuba nationals to source ingredients for and to produce coffee, biscuits and cooking products.  Completion date is by 2019.  Other Nestle SA production facilities are being considered for expansion.

Expect the soon-to-open Gran Hotel Kempinski Manzana La Habana, managed by Geneva, Switzerland-based Kempinski Hotels SA, the first property in the Republic of Cuba to likely earn a four or five rating from AAA and/or Forbes Travel Guide, to serve guests products (nightly turn-down service including chocolates on pillows?) from Switzerland and, specifically from Nestle SA.  It's first guests will check-in on 31 May 2017. 

NOTE: In the 1990’s, Mr. Ian Delaney, then-Chairman of Toronto, Canada-based Sherritt International, which at the time was aggressively diversifying throughout the Republic of Cuba- mining, oil, natural gas, hospitality, agriculture, etc., as the largest source of Direct Foreign Investment (DFI) in the country, shared that the company would become the “Canadian Pacific” of the Republic of Cuba, referencing the transcontinental commercial, economic and political impact of the diversified conglomerate.  The remark was negatively-interpreted by the government of the Republic of Cuba; as it represented ghosts of the pre-1959 presence in the Republic of Cuba by United States-based companies.  Sherritt International has since relinquished some of its holdings; and no longer envisions (or is envisioned has having) the depth of influence its then-chairman had forecasted for the company. Nestle SA is unlikely to suffer from the “Canadian Pacific” comparative narrative.

Unilever Plc And Cuba

In November 2016, London, United Kingdom-based Unilver Plc (2016 revenues approximately US$65 billion) commenced construction on a joint venture (of which it will own 60%) facility valued at US$35 million in the Republic of Cuba to produce soap, detergent, deodorant and toothpaste.  Production is scheduled to commence in 2018.  Unilever had a joint venture in the Republic of Cuba from the mid-1990's until 2012 when it ended due to operational disagreements.  The company continued to export products to the Republic of Cuba.  

Nespresso

In 2016, the Obama Administration added coffee to the list of eligible imports from the Republic of Cuba.  To be eligible for importation into the United States, a listed Cuban Assets Control Regulations (31 CFR Part 515) Section 515.582 product (in this case coffee) must be “produced by independent Cuban entrepreneurs, as demonstrated by documentary evidence.”

From the United States Department of State: “Persons subject to US jurisdiction engaging in import transactions involving goods produced by an independent Cuban entrepreneur pursuant to 515.582 must obtain documentary evidence that demonstrates the entrepreneur's independent status, such as a copy of a license to be self-employed issued by the Cuban government, or in the case of an entity, evidence that demonstrates that the entity is a private entity that is not owned or controlled by the Cuban government.”

In 2016, New York, New York-based Nestle Nespresso USA, Inc., a subsidiary of Nestle SA, purchased a container of approximately eighteen (18) tons of green coffee beans through London, United Kingdom-based Cubana Coffee & Roastery (www.cubana.co.uk), the established bar-restaurant and coffee roasting group, and London, United Kingdom-based The Cuba Mountain Coffee Company Ltd (www.almacuba.com).  

The green coffee beans were sourced from the 2015-2016 harvest in the Republic of Cuba; the value was approximately US$5,000.00 per metric ton, or approximately US$90,000.00.  

The beans were roasted at Nestle Nespresso facilities in Avenches and nearby Orbe, Switzerland.  With approximately 20% lost during the roasting process, the result was approximately 180,000 capsules per ton- 3,240,000 limited edition Cafecito de Cuba capsules (approximately 5 to 6 grams each or .17 to .21 ounces).  The price for a limited-edition capsule was approximately US$1.10, so potential total revenue could be approximately US$3,564,000.00.

Nestle Nespresso USA, Inc., has obtained additional green coffee beans from the 2016-2017 harvest in the Republic of Cuba and continues to produce capsules for distribution throughout the world, including in the United States.
 

Cruise Lines: 357,000 Passengers; US$422 Million In Gross Revenues; US$63 Million To Cuba; US$110 Million To Airlines; US$45 Million To Hotels & Restaurants In Florida

As Of 10 May 2017, The Three Largest United States Cruise Lines Could Deliver 357,000 Passengers During 211 Sailings To Cuba In 2017/2018/2019; US$422 Million In Gross Revenues; US$50 Million Spent By Passengers In Cuba; Port Fees To Cuba US$13 Million.  United States Airlines US$110 Million; South Florida Hotels & Restaurants US$45 Million

The three (3) largest United States-based cruise lines have announced more than 211 itineraries for the 2017, 2018 and 2019 sailing seasons which include the Republic of Cuba.  Additional itineraries are expected to be announced soon.  And, smaller cruise lines are also operating in the Republic of Cuba marketplace.  

Do they know what others don’t know?  Or, are they walking a proverbial plank?  Are the three CEO’s: Mr. Frank J. Del Rio (Miami, Florida-based Norwegian Cruise Lines Holdings Ltd), Mr. Arnold W. Donald (Miami, Florida-based Carnival Corporation & plc) and Mr. Richard D. Fain (Miami, Florida-based Royal Caribbean Cruises Ltd) presenting a dare to the President of the United States or enticing the President’s corporate salivary gland?

In 2016, the three cruise lines combined operated a fleet of approximately 144 vessels, managed approximately 14 brands, earned approximately US$28.8 billion in gross revenues, and employed approximately 218,000 men and women.

If each vessel sails at capacity, a total of more than 357,000 passengers will visit the Republic of Cuba from 2017 through 2019.

The gross revenues to the cruise lines from the 211 Republic of Cuba sailings would be projected to exceed US$422 million from 2017 through 2019.

The 357,000 passengers would be projected to spend approximately US$50 million in the Republic of Cuba [approximately US$140.00 per person in expenditures and organized/non-organized excursions including cost(s) for tour(s), meals (government-operated and privately-operated), ground transportation (privately-operated classic car tours), sundries and souvenirs (including spirits, coffee, tobacco, artwork and crafts)].  

Vessel port charges in the Republic of Cuba may exceed US$13 million, ranging up to approximately US$79,000.00 for the largest vessels (684-passenger to 2,052-passenger).

United States-based airlines may benefit from gross revenues of more than US$110 million from transporting passengers to/from Florida in conjunction with the cruise schedules.  Hotels and restaurants in South Florida could benefit from an additional US$45 million in gross revenues from guests arriving for and/or departing from cruises.

Click Here For Link To Previous Analysis

U.S. Food/Ag Exports To Cuba Increased 142% In March 2017

ECONOMIC EYE ON CUBA©
May 2017

March 2017 Food/Ag Exports To Cuba Increased 142% - 1
Healthcare Product Exports Were US$865,949.00- 2
Humanitarian Donations Were US$373,237.00- 3
Obama Administration Initiatives Product Exports- 3
U.S. Port Export Data- 14

MARCH 2017 FOOD/AG EXPORTS TO CUBA INCREASED 142%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in March 2017 were US$25,018,148.00 compared to US$10,332,130.00 in March 2016 and US$33,207,087.00 March 2015. 

LINK TO COMPLETE REPORT

Starwood/Marriott Now Reporting 36-Month Delay To Manage Hotel Inglaterra; No Reason(s) Provided

An article published by The New York Times on 10 May 2017, "Cuba's New Luxury Hotels Look to Lure Waves of U.S. Tourists" referenced that the Hotel Inglaterra in the city of Havana, Republic of Cuba, will not transition to management by Stamford, Connecticut-based Starwood Hotels & Resorts until December 2019.  

In March 2016, the company reported that the property would be under management in December 2016; recently, the company reported that the property would be under management in December 2017.  No reason(s) have been provided for the thirty-six (36) month delay.

Link To NYT Article: https://www.nytimes.com/2017/05/09/realestate/commercial/cubas-new-luxury-hotels-look-to-lure-waves-of-us-tourists.html?_r=0

Previous USCTEC Blog Post Link:  
http://www.cubatrade.org/blog/2017/2/6/q3ahdoicr1362pc5w0r4xaxb1rh5os?rq=starwood

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (a subsidiary of Bethesda, Maryland-based Marriott International), is scheduled to open the Hotel Inglaterra on 1 December 2017 in the city of Havana, Republic of Cuba.  The Hotel Inglaterra will be amongst the company's 122-property The Luxury Collection.

On 16 March 2016, Starwood Hotels & Resorts Worldwide reported that the company would in 2016 manage two (2) properties in the Republic of Cuba- the Hotel Quinta Avenida (re-branded as Four Points Sheraton Havana on 27 June 2016) and Hotel Inglaterra; and had signed a Letter of Intent to manage a third property, Hotel Santa Isabel. 

No reason(s) has been provided for the twenty-one month delay in implementing the management contract for the Hotel Inglaterra or the signing of a management contract for the Hotel Santa Isabel.

"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."

The three properties to be managed by Starwood Hotels & Resorts Worldwide are owned by Republic of Cuba government-operated Gaviota SA., controlled by Republic of Cuba government-operated Grupo de Administracion Empresarial S.A. (Enterprise Management Group), or GAESA, which is, in turn, controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

Marriott International, before acquiring Starwood Hotels & Resorts Worldwide, reported in 2016 that it was exploring property management opportunities in the Republic of Cuba.
 

Acting Assistant Secretary Of State Doesn’t Mention Cuba In Speech… But, Is Expansive During Comments

Excerpts of remarks….

Western Hemisphere: Remarks for the Council of the Americas Conference: Americas Outlook

Remarks
Francisco Palmieri, Acting Assistant Secretary, Bureau of Western Hemisphere Affairs
U.S. Department of State
Washington, DC
May 9, 2017

As Prepared

Good afternoon. Thank you so much to Susan and Eric and the rest of the Council for this opportunity. It is a privilege to be with you today for the 47th Washington Conference of the Americas.

For the nearly 50 years you have held this conference, the Council has underscored what we also know to be true: the Western Hemisphere is and always will be a top priority for the United States.

Strong Bonds, Shared Vision

And, as you know well, the Americas are home to some of the most important markets for our companies.
Strong and healthy regional economies are good for both the United States and for our hemisphere.

That’s why this Administration is committed to expanding security and fostering economic growth in the region.

The Americas represent a key market for U.S. exports. Fortunately for us, the United States is the preferred business partner for most countries in the Western Hemisphere.

Nearly half of all goods and services exported from the United States – $669 billion worth – go north and south. That’s three times more than what we export to China, Japan, and India combined.

With the hemisphere, we are supporting the President’s four trade priorities: promoting U.S. sovereignty; enforcing U.S. trade laws; leveraging U.S. economic strength to expand our goods and services exports; and protecting U.S. intellectual property rights.

We are reviewing existing trade agreements and negotiating new bilateral ones to ensure the benefits to the United States are clear.

Beyond Trade

But, our work together expands beyond trade agreements.

We are also supporting entrepreneurs; fostering innovation; and supporting education.

We understand that for you to do business, we must work to facilitate legitimate trade and travel between the U.S. and the Hemisphere.

Eastern Caribbean

In the Caribbean, we also have strong ties. The United States is the primary trading partner for this region. We had a $4.6 billion trading surplus for the United States in 2016.

However, there are also risks – rising crime and endemic corruption threaten the stability of governments and deprive citizens of their basic rights to security and good governance.

In the Eastern Caribbean, we are focused on dismantling transnational criminal organizations and bolstering police professionalization.

We also promote U.S. exports and support opportunities for the private sector to invest

We focus, for example, on increasing the use of reliable, low-cost sources of energy to help spur economic development and create new opportunities for U.S. companies.

Conclusion and Thanks

We have a busy schedule ahead of us in the Hemisphere.

The United States is committed to engaging with the region based on shared priorities that are vital to the interests of our respective countries.

As business leaders and government officials who follow this Hemisphere, I thank you for your continued partnership and look forward to pressing ahead alongside you.

Excerpts From Reporting By EFE
9 May 2017

US President Donald Trump's policy toward Havana will have "significant differences" over his predecessor, Barack Obama, especially through a "greater emphasis" on human rights within the island, a senior official said Tuesday Of the State Department in Washington, reports EFE.

Trump's government is still immersed in the "comprehensive review" of US policy toward Havana that began after it came to power in January, recalled US Assistant Secretary of State for Latin America Francisco Palmieri.

"As we move forward in this review, I suspect that important differences will emerge in how this government plans to confront the situation in Cuba (compared to the previous administration)," added Palmieri during the Conference of the Americas held annually at the State Department.

"One of the areas that will be a high priority will be to ensure that Cuba makes more substantial progress towards greater respect for human rights in the country, which is certainly an area where we will make greater emphasis when the review is completed,” concluded the official.

The review refers to the process of normalization of bilateral relations initiated by former President Barack Obama in late 2014, including the decision to withdraw Cuba from the State Department's list of states sponsoring terrorism that involves the imposition of sanctions.

In early February, White House spokesman Sean Spicer said the Trump government will prioritize human rights in its "complete review" of US policy toward Cuba.

Since then there has been little news of progress in this review, and no contact has been reported between the Trump Government and General Raul Castro.

During the primary election process in 2015 and 2016 in the United States, Trump was the only Republican candidate for president who supported the policy of opening-up to the Raul Castro government.

But in his search for votes in Florida in the general election, Trump promised to "repeal" President Barack Obama's executive measures "unless the Castro regime" restored "freedoms on the island."

The president seems to have approached the hard line towards Cuba of other members of his party, like Republican Senator Marco Rubio, who this Tuesday encouraged Trump to "recalculate the concessions that have been made to the Cuban dictatorship," During another address at the Conference of the Americas.

LINK TO: Chronology Of Statements About Cuba From The White House

Delta Air Lines Opposing Everyone Requesting US-Cuba Routes

Excerpt From Delta Air Lines Filing With United States Department Of Transportation

“We understand that 21 weekly round-trip frequencies to Havana will become available following Frontier’s and Spirit’s termination of their current U.S.-Havana service. As of today, American, Delta, FedEx, JetBlue, Southwest, and United have filed applications requesting a total of over 35 weekly frequencies. Delta objects to the applications filed by American, FedEx, JetBlue, Southwest, and United to the extent that any grant to them would preclude Delta’s own application for seven weekly frequencies to provide additional service on the Miami-Havana route. Although Delta believes that its proposal would provide superior public benefits to the other proposals, in light of the competing applications and responsive pleadings filed, we would support a decision by the Department to institute a frequency allocation proceeding in this matter.”

Complete Text Of Filing

American Airlines... Brief, To The Point: Opposing Delta, JetBlue & Southwest

Excerpt From American Airlines Filing With United States Department Of Transportation

“American, Delta, JetBlue, and Southwest have filed applications requesting a total of 28 weekly U.S.-Havana frequencies, when only 21 frequencies will become available following Frontier’s and Spirit’s termination of their U.S.-Havana services. American therefore objects to the applications filed by Delta, JetBlue, and Southwest for additional U.S.-Havana frequencies, to the extent that the Department’s granting any of those applications precludes the Department’s grant of American’s application for seven weekly U.S.-Havana frequencies.”

Complete Text Of Filing