What Today's Flight By JetBlue Airways To Cuba Means

Today Is About “Re-“ As In “Re-Establishing”
Flight Is Not “The” Moment; It’s “A” Moment
A Transformative Moment
What’s To Come?

JetBlue flight 387 from Fort Lauderdale, Florida, to Santa Clara, Republic of Cuba, should not be viewed as the end of “the embargo.”  It’s a moment in a series of moments that is the bilateral relationship between the United States and the Republic of Cuba.   

Important to remember the numbers:

Fifteen years since the last United States law was enacted that focused upon the Republic of Cuba; ironically, signed by then-President William Clinton- a result was re-authorizing agricultural commodity and food product exports, but creating (codifying) twelve categories of travel- which excluded tourism.  

President Barack Obama has 142 days remaining in his term.  

Today is the 625th day since 17 December 2014, the joint announcements by President Obama and Raul Castro…. And during that time, no legislation has become law despite substantial expenditures of resources by individuals, organizations, and companies.  What changes have been implemented are a result of altering and creating regulations; that’s where the focus is and should remain.  

This is a transformative moment.  Yesterday, a passenger had to endure a journey to the Republic of Cuba on a charter flight- perhaps a JetBlue aircraft paid for by a third party who then sold tickets in order to repay JetBlue; the aircraft would have a JetBlue crew, but that is where the comfort ended.

Sometimes, tickets would be need to be paid for in cash; they often would not be refundable or changeable (because one charter operation would not necessarily honor travelers from another charter operation), the schedules would be inconvenient, the airfares would be high, the customer service would be terrible, and the benefits non-existent.

Today, a traveler may use frequent flyer miles for a ticket, may earn miles for the flight, may upgrade to first class, select seats in advance, will have access to airport lounges, will be able to use credit cards, make changes to reservations, obtain refunds, make a complaint and obtain a resolution, find lower ticket prices, and, most importantly, do it all using the Internet.  Earning something from traveling to somewhere is an important component of today’s traveler profile.

Where charter flights reinforced an aura of restriction, illegitimacy, forbidding, stress; the re-establishment of regularly-scheduled commercial airline service welcomes consistency, comfort, normalcy and accountability.

Accountability to the passenger in the form of improved passenger service at Republic of Cuba's immigration, customs and airport facilities.  United States airlines will be changing the Republic of Cuba; the Republic of Cuba will not be changing United States airlines.  

Important to note that the United States Department of Transportation (USDOT) has authorized approximately 1.2 million passenger seats for the US-Cuba routes; less than the 3.4 million requested by airlines.  

There have been and will continue to be enormous infrastructure challenges within the Republic of Cuba that will severely impact the country’s ability to absorb the new arrivals; changing this reality will take years, not months.  

The Republic of Cuba has become increasingly expensive- hotels that should be charging US$99.00 per night are charging US$350.00 per night; that’s unsustainable and dangerous from a marketing perspective.  Most visitors from the United States need to visit or want to visit Havana; neither the number of hotel rooms or the quality of hotel rooms exists today to accommodate the demand.

The United States business community expects that authorization by the government of the Republic of Cuba for American Airlines to operate a ticket office in Havana will lead to the authorization of offices for other, non-hospitality-related United States-based companies. 

The re-establishment of regularly-scheduled commercial airline services between the two countries is a transformative moment in the bilateral relationship; one of many during the last fifty-six years… and continues the re-normalization process. 

The airlines appreciate that they have 142 days remaining in the Obama Administration, so every effort is being made to have as established an operation as possible so that the time may be used to seek further regulatory and policy expansions in the United States and in the Republic of Cuba.  And, having service to the Republic of Cuba will provide marketing value for an airline's entire route system.

Don’t be surprised if the USDOT awards a Washington Dulles to Havana route; There is much symbolism linking capital-to-capital.

What United States Companies Continue To Seek From The Obama Administration:

  • Authorize all commercial activity under a general license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the
  • United States Department of Commerce, including Direct Foreign Investment (DFI)
  • Issue a general license from the OFAC for all vessels pursuant to the 180-day provision of the Cuban Democracy Act (CDA) of 1992
  • Authorize all transactions with Republic of Cuba government-operated companies
  • Authorize all imports under general license
  • Authorize all exports under general license
  • Authorize Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions for the purpose of correspondent activities
  • File motions to dismiss unwarranted civil judgements against the Republic of Cuba
  • Announce specific progress for the settlement of the 5,913 claims certified with the Foreign Claims Settlement Commission (FCSC) within the United States Department of Justice

What Have The Governments Of The US & Cuba Done During The Last 622 Days?

What has the government of Cuba agreed to or done since 17 December 2014:

  • Re-establish diplomatic relations
  • Re-open its embassy in Washington, DC
  • Authorize the re-opening of the United States Embassy in Havana
  • Hosted an official (state) visit by President Barack Obama
  • Hosted visits by four (4) members of the Obama Administration Cabinet: The Honorable John Kerry, United States Secretary of State; The Honorable Penny Pritzker, United States Secretary of Commerce; The Honorable Thomas Vilsack, United States Secretary of Agriculture; The Honorable Anthony Foxx, United States Department of Transportation
  • Hosted a visit by The Honorable R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection
  • Hosted a visit by The Honorable Thomas Wheeler, Chairman of the Federal Communications Commission
  • More than eighty (80) representatives of the government of Cuba have visited the United States
  • More than one hundred and sixty (160) representatives of the United States government have visited Cuba
  • Hosted for formal meeting more than one hundred fifty (150) senior-level representatives of United States companies (more than 500 have visited and held individual meetings and non-official meetings)
  • Continue to decrease food product/agricultural commodity purchases authorized by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000; down 24% thus far in 2015 compared to 2014
  • Increase healthcare product purchases authorized by the Cuban Democracy Act (CDA) of 1992.  Healthcare product exports (cash-only with verification requirements) permitted by the CDA increased 457% in 2015 compared with 2014
  • Authorize a direct correspondent banking agreement by Banco Internacional de Comercio S.A. (BICSA) with Florida-based Stonegate Bank
  • Authorize Stonegate Bank to issue a MasterCard-branded credit card and debit card for use in Cuba (10,800 current locations); with expansion in 2016 for use at ATM locations in Cuba
  • Announced (but not implemented) a removal of the 10% surcharge for converting United States currency to CUC
  • Authorize hospitality companies to contract with assets owned by the Revolutionary Armed Forces of the Republic of Cuba
  • Authorize Starwood Hotels & Resorts Worldwide (being acquired by Marriott International) to manage three properties in Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel; Gaviota-owned Hotel Quinta Avenida- rebranded as Four Points By Sheraton Havana in June 2016)
  • Authorize Marriott International to manage properties in Cuba
  • Authorize California-based Google to install and operate a no-cost high-speed Internet-based product display and interactive location(s)
  • Authorize booking.com (owned by New York-based The Priceline Group) to provide hotel reservations services for United States authorized travelers
  • Authorize California-based Air bnb, Inc. to offer reservations throughout the world
  • Authorize Cisco Systems to establish a no-cost Networking Academy in Havana
  • Authorize Cuba government-operated Banco Popular de Ahorro to establish lines of credit up to US$400.00 for licensed independent businesses; but continue to prohibit the entities to import products directly, requiring purchases through government-operated companies
  • Creating a uniform commercial code and mortgage regulations
  • Authorize roaming agreements between Cuba government-operated ETECSA and New York-based Verizon Wireless, Kansas-based Sprint, Texas-based AT&T, Washington-based T-Mobile
  • Increase Wi-Fi areas (parks and urban) for wireless Internet access
  • Negotiate with Alabama-based Cleber LLC tractor warehouse/assembly facility in Mariel Special Development Zone.  OFAC has authorized.  1st year investment US$1.8 million (which has been obtained according to the company); total investment US$5 million
  • Purchased through Republic of Cuba government-operated Tecnotex (affiliated with the Revolutionary Armed Forces of the Republic of Cuba) advanced planting and harvesting equipment valued at US$108,184,00 from Foley, Alabama-based GulfWise LLC, affiliated with Foley, Alabama-based The Woerner Companies (2015 revenues exceeded US$40 million) for use by Republic of Cuba government-operated Indio Hatuey Research Station, a Matanzas, Republic of Cuba-based agricultural research institution
  • Resumption of direct long-distance telephone service through an agreement between ETECSA and New Jersey-based IDT Corporation
  • Negotiate the re-establishment of regularly-scheduled commercial airline service (Civil Aviation Agreement- CAA); Arrangement (US) & Memorandum of Understanding (Cuba) signed in December 2015; Arrangement signed February 2016
  • Agree to a (limited) resumption of United States Postal Service operations
  • Permit a substantial increase in visitors from United States visitors (charter flights, pleasure craft, general aviation aircraft, cruise lines, and third-country transit) and revenues from those visitors.  United States visitors to Cuba (authorized, unauthorized, non-family), who have the highest net profit margin per person of any visitor to the country, increased 76.6% from approximately 92,000 in 2014 to 161,233 in 2015; and increased 84% during the first six months of 2016 compared to 2015
  • Continue to increase hotel room rates in the city of Havana; Paris, France-based AccorHotels has increased per night rates (with breakfast) at the Hotel Mercure Sevilla Habane from US$120.00 in November 2015 to US$180.00 in March 2016 and US$280.00 in November 2016
  • Authorize Miami, Florida-based Carnival Cruise Line to operate itineraries
  • The Ministry of Science, Technology, and Environment (CITMA) of the Republic of Cuba signed a Memorandum of Understanding (MOU) with the National Oceanic and Atmospheric Administration (NOAA) and the National Park Service (NPS).  “The MOU aims to facilitate joint efforts concerning science, stewardship, and management related to Marine Protected Areas (MPAs). The MOU also includes a sister MPA program to foster conservation and understanding of natural marine resources in both countries, sharing technical and scientific data, and promoting education and outreach initiatives.”
  • Signed a joint statement with the United States Department of State on environmental cooperation including coastal and marine protection, the protection of biodiversity including endangered and threatened species, climate change, disaster risk reduction, and marine pollution
  • National Office of Hydrography and Geodesy (ONHG) signed a MOU with NOAA to improve maritime navigation safety and related areas of mutual interest to protect lives and property at sea
  • Changed policy to permit individuals of Cuban descent to travel to the Republic of Cuba by authorized cruise ship
  • The Ministry of Public Health of the Republic of Cuba signed a MOU with the United States Department of Health and Human Services
  • Signed Counternarcotics Arrangement with U.S. Drug Enforcement Agency (DEA), US Coast Guard (USCG) and Customs Enforcement-Homeland Security Investigations (ICE/HIS)
  • Agreed to discussions about the 5,913 claims certified with the Foreign Claims Settlement Commission (FCSC) within the United States Department of Justice

What has the government of Cuba not (yet) agreed to or done since 17 December 2014:

  • Authorize ferry services
  • Authorize more than one passenger cruise line from the United States to have regularly-scheduled services
  • Authorize United States companies to export products directly to the 200+ categories of licensed independent businesses
  • Authorize any United States non-hospitality-related company to have an operational presence (including hiring Cuban nationals, obtaining office space, establish bank accounts)
  • Authorize Florida-based Florida Produce of Hillsborough County to establish in Havana a distribution center for food products and agricultural commodities
  • Authorize the Alabama-based Cleber LLC tractor warehouse/assembly facility in Mariel Special Development Zone.  OFAC has authorized.  1st year investment US$1.8 million (which has been obtained according to the company); total investment US$5 million
  • Authorize United States companies to engage in loan/lease programs to licensed independent businesses
  • Purchase communications/telecommunications equipment, although there are security, pricing and sourcing reasons not to purchase the equipment or permit the provision of such services
  • Increase overall purchases of agricultural commodities and food products
  • Respond in a timely manner to inquiries from United States companies
  • Negotiate settlement of the 5,913 claims certified with the FCSC

What has the government of the United States agreed to or done since 17 December 2014:

  • Re-establish diplomatic relations
  • Re-open its embassy in Havana
  • Authorize the re-opening of the Cuban Embassy in Washington
  • Removed Cuba from the List of State Sponsors of Terrorism (“Sanctions List”)
  • Visit to Cuba by President Barack Obama
  • Dispatched four (4) members of the Cabinet to Cuba: The Honorable John Kerry, United States Secretary of State; The Honorable Penny Pritzker, United States Secretary of Commerce; The Honorable Thomas Vilsack, United States Secretary of Agriculture; The Honorable Anthony Foxx, United States Department of Transportation
  • Dispatched The Honorable R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection to Cuba
  • Dispatched The Honorable Thomas Wheeler, Chairman of the Federal Communications Commission to Cuba
  • Dispatched Maria Contreras-Sweet, Administrator of the Small Business Administration, in the Official Delegation visiting Cuba with President Obama and for second visit
  • Permitted more than one hundred sixty (160) representatives of the United States government to visit Cuba
  • Permitted more than eighty (80) representatives of the government of Cuba to visit the United States
  • Remove or lessen most licensing requirements for authorized travel to Cuba
  • Negotiate a Civil Aviation Agreement (CAA)-equivalent (“Arrangement”) and remove most impediments relating to commercial flight operations
  • Agree to a (limited) resumption of United States Postal Service operations
  • Remove some restrictions upon U.S. financial institutions
  • Re-authorize direct correspondent banking agreements
  • Re-authorize credit card and debit card usage.  There remain compliance issues for United States financial institutions; New York-based MasterCard has removed its “block” on credit cards issued by United States financial institutions using its brand).  There are approximately 10,800 points of sale in Cuba
  • Authorize hospitality companies to manage properties in Cuba
  • Authorize hospitality companies to contract with assets owned by the Revolutionary Armed Forces of the Republic of Cuba
  • Authorized Republic of Cuba government-operated Tecnotex (affiliated with the Revolutionary Armed Forces of the Republic of Cuba) to purchase advanced planting and harvesting equipment valued at approximately US$125,000.00 from Alabama-based Woerner Companies for use by Republic of Cuba government-operated Indio Hatuey, a Matanzas-based agricultural research institution
  • Authorize Starwood Hotels & Resorts Worldwide (being acquired by Marriott International) to manage three properties (rebranding one to a Four Points by Sheraton) in Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel; Gaviota-owned Hotel Quinta Avenida)
  • Authorized Internet and telecommunications companies to install equipment in Cuba
  • Authorize Marriott International to manage properties in Cuba
  • Authorized booking.com (owned by New York-based The Priceline Group) to provide hotel reservations services for United States authorized travelers
  • Authorize California-based Air bnb, Inc. to offer reservations throughout the world
  • Authorize California-based Google to install and operate a no-cost high-speed Internet-based product display and interactive location(s)
  • Authorize Cisco Systems to establish a no-cost Networking Academy in Havana
  • Expanded the list of products that may be exported to Cuba and authorize payment terms for product exports to Cuba not subject to prohibitions by the CDA or TSREEA
  • Removed limits on remittances to Cuba
  • Authorized individuals and businesses to have bank accounts in Cuba
  • Authorized the export to Cuba of 100% U.S.-origin products from third countries
  • Authorized companies to establish offices in Cuba
  • Authorize payments to Republic of Cuba nationals who work in the United States
  • Changed the definition of the “cash in advance” provision of TSREEA from “cash before shipment” to cash before transfer of title and control”
  • Authorize micro-financing projects
  • Authorized financing (bank and third-party) and payment terms for selected authorized exports
  • Expand the list of eligible products authorized for importation to the United States to include textiles and coffee
  • Issued a license to Switzerland-based Nestle Nespresso (United States subsidiary) to import coffee sourced from Cuba to the United States through Europe (where the beans will be roasted)
  • Removed Cuba from the Exclusion List maintained by the International Bureau of the Federal Communications Commission
  • Discuss settlement of the 5,913 claims certified with the FCSC
  • Removed restrictions upon Cuba for the use of United States Dollars for international transactions
  • US Coast Guard removed conditions of entry on vessels arriving from Cuba
  • In selected instances, use an expansive, rather than constrictive interpretation of the TSREEA, title IX, Public Law 106-387 [22 U.S.C. 7207(a)(1)] (TSRA)

What has the government of the United States not (yet) agreed to or done since 17 December 2014:

  • Authorize, under a general license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Republic of Cuba government-operated financial institutions to have correspondent bank accounts at United States-based financial institutions
  • In all instances, use an expansive, rather than constrictive interpretation of the TSREEA, title IX, Public Law 106-387 [22 U.S.C. 7207(a)(1)] (TSRA)
  • Authorize all commercial activity under a general license from the OFAC and Bureau of Industry and Security (BIS) of the United States Department of Commerce, including Direct Foreign Investment (DFI)
  • Issue a general license from the OFAC for all vessels pursuant to the 180-day provision of the CDA
  • Authorize all transactions with Republic of Cuba government-operated companies
  • Authorize all imports under general license
  • Authorize all exports under general license
  • File motions to dismiss civil judgements against the Republic of Cuba
  • Specific progress for the settlement of the certified claims

LINK TO PDF

Banco Popular de Puerto Rico and Popular Community Bank Customers Can Now Use Their MasterCard® Credit Cards In Cuba

Tuesday, August 23

SAN JUAN, Puerto Rico

NASDAQ: BPOP

"Popular is excited about this development. The ability to use these credit cards in Cuba will facilitate travel and promote the interaction between our clients in P.R. and the U.S. with the citizens of Cuba."

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Popular, Inc. (NASDAQ: BPOP) announced that it is the second financial institution in the United States (U.S.) and the first in Puerto Rico (P.R.) to enable their credit cards for use in Cuba. The MasterCard® credit cards of its two banking subsidiaries, Banco Popular de Puerto Rico (BPPR) and Popular Community Bank (PCB), can now be used at any of Cuba’s more than 11,000 authorized merchant terminals and ATMs throughout the Island.

Ignacio Alvarez, President and Chief Operating Officer of Popular stated that, “Popular is excited about this development. The ability to use these credit cards in Cuba will facilitate travel and promote the interaction between our clients in P.R. and the U.S. with the citizens of Cuba.”
Before visiting Cuba, BPPR and PCB MasterCard® cardholders will need to ensure that they have an active credit card and that they are traveling under one of the 12 categories authorized by U.S. regulations, including religious and professional purposes. Customers will also be required to complete a document acknowledging that the card may only be used in connection with one of the 12 categories authorized by U.S. regulations.

For further information on obtaining or activating a credit card, BPPR customers should visit http://www.popular.com/en/mastercard-in-cuba and PCB customers should visit www.popularcommunitybank.com/mastercard-in-cuba.

NOTE: In June 2016, Pompano Beach, Florida-based Stonegate Bank became the first United States-based financial institution to issue a MasterCard (credit and debit) valid for use within the Republic of Cuba.

LINK TO STONEGATE BANK MEDIA RELEASE

iHLS (Israeli Homeland Security).... In-Flight Security Officers on board US-Cuba Flights

המינהל האמריקאי לבטיחות בתחבורה הודיע השבוע כי ארה"ב הגיעה להסכם עם קובה אשר על פיו יורשו מאבטחים לעלות על טיסות בין היעדים כיוון שהם מהווים גורם מרכזי בבטיחות הטיסה. הודעת המינהל הגיעה לאור דרישת הוועידה לסחר בין ארה"ב לקובה.

עוד נאמר בהודעה: "מאבטחים על הטיסות הם הקו האחרון של ההגנה נגד הטרור ומהווים חלק מרכזי באסטרטגיית ההתגוננות האמריקאית מפני טרור בתעופה אזרחית". חבר הקונגרס מייקל מקאול, יו"ר הוועידה לביטחון לאומי הצהיר בהקשר זה: "למרות מה שההסכם מתיר, שהוא צעד חיובי, על אמריקאים להיות מודאגים  מהבטיחות במדינה בה סירבו לארח את חברי הקונגרס האמריקני".

המתווה של הנשיא אובמה בעניין טיסות קבועות בין ארה"ב לקובה נתקל בביקורת רבה. על פי hstoday.us מחוקקים הביעו דאגה מהאפשרות שטרוריסטים ישתמשו בקובה כקרש קפיצה בדרך לביצוע פיגוע בארה"ב.

חבר הקונגרס ג'ון קטקו, יו"ר וועדת המשנה לביטחון פנים בתחבורה הסביר: "המינהל בעצם אומר לנו לסמוך על מדינה שהוסרה מרשימות המדינות תומכות הטרור לפני שנה בלבד".

בחודש יולי, קטקו הציע חקיקה שתאסור על טיסה בין ארה"ב לקובה עד ששדות התעופה יחזיקו ברמת אבטחה אשר תספק את המינהל האמריקאי לבטיחות בתחבורה. שבועות קודם לכן, קטקו ומספר חברי הוועדה לביטחון פנים בראשותו נחסמו על ידי הממשלה הקובנית, בבואם לבצע הערכה של סיכוני הביטחון במקום.

הטיסה הראשונה בין המדינות צפויה להמריא לקראת סוף אוגוסט.

In-Flight Security Officers on board US-Cuba Flights

The Transportation Security Administration (TSA) announced that the United States and Cuba have reached an agreement which will allow federal air marshals on board certain flights to and from Cuba explaining that federal air marshals play a crucial role in aviation security. TSA released a statement on the decision at the request of the US-Cuba Trade and Economic Council.

The statement added: “In-Flight Security Officers (IFSOs) serve as an active last line of defense against terrorism and air piracy, and are an important part of a multi-layer strategy adopted by the US to thwart terrorism in the civil aviation sector.”

Commenting on the announcement, Rep. Michael McCaul (R-Texas), Chairman of the House Committee on Homeland Security, warned: “While the agreement to allow federal air marshals on-board flights between the United States and Cuba is a positive step, the American people should have grave concerns about the level of security currently in place at any foreign airport where the host government refused to allow Congress to visit”.

President Obama’s plan to open regularly scheduled commercial air service to Cuba has been met with significant reservations. According to hstoday.us, lawmakers have expressed concerns that terrorists could use Cuba as a gateway to the United States.

Rep. John Katko (R-NY), who chairs the House Homeland Security Committee’s Transportation Security subcommittee: “The Administration is telling us that we should entrust the safety and security of American citizens to the Cuban government. A country that was removed from the state sponsors of terrorism list only one year ago”.

In July, Katko introduced legislation to prohibit all scheduled commercial air travel between the United States and Cuba until TSA certifies that Cuban airports have the appropriate security measures in place to keep Americans safe.

Just weeks beforehand, Katko and other members of the House Homeland Security Committee were blocked by the Cuban government from entering the country to assess security risks associated with resuming air travel between the United States and Cuba.

The first of the more than 100 daily roundtrip flights between the two countries is slated to begin at the end of August.

Journal of Commerce: Cuba shipping gains unlikely in the short term

Greg Miller, Special Correspondent

Despite all the hype on Cuba, commercial shipping's opportunities to do business with the island are unlikely to significantly improve until at least February 2018.

U.S. President Barack Obama has since December 2014 used his regulatory powers to ease restrictions on U.S. business ties with Cuba. In the maritime industry, the highest-profile example was permission for Carnival Corporation to offer cruises to Cuba.

However, volume gains for commercial shipping still hinge on the U.S. Congress lifting the embargo on trade with Cuba and repealing the “180-day rule,” which prevents ships without a waiver calling at a U.S. port within 180 days of visiting Cuba.  [NOTE: Link To Text Of 1992 Cuban Democracy Act.]

“Since December 2014, the legislative efforts have been almost a waste of time,” said U.S.-Cuba Trade & Economic Council President John Kavulich in an interview. “You have a lot of inspiration and a lot of aspiration chasing very little reality.”

“When it comes to Cuba, there has been more public relations than actual growth,” said Carlos Urriola, senior vice-president of Carrix, the parent of port group SSA International. “Even if things are starting to move forward, it’s not going to change tomorrow.”

Commentators have focused on the potential for lifting the trade embargo after a new U.S. president is inaugurated and a new Congress convened in January 2017.

However, Kavulich sees that timetable as overly optimistic.

“There will be no legislative changes before President Obama leaves office and after his presidency Cuba is not going to be a priority on the list of issues facing the new president,” he said.

"Nor should it be. It shouldn’t be high on anyone’s agenda, because no one (in the U.S.) needs Cuba. Cuba is not China, where if a company doesn’t have China it can put the company in jeopardy. Cuba doesn’t have that role.”

Any political momentum for ending the U.S. embargo will be focused on a later date: Feb. 24, 2018, according to Kavulich.

“That is the date when (Cuban president) Raul Castro has said he’s going to retire, so members of Congress on both sides of the aisle will look at the process and say, ‘We should hold back on making changes because we want to have something to either use as bait for Raul’s successor or to reward Raul’s successor. Let’s not give everything now to the old guy. Let’s try to enhance the new people,’” he said.

In other words, the closeness of Castro’s retirement date — just 13 months after the U.S. government’s transition — will effectively push back the timetable for transformative change until 2018.

Hopes have been raised within maritime circles that the 180-day rule could be repealed before the trade embargo is lifted. While the U.S. president can exempt shipping companies on a case-by-case basis, abolishing the rule would require an act of Congress.

If the 180-rule were revoked, container lines could use neo-Panamax ships to drop off Asia-sourced transshipment cargo at the PSA-operated terminal in Mariel, Cuba, and then continue on their front-haul voyages to final destinations in the United States.

The challenge facing this lobbying effort is that U.S. business interests would not necessarily benefit. In fact, some could be harmed.

Repealing the 180-day rule would allow no additional U.S. export volumes to Cuba beyond the currently permitted cargo categories. However, Mariel would be enabled to develop a transshipment business to serve Caribbean islands in direct competition with U.S. exporters and U.S.-based liners sailing out of ports in Florida and along the U.S. Gulf Coast.

“For U.S. ports, having Mariel as a receptacle for U.S. exports is great, but having Mariel as a potential competitor is not. That’s where the challenge is,” said Kavulich.

“By opening the 180-day rule, you’re hitting Miami, you’re hitting Port Everglades, you’re hitting Jacksonville — and what would you (the U.S.) get in return?” Carrix’s Urriola said.

Ending the 180-day rule and providing an economic boost to Cuba prior to Castro’s retirement would also go against the grain of America’s long-standing strategy, said Kavulich.

“There is a feeling that we (referring to U.S. government leaders) don’t want to be giving the current Cuban government any more money it can use to perpetuate itself, because the more money it has, the less incentive it has to change," he said. "We want to make it difficult for them, so they have to make the changes.”

It could be some time before Cuban container cranes, such as these pictured in Havana, startlifting more volumes bound for international markets.

It could be some time before Cuban container cranes, such as these pictured in Havana, start

lifting more volumes bound for international markets.

AT&T and ETECSA Sign Deal for Cuba Roaming and Direct Connections

AT&T and ETECSA Sign Deal for Cuba Roaming and Direct Connections
22 August 2016

AT&T* has reached agreements for Cuba roaming and direct interconnection with Empresa De Telecomunicaciones De Cuba (ETECSA). The deal continues to enhance AT&T’s global coverage for customers – the best of any U.S. wireless provider.1

“Cuba is a growing international calling destination for our customers,” said Bill Hague, executive vice president, AT&T Global Connection Management. “With this agreement, AT&T customers soon will be able to seamlessly connect with talk, text and data while visiting Cuba.” We will announce commencement of wireless roaming availability and pricing for AT&T customers visiting Cuba at a later date.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

1Global coverage claim based on offering discounted voice and data roaming; LTE roaming; voice roaming; and world-capable smartphones and tablets in more countries than any other U.S.-based carrier. International service required. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries.

About AT&T

AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, mobile, high speed internet and voice services. We’re the world’s largest provider of pay TV. We have TV customers in the U.S. and 11 Latin American countries. And we help businesses worldwide serve their customers better with our mobility and highly secure cloud solutions.

NOTE:

ETECSA has roaming agreements with New York-based Verizon Wireless, Kansas-based Sprint, and Washington-based T-Mobile.

It's Here... Nespresso's Cafecito de Cuba capsules... US$1.25 each

DARK ROASTED AND DENSE

17 August 2016: For the first time in the United States of America enjoy Cafecito de Cuba brought to you by Nespresso ̶ a short and intense cup, purely made from Cuban Arabica coffee beans. It is more than a coffee, it is a journey to Cuba.

Dive into the heat and passion of authentic Cuban culture with Cafecito de Cuba from Nespresso. Its incomparable intense roasted character boasts powerful and delightful smoky notes of wood and tobacco leaves. Indulge your palate with its dense velvety texture, best enjoyed in a traditional short ristretto (25 ml - 0.845 fl oz).

Origin

100% Cuban Arabica from the Eastern part of Cuban island. With fertile soil and ideal climate conditions, the region offers an excellent coffee growing environment.

Roasting

To enhance the potential of the beans and highlight their authenticity, Nespresso experts applied sophisticated split roasting technic. One half of the beans was roasted for a shorter time to a lighter colour to bring out all the unique flavours and specific aromas of the coffee. The second half was roasted for a longer time to a much darker colour to create a strong body with velvety texture and intense rich flavours.

Aromatic Profile

A dark roasted, intense character of this coffee echoes with the passionate rhythms of authentic Cuban culture and boasts powerful and delightful smoky notes of wood and tobacco leaves.

LINK TO: 14 July 2016 Blog Post

State Department Won't Provide Data On US Businesses Meeting With US Ambassador

Earlier in 2016, representatives of the United States Department of State confirmed that a list could be compiled and made available with the number of United States-based companies, their sectors, and their respective representatives who have met with The Honorable Jeffrey DeLaurentis, Charge D'Affaires of the United States Embassy in Havana, Republic of Cuba, since 17 December 2014.

On 8 August 2015, a representative of the United States Department of State reported that a list would not be provided; thus an unnecessary potential request using the Freedom of Information Act (FOIA) would be required.

The provision of the list would be consistent with the publicly-stated goal of the Obama Administration, and specifically the United States Department of State, to be transparent with the provision of data.

The list as requested would be a useful data point to inform about the level of interest by United States companies toward the Republic of Cuba, the sectors which have the highest level(s) of interest, and provide a measure of the connectivity between the United States business community and the Embassy of the United States located in Havana, Republic of Cuba.

Cuba Port Representatives To Visit US; Contact Embassy To Arrange A Meeting

Representatives of Republic of Cuba government-operated entities, those responsible for port operations, plan to visit the United States in September 2016 or October 2016 for a tour of port facilities.  A visit to Tampa, Florida, is been confirmed.

If your port facility is interesting in hosting a meeting with the representatives of the Republic of Cuba, you are advised to directly contact Mr. Ruben Ramos Arrieta, Minister Counselor (Commercial) at the Embassy of the Republic of Cuba in Washington, DC.

Embassy of the Republic of Cuba
2630 16th Street, NW
Washington, DC20009

Telephone: (202) 797-8518/19/20
Facsimile: (202) 797-8521
Email: recepcion@sicuw.org
Email: cubaseccion@igc.apc.org
Email: secretaria@sicuw.org
Email: traduccion@sicuw.org
comercial@usadc.embacuba.cu
Internet: http://www.cubadiplomatica.cu/sicw/EN/Home.aspx

His Excellency
Jose Ramon Cabanas Rodriguez
Ambassador

Mr. Ruben Ramos Arrieta
Minister Counselor (Commercial)
Economic and Trade Office

Economic Eye On Cuba August 2016 Report

ECONOMIC EYE ON CUBA©
August 2016

June Food/Ag Exports Increased 18%- 1
-16% For First Six Months- 1
Healthcare Product Exports- 2
Humanitarian Donations- 2
U.S. Port Export Data- 13
Updated Speaking Schedule- 15

JUNE FOOD/AG EXPORTS INCREASED 18%- Exports of food products & agricultural products from the United States to the Republic of Cuba in June 2016 were US$11,283,520.00 compared to US$9,596,281.00 in June 2015. 

For the period January-June 2016 compared to January-June 2015, exports decreased by 16%. 

Exporters included: Atlanta, Georgia-based Globex International (poultry); New York, New York-based Intervision Foods (poultry); Atlanta, Georgia-based AJC International (poultry); Chattanooga, Tennessee-based Koch Foods (poultry); Bedford, Massachusetts-based Sellari Enterprises (poultry).

CLICK HERE FOR COMPLETE 15-PAGE REPORT IN PDF FORMAT

 

DHS Shares Titles Of Participants In Cybercrime And Online Fraud Meeting In Havana

The U.S.-Cuba Trade and Economic Council requested from the United States Department of Homeland Security (DHS) through its Homeland Security Investigations (HIS) division, the affiliations of the participants in the 22-23 February 2016 meeting in the city of Havana, Republic of Cuba, which focused upon cybercrime and online fraud:

''Working-level representatives from the United States and Cuba held a technical meeting in Havana February 22-23 to exchange information and best practices related to preventing cybercrime and online fraud, including in the areas of pharmaceutical fraud and illicit narcotics. Participants also discussed the legal framework for investigating and penalizing cybercrime. Additionally, participants held a session on protecting children from online predators. Assistant Deputy Associate Director Alexis Torres from U.S. Immigration & Customs Enforcement's Homeland Security Investigations (ICE-HSI) led the U.S. delegation.''

The DHS provided the titles of the participants in the attached document: LINK To PDF

Might The Hotel Nacional de Cuba In Havana Become A Ritz-Carlton-Affiliated Property?

Marriott International (Directly & Indirectly) Enters The Marketplace

Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) which owns nineteen brands (including Chevy Chase, Maryland-based Ritz-Carlton) is acquiring Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) and confirms its discussions with Republic of Cuba government-operated companies to identify property-management opportunities within the Republic of Cuba.

Claim By Starwood Hotels & Resorts Worldwide

As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim [LINK TO CLAIM] initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels & Resorts Worldwide which may use this value as a means to secure opportunities within the Republic of Cuba.

In 2016, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury granted a license(s) to Starwood Hotels & Resorts Worldwide to manage properties owned by Republic of Cuba government-operated entities located in the city of Havana, Republic of Cuba.  

The properties are Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded as Four Points by Sheraton Havana on 27 June 2016).  The Hotel Quinta Avenida is owned by Republic of Cuba government-operated Gaviota SA, under the auspice of Grupo de Administración Empresarial (GAESA), which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

The twenty-five three-star and four-star hotels owned by Gran Caribe include the Hotel Nacional de Cuba and Hotel Inglaterra in Havana, to hotels along the beaches of Varadero and the Cuba’s keys (Cayo).  

The Hotel Nacional de Cuba becoming affiliated with the Ritz-Carlton brand would deliver immediate bilateral (with the United States) and multilateral value as the lack of a presence by an internationally-recognized five-star brand has hampered the Republic of Cuba with appealing to (by providing equalized value) higher demographic travelers and providing an environment to increase the level of service provided by properties located throughout the Republic of Cuba.

Ritz-Carlton Hotels

From the company Internet site: 91 hotels worldwide in 30 countries and territories: Aruba, Austria, Bahrain, Canada, Cayman Islands, Chile, China, Egypt, Germany, India, Indonesia, Israel, Japan, Kazakhstan, Malaysia, Mexico, Oman, Portugal, Puerto Rico, Qatar, Russia, Singapore, Saudi Arabia, South Korea, Spain, Thailand, Turkey, the United Arab Emirates, U.S. Virgin Islands, and the United States.

In the United States, The Ritz-Carlton Investing Company was established by Albert Keller who bought and franchised the name. In the early 1900s, several hotels were known as The Ritz-Carlton, in places such as Boston, Philadelphia, Pittsburgh, Atlantic City and Boca Raton. 

However, by 1940 none of the hotels were operating except The Ritz-Carlton, Boston. The hotel embodies the finest luxury experience, Yankee ingenuity and Boston social sensibilities. The standards of service, dining and facilities of this Boston landmark served as a benchmark for all future Ritz-Carlton hotels and resorts worldwide.

  • The Ritz-Carlton, Boston revolutionized hospitality in America by creating luxury in a hotel setting:
  • Private bath in each guest room
  • Lighter fabrics in the guest room to allow for more thorough washing
  • White tie and apron uniforms for the waitstaff, black tie for the Maître d’ and morning suits for all other staff, conducive to a formal, professional appearance
  • Extensive fresh flowers throughout the public areas
  • A la carte dining, providing choices for diners
  • Gourmet cuisine, utilizing the genius and cooking methods of Auguste Escoffier
  • Intimate, smaller lobbies for a more personalized guest experience

In 1983, The Ritz-Carlton Hotel Company, LLC was formed. Led by president and founding father, Colgate Holmes, alongside Horst Schulze, Joe Freni, Ed Staros and Herve Humler, the company began to expand, adding new properties across the United States. Within two years, the brand had opened five hotels, including The Ritz-Carlton, Buckhead, The Ritz-Carlton, Atlanta, The Ritz-Carlton, Laguna Niguel and The Ritz-Carlton, Naples. This rapid expansion continued, and by the close of 1992, The Ritz-Carlton had expanded to 23 exceptional luxury hotels, earning its first Malcolm Baldrige National Quality Award. The following year, they opened their first hotel in Asia, The Ritz-Carlton, Hong Kong.

In 1998, the success of The Ritz-Carlton Hotel Company had attracted the attention of the hospitality industry, and the brand was purchased by Marriott International. Since this purchase, The Ritz-Carlton has continued to grow, providing exceptional service and genuine care to their guests across the globe. In 2000, The Ritz-Carlton Residences opened their first property in Washington, D.C., followed by their first Destination Club property, Aspen Highlands, Colorado in 2001. In addition to dozens of new hotels around the globe, in 2008 the company opened the first Ritz-Carlton Reserve property, offering a private sanctuary experience in Phulay Bay, Krabi, Thailand.

Today, the company continues to grow and to inspire life’s most meaningful journeys in the most desirable destinations on earth.”

InterContinental Hotels Group PLC Has An Interest

Denham, United Kingdom-based InterContinental Hotels Group PLC (2015 revenues exceeded US$1.8 billion) manages more than 5,028 hotels (742,000 rooms) in nearly 100 countries.

InterContinental Hotels Group PLC brands include: InterContinental Hotels & Resorts, Kimpton Hotels & Resorts, Hualuxe Hotels and Resorts, Holiday Inn, Holiday Inn Express, Holiday Inn Hotels & Resorts, Staybridge Suites, Candlewood Suites, hotel Indigo, Even Hotels, and Crowne Plaza.

The company is the owner of a US$4,637,898.30 claim against the government of the Republic of Cuba certified by the United States Foreign Claims Settlement Commission (USFCSC) under the auspice of the United States Department of Justice.

The claim is for compensation due to the loss of its management contract of then National Hotel of Cuba (Hotel Nacional de Cuba).  The management contract commenced on 1 August 1955 and was to terminate on 21 November 1989.  The lease was intervened by the government of the Republic of Cuba on 10 June 1960.

The Libertad Act of 1996 authorizes individuals and companies subject to United States jurisdiction/law to engage in direct negotiations with the government of the Republic of Cuba to settle claims certified by the USFCSC.  

In December 2015, the government of the United Kingdom participated in an agreement signed between members of the Paris Club of Creditor Nations and the government of the Republic of Cuba that reduced debt from US$11.1 billion to US$2.6 billion which will be repaid over an eighteen-year period.

From Wikipedia:

In 1933, after Fulgencio Batista's 4 September 1933 coup against the transitional government, it was the residence of Sumner Welles, a special envoy sent by U. S. President Franklin D. Roosevelt to mediate the crisis, and was the site of a bloody siege that pitted the officers of the Cuban army, who had been instrumental in the overthrow of Gerardo Machado (August 12. 1933), against the non-commissioned officers and other ranks of the Cuban army, who supported Batista. This would be the Battle of the Hotel Nacional of Cuba.

In December 1946 the hotel hosted the Havana Conference, an infamous mob summit run by Lucky Luciano and Meyer Lansky and attended by Santo Trafficante, Jr., Frank Costello, Albert Anastasia, Vito Genovese and many others. Francis Ford Coppola memorably dramatised the conference in his film The Godfather Part II.

By 1955, Lansky had managed to persuade Batista to give him a piece of the Nacional. That same year Pan Am's (New York-based Pan American World Airways) Intercontinental Hotels Corporation took over management of the hotel. Alphons Landa, prominent Washington attorney represented Pan Am and arranged for other clients and friends to acquire pieces of the hotel ownership at the same time. Dave Beck, President of the Teamsters and Roy Fruehauf of the Fruehauf Trailer Company were silent partners for at least 2 years. Fruehauf would sell his interest in the hotel in May 1957; other investors would lose everything when Castro came to power. Lansky planned to take a wing of the 10-storey hotel and create luxury suites for high-stakes gamblers. Batista endorsed Lansky's idea even though there were objections from American expatriates such as Ernest Hemingway. Under Lansky's impetus, a wing of the grand entrance hall was refurbished to include a bar, a restaurant, a showroom and a luxurious casino. It was operated by Lansky and his brother Jake, with Wilbur Clark as the front man.”

Might InterContinental Hotels Again Manage The Hotel Nacional de Cuba?

Denham, United Kingdom-based InterContinental Hotels Group PLC (2015 revenues exceeded US$1.8 billion) manages more than 5,028 hotels (742,000 rooms) in nearly 100 countries.  

InterContinental Hotels Group PLC brands include: InterContinental Hotels & Resorts, Kimpton Hotels & Resorts, Hualuxe Hotels and Resorts, Holiday Inn, Holiday Inn Express, Holiday Inn Hotels & Resorts, Staybridge Suites, Candlewood Suites, hotel Indigo, Even Hotels, and Crowne Plaza.

The company is the owner of a US$4,637,898.30 claim against the government of the Republic of Cuba certified by the United States Foreign Claims Settlement Commission (USFCSC) under the auspice of the United States Department of Justice.

The claim is for compensation due to the loss of its management contract of then National Hotel of Cuba (Hotel Nacional de Cuba).  The management contract commenced on 1 August 1955 and was to terminate on 21 November 1989.  The lease was intervened by the government of the Republic of Cuba on 10 June 1960.

The Libertad Act of 1996 authorizes individuals and companies subject to United States jurisdiction/law to engage in direct negotiations with the government of the Republic of Cuba to settle claims certified by the USFCSC.  

In December 2015, the government of the United Kingdom participated in an agreement signed between members of the Paris Club of Creditor Nations and the government of the Republic of Cuba that reduced debt from US$11.1 billion to US$2.6 billion which will be repaid over an eighteen-year period.

From Wikipedia:

In 1933, after Fulgencio Batista's 4 September 1933 coup against the transitional government, it was the residence of Sumner Welles, a special envoy sent by U. S. President Franklin D. Roosevelt to mediate the crisis, and was the site of a bloody siege that pitted the officers of the Cuban army, who had been instrumental in the overthrow of Gerardo Machado (August 12. 1933), against the non-commissioned officers and other ranks of the Cuban army, who supported Batista. This would be the Battle of the Hotel Nacional of Cuba.

In December 1946 the hotel hosted the Havana Conference, an infamous mob summit run by Lucky Luciano and Meyer Lansky and attended by Santo Trafficante, Jr., Frank Costello, Albert Anastasia, Vito Genovese and many others. Francis Ford Coppola memorably dramatised the conference in his film The Godfather Part II.

By 1955, Lansky had managed to persuade Batista to give him a piece of the Nacional. That same year Pan Am's (New York-based Pan American World Airways) Intercontinental Hotels Corporation took over management of the hotel. Alphons Landa, prominent Washington attorney represented Pan Am and arranged for other clients and friends to acquire pieces of the hotel ownership at the same time. Dave Beck, President of the Teamsters and Roy Fruehauf of the Fruehauf Trailer Company were silent partners for at least 2 years. Fruehauf would sell his interest in the hotel in May 1957; other investors would lose everything when Castro came to power. Lansky planned to take a wing of the 10-storey hotel and create luxury suites for high-stakes gamblers. Batista endorsed Lansky's idea even though there were objections from American expatriates such as Ernest Hemingway. Under Lansky's impetus, a wing of the grand entrance hall was refurbished to include a bar, a restaurant, a showroom and a luxurious casino. It was operated by Lansky and his brother Jake, with Wilbur Clark as the front man.”

Claim By Starwood Hotels & Resorts Worldwide

As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion), which is being acquired by Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), which can use this value as a means to secure opportunities within the Republic of Cuba.

In 2016, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury granted a license(s) to Starwood Hotels & Resorts Worldwide to manage properties owned by Republic of Cuba government-operated entities located in the city of Havana, Republic of Cuba.  

The properties are Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded as Four Points by Sheraton Havana on 27 June 2016).  The Hotel Quinta Avenida is owned by Republic of Cuba government-operated Gaviota SA, under the auspice of Grupo de Administración Empresarial (GAESA), which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

Marriott International (Directly & Indirectly) Enters The Marketplace

Bethesda, Maryland-based Marriott International which owns nineteen brands (including Chevy Chase, Maryland-based Ritz-Carlton) is acquiring Starwood Hotels & Resorts Worldwide and confirms its discussions with Republic of Cuba government-operated companies to identify property-management opportunities within the Republic of Cuba.

LINK: InterContinental Hotel Corporation Claim Documents

LINK: Starwood Hotels & Resorts Worldwide Claim Documents

U.S. Federal Air Marshals Will Be Aboard Flights To/From Cuba

Today, at the request of the U.S.-Cuba Trade and Economic Council, the Transportation Security Administration (TSA) under the Department of Homeland Security (DHS) released its first statement relating to the use of Federal Air Marshals on commercial flights between the United States and the Republic of Cuba.

The first of 110 regularly-scheduled daily commercial flights will commence operation at the end of August 2016.

"In the spirit of enhancing the security of international civil aviation, the United States and The Republic of Cuba entered into an aviation security agreement that sets forth the legal framework for the deployment of U.S. In-Flight Security Officers (IFSO) - more commonly known as Federal Air Marshals - on board certain flights to and from Cuba. For security reasons, we will not divulge which flights air marshals will be aboard. This agreement is subject to applicable domestic and international law, and consistent with standards and recommended practices promulgated by the International Civil Aviation Organization (ICAO).

This agreement will strengthen both parties' aviation security efforts by furnishing a security presence on board certain passenger flights between the United States and The Republic of Cuba. TSA will continue to work with The Republic of Cuba to expand IFSO presence on flights and enhance security. IFSOs serve as an active last line of defense against terrorism and air piracy, and are an important part of a multi-layer strategy adopted by the U.S. to thwart terrorism in the civil aviation sector. Globally, IFSO programs continue to grow and proliferate, as more and more countries accept the value of these programs in the fight against terrorism."

LINK TO: Article From The Miami Herald (9 August 2016)

LINK TO: Article From The Hill (10 August 2016)

NOTE: Politico Pro & Politico received the TSA statement from the U.S.-Cuba Trade and Economic Council on 9 August 2016, but did not to source the organization in its reporting of 10 August 2016.  The organization was sourced on 11 August 2016.

LINK TO: Article From Politico (11 August 2016)

LINK TO: Article From Homeland Security Today (11 August 2016)

 

Might DOT & TSA Need To Delay Implementation Of Commercial Flights To Cuba?
July 15, 2016
USCTEC- Blog

From Politico (7.15.2016)

"CUBAN FLIGHTS AND SECURITY FIGHTS: Commercial flights from Cuba to the U.S. are scheduled for takeoff in eight weeks, but it appears the Obama administration is still trying to make sure airport security is up to snuff at the 10 Cuban hubs cleared for U.S. service.

Homeland Security Secretary Jeh Johnson says he has asked TSA [Transportation Security Agency] to give him assurances that those airports meet U.S. security standards, not just the bar ICAO [International Civil Aviation Organization] has set.

No help: The secretary also let on that he tried to call in a favor for the very lawmakers who have been fighting the White House on this issue. Johnson said the administration attempted, and failed, to get the Cuban government to approve visas for House Homeland Security Committee lawmakers who wanted to check out the country's aviation security protocols.

Can't stop, won't stop: Rep. John Katko [R- New York] has been relentless in trying to call attention to his Cuban security concerns. Besides introducing a bill (H.R. 5728) earlier this week to try to block flights until TSA certifies that the U.S.-bound flights will be adequately protected, he's written a letter asking Transportation Secretary Anthony Foxx to delay Cuban service."

Maine Congressional Delegation Silent On Cuba Seafood Imports; Vocal To Obtain Flight Servicing Agreement For Bangor Airport

Maine Congressional Delegation

The Honorable Susan Collins (R)
The Honorable Angus King (I)

The Honorable Chellie Pingree (D)
The Honorable Bruce Poliquin (R)

The four members of the tri-partisan (D, I, R) Congressional delegation representing the State of Maine have not answered inquiries about whether they will support the Obama Administration adding seafood to the list of products authorized for commercial importation from the Republic of Cuba to the United States.

In April 2016, the United States Department of State added coffee to the list of authorized products that may be imported from the Republic of Cuba to the United States for commercial purposes.  Textiles (with sourcing restrictions) may also be imported for commercial purposes.

There is an expectation that the Obama Administration will add to the list of authorized (with sourcing restrictions) products before 20 January 2017, perhaps to include tropical fruits, charcoal, sugar, honey, alcohol, and seafood.  All imports will result in competitive challenges for United States-based producers.

In July 2016, Bangor International Airport (BGR) in Maine received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to provide services for non-United States aircraft seeking to make non-traffic transit stops (re-fueling, catering, deicing, crew services).  

Senators Collins and King and Representatives Pingree and Poliquin introduced and supported legislation that would permit all airports in the United States to provide the services authorized by the OFAC for BGR.  The legislation has yet to become law.

There is a challenge for Members of Congress who support the removal of restrictions upon United States exports (and provision of services) relating to the Republic of Cuba- that imports (products and services) from the Republic of Cuba to the United States impact the interests of companies located in their respective states/districts who have a concern about imports disrupting their domestic (and export) market share. 

With additional revenues from exports, the Republic of Cuba becomes a stronger competitor to United States companies competing for the same export markets. 

At the same time, the more exports from the Republic of Cuba to the United States and other countries, there is potential for an increase in imports from the United States.

Support in the United States Congress for the removal of restrictions on exports from the United States to the Republic of Cuba is often from states whose companies will not meaningfully be impacted by competition from imports from the Republic of Cuba to the United States.

Empresa Comercial Caribex (Caribex) of Cuba

"We have more than 40 years of exporting activity,  offering a wide variety of Cuban seafood products, with international well-known quality. Our products reach important markets such as: European Union, Japan, Australia, Vietnam, and Canada among others." 

Primary markets for spiny-lobster are Japan, France, Spain, Italy and Canada.  Caribex revenues in 2015 were approximately US$70 million (approximately US$12 million from farm-raised shrimp) through the use of approximately thirty-four processing facilities located throughout the Republic of Cuba.  In 1994, revenues were approximately US$102 million and in 1997 were approximately US$180 million.  Lack of investment, resources, and depleted fishing stocks have contributed to revenue decreases. 

Caribex reported that significant customers include Redondela, Spain-based Pescafina and Pescanova; and Japan-based Marua Michiru.

Fresh Product:
Spiny lobster, live.
Fresh fish (including eel, shark fins, sea cucumber) and fillets.
Natural Sponges.

Frozen Product:
Frozen precooked whole lobster.
Frozen raw whole lobster.
Frozen raw lobster tail.
Frozen raw head-on shrimp (wild and cultured shrimp)
Blue Crab.
Sea snails (strombus gigas)
Sea Cucumber (dried).

Value Added Product:
Frozen cooked shrimp (PUD-IQF) (P&D-IQF).
Frozen raw shrimp tail (PUD-IQF). (wild and cultured shrimp)
Frozen precooked lobster, in halves.

Brand Names:
Caribbean Queen
Batabanó
Conga

Certifications:
HACCP
ISO 9001

France, Russia, Spain, Turkey Selected By Cuba For Airport Contracts

Aviation Tribune
6 August 2016

"The French corporations Bouygues Batiment International and Aéroports de Paris will manage José Martí International Airport of Havana, the Government announced.

[Istanbul, Turked-based] TAV Airports [Holding], in partnership with its 38% shareholder Groupe Aéroports de Paris and with Bouygues Bâtiment International, entered into exclusive talks with Cuban authorities, concerning the development of José Martí International Airport, Havana, under a concession contract.

The Havana International Airport development project comprises the renovation, extension and operation of the existing international terminals. These developments, when completed in 2020 will provide the airport with a handling capacity of over 10 million passengers. The current traffic is close to 5 million passengers and the possible liberalization of air traffic, especially with the USA, carries rapid growth potential.

The project also ultimately includes the development of the San Antonio de los Baños Airport, located to the West of the capital.

José Martí International Airport, sometimes known by its former name Rancho-Boyeros Airport, is an international airport located 15 km southwest of Havana, Cuba, and is a hub for Cubana de Aviación, Aerogaviota and Aero Caribbean. It is Cuba’s main international and domestic gateway, and serves several million passengers each year.

The current José Martí Airport replaced the Columbia Airfield in 1930, which was the first airport to serve Havana.

There are currently four passenger terminals in use at the airport, plus a freight terminal. Terminal 1 is used primarily for domestic flights. Terminal 2 opened in 1988, primarily for charter flights to the United States. Ten years later on April 27, 1998, the International Terminal 3 was opened. Terminal 5 is operated by Aerocaribbean."

Additional Background

In June 2016, Moscow, Russian Federation-based AO Azimut signed an agreement with Republic of Cuba government-operated Aviaimport SA to provide equipment and training relating to the air traffic control systems throughout the Republic of Cuba.

TAV [Airports Holding] is operational at 70 airports in 17 countries thanks to its products and services. Having formed a joint venture with its French partner ADP and BBI, a large construction company that has completed major construction projects in Cuba, TAV and its partners have been exclusively invited to start negotiations for the extension and operation of two airports, which have been pursued for approximately a year. The negotiations on the renovation, expansion works and operation of Havana José Martí International Airport and expansion works of San Antonio de los Baños, which is located on the west side of the country, continue,” according to TAV Airports Holding President and CEO Sani Şener.

Companies from Spain are also engaged in discussions to renovate and operate airports in the Republic of Cuba, including equity offerings.

The Republic of Cuba primarily selects companies for contracts (import, export, provision of services, etc.) based upon the level of financial support provided directly or indirectly by the company- often with the companies having guarantees from their home governments; and as a result of bilateral debt resolutions (debt for equity, extended payment terms, discounted principal, discounted interest, etc.)

Jose Marti International Airport (HAV) in the city of Havana, Republic of Cuba, received 1,685,381 arrivals in 2015, representing an increase of 21% compared to 2014.  HAV received 48% of all arrivals in 2015, with passengers originating primarily from the countries of the United States, France, Italy, Mexico, Spain, the United Kingdom and Germany.

From September 2016, the number of flights into and out of HAV will increase by more than 200% and the number of passengers traveling through HAV will potentially (depending upon passengers on each flight) increase 300%.

The United States Department of Transportation (DOT) awarded eight (8) United States air carriers twenty US-HAV non-stop routes; United States air carriers sought US-HAV non-stop routes from twenty (20) airports; the DOT awarded routes from eleven (11) airports.  Which United States air carrier received the most of what it sought?

Alaska Airlines received 100% of its application
American Airlines received 40% of its application
Delta Air Lines received 75% of its application
Frontier Airlines received 50% of its application
JetBlue Airways received 50% of its application
Southwest Airlines received 66% of its application
Spirit Airlines received 100% of its application
United Airlines received 40% of its application

There are fifteen (15) aircraft seating configurations included in the daily non-stop US-HAV route applications (280, 200, 199, 186, 181, 180, 175, 162, 160, 154, 145, 144, 143, 126, 34).   

The average seat capacity of the aircraft to be used for daily flights (per the applications) is 164.60 (which is skewed lower due to the use of Saab 340B 34-seat aircraft by Silver Airways).

Thus, for the twenty (20) awarded routes, there will be 3,418 seats available per day; 23,899 seats available per week, and 1,242,748 seats available per year.

The Ministry of Tourism of the Republic of Cuba (MINTUR) reported a total of 3,524,779 visitors in 2015 compared to 3,002,745 tourist arrivals in 2014, representing an increase of 17%.

MINTUR reported that the Republic of Cuba has approximately 66,389 hotel rooms of which 11,309 hotel rooms are located in the city of Havana.  However, the majority of these hotel rooms are located at resort locations and are of one-star to three-star in quality.  The resort locations are off-limits to visitors from the United States due to United States law and United States regulation.

Early Results- US Food/Ag Exports To Cuba Increased 18% In June; Decreased 16% For First Half Of 2016

ECONOMIC EYE ON CUBA©
August 2016

June Food/Ag Exports Increased 18%
-16% For First 6 Months Compared To 2015
Healthcare Product Exports
Humanitarian Donations
U.S. Port Export Data
Updated Speaking Schedule

JUNE FOOD/AG EXPORTS INCREASED 18%- Exports of food products & agricultural products from the United States to the Republic of Cuba in June 2016 were US$11,283,520.00 compared to US$9,596,281.00 in June 2015. 

For the period January-June 2016 compared to January-June 2015, exports decreased by 16%.  

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The Miami Herald- Cuba denies it's negotiating with U.S. on compensation claims

The Miami Herald
Miami, Florida
5 August 2016

 

Cuba denies it's negotiating with U.S. on compensation claims

By Nora Gámez Torres

A Cuban government official has denied that a recent meeting with U.S. representatives to discuss mutual compensation claims amounts to a negotiation, raising doubts about Havana's willingness to settle the issue anytime soon.

A senior U.S. State Department official who recently briefed journalists on the compensation talks said the two sides held “very substantial discussions” despite the nine months between the first and second meetings.  But the Cuban government's public version of the talks was quite different.

Deputy Foreign Minister Abelardo Moreno told a news conference in Havana on Monday that “we are not negotiating yet. … We are now engaged in informational talks.” A transcript of the news conference was published by Cubadebate.

Moreno said the U.S. representatives “have stated the need to resolve the issue as quickly as possible, but … these are going to be extremely complex negotiations from all points of view … and we cannot rush things.”

Jason Poblete, a lawyer who specializes in Cuba claims with PobleteTamargo LLP in Washington D.C., said that although Moreno's statements are typical of negotiations, the discussions “are negotiations, because they're sitting at a table and talking about the issue,” he said, adding that Moreno’s statements point to a decision by Cuba to delay the process.

“These statements show they are not interested in finding a solution, that there is a tactic to delay,” Poblete said. He believes the Cuban government may be waiting to see if the U.S. president elected in November “will offer them something better.” The delays also would maintain the status quo until 2018, when Cuban ruler Raúl Castro has said he will surrender the presidency.

That could be a mistake, said John Kavulich, director of the US-Cuba Trade and Economic Council: “Cuba will never have a more compliant negotiating partner than it does in the Obama Administration, for whom [improved relations with Havana] … is a visceral component of a legacy construct,” he said.

Moreno's comments in fact could be “an indirect message that they are not interested in solving this issue. I am speculating, but perhaps they want to win the elimination of all sanctions before they pay” compensation, said Poblete.

The State Department official told journalists that the U.S. side seeks $1.9 billion in compensation for Cuba's seizure of properties owned by U.S. citizens in the early 1960s; $2.2 billion of judgments outstanding against Cuba; and a “hundred to a couple hundred millions of dollars” that relate to interests that the U.S. government had in mining on the island.

Cuba seeks nearly $300 billion as compensation for the economic and human damages caused by the U.S. trade embargo and other policies and activities against the Castro governments since 1959.

The State Department official said there is “nothing different in these negotiations from our experience negotiating claims with other countries,” and added that both sides “are committed to trying to resolve this in a mutually satisfactory manner.”

The Cuban official, however, has linked the payment of compensations to the U.S. embargo, which Havana calls a “blockade.”

“The solution to the issue of compensations … is obviously directly linked to the blockade. I believe that all of you understand that the normalization of relations between the two countries will be very difficult, if not impossible, while the blockade against Cuba remains in place,” Moreno declared.

U.S. negotiators have considered the possibility of signing a bilateral agreement with a one-time payment to resolve the issue. But Moreno, asked if the Cuban side would accept such a deal, said the island's claims are not negotiable.

“The claims of the Cuban people were approved by the courts, and claims are not negotiated,” he said. “I can't say, 'Cuba claimed X amount of money — which was approved by the courts — but now we're going to change it to another amount.' No. Those are judicial rulings that must be obeyed by our government officials.”

The two sides ended the second meeting, held in Washington, without agreement on the date for the next meeting. The first meeting, held in Havana, also ended without agreement on the date for the second.

Kavulich said the key challenge for the Cuban government is to recognize that there will be no specific monetary reparations from the U.S. side.

“The negotiators will need to ask whether the imagery of seeking what will not be given is more important for the 11.3 million citizens of the Republic of Cuba than removing a significant impediment to … immediate multilateral benefits,” he said.

Poblete agreed: “If the Cubans are interested in having the U.S. sanctions removed, they would pay the claims, which would help the groups in Washington that are pushing for the elimination of sanctions” on Havana, he said.

Kavulich also questioned whether the Obama Administration views the compensation issue as a priority.

“Two meetings in 599 days. No further meetings scheduled, and the Obama Administration ends in 175 days. And this is defined as a high priority of the Obama Administration. The certified claimants have been concerned, and now that concern is magnified,” he said.

“Claimants have not seen the effort they deserve,” Kavulich added. “A legacy is not built by focusing on the relatively easy issues, but on the difficult issues.”

If Hillary Clinton Wins In November, Who Might Cuba Appoint As Its Ambassador To Washington?

If The Honorable Hillary Rodham Clinton (D) is elected President of the United States on 8 November 2016, not unreasonable to expect that the government of the Republic of Cuba will appoint a woman to lead the Embassy of the Republic of Cuba located in Washington, DC.

Mrs. Josefina de la Caridad Vidal Ferreiro, the Director General (since 2013) of the Department of the United States at the Ministry of Foreign Affairs of the Republic of Cuba, and a member (since 2011) of the Central Committee of the Communist Party of the Republic of Cuba, would be a likely replacement for H.E. José Ramón Cabañas Rodríguez, who has served Ambassador of the Republic of Cuba to the United States since November 2012.

With the election of the first female as President of the United States, many countries will dramatically increase the number of women in their mid-level and senior-level diplomatic positions as a means to be better positioned to prominently engage with a Clinton Administration (where women will have prominence) and to more effectively engage with United States media- which will have a focus upon women in the workplace. 

Mrs. Vidal served as Director of the United States Department (2012-2013), Director of North America (2006-2013), Deputy Director of North America (2004-2006), Senior Specialist and Coordinator of the Group of Analysis on the United States (2003-2004 and 1997-1999).

From 1999 to 2003, Mrs. Vidal served as First Secretary at the Interests Section of Cuba in Washington, DC.; and from 1991 to 1997, as an analyst at the Embassy of the Republic of Cuba in Paris, France.  Before that, Mrs. Vidal was an Assistant Researcher in the Center of Studies of the United States at the University of Havana.

Mrs. Vidal has a Bachelor of International Relations from the International Relations State Institute of Moscow, Russia (then U.S.S.R.), where she had studied from 1979 to 1984.  Mrs. Vidal is proficient in English, French and Russian.  Born on 18 February 1961.