You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Healthcare: American MD Students in Havana<br />
The Magazine for Trade, Travel & Investment in Cuba<br />
<strong>January</strong> / February 2018<br />
GOOD TO<br />
BE BACK<br />
The story of Cuban returnees who have<br />
come home to start businesses<br />
FORECAST<br />
Cuba’s GDP starts to grow again<br />
ENERGY<br />
Creating power from biomass<br />
AGRICULTURE<br />
U.S. exports to Cuba on the rise<br />
EQUITIES<br />
Canada’s Cuba Ventures soars<br />
TOURISM<br />
Catering to US baby boomers<br />
Luis Mario Gell, photographer,<br />
publisher, videographer,<br />
studio founder, and database
Havana • Santa Clara • Camagüey • Holguín • Santiago de Cuba<br />
Departures from Miami, Tampa and Key West<br />
Offering superior air services with 100+ flights monthly. Havana Air and<br />
its highly experienced staff, offers extensive knowledge of Cuba travel,<br />
uniquely tailored for the discerning traveler.<br />
Havana Air is proud to be the largest provider of passenger traffic to Cuba.<br />
Operated by<br />
DIRECT ONLINE RESERVATIONS AVAILABLE AT:<br />
www.havanaair.com
Arkansas: Outfront on Cuba Trade<br />
Arkansas is leading the U.S. in economic and agricultural collaboration with Cuba. And because<br />
Arkansas is the nation’s number one producer of rice as well as a national leader in poultry, we’re<br />
a natural for sprinting to the front of the pack when it comes to food-source trade with Cuba.<br />
In Arkansas, we’re proud to help our neighbors to the south by sharing our resources and our<br />
expertise — which in the end will help both economies to grow and prosper.<br />
Arkansas’<br />
Business<br />
Climate is Like<br />
No Other.<br />
With a booming economy that includes<br />
six homegrown Fortune 500 companies<br />
and a growing number of global<br />
business success stories, there’s more<br />
to Arkansas than meets the eye. Visit<br />
ArkansasEDC.com to learn how your<br />
business can become part of the scenery.<br />
ArkansasEDC.com | 1-800-ARKANSAS
content 01-02/2018<br />
UP FRONT<br />
22 FORECAST<br />
Three different economic analyses<br />
project mild economic expansion in<br />
2018<br />
24 ECONOMY<br />
Hanoi-Havana ties are solid. So<br />
why isn’t Cuba replicating Vietnam’s<br />
economic success?<br />
LIFESTYLE<br />
12 PANORAMA<br />
Castro to stay in power past February:<br />
deals, events and transactions of note<br />
for trade and investment in Cuba<br />
59 FILM<br />
The new Netflix documentary, “Cuba<br />
and the Cameraman,” offers an intimate<br />
look at Cuba since 1972<br />
16 IDEAS + INNOVATION<br />
After a 12-year hiatus, Cuba imports<br />
its first shipment of Russia’s most<br />
popular cars<br />
18 INDEX<br />
As Venezuela-Cuba trade declines, so<br />
does Cuba’s bilateral trade with most<br />
of the Americas<br />
26 IMPORT/EXPORT<br />
An interview with Aurelio Mollineda<br />
Martinez, General Director,<br />
Gecomex<br />
28 AGRICULTURE<br />
As diplomatic relations weaken,<br />
agricultural trade strengthens<br />
32 EQUITIES<br />
Canadian small cap stock Cuba Ventures<br />
soars in value as it expands from<br />
travel to digital currency platforms<br />
60 ART<br />
Popular Cuban artist JEFF pours his<br />
art out in Miami during Art Basel<br />
62 BOOK REVIEW<br />
“Paladares: Recipes Inspired by the<br />
Private Restaurants of Cuba,” is a<br />
panorama of traditional and new<br />
recipes.<br />
DEPARTMENTS<br />
FINAL WORD<br />
20 INTERVIEW<br />
An Interview with Charles Baker,<br />
general manager of Mariel’s<br />
container port terminal<br />
34 ENERGY<br />
In Cuba’s push for renewable<br />
energy, sugar plays a vital role<br />
64 IN CLOSING<br />
Why U.S.- Cuba scientific snd environmental<br />
cooperation must - and will<br />
- continue<br />
4 CUBATRADE JANUARY/FEBRUARY 2018
Illustrations courtesy of the Office of the Governor<br />
features<br />
39 COVER STORY: THE RETURNEES<br />
In recent years, hundreds of young Cubans have<br />
returned from abroad to open businesses, building<br />
on skills and market knowledge they gained overseas<br />
46 GETTING YOUR MD FROM HAVANA<br />
More and more American students are signing up<br />
to get their medical degrees from Cuba’s free<br />
universities<br />
50 BRINGING BABYBOOMERS TO<br />
CUBA’S OUTDOORS<br />
How an American tour company traversed Cuba’s<br />
regulatory maze to bring older U.S. travelers to<br />
Cuba’s picturesque terrains<br />
39<br />
ON THE COVER<br />
After years of living in Italy, photographer, producer,<br />
and entrepreneur Luis Mario Gell returned home to<br />
Cuba. Photo by Francesco Meliciani.<br />
46<br />
Connecting Texas<br />
Businesses to the World<br />
EXPAND YOUR BUSINESS TO WORLDWIDE MARKETS<br />
The Trade and Business Development division of the Texas Department of Agriculture supports<br />
small and large businesses with programs to expand and diversify beyond the borders of Texas.<br />
We support businesses with many events and opportunities to meet with foreign wholesale<br />
and retail buyers, connecting your business to the world.<br />
Ask about our programs today.<br />
Email Export@TexasAgriculture.gov<br />
50<br />
6 CUBATRADE JANUARY/FEBRUARY 2018
editors note<br />
Don’t Leave<br />
a Vacuum<br />
When I wrote the first editorial for this publication, I declared<br />
that Cuba was perhaps the most interesting country in the world.<br />
Few other nations of its size have had the same international<br />
footprint, both today and in the 20th century.<br />
As we enter the new year, Cuba promises to be even more<br />
interesting. For the first time in almost 60 years, someone besides<br />
a Castro may become the president of the nation. That will prove<br />
to be a major test of the ideas of the Revolution, and how socialism<br />
will be defined moving forward.<br />
More than the political landscape, however, the economic<br />
landscape has the potential for big change. Cuba could create a<br />
more vibrant economy as its private sector continues to emerge.<br />
The challenge will be how to balance the benefits that Cubans<br />
enjoy in terms of universal healthcare and free education with the<br />
growing pains of market-oriented changes that will initially leave<br />
some behind as others become more affluent.<br />
For the United States, Cuba remains a nation of great strategic<br />
and financial importance. Not only can Cuba become a significant<br />
market, especially for agricultural goods, but it can also become<br />
the workshop and shipping center of the Americas. Cuba’s<br />
highly educated workforce, coupled with its competitive wages,<br />
creates a potential center for value-added manufacturing, such as<br />
software programming or the production of world-class pharmaceuticals.<br />
The emergence of the Port of Mariel as a transshipment<br />
point for post-Panamax vessels coming to and from Asia opens<br />
possible distribution alliances with Gulf and East Coast ports.<br />
But the U.S. has made a series of strategic Cuba blunders<br />
this past year. As numerous stories in this issue and on our<br />
website attest, our country has pulled back from rapprochement,<br />
making it harder to travel there and to do business there.<br />
This is a huge mistake, and it is creating a vacuum that will<br />
be happily filled by other countries, including Russia and China.<br />
RT, the Kremlin-backed television network, has already described<br />
Russia’s recently reinvigorated ties with the island as a “renaissance<br />
in relations as the U.S. cuts ties with Cuba.” And even<br />
though Chinese exports to Cuba fell substantially in 2017, the<br />
country is already supplying everything from TV sets and buses<br />
to bicycles and fiber optic installations.<br />
The irony here is that the U.S. pullback from Cuba is based<br />
on distrust of a government that resembles those of Russia and<br />
China – two countries we count as trade partners. Our refusal<br />
to end the embargo against Cuba without regime change is not<br />
only the height of hypocrisy but a fundamental policy error that<br />
violates the Trump administration’s goals of making America safer<br />
and more prosperous. Hopefully the new year will see clearer<br />
heads prevail. H<br />
J.P. Faber. Editor-in-Chief<br />
Publisher<br />
Richard Roffman<br />
Editor-in-Chief<br />
J.P.Faber<br />
CEO<br />
Todd W. Hoffman<br />
Director of Operations<br />
Monica Del Carpio-Raucci<br />
Art Director<br />
Jon Braeley<br />
Production Manager<br />
Toni Kirkland<br />
Managing Editor<br />
Julienne Gage<br />
Associate Editor<br />
Nick Swyter<br />
Senior Writer<br />
Doreen Hemlock<br />
Writers<br />
Vito Echevarría,<br />
Victoria Mckenzie<br />
William A. Messina, Jr.<br />
Photographers<br />
Gabrielle Jorgensen<br />
Francesco Meliciani<br />
Matias J. Ocner<br />
Yenny Muñoa<br />
Megan Fawn Schlow<br />
Vice President Sales<br />
Sherry Adams<br />
Manager, New Business Development<br />
Magguie Marina<br />
Aviation Consultant<br />
Lauren Stover<br />
Moore & Company, P.A.<br />
Maritime • Art • Aviation Law<br />
Cuba Trade Magazine (ISSN 2573-332X) is published each month by Third Circle<br />
Publishing, LLC, at 2 S. Biscayne Blvd., Suite 2450, Miami, FL USA 33131.<br />
Telephone: (786) 206.8254. Copyright 2017 by Third Circle Publishing LLC. All<br />
rights reserved. Reproduction in whole or part of any text, photograph or illustration<br />
without prior written permission from the publisher is strictly prohibited.<br />
8 CUBATRADE JANUARY/FEBRUARY 2018<br />
Postmaster: Send address changes to Third Circle Publishing, LLC, 2 S. Biscayne<br />
Blvd., Suite 2450, Miami, FL USA 33131. Subscription information domestic and<br />
foreign (786) 206.8254. Send general mailbox email and letters to the editor to info@<br />
cubatrademag.com. BPA International Membership applied for December 2016.<br />
Cubatrademagazine.com Thirdcirclepublishing.com<br />
www.moore-and-co.com
Tampa to Havana!<br />
We are proud to annouce new cruise itineraries including<br />
Havana, Cuba.<br />
beginning<br />
April 30, 2017!<br />
1101 Channelside drive, tampa, Florida 33602<br />
www.porttb.C om | 800-741-2297
panorama<br />
Deals, events<br />
and transactions<br />
of note for trade<br />
and investment<br />
in Cuba<br />
Castro: Too many pressing issues to exit just yet<br />
Castro to stay in power past February<br />
The Cuban parliament announced it will<br />
extend the National Assembly session<br />
until April 19, which means Raúl Castro<br />
will stay on as president for at least two<br />
more months than previously planned.<br />
State-controlled media reported that<br />
the decision was made because Hurricane<br />
Irma forced a postponement in the<br />
already-delayed electoral cycle that was<br />
scheduled to end with the selection of<br />
Castro’s successor on Feb. 24. First Vice<br />
President Miguel Diaz-Canel is widely<br />
considered to be the most likely successor<br />
to Castro.<br />
detentions is happening largely because<br />
the Obama administration ended the “wet<br />
foot, dry foot” policy that gave Cubans<br />
who arrived on U.S. soil without a visa a<br />
pathway to permanent residency.<br />
Castro calls on Cuba to unify dual<br />
currency system<br />
During remarks to the National Assembly,<br />
Raúl Castro once again called on Cuba<br />
to unify its two currencies. He said the<br />
dual-currency situation “cannot be delayed<br />
any longer” and will complicate the country’s<br />
external finances in 2018. Although<br />
it won’t resolve all of Cuba’s economic<br />
difficulties, Castro said it is the “most decisive<br />
process” to advance reforms that were<br />
initiated under his rule.<br />
iselle<br />
Cuba reports economic growth in 2017<br />
Minister of the Economy Ricardo<br />
Cabrisas told lawmakers that the country<br />
rebounded from a recession in 2017. He<br />
said Cuba’s GDP increased by 1.6 percent<br />
in 2017, which is significantly higher than<br />
what many economists projected. He attributed<br />
the growth to strong performance<br />
in the construction, tourism, transportation,<br />
and agriculture sectors.<br />
Cubans in the U.S. to be deported<br />
As of Dec. 9, there are more than 37,000<br />
Cubans in the U.S. with final deportation<br />
orders, according to U.S. Immigration and<br />
Customs Enforcement (ICE) figures. An<br />
agency spokesperson also said there are<br />
nearly 1,700 Cubans in detention centers.<br />
The increase in Cuban deportations and<br />
More regulations on the private sector<br />
Mariano Murilllo, head of the Cuban<br />
Communist Party’s reform commission,<br />
announced new restrictions on<br />
the country’s burgeoning private sector.<br />
He said private cooperatives can only<br />
operate in the provinces where they are<br />
located and that a member’s income can<br />
be no more than three times the income<br />
of the lowest-earning member, according<br />
to state-controlled media. Business<br />
licenses will also be limited to a single<br />
activity per entrepreneur, which prevents<br />
scenarios such as one person running<br />
a bed-and-breakfast and a restaurant.<br />
Murillo said the changes were made to<br />
“give order, and not limit, the non-state<br />
sector.”<br />
U.S. visas for Cubans plummet<br />
The U.S. is processing fewer visas to Cubans<br />
in the wake of the State Department<br />
withdrawing 60 percent of its Havana<br />
embassy staff in response to mysterious<br />
“attacks” that harmed U.S. diplomats. The<br />
U.S. processed 376 non-immigrant visas to<br />
Cubans in October, which is significantly<br />
lower than the nearly 2,000 that were<br />
issued in July and in August. Of those 376<br />
nonimmigrant visas, the Havana embassy<br />
@<br />
WED • MAY 23 • 8PM<br />
MORSANI HALL<br />
STRAZ CENTER<br />
PLAYING IT FORWARD SINCE 1987.<br />
800.955.1045 • STRAZCENTER.ORG<br />
Events, days, dates, times, performers and prices are subject to change without notice. Handling fees will apply.<br />
12 CUBATRADE JANUARY/FEBRUARY 2018
PANORAMA<br />
issued 93 of them. The U.S. only issued 16<br />
immigrant visas to Cubans in October, despite<br />
it issuing more than 800 each month<br />
for the past two years. Of the 16 Cubans<br />
who were issued immigrant visas, 11 traveled<br />
to Bogota, Colombia, for processing.<br />
Still dealing with storm damage<br />
More than 289,800 homes in Cuba still<br />
have unresolved damages from recent natural<br />
disasters, according to state-controlled<br />
media. Most of the homes were damaged<br />
by 2012’s Hurricane Sandy, 2016’s<br />
Hurricane Matthew, and 2017’s Hurricane<br />
Irma. Cuba’s director-general of housing<br />
told members of the National Assembly<br />
that the country aims to boost production<br />
of construction materials to resolve the<br />
damages. Castro said the country needs to<br />
“give greater impetus to the housing situation,”<br />
state-controlled media reported.<br />
Record tourist numbers<br />
Minister of Tourism Manuel Marrero<br />
Cruz told lawmakers that Cuba welcomed<br />
more than 4.3 million tourists through<br />
November, marking a 19.7 percent<br />
increase compared to the same period<br />
in 2016. Cuba saw a record number of<br />
tourists in 2017 despite Hurricane Irma,<br />
a U.S. State Department travel warning,<br />
and new sanctions issued by the Trump<br />
administration.<br />
Russian oil on the table<br />
Cuban President Raúl Castro met with<br />
Igor Sechin, president of Russia’s Rosneft<br />
oil company, on Dec. 16 in Havana. The<br />
two discussed oil supplies to Cuba, joint<br />
oil and gas projects, and the possibility of<br />
collaborating on an upgrade to a refinery<br />
in Cienfuegos, according to a Rosneft<br />
statement. In May, Rosneft shipped some<br />
oil to Cuba and announced a deal to<br />
supply 250,000 tonnes of oil and refined<br />
diesel fuel to the island, according to<br />
Reuters. The Rosneft shipment was the<br />
first major Russian oil delivery to Cuba<br />
since the early 1990s. Cuba is seeking<br />
more oil suppliers since Venezuelan subsidized<br />
shipments have fallen by at least 40<br />
percent since 2014.<br />
Cuba takes Venezuela’s stake in<br />
Cienfuegos refinery<br />
Venezuela’s PDVSA is no longer a partner<br />
with Cuba’s Cupet in a Cienfuegos oil refinery.<br />
“Since August 2017, the Cienfuegos<br />
oil refinery has operated as a completely<br />
Cuban state entity under the direction of<br />
Cupet,” state-controlled media reported<br />
on Dec. 14. Even though cheap oil<br />
deliveries from Venezuela to Cuba have<br />
plummeted due to the country’s economic<br />
crisis, it’s not clear why the partnership<br />
ended. A former Venezuelan government<br />
official said Cuba took PDVSA’s 49 percent<br />
stake in the refinery as payment for<br />
its debts, according to Reuters.<br />
A not-so-sweet exit<br />
Embattled Brazilian construction conglomerate<br />
Odebrecht suspended its<br />
operations at a Cienfuegos sugar mill.<br />
Odebrecht subsidiary Compañia de<br />
Obras e Infraestructura was operating the<br />
mill in conjunction with AZCUBA, the<br />
state-controlled sugar monopoly. An Odebrecht<br />
spokesperson told Martí Noticias<br />
that AZCUBA didn’t have the funds to<br />
execute a contract it signed three years ago.<br />
AZCUBA’s payment difficulties date back<br />
to February 2016, the spokesperson added.<br />
Fight for Havana flights<br />
American Airlines and JetBlue Airways<br />
are seeking additional flights to Havana.<br />
Both airlines submitted applications to<br />
the U.S. Department of Transportation<br />
requesting extra flights in September,<br />
but they amended their applications in<br />
December to request even more routes.<br />
American applied for seven additional<br />
weekly frequencies, on top of the 10 weekly<br />
frequencies it requested in September.<br />
JetBlue requested seven additional weekly<br />
frequencies to launch a Tampa-Havana<br />
route, on top of the 21 it requested in<br />
September. Delta recently announced it<br />
will end six of its weekly flights from New<br />
York’s JFK to Havana in February.<br />
Cuban entrepreneurship program<br />
canceled<br />
Florida International University announced<br />
it will cancel the 2018 edition of<br />
a summer program designed to support<br />
entrepreneurship in Cuba. FIU said<br />
InCubando@FIU will be suspended until<br />
the consular situation at the U.S. Embassy<br />
in Havana is normalized. The six-week<br />
program began in in 2016. It invited Cuban<br />
entrepreneurs to the university to take<br />
business and English courses.<br />
Bright ideas to improve energy<br />
efficiency<br />
The Cuban government intends to<br />
replace 13 million fluorescent lamps<br />
with LED lights over the next few years,<br />
Minister of Energy and Mines Alfredo<br />
Lopez told members of the National Assembly.<br />
Lopez also said the government<br />
will promote the use of electric stoves,<br />
bioelectric plants, solar water heaters, and<br />
solar panels to improve energy efficiency.<br />
He said increased foreign investment<br />
in renewables has helped the country<br />
achieve its energy goals.<br />
Tobacco export boost<br />
Exports from the Internacional Cubana<br />
de Tabacos SA (ICT) joint venture<br />
increased by 3.5 percent in 2017, representing<br />
a $21 million increase, according<br />
to company directors. The company<br />
produced more than 137.7 million<br />
machine-made cigars despite Hurricane<br />
Irma causing delays, said ICT chairman<br />
Ricardo Soler. ICT is a joint venture between<br />
Cuba’s TABACUBA and Imperial<br />
Tobacco Group of the U.K. Its products<br />
are sold in about 120 countries. H<br />
Departures from Miami, Tampa and Key West.<br />
Operated by<br />
Phone: 305-615-4151<br />
14 CUBATRADE JANUARY/FEBRUARY 2018
IDEAS + INNOVATION<br />
WE GROW TRADE ®<br />
After a 12-year hiatus, Cuba<br />
imports its first shipment of<br />
Russia’s most popular cars<br />
CELEBRATING 10 YEARS OF TAKING THE BEST OF ARKANSAS TO THE WORLD<br />
Words and Photos By Julienne Gage<br />
In Havana’s Vedado neighborhood, a crowd<br />
of Cuban mechanics with buckets of car parts<br />
work on a 2000 Lada that looks similar to<br />
a 1970s model, albeit less beat up. A failure<br />
with the window lever had them twisting<br />
metal wires through the door frame. “In this<br />
country, you come up with all kinds of inventions,”<br />
one muttered.<br />
Cuba’s most iconic cars may be Chevrolets<br />
from the 1950s, but the vehicles<br />
the Communist government has long<br />
used to transport government officials<br />
and reward hardworking employees is the<br />
Russian Lada.<br />
Cuba hasn’t imported the cars since<br />
2005, and the older models are relics that<br />
spew diesel, jump gears, and sometimes<br />
have holes worn into the metal floors. Still,<br />
they can cost anywhere from $15,000 to<br />
$30,000, a steal compared to the hundreds<br />
of thousands it costs for a new, imported car.<br />
Now, in an effort to get more cars<br />
on the road and lower the costs of public<br />
transportation, Cuba recently purchased<br />
300 new Lada Vestas and Lada Largas<br />
Cross vehicles from Russian automaker<br />
AtvoVAZ. The Ministry of Transportation<br />
said they’ll be used for a new state-run<br />
collective taxi program.<br />
Cuba aspires to create a more<br />
modern, affordable, and environmentally-friendly<br />
mass transit system, but that’s<br />
a long way off. Right now, new cars are<br />
a quick fix, said Cuba’s Vice Minister of<br />
Transportation Eduardo Rodriguez Dávila.<br />
But he insists the embargo still makes it<br />
nearly impossible to import cars from the<br />
Americas, especially considering Cuba’s<br />
limited financing options.<br />
“These vehicles are acquired through<br />
manufacturers who are willing to work<br />
with Cuba, manufacturers who are willing<br />
to create the conditions in Cuba for these<br />
vehicles to last,” he said, adding that Cuba<br />
welcomes the return of the Lada because<br />
its manufacturer is “willing to bet on the<br />
Cuban market again.”<br />
Having earned a college degree in<br />
mechanical engineering in Russia in 1991,<br />
Rodriguez Dávila is familiar with Ladas.<br />
He says they’ve endured because the parts<br />
didn’t change through the years, and with<br />
so many Ladas on the roads, parts were<br />
easy to find. The newer Ladas, however,<br />
will require specialized state mechanics.<br />
The classic Lada’s quirks are a point<br />
of shared humor for many Cubans, and<br />
almost every person has a Lada story.<br />
Recently, a Cuban visiting her family in<br />
Havana asked to drive the family’s 1980s<br />
Lada from the airport to her home.<br />
The mother protested, explaining that<br />
since the car skips second gear, she would<br />
experience a lot of lurching through the<br />
city – although the ride on the expressway<br />
leading into it would be smooth. From the<br />
passenger’s side, her sister joked “it’s really<br />
more of a race car.” H<br />
RICE<br />
TIMBER<br />
POULTRY<br />
SOY<br />
16 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
17
INDEX<br />
Commercial Squeeze<br />
As Venezuela-Cuba trade declines, so does<br />
Cuba’s bilateral trade with most of the Americas<br />
J A R D I N E S A G G R E S S O R I & I I L I V E A B O A R D S<br />
OFAC License Approved Under New 2017 Regulations<br />
Book a new, People-to-People Cuba Group<br />
Travel Program, Oceans For Youth Foundation<br />
reservation for Cuba travel in 2017 or 2018<br />
at the amazing rate of $3,999 p.p.!<br />
15,000<br />
Bilateral trade between Cuba and the Americas, 2011-2016<br />
Rest<br />
Seven & Nine-Night Cuba<br />
$3,999 Special<br />
12,000<br />
15,000<br />
USA<br />
Rest<br />
Millions of CUC<br />
9,000<br />
9,000<br />
6,000<br />
6,000<br />
3,000<br />
3,000<br />
0<br />
0<br />
2011 2012 2013 2014 2015 2016<br />
2011 2012 2013 2014 2015 2016<br />
Source: Anuario Estadistico 2016 - Sector Externo, Oficina Nacional de Estadísticas e Información<br />
Millions of CUC<br />
12,000<br />
Canada<br />
Mexico<br />
Brazil<br />
USA<br />
Canada<br />
Mexico<br />
Brazil<br />
Argentina<br />
Argentina<br />
Venezuela<br />
Venezuela<br />
Discover the magnificent beauty of a once forbidden paradise, Cuba! The Jardines<br />
Aggressor I & II liveaboards explore the Gardens of the Queen which produces<br />
big thrills with Caribbean Reef Sharks, Goliath Grouper, Silky Sharks and<br />
Tarpon. Cuba’s walls are buzzing below with delicate macro beauties<br />
like curious blennies, flamingo tongues and cleaner shrimp.<br />
Take advantage of this $3,999 p.p.<br />
Special now and escape to Cuba!<br />
By Nick Swyter<br />
Bilateral trade of goods between Cuba<br />
and countries in the Americas fell by<br />
about 57 percent from 2011 to 2016,<br />
according to Cuba’s National Office for<br />
Statistics and Information (ONEI). In<br />
2011, bilateral trade with the Americas<br />
topped 12 billion CUC (roughly the<br />
same value in U.S. dollars.) By 2016,<br />
Cuba’s bilateral trade with the Americas<br />
had fallen to about $5.1 billion CUC.<br />
Much, but not all, of the decline is<br />
due to plummeting oil deliveries from<br />
Venezuela. Bilateral trade fell by about<br />
18 CUBATRADE JANUARY/FEBRUARY 2018<br />
72 percent from 2011 to 2016, according<br />
to ONEI. The trade decline accelerated<br />
after global oil prices fell sharply<br />
in 2014. China replaced Venezuela as<br />
Cuba’s largest trading partner last year<br />
largely due to the reduced oil deliveries.<br />
Cuba has also seen a drop in bilateral<br />
trade with Brazil (30 percent), Canada<br />
(49 percent), and the United States<br />
(40 percent) since 2011, according to<br />
ONEI. Bilateral trade with Mexico has<br />
remained relatively steady since 2011,<br />
hovering at about 475 million CUC<br />
annually.<br />
One bright spot is trade between<br />
Argentina and Cuba, which increased<br />
by about 60 percent from 2011 to 2016.<br />
Bilateral trade was about 428 million<br />
CUC last year, up from about 167 million<br />
CUC in 2011.<br />
Cuba imports far more goods<br />
from countries in the Americas than<br />
it exports. Only about one-fourth of<br />
Cuba’s bilateral trade with countries in<br />
the Americas from 2011 to 2016 was<br />
exports, according to ONEI. H<br />
The People-to-People Cuba Group Travel Program, Oceans For Youth Foundation, includes lectures with<br />
Cuban scientists and marine experts about ocean conservation and cultural exchanges. Travelers will visit the<br />
Fortress of El Morro and Habana Vieja. During the week, biologists and Cuban specialists will host discussions<br />
and presentations on the marine environment, conservation, and the importance of this magnificent ecosystem.<br />
The Program is available for everyone from ten years of age and older including individual travelers, families,<br />
couples or groups. (Cuba’s legal diving age is 15).<br />
Jardines Aggressor I<br />
Cuba People-to-People Group Travel<br />
Program, Oceans For Youth Foundation<br />
www.oceansforyouth.com info@oceansforyouth.com<br />
1-855-568-4130 (toll free) +1-706-550-6658<br />
Jardines Aggressor II<br />
*$3,999 Special includes 7 nights on the Jardines Aggressor I and II Cuba People-to-People Group Travel Program, Oceans For Youth<br />
Foundation. Special does not include the hotel package on the 9-night Cuba Travel Program I. Applies to reservations for individuals<br />
and groups. Does not include Conservation Fee, Port Fee, Nitrox, Visa and Airfare. Travel must be completed by Dec 31, 2018.
INTERVIEW<br />
An Interview with Charles Baker,<br />
general manager of Mariel’s container port terminal<br />
Port executive Charles Baker has a high-profile job in Cuba, running the container port terminal<br />
TC Mariel inside the Mariel Special Economic Development Zone east of Havana. The<br />
three-year-old port, already key for Cuba’s imports and exports, aims to become a hub for containers<br />
transiting between Asia and the Americas, in particular for those passing through the<br />
Panama Canal.<br />
The son of a British port manager and 25-year veteran in ports, Baker came to Cuba in<br />
2012 when the nearly $1 billion Mariel port project was still under construction. He started<br />
with a staff of 24 and now oversees 525 people. Baker works for Singapore’s ports giant PSA,<br />
which operates 40 ports worldwide. Mariel is the only port that PSA runs without an equity<br />
stake. The port is owned by Cuba’s government.<br />
In late 2017, Cuba Trade spoke with Baker in Havana about the status of TC Mariel,<br />
expansion plans, and how operations differ from other countries – like the need to provide bus<br />
routes for staff to get back and forth to the terminal for three shifts a day. In other countries where<br />
workers have their own vehicles, port managers worry instead about providing enough parking,<br />
said Baker.<br />
By Doreen Hemlock<br />
Getting Ready for Asian Cargo: Charles Baker (left) talks about the container port at Mariel (above)<br />
CT: How does TC Mariel compare to other<br />
container terminals in modernity and<br />
volume?<br />
When we opened in <strong>January</strong> 2014, the<br />
terminal was one of the most modern in<br />
the Americas, with the same state-of-theart<br />
equipment we buy and use anywhere<br />
in the world. Last year [2016], we handled<br />
325,000 TEUs (20-foot-container equivalent<br />
units), and we’ll do about the same this<br />
year [2017]. We have installed capacity for<br />
800,000 TEUs, so there’s plenty of room<br />
for growth.<br />
CT: What kind of goods do you handle and<br />
from where?<br />
Today, we’re handling 90 percent of<br />
Cuba’s containerized cargo, with the rest<br />
going mainly through Santiago and Moa<br />
for those regions. Imports are everything<br />
from household goods to what you find at<br />
hotels and supplies for factories. About 40<br />
percent of imports come from Asia, and a<br />
lot from the Mediterranean, the east coast<br />
of Latin America and northern Europe.<br />
Exports are very low – maybe 20,000 to<br />
25,000 containers a year. They’re bagged<br />
charcoal made from the marabu plant,<br />
some coffee, honey, rum, tobacco, frozen<br />
seafood, and frozen fish. About 85 percent<br />
of containers head out empty.<br />
Compared to neighbors like Costa<br />
Rica and Dominican Republic, the volume<br />
of imported goods per capita may be as<br />
little as one-third, probably because of the<br />
low level of consumer goods.<br />
CT: How much of the container trade is<br />
linked to the nearby Mariel Special Economic<br />
Development Zone, where Cuba is<br />
offering tax breaks and other perks to lure<br />
factories and other businesses?<br />
It’s still not very high, as the Zone is<br />
young. For a huge development like the<br />
Mariel Zone, you have to build infrastructure<br />
and do a global marketing campaign.<br />
Once a project is landed, you have a<br />
construction period of six to 18 months<br />
before production begins. We’re starting<br />
to see production now. The link to the port<br />
is two-fold: Materials that go to the Zone<br />
to be made into finished products for the<br />
Cuban market, plus limited exports of<br />
goods sold to islands around us. We hope<br />
in the future there will be larger factories<br />
and the ability to sell into much larger<br />
markets like the United States.<br />
CT: Is Mariel ready to accept the biggest<br />
ships that can now cross the expanded<br />
Panama Canal and require deeper channels?<br />
Not yet. Dredging is underway to take<br />
the channel from 15.3 meters [50 feet]<br />
to about 16 meters [52 feet] next year<br />
and later to 18 meters [59 feet] probably<br />
in 2019. So, we will try to penetrate the<br />
transshipment market initially for non-<br />
U.S. markets in Central America and the<br />
Caribbean. Our competitors for transshipment<br />
in the region are Freeport in the<br />
Bahamas, Kingston in Jamaica, Caucedo<br />
in the Dominican Republic, and, further<br />
south, Panama.<br />
CT: The terminal plans to eventually reach 3<br />
million TEUs capacity. What is the timetable?<br />
There are no fixed dates. The plan is to<br />
kick off each expansion phase two to three<br />
years before you need it, because it’s not<br />
a quick project… We have 700 meters<br />
[almost 2,300 feet] of pier now. We’d<br />
probably go next to 950 to 1,000 meters<br />
[more than 3,100 feet], which would push<br />
us to about 1.1 million TEUs capacity.<br />
There’s no hurry to reach 3 million TEUs.<br />
Expansion really depends on three<br />
factors. First is Cuba’s national economy<br />
and growth in import-export volumes.<br />
Second is if we can penetrate the<br />
trans-shipment market, where we’re quite<br />
hindered because we’re not allowed by<br />
U.S. legislation to handle U.S. origin/destination<br />
transshipments. We’d like large<br />
vessels to dock in Mariel and rather than<br />
go to multiple U.S. ports, and load containers<br />
onto smaller ships for those U.S.<br />
ports. The same would happen in reverse<br />
for U.S. exports: Containers would be<br />
loaded onto small ships at U.S. ports and<br />
then loaded onto bigger ships in Mariel.<br />
We have a wonderful geographic location<br />
for that type of traffic, with a view to U.S.<br />
Gulf and South Atlantic seaboard ports.<br />
The third factor concerns the U.S.<br />
embargo itself. If U.S.-Cuba trade is loosened<br />
and banks become more liberated in<br />
financing Cuba, we would expect larger<br />
volumes and a review of expansion plans.<br />
CT: How does operating a port in Cuba<br />
differ from operating elsewhere?<br />
The level of enthusiasm, interest and commitment<br />
from the staff at all levels here has<br />
been incredible. They see this as a project of<br />
national importance and strategic interest,<br />
and they’ve thrown themselves into a steep<br />
learning curve. We’re running a very, very<br />
stable operation at levels of productivity<br />
and efficiency commensurate with competitors<br />
in the region and with our global<br />
standards as a company. There’s Cuban<br />
national pride involved, and we’re glad the<br />
staff are proud of what they are doing.<br />
CT: How does hiring work?<br />
All of our staff are hired through contracts<br />
with a [government] agency. For us, the<br />
agency is an aid. It receives thousands of<br />
CVs from applicants and then filters them<br />
down to the ones we’d be interested in,<br />
based on skills sets, prior experience, and<br />
the like. But you don’t necessarily have<br />
to take from those. If I see someone with<br />
a strong CV, I ask the agency to do the<br />
necessary background and medical checks<br />
so we can employ them.<br />
CT: What are the biggest challenges for<br />
operations?<br />
We had a challenge to get some needed<br />
supplies, but Cuba has reacted and given<br />
us the opportunity to import directly. We<br />
now have approvals to buy select goods we<br />
need – like tires, lubricants and spare parts<br />
– from approved suppliers, which cuts the<br />
cycle time to receive supplies.<br />
In logistics, we received two gantry<br />
cranes last year that let us increase capacity<br />
at the on-dock rail terminal. The Ministry<br />
of Transport is investing in rail stock and<br />
locomotives to move more containers by<br />
rail, which is environmentally friendly and<br />
more efficient to get goods to the provinces<br />
on this long, thin island. They’ve also<br />
brought in more trucks to move containers,<br />
and built or renovated warehousing to<br />
accommodate greater cargo demand.<br />
CT: If the embargo were lifted, what would<br />
it mean for the port and Cuba trade?<br />
Additional growth. But bear in mind Cuba<br />
has established long-term relations with<br />
European and Asian suppliers, who will<br />
defend their market share.<br />
Before the embargo, people tell me<br />
Cuba didn’t have many warehouses, because<br />
importers would buy from the United<br />
States, and goods would be shipped in<br />
overnight and direct to stores. If I look at<br />
trade between Great Britain and continental<br />
Europe, you have a plethora of ferries,<br />
a tunnel and even a train handling cargo<br />
back and forth. So, we may need to construct<br />
facilities to let trucks come across the<br />
Florida Straits and then drive off to where<br />
they are needed in Cuba. And obviously,<br />
the transit time for cargo into Cuba would<br />
20 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
21
FORECAST<br />
Can Cuba Sustain<br />
Economic<br />
Growth?<br />
Three different economic<br />
analyses project mild economic<br />
expansion in 2018<br />
Percentage<br />
5<br />
3.75<br />
2.5<br />
1.25<br />
0<br />
Cuba's GDP Growth, 2008-2017<br />
By Nick Swyter<br />
-1.25<br />
2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017*<br />
Source: World Bank<br />
*Cuban government figures<br />
Raúl Castro is set to leave the presidency<br />
in April, following the Cuban government’s<br />
announcement of a mild recovery<br />
out of a recession. It’s an unfortunate end<br />
to his rule, which started with grand aspirations<br />
to energize the economy.<br />
Plummeting oil deliveries from<br />
Venezuela, low global prices for key<br />
exports, natural disasters, and a negative<br />
business outlook from fractured U.S.-Cuba<br />
relations all contributed to the Cuban<br />
government reporting 1.6 percent GDP<br />
growth in 2017 and a 0.9 percent contraction<br />
in 2016.<br />
Those factors, among others, will<br />
likely continue to afflict the Cuban<br />
economy in 2018. But some economists<br />
foresee minor growth. The Economist<br />
Intelligence Unit, Moody’s Investor Services,<br />
and the United Nations’ Economic<br />
Commission for Latin America and the<br />
Caribbean (CEPAL) recently projected<br />
Cuba’s economic growth in 2018 to be<br />
1.3 percent, 1.1 percent, and 1 percent,<br />
respectively.<br />
The projections are promising for a<br />
country that many economists expected to<br />
end 2017 in a recession, though they still<br />
lag behind the 2.2 percent growth CEPAL<br />
projects for the economies of Latin Amer-<br />
ica and the Caribbean in 2018. It’s also too<br />
early to tell exactly how the Cuban economy<br />
will perform in the hands of somebody<br />
not named Castro – or under one of Raúl’s<br />
relatives who may take the helm.<br />
“On one hand, it creates more uncertainty<br />
and businesses hate uncertainty,”<br />
said Emily Morris, associate fellow of the<br />
University College of London’s Institute<br />
of the Americas. “On the other hand,<br />
some businesses might think that there<br />
might be more possibilities.”<br />
Cuba will continue to count on<br />
tourism for economic growth. The country<br />
welcomed a record 4.3 million visitors by<br />
November 2017, and it’s likely to post solid,<br />
albeit lower, numbers in the new year.<br />
“We do not believe [Cuba] will maintain<br />
its growth rate for 2018, given the<br />
already visible decrease in American tourism<br />
due to the diplomatic crisis generated<br />
by the ‘sonic attacks’ on U.S. diplomats,”<br />
said Emilio Morales, CEO of the Havana<br />
Consulting Group.<br />
The Trump administration’s new regulations<br />
on travel and business with Cuba is<br />
expected to reduce the flow of U.S. visitors,<br />
but it doesn’t shut the door completely.<br />
American leisure travelers can still visit<br />
the island with authorized tour groups<br />
and cruise ships. Cuba can also count on<br />
visitors from other countries. Canada, Germany,<br />
England, France, Italy, Spain, and<br />
Mexico regularly send more than 100,000<br />
tourists each to the island annually.<br />
Besides tourism, Cuba is counting<br />
on the agriculture sector to recover after<br />
sustaining damage from Irma.<br />
Cuba’s dependence on subsidized<br />
Venezuelan oil will continue to impede<br />
the country in 2018. Reduced deliveries of<br />
crude have not only lead to fuel rationing<br />
and blackouts, they have curtailed currency<br />
inflows from the re-export of unused fuel.<br />
The Cuban economy is also expected to<br />
feel the strain of low global prices for two of<br />
its most valuable export commodities: sugar<br />
and nickel. Sugar and tobacco output could<br />
also take a hit in 2018 due to hurricane<br />
destruction. Additionally, Morales projects<br />
reduced remittances from the U.S. because<br />
the Obama administration ended the “wet<br />
foot, dry foot” policy that gave Cubans who<br />
arrived on U.S. soil without a visa a pathway<br />
to permanent residency.<br />
“Under these scenarios, it is very difficult<br />
to foresee the Cuban economy having<br />
a positive performance in 2018,” Morales<br />
said. “The successor of Raúl Castro has a<br />
great challenge ahead.” H<br />
22 CUBATRADE JANUARY/FEBRUARY 2018
ECONOMY<br />
The<br />
Vietnam<br />
Scenario<br />
Hanoi-Havana ties are<br />
solid. So why isn’t Cuba<br />
replicating Vietnam’s<br />
economic success?<br />
By Nick Swyter<br />
Photo by: Yenny Muñoa/CubaMINREX<br />
How do we move food<br />
from Hastings to Havana?<br />
Break down barriers.<br />
Children wave flags to welcome former Vietnamese President Tran Dai Quang to a Havana school<br />
Vietnam has regularly been identified as a<br />
suitable economic model for Cuba to follow<br />
once it accelerates market-oriented reforms.<br />
The characterization makes sense,<br />
considering both countries have communist<br />
governments, limited natural resources,<br />
and fraught histories with the United<br />
States. Vietnam has experienced economic<br />
growth every year since it initiated socialist-oriented<br />
market reforms known as Doi<br />
Moi in 1986.<br />
The reforms established a resilient<br />
economy propelled by large state-owned<br />
enterprises partnering with global brands,<br />
a growing private sector, diversified<br />
exports, a solid tourism industry, and a<br />
suitable environment for manufacturing.<br />
Those economic accomplishments<br />
happened without Vietnam sacrificing its<br />
single-party rule.<br />
So why isn’t Cuba replicating the Doi<br />
Moi playbook?<br />
Geography and culture play important<br />
roles. It’s impossible for Cuba to<br />
replicate Vietnam’s economic strategy because<br />
the island has less land, people, and<br />
resources, said author and former Mexican<br />
Secretary of Foreign Affairs Jorge<br />
Castañeda. Vietnam also benefits from its<br />
industrial culture, he added.<br />
“In economic terms, [Vietnam] is a<br />
much bigger, more populated country with<br />
24 CUBATRADE JANUARY/FEBRUARY 2018<br />
different traditions,” Castañeda said. “The<br />
Cubans do not seem to be organized that<br />
way, and it’s a much smaller and poorer<br />
country.”<br />
Cuba’s ties to its neighbors also<br />
discourage it from adopting Vietnam-style<br />
reforms, said Enrique Pumar, chair of<br />
Santa Clara University’s sociology department.<br />
He said Cubans are likely to expect<br />
more from economic reforms than the<br />
Vietnamese because they compare themselves<br />
to Western European and North<br />
American societies, especially the exile<br />
community in Florida. Vietnam doesn’t<br />
compare itself that way, since its diaspora<br />
community lives further away and many of<br />
its neighbors are less prosperous.<br />
“[The Vietnamese] say, ‘We are doing<br />
ok’ when comparing themselves with<br />
Cambodia and Laos. Maybe even with<br />
some provinces in southern China,” Pumar<br />
said. “But the comparison for Cubans<br />
is very different because it has always been<br />
the United States and Europe, and not<br />
necessarily Latin America.”<br />
Castañeda added that Cuban-Americans<br />
have so far been reluctant to, and<br />
limited from, formally investing in Cuba.<br />
“That’s where a lot of the investment<br />
would come from, and it’s not coming,”<br />
Castañeda said.<br />
While Raúl Castro initiated economic<br />
reforms such as allowing some private<br />
sector activities and leasing government-owned<br />
land to farmers, transformative<br />
changes are unlikely to happen<br />
while his inner circle remains in power,<br />
Pumar said. He noted that Vietnam and<br />
China only made significant changes<br />
after revolutionary leaders Ho Chi Minh<br />
and Mao Zedong died. “If you compare<br />
post-communist societies, these societies<br />
do not make meaningful changes until the<br />
revolutionary leader and his inner circle<br />
are out of the picture,” Pumar said.<br />
Castañeda said whoever succeeds<br />
Raúl Castro in 2018 will probably come<br />
from his inner circle, making significant<br />
economic reforms unlikely.<br />
Even though Cuba hasn’t completely<br />
embraced Doi Moi, the Castro government<br />
has studied the economic model<br />
privately with Vietnam for years. Castañeda<br />
says the discussions haven’t improved<br />
the Cuban economy, but understanding<br />
Doi Moi helps the Cuban government<br />
make economic reforms without political<br />
reforms.<br />
“Maybe one of the reasons why they<br />
haven’t gone further – or they have backtracked<br />
rather systematically – is precisely<br />
because if they go too far they will lose control,”<br />
Castañeda said. “It’s what Fidel Castro<br />
always used to say about Gorbachev.” H<br />
Cargill is committed to helping the world thrive.<br />
© 2016 Cargill, Incorporated<br />
When America farmers are able to freely<br />
export their crops to other countries, it<br />
nourishes the people who need them<br />
most. Opening new markets for US<br />
agriculture boosts food production, spurs<br />
job creation and puts food on more tables<br />
across the globe. That’s why we champion<br />
open trade flows – to raise incomes for<br />
all and build local economies that thrive.<br />
Learn more at cargill.com/food-security.
IMPORT/EXPORT<br />
An interview with<br />
Aurelio Mollineda<br />
Martinez, General<br />
Director, Gecomex<br />
Gecomex (Grupo Empresarial del Comercio Exterior) is the<br />
state corporation responsible for all imports and exports outside<br />
of energy, mining and military needs. It represents some<br />
18 state companies including, most importantly, Alimport,<br />
the entity that imports $2 billion in food annually. Cuba<br />
Trade spoke with Gecomex General Director Mollineda<br />
about the state’s priorities and processes for importing and<br />
exporrting goods to and from Cuba.<br />
By JP Faber<br />
Photos by Jon Braeley<br />
CT: What is the function of Gecomex?<br />
Gecomex is a holding company, a structure<br />
that was created as part of the updating<br />
of the Cuban economic model. The<br />
companies that are part of these holdings<br />
used to belong to other ministries. Within<br />
this structure there are 18 companies…<br />
All are involved in foreign trade and play<br />
an important role within Cuban economy.<br />
We are in charge of importing goods for<br />
[various] sectors of the economy and we<br />
are in charge of distributing the supply of<br />
raw materials and intermediate goods to<br />
anyone who may need it.<br />
CT: What are examples of the companies<br />
that make up Gecomex?<br />
We have a company within our structure<br />
named Quimimport that is in charge of<br />
importing fertilizers and pesticides.... We<br />
have another company in charge of<br />
importing metals, and one for agriculture<br />
machinery, with all the implements, all the<br />
tools… We are also in charge of the export<br />
of cane sugar.<br />
CT: What other things does Gecomex<br />
export?<br />
Honey, charcoal, coffee, cocoa, and sometimes<br />
live animals... We are responsible for<br />
about 36 percent of the imports of Cuba and<br />
about 18 percent of the exports of Cuba.<br />
CT: So, if I am a foreign company, what is<br />
the process by which I make an application<br />
for bringing products into Cuba?<br />
Gecomex works with the selection of its<br />
suppliers in the same way as any other<br />
company worldwide. Internally we don’t<br />
have restrictions for the origin of a product.<br />
It’s only determined by what a given<br />
[Cuban] company wants, and which<br />
[foreign firm] wants to do business with<br />
us. There is no law in Cuba stating that<br />
there is a ban on doing business with<br />
any company in the world. We follow a<br />
normal compliance process. We get to<br />
know each other, so we can know that<br />
this company can provide the product.<br />
We always ask for a bank statement and<br />
get to know the financial situation of a<br />
company. This is a simple process, by<br />
which we can include a company in our<br />
portfolio of suppliers or sellers – although<br />
today I can’t include much in our<br />
portfolio in terms of U.S. suppliers. But<br />
that’s not because of me.<br />
CT: Now, in the other direction, if I am a Cuban<br />
farmer and want to export my mangoes<br />
to the United States, do I need permission<br />
first from Alimport?<br />
In the case of such products, there are<br />
[Cuban] companies that specialize in this<br />
matter. For example, we have Cuba Azucar,<br />
which oversees the export of sugar, and<br />
molasses, which is derived from sugar…<br />
Generally, all products made by farmers<br />
need to go through a process, and almost<br />
all these processes are undertaken in state<br />
owned plants. So, it’s important for you<br />
to know that farming in Cuba is the state.<br />
At the level of private farmers or individual<br />
farmers, they don’t have the necessary<br />
means to produce a product with the quality<br />
to be exported… For example, honey<br />
is collected from all honey croppers and<br />
taken to a processing center. And generally,<br />
all the honey that is exported is validated in<br />
foreign labs. And therefore, we can guarantee<br />
that this product won’t be rejected.<br />
CT: We think there are enormous opportunities<br />
for products from Cuba to enter<br />
the U.S. and while most are prohibited, in<br />
certain cases they’re not … for example<br />
charcoal... So why aren’t more Cuban<br />
products coming to the United States?<br />
It’s because we need authorized requesters<br />
from the United States. I believe this is<br />
no mystery at all for DOC or OFAC. I<br />
have personally explained to them how<br />
complicated it is for a U.S. company to get<br />
a license to do business with Cuba. Unfor-<br />
tunately, this is not part of my competence<br />
because otherwise I would have to hire 10<br />
different law firms for an explanation on<br />
how to get a license... [as for exports to the<br />
U.S.] they want an organic product that<br />
is only produced by a private farmer and<br />
doesn’t go through the hands of any other<br />
state company and that’s very complicated.<br />
I think that they [U.S. buyers] are missing<br />
a great opportunity.<br />
CT: What about other, non-U.S. markets?<br />
We’re in charge of exporting coffee, honey,<br />
organic molasses, cocoa, charcoal, and<br />
that’s basically what we export to Europe<br />
and Asia and Canada. Canada and Europe<br />
are high-end consumers of honey and they<br />
have extensively recognized the quality of<br />
our honey. The coffee that we’re able to<br />
export, whether coffee beans or processed<br />
coffee – the Asian countries buy it up.<br />
They want it all.<br />
CT: Does the U.S. blockade and the difficulties<br />
it creates, especially in banking, make<br />
it more difficult in dealing with the rest of<br />
the world?<br />
So much so that it made me get a master’s<br />
degree in international finance. It’s no<br />
secret to anyone the extraterritorial nature<br />
of the blockade, and that the fines to financial<br />
institutions have made it very hard<br />
to get payments and to make payments.<br />
CT: Tourism is on the rise in Cuba and I<br />
assume this means you will need different<br />
inputs to satisfy the demands of tourists.<br />
How has this affected your planning, and<br />
have you made changes to accommodate<br />
what tourists want?<br />
As a structure, we have been willing to<br />
grow to satisfy the demands that increased<br />
tourism puts on the development of other<br />
sectors of the Cuban economy… there are<br />
many products I import that go into a production<br />
chain that ultimately goes to the<br />
tourism sector. In the short term, because<br />
the demand for packaging increases, I have<br />
to import more plastic resin... A long-term<br />
example would be [tourist demand for]<br />
potatoes. To have more potatoes in Cuba,<br />
more potato seeds must be imported…<br />
Agriculture has increased its production<br />
and many of the products are destined<br />
for the tourism sector, so this means that<br />
I must increase the imports of inputs,<br />
whether it’s fertilizers or machinery…<br />
CT: One thing said by U.S. economists is<br />
that Cuba needs wholesale markets where<br />
individual businesses can buy at a lower<br />
price. Why isn’t there a better wholesale<br />
market for small businesses?<br />
We have limitations when it comes to a<br />
normal flow of goods. We must buy from<br />
many places and at times, far-away places.<br />
We are lacking funds, and where we<br />
could get better financing conditions. The<br />
blockade has affected us – not only in our<br />
trading relations with the United States<br />
but in our relations with many other<br />
suppliers… To create the conditions for a<br />
true wholesale market in Cuba relies a lot<br />
on imports because this must be an open<br />
market… When I’m able to buy 100 thousand<br />
tons at a time, then I can guarantee a<br />
good price in the wholesale markets.<br />
CT: Relatively speaking, how important is<br />
the U.S. market in both directions, and how<br />
important is that relative to the rest of the<br />
world?<br />
The U.S. market has many advantages for<br />
us. It’s very close, they have the technology<br />
and high volumes of production which allow<br />
for good prices. But no country relies<br />
on only one market. We will always share<br />
our goods and purchases. Meaning that we<br />
must approach things normally, not in the<br />
way they are today. Under normal conditions<br />
you find a product, you have a tender<br />
process and then you choose to make the<br />
business [deal]. Since U.S. producers are<br />
outside of these normal conditions, they<br />
are limited [as sources]. H<br />
26 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
27
AGRICULTURE<br />
An Uptick in Food Sales<br />
As Diplomatic Relations Weaken,<br />
Agricultural Trade Strengthens<br />
Following up on views he expressed<br />
during the 2016 Presidential campaign,<br />
last June, U.S. President Donald Trump<br />
came to Miami to announce with much<br />
fanfare that the U.S. regulations affecting<br />
U.S. travel and business interactions with<br />
Cuba would be tightened. The implementing<br />
regulations for these changes<br />
went into effect in November.<br />
Beyond that came the more serious<br />
blow to relations resulting from the<br />
“auditory incidents” affecting U.S. diplomatic<br />
personnel posted at its Embassy<br />
in Havana, first reported in late 2016. In<br />
response, the U.S. government in September<br />
removed all but essential personnel<br />
from the U.S. Embassy out of concern for<br />
By William A. Messina, Jr.<br />
their wellbeing. This was soon followed<br />
by the U.S. government announcement<br />
that 15 Cuban diplomats from the Cuban<br />
Embassy in Washington, DC were being<br />
expelled to “ensure equity in our respective<br />
diplomatic operations.”<br />
Despite the diplomatic fallout, it is<br />
interesting to note that Cuban purchases<br />
of U.S. food and agricultural products have<br />
actually increased in 2017. This continues<br />
a trend that began in 2016 (see charts).<br />
Somewhat counterintuitively, during<br />
the renewal of formal diplomatic relations<br />
between the United States and<br />
Cuba that took place in 2015, Cuban<br />
purchases of U.S. food and agricultural<br />
product actually declined nearly 50 percent<br />
that year, from $286 million in 2014<br />
to less than $149 million in 2015. This<br />
was a continuation of the declining trend<br />
taking place since 2008, when U.S. food<br />
sales to Cuba peaked at $700 million. The<br />
value of U.S. sales to Cuba in 2015 was<br />
the lowest level in 14 years and was only<br />
slightly higher than the total value of<br />
sales in 2002, which was just the second<br />
year of sales to Cuba under the Trade<br />
Sanctions and Export Enhancement Act<br />
(TSRA) of 2000.<br />
Cuban agricultural and food purchases<br />
from the United States then recovered<br />
in 2016, increasing more than 47 percent<br />
to nearly $219 million. In addition to this<br />
notable increase in purchases, another<br />
KANSAS<br />
W HE A T<br />
®<br />
28 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
29
AGRICULTURE<br />
Composition of U.S. Food and Agricultural Exports to Cuba: 2000 to 2016<br />
700<br />
Millions US$<br />
525<br />
350<br />
175<br />
Millions US$<br />
Composition of U.S. Food and Agricultural<br />
Exports to Cuba: Jan-Sept 2016 and 2017<br />
225<br />
150<br />
75<br />
10 commodities contribute<br />
$10 bilIion to Louisiana’s economy.<br />
Imagine what it could do for Cuba.<br />
0<br />
2002<br />
0<br />
2004 2006 2008 2010 2012 2014 2016 Jan-Sept 2016 Jan-Sept 2017<br />
Source: USDA, GATS database<br />
Source: USDA, GATS database<br />
U.S. Food and Agricultural Exports to Cuba: 2000 to 2016<br />
800<br />
Bulk<br />
Intermediate<br />
Consumer Oriented<br />
Millions US$<br />
600<br />
400<br />
200<br />
U.S. Food and<br />
Agricultural Exports<br />
MARINE FISHERIES FORESTRY RICE POULTRY SOYBEANS<br />
0<br />
2002<br />
2004 2006 2008 2010 2012 2014 2016<br />
Source: USDA, GATS database<br />
important observation is that the composition<br />
of Cuba’s purchases from the<br />
United States began to change in 2016,<br />
with a sizeable increase in the value of<br />
bulk commodity sales to Cuba (Figure 2).<br />
This was a welcome development for bulk<br />
agricultural shippers in the United States,<br />
whose sales had risen steeply from almost<br />
nothing in 2001 to over $400 million<br />
in 2008, only to collapse to a mere $15<br />
million in 2015.<br />
In 2017, Cuban purchases of U.S.<br />
food and agricultural products have<br />
continued to increase. Through the first<br />
nine months, U.S. sales to Cuba were 28<br />
percent higher than they were during the<br />
same period in 2016. And the trend of increased<br />
sales of bulk commodities continued<br />
in 2017, with sales of consumer-oriented<br />
products also on the rise (Figure<br />
3). Conversely, U.S. sales of intermediate<br />
commodities – those used to produce other<br />
goods – declined significantly, continuing<br />
a trend that started in 2013.<br />
Growth in consumer-oriented product<br />
30 CUBATRADE JANUARY/FEBRUARY 2018<br />
sales to Cuba is made up almost entirely of<br />
sales of poultry meat. In fact, poultry meat<br />
has been the largest product category of<br />
sales to Cuba every year since 2009 except<br />
one (2011, when the value of corn sales to<br />
Cuba exceeded that of poultry meat). Since<br />
2014, poultry meat has made up more than<br />
half of the total value of U.S. food and<br />
agricultural product sales to Cuba.<br />
While all of those product sales are<br />
showing trends welcomed by U.S. agricultural<br />
exporters, Cuba is importing<br />
close to $2 billion per year of food, so<br />
the United States only holds a 10 to 15<br />
percent market share. This stands in stark<br />
contrast to 2004, when the United States<br />
held about 40 percent share of Cuba’s total<br />
food imports.<br />
Today’s decline is partly attributable<br />
to a tightening of the terms of TSRA,<br />
which stipulated that Cuba pay cash for<br />
its purchases from the United States. This<br />
already put U.S. sellers at a competitive<br />
disadvantage over suppliers from other<br />
countries who could offer credit (indeed,<br />
some countries have been offering Cuba<br />
terms of 12 or even 24 months for their<br />
food purchases.) Under the George W.<br />
Bush administration, those terms were<br />
made more stringent, requiring advance<br />
payment through non-U.S. banks.<br />
In the face of such challenges, it<br />
is difficult for U.S. farmers to compete,<br />
particularly given Cuba’s cash-strapped<br />
economic situation. Nevertheless, the fact<br />
that Cuba continues to purchase from<br />
U.S. suppliers is an encouraging sign. Also,<br />
Cuba is preparing to export more charcoal<br />
and coffee to the United States – two<br />
commodities that can legally be shipped<br />
from “independent” producers in Cuba.<br />
Together, these trends could indicate that<br />
food trade might, perhaps, foster continued<br />
and strengthening relationships<br />
between entities in the United States and<br />
Cuba, even as U.S.-Cuban diplomatic<br />
relations unravel. H<br />
Willam A. Messina, Jr. is an agriculture<br />
economist at the University of Florida<br />
COTTON AQUACULTURE BEEF CATTLE FEED GRAIN HORSES<br />
Louisiana –The Trade Gateway to Cuba<br />
866.927.2476 • ldaf.state.la.us
EQUITIES<br />
A Canadian Venture<br />
Canadian Small Cap Stock<br />
Cuba Ventures Soars in Value<br />
as it expands from Travel to<br />
digital currency platforms<br />
By Vito Echevarría<br />
Cuba-centric stocks in the international<br />
markets are far and few. But those who<br />
track trading activity on the Toronto Venture<br />
Exchange are likely to have noticed<br />
a security called Cuba Ventures Corp.<br />
(TSX:CUV), which hit a high of CDN<br />
43 cents/share the week before Christmas.<br />
Since Cuba Ventures’ stock was trading for<br />
as little as CDN 2 cents/share last August,<br />
that represents an astonishing 2,050 percent<br />
increase in value.<br />
The stock was born in early 2016,<br />
when a small group of Canadian investors<br />
– whose Vancouver-based company MPH<br />
Ventures Corp. was previously involved in<br />
the mining sector –decided to make the<br />
unusual move of shifting its business to<br />
Cuban tourism. The decision was predicated<br />
on renewed international interest<br />
in that country, due to improved relations<br />
between Havana and Washington under<br />
President Obama. The result was MPH’s<br />
purchase of Spain-based Travelucion S.L.,<br />
which changed its name to Cuba Ventures<br />
Corp. Travelucion’s former owner, British<br />
national Steve Marshall, was appointed<br />
CEO, and Cuba Ventures became a publicly-traded<br />
company on the Toronto Venture<br />
Exchange (TSX:CUV) with a market<br />
capitalization of just over $5 million.<br />
While it included a trade consulting<br />
arm (aimed at prospective investors<br />
interested in pursuing projects in Cuba),<br />
Cuba Ventures main business was an<br />
online travel platform that Marshall had<br />
been building since he first got involved<br />
in that country’s tourism sector some 20<br />
years earlier. The digital assets Marshall<br />
had developed under the Travelucion<br />
name now consist of 432 Cuba-themed<br />
websites that steer traffic to its booking<br />
and e-commerce sites.<br />
Cuba Ventures’ launch in 2016 came<br />
at a time when the Obama administration<br />
had loosened travel restrictions to the<br />
point where ordinary Americans could<br />
visit the country on an individual basis.<br />
This enabled them to book their own<br />
lodging and flights online, an inexpensive<br />
alternative to group travel packages.<br />
The potential mushrooming in American<br />
travel bookings to Cuba was accelerated<br />
when Obama permitted major U.S. air<br />
carriers to conduct commercial flights to<br />
the island for the first time since the Revolution,<br />
along with American cruise ship<br />
voyages from South Florida to Havana.<br />
Still, few investors knew about Cuba<br />
Ventures at the time. Marshall changed<br />
that with a successful brand-building campaign,<br />
touting the firm’s Cuba expertise<br />
on global news networks like Al Jazeera,<br />
BNN (Toronto), CNN, RT (Russian Television),<br />
and Chinese Television (CGTN),<br />
while promoting Travelucion websites to<br />
prospective travelers in various U.S. media<br />
markets. That campaign contributed to<br />
Cuba Ventures’ record breaking gross sales<br />
revenues of CDN $1.6 million in the<br />
period from December 1, 2016 to February<br />
28, 2017, with a gross profit margins of 26<br />
percent. Today, Americans browsing Cuba<br />
Ventures’ travel websites now represent<br />
36.8 percent of the approximately 37 million<br />
annual page views for Cuba travel, up<br />
from just 6 percent in 2014.<br />
In the wake of the firm’s media<br />
campaign and growing travel bookings,<br />
its stock price reached a high of CDN 9<br />
cents/share in April 2016 while Obama<br />
was still in office and then plummeted to<br />
CDN 4 cents/share in December 2016,<br />
just after Trump – who declared his intent<br />
to roll back Obama’s Cuba trade and<br />
travel policies – was elected president.<br />
Cuba Ventures’ stock price dipped further,<br />
to CDN 3 cents/share in June 2017, when<br />
Trump formally announced his more<br />
restrictive Cuba travel & trade policies.<br />
While Trump left Havana-bound<br />
U.S. cruise ships alone, his new Cuba<br />
policy curbed “people to people” individual<br />
U.S. travel to Cuba, limiting ordinary<br />
visitors to more expensive group tours<br />
or to conducting “support for the Cuban<br />
people” activities. To remain relevant<br />
among Cuba-bound American visitors, in<br />
July Cuba Ventures acquired a 19 percent<br />
stake in a Florida-based travel agency that<br />
provides Trump-compliant U.S. group<br />
packages to the island.<br />
With U.S. tourism prospects dampened<br />
for the moment, Cuba Ventures has<br />
moved into other Cuba related business<br />
sectors. In August, the firm signed a LOI<br />
with Dubai-based investor group Al-Fahim<br />
Technologies Group. That deal is set<br />
to create a Cuba Financing system called<br />
CUBAFIN, making available 40 million<br />
Euros for short- and medium-term loans<br />
for active and planned investments in<br />
Cuba. That development would be significant<br />
to Cuba-centric foreign investors,<br />
since Washington’s Treasury Dept. continues<br />
to penalize foreign banks for doing<br />
business with Havana, using the embargo<br />
to deprive the island of credit.<br />
News of that deal likely impacted<br />
Cuba Ventures’ stock price, which spiked<br />
to CDN 8 cents/share that same month,<br />
before dropping to CDN 6 cents/share by<br />
early September 2017.<br />
By November Cuba Ventures’ stock<br />
was up again, this time to a record CDN<br />
16 cents/share, following the official release<br />
of Trump’s new Cuba regulations, which<br />
proved less severe than anticipated. But it<br />
was a deal announced at the end of that<br />
month which sent the stock price skyrocketing:<br />
In partnership with Spain-based<br />
Vesilen Investments, Cuba Ventures announced<br />
it would develop a digital mobile<br />
application called Revolupay® to target<br />
Cuba’s US$ 3.4 billion remittance market<br />
and its US$750 million private sector. Connected<br />
with that structure: Cuba Ventures’<br />
proprietary cryptocurrency ₡CU Coin,<br />
intended for use in the multibillion tourism<br />
markets of the Caribbean and Cuba.<br />
So far that news has been a<br />
game-changer for Cuba Ventures. Since late<br />
November, the firm’s stock rose to unprecedented<br />
levels, reaching CDN 43 cents just<br />
days before Christmas. Some analysts speculated<br />
that the news of its own cryptocurrency<br />
drove investor interest in Cuba Ventures<br />
at a time when the stratospheric rise of<br />
Bitcoin’s value made world news. Others say<br />
that Cuba Ventures’ plan to disrupt Western<br />
Union’s domination of the Cuba remittance<br />
market (which could carry into other international<br />
remittance destinations) was the<br />
decisive factor. “The cryptocurrency aspect I<br />
don’t believe is important,” said one veteran<br />
Morgan trader, who spoke on background.<br />
“However, the challenge to Western Union’s<br />
pay system dominance could be something.<br />
If that got up and running and proved to<br />
be useful, then I think that would turn the<br />
earnings of the stock.”<br />
Revolupay is scheduled to officially<br />
launch in February 2018 for Cuba; if<br />
successful it could be replicated in larger<br />
Latin remittance markets, like nearby<br />
Dominican Republic (which receives<br />
US$5.5 billion in remittances a year) and<br />
Mexico (which receives US$30 billion in<br />
remittances a year).<br />
Ultimately, what could further the<br />
growth of Cuba Ventures’ stock value is<br />
the same thing that could improve all<br />
aspects of foreign investment and travel to<br />
the island: An improvement in U.S.-Cuba<br />
relations. In an interview with BNN,<br />
Marshall asserted that political transition<br />
in Havana – now set for April with Raul<br />
Castro stepping down – will give the<br />
Trump administration an incentive to “cut<br />
a better deal” with that country to reignite<br />
U.S.-Cuban trade. If such developments<br />
occur, they could take Cuba Ventures and<br />
other Cuba-centric investments to a whole<br />
new level. H<br />
32 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
33
ENERGY<br />
Sweet Power<br />
In Cuba’s push for renewable<br />
energy, sugar plays a vital role<br />
132<br />
YEARS OF<br />
HISTORIC<br />
CULTURE<br />
For most of the last two centuries, sugar has been a core part of the Cuban<br />
economy—even to its detriment, as the island’s leading export depended on the<br />
vicissitudes of world demand. It is not without irony then that, in its attempts<br />
to create energy from cutting-edge renewable sources, that Cuba aims to produce<br />
14 percent of its electricity from sugar waste and other biomass by 2030 – more<br />
than the share it expects from all other renewable sources combined.<br />
State sugar group Azcuba leads the drive to produce renewable energy<br />
from biomass. Cuba Trade spoke in Havana with engineer Barbara Hernandez,<br />
who heads up electricity generation for Azcuba. She’s focused her<br />
career on energy and worked with the government’s sugar entity, formerly<br />
the Sugar Ministry, since 1998. The interview, translated from Spanish,<br />
has been edited for space and clarity.<br />
Photos by Jon Braeley<br />
By Doreen Hemlock<br />
CT: What is the current status of Cuba’s<br />
electricity production from sugar<br />
waste and biomass?<br />
Cuba now produces 4.7 percent of its electricity<br />
from renewable sources, and sugar<br />
waste generates most of that: 3.7 percent<br />
of all the country’s electricity. The sugar<br />
energy comes from burning the bagasse<br />
waste left after milling the cane and a bit<br />
from the chaff picked up in the harvest.<br />
All of Azcuba’s 56 mills can generate<br />
electricity from sugar waste. We’re now<br />
getting about 37 kilowatt hours of electricity<br />
for every ton of cane milled. We use<br />
about 85 percent of that electricity for factory<br />
operations and provide the remaining<br />
15 percent to the national grid.<br />
Depending on the size of the harvest,<br />
we’re now generating between 700 and<br />
800 gigawatt hours of electricity a year.<br />
We’ve been increasing energy efficiency<br />
at the mills in the past five years or so, in<br />
some cases by installing new boilers. So,<br />
Azcuba’s electric output rose from 439<br />
gigawatt hours in 2011.<br />
CT: Have the mills always sold excess<br />
electricity to the grid?<br />
Sales began after the reorganization of<br />
the sugar industry in Cuba. The 1990s<br />
were a tumultuous time for the industry<br />
worldwide. Prices dropped as low as 4.5<br />
cents per pound, and companies merged,<br />
mills shut. We closed 100 of our 156<br />
sugar mills and moved some of the more<br />
modern equipment to those that stayed<br />
open. The reorganization helped make our<br />
industry more energy-efficient. With the<br />
2000 harvest, we became self-sufficient in<br />
electricity, and in 2002, we began selling<br />
the excess to the grid.<br />
CT: What’s the plan to get to 14 percent<br />
of Cuba’s electricity produced<br />
from sugar waste and biomass?<br />
The plan is to install 25 high-efficiency,<br />
co-generation plants in select sugar mills<br />
and to increase energy efficiency at all<br />
the mills. The new co-generation plants<br />
[with a combined 872MW capacity] are<br />
forecast to produce electricity year-round,<br />
both from stored bagasse and other<br />
biomass.<br />
Initially, the new plants will burn<br />
sugar waste and marabu, the invasive<br />
plant that has taken over much of Cuba’s<br />
farmland. Longer term, there are plans<br />
through the Agriculture Ministry to grow<br />
bio-forests of eucalyptus and other plants<br />
to use as biomass.<br />
Today, most of Azcuba’s electric generating<br />
units have a capacity to generate<br />
2MW or less. The new co-generation<br />
plants will be larger, with capacities of 50<br />
MW or even 62MW in the case of the<br />
Ciro Redondo mill in central Cuba. The<br />
joint venture Biopower with the UK’s Havana<br />
Energy has already started construction<br />
at the Ciro Redondo plant, which<br />
should come online by early 2020.<br />
[CT: Havana Energy’s CEO Andrew<br />
MacDonald has estimated costs for<br />
the Ciro Redondo co-generation plant,<br />
including studies, at $200 million. He<br />
hopes Biopower can develop a total of five<br />
similar biomass plants in Cuba at a cost of<br />
roughly $800 million.]<br />
We’d like to have all 25 of the new<br />
plants start operations in 2027, so there’s a<br />
sense of urgency.<br />
CT: Besides Biopower, who will develop<br />
the 25 co-generation plants that<br />
you are planning to develop in the<br />
next few years?<br />
In historic Ybor City, Tampa Bay’s Cuban roots run deep.<br />
Savor a hand-rolled Cuban-style puro made the same<br />
way for 130 years. Pass through the gates of the<br />
international park dedicated to José Martí, apostle of<br />
Cuban freedom. All before you hop on a flight or cruise<br />
to explore Cuba yourself. Treasure awaits.<br />
Countless ideas. Endless fun.<br />
VisitTampaBay.com<br />
FLORIDA’ s<br />
CULTURAL<br />
GETAWAY<br />
34 CUBATRADE JANUARY/FEBRUARY 2018
The plan is to install 25 high-efficiency,<br />
co-generation plants in select sugar<br />
mills and to increase energy efficiency<br />
at all the mills<br />
Photos by Jon Braeley<br />
Harvesting Power: A sugar cane plantation on the western outskirts of Holguin<br />
Azcuba has a unit called Zerus that can<br />
invest in joint ventures. It’s a partner in<br />
Biopower and is open to other partnerships<br />
with foreign investors. Some of the other<br />
25 plants also may be built by the state<br />
without foreign partners. We’re now in<br />
negotiations to develop 11 of the 25 plants.<br />
CT: Is financing the biggest hurdle?<br />
Havana Energy took years to get funded<br />
for Ciro Redondo.<br />
36 CUBATRADE JANUARY/FEBRUARY 2018<br />
Yes. Financing is tough, partly because<br />
of the U.S. Helms-Burton law that can<br />
affect investors in Cuban sugar mills and<br />
other state properties formerly owned by<br />
U.S. citizens or Cubans who became U.S.<br />
citizens. Ciro Redondo falls under that<br />
law, but Havana Energy was willing to<br />
take the risk.<br />
Project finance also depends on the<br />
reputation, experience, and credit history<br />
of the companies investing. Havana<br />
Energy was new to these projects, so it<br />
needed time. Plus, it had an additional setback:<br />
General Electric bought the energy<br />
business of Alstom, the French company<br />
set to supply Ciro Redondo. [Because of<br />
the U.S. embargo on Cuba] we had to<br />
re-evaluate that project with a new [non-<br />
U.S.] supplier. Shanghai Electric stepped<br />
in, and they’re now helping finance the<br />
Ciro Redondo plant.<br />
At Azcuba, we’re trying to negotiate<br />
as much as we can with companies with a<br />
proven record in biomass and the ability to<br />
raise funding.<br />
CT: In some nations, biomass plants<br />
falter, because private utilities offer<br />
very low prices to buy their electricity.<br />
But in Cuba, where the state controls<br />
both sugar and electricity, it seems<br />
you could avoid those conflicts of<br />
interest. How does the pricing work to<br />
buy electricity from the mills?<br />
The government’s interest is to buy the<br />
electricity at a price that ensures benefits<br />
both for the investor and the country. The<br />
price of a power purchase agreement is<br />
negotiated for each project. The foreign<br />
investor gets paid in the currency in<br />
which they invested, be that euros, dollars,<br />
or others.<br />
Our system has the advantage that<br />
state companies and the government all<br />
row in the same direction, so it’s a winwin,<br />
especially for the Cuban people. Our<br />
electric company shares the same goal<br />
of getting 24 percent of Cuba’s electricity<br />
from renewable sources by 2030 and<br />
reducing oil and gas imports. We all want<br />
to be as energy independent as possible<br />
and stem the environmental impact of<br />
fossil fuels. H
THE PILLSBURY DIFFERENCE<br />
A global law firm with regional focus and experience.<br />
What leading law firm…<br />
A global legal footprint. Our newest office in Miami marks 21 offices in the U.S.,<br />
Asia, Middle East and Europe.<br />
... has decades of experience in Latin America?<br />
… has garnered multiple “Deal of the Year” awards from<br />
Latin Lawyer and other publications for our work with some<br />
of the biggest companies in the world?<br />
Decades of experience. A long history of working with leading companies<br />
focused on Latin American investment or business.<br />
... was included in “Latin America’s Top 100 Lawyers” list by Latinvex?<br />
Venture capital and private equity transactions. From start-ups to global<br />
leaders, we have represented Latin America business interests.<br />
… has advised on some of the largest and most complex energy<br />
and infrastructure development projects in Latin America?<br />
Foreign Corrupt Practices Act (FCPA) counsel. Over 25 years’ experience<br />
advising on the practical implications of the FCPA and all aspects of compliance and<br />
enforcement.<br />
Pillsbury.<br />
Pillsbury has represented clients in the development of all types of power<br />
plants throughout Latin America, from the public bidding phase through<br />
financing, construction and operation.<br />
A leader in cross-border project development and finance. Advised on<br />
projects and financing in 70 countries, including Mexico, Brazil, Argentina,<br />
Venezuela, Chile, Colombia and Peru.<br />
Learn more at pillsburylaw.com/latin-america.<br />
In recent years, hundreds of young Cubans<br />
have returned from abroad to open businesses,<br />
building on skills and market knowledge<br />
they gained overseas. Many have entered<br />
tourism-related fields and launched restaurants,<br />
bed-and-breakfasts, and art studios.<br />
Some have set up shop in information technology,<br />
accounting, and other services.<br />
Here are three of their stories.<br />
By Doreen Hemlock<br />
Award-winning international trade law firm. In recognition of our high-profile<br />
work, Trade Finance named Pillsbury one of the two top trade law firms in North<br />
America.<br />
Learn more at pillsburylaw.com<br />
Pillsbury Winthrop Shaw Pittman LLP | 1540 Broadway | New York, NY 10036 +1.212.858.1000<br />
• Abu Dhabi Pillsbury • Austin Winthrop • Beijing Shaw Pittman • Hong LLP Kong • Houston • London • Los Angeles • Miami • Nashville<br />
• New 1540 York Broadway, • Northern New Virginia York, • NY Palm 10036 Beach | +1.212.858.1000<br />
• Sacramento • San Diego • San Diego North County<br />
• San Francisco pillsburylaw.com • Shanghai • Silicon Valley • Tokyo • Washington, DC<br />
Photo by Franceseo Meliciani
THE RETURNEES<br />
RETURN OF THE CHEF<br />
Mauricio Estrada had moved to Spain when<br />
opportunity called from Havana, in the form<br />
of an option to buy an old home and convert<br />
it into a restaurant<br />
The proposal from his brother came suddenly in 2014. The<br />
Cuban government had recently authorized the sale of private<br />
homes on the island. There was a Mediterranean-style<br />
house available in Havana’s upscale Miramar neighborhood that<br />
could be perfect for a large restaurant, one of the 50-seat establishments<br />
now allowed. Would Mauricio be willing to come back<br />
from Spain and start up a new venture?<br />
Mauricio Estrada had left Havana in 2003 for love – to join<br />
a woman living in Europe. The couple had married, and years<br />
later, divorced. Mauricio had fared well overseas, made lots of<br />
friends, become accustomed to 24/7 internet, and prospered as a<br />
chef. He’d be giving up plenty to return to Cuba.<br />
“I thought about it for two days. All chefs dream of having<br />
their own restaurants,” said Estrada. He knew the venture would<br />
be risky. He had never run his own business, let alone in Cuba’s<br />
state-dominated economy. Yet the opportunity looked too good<br />
to pass up. “In Europe, to buy a house like this in a good neighborhood<br />
would have cost millions. In Cuba, it was affordable. In<br />
Spain, I’d be just another Spanish restaurant. In Cuba, I’d stand<br />
out.” He took the chance.<br />
Estrada launched Toros y Tapas, a 50-seat eatery that has<br />
become popular with international customers, many of whom<br />
live in the Miramar area and work full-time in Cuba. Patrons<br />
who post on the website TripAdvisor have given it a 4.5 out of<br />
5 in 65 reviews as of early December. They have called the food<br />
delicious and authentic, and the service excellent. Prices average<br />
between 15 and 20 CUC, without wine, in a spacious home decorated<br />
in a bullfighting theme, with dining indoors and outside.<br />
Adapting hasn’t been easy for Estrada on either side of the<br />
Atlantic. Though trained in hospitality in Cuba, Estrada found<br />
that in Spain, “the way of working was so different. In Cuba,<br />
there hadn’t been much private enterprise. And when business is<br />
private, the owner is present and pays closer attention. The work<br />
that three people did in Cuba, one did in Spain. The workload<br />
was much heavier.”<br />
In Spain, Estrada learned to master the ropes as a cook<br />
working in the Barcelona area, Madrid, Ibiza, and the Canary<br />
Islands. He learned how kitchens run most efficiently. But<br />
bringing back some of those best practices to Cuba for his own<br />
business has proven complicated.<br />
Obtaining consistent supplies at reasonable prices is a serious<br />
challenge. While Havana has at least one store that sells items<br />
in bulk, the city lacks markets that sell at wholesale prices. And<br />
many items are not regularly available even in retail shops. When<br />
whipped-cream spray disappeared for a month recently, Estrada<br />
switched to offering desserts that didn’t require it. He typically<br />
chooses daily specials from what’s for sale: “Oh, there’s broccoli.<br />
I’ll make something with that.”<br />
Nor is staff used to working in the way Estrada learned in<br />
Spain. For example, Cuba’s state employees are known to take<br />
home products from work to supplement their limited wages, and<br />
that practice initially spilled into Estrada’s restaurant. “Now I do<br />
inventory every day,” he said. Customer service also has been little<br />
emphasized in state businesses, so Estrada now keeps close tabs<br />
on staff to make sure they’re consistently friendly, attentive and<br />
efficient. “I prefer young people I train to older workers who may<br />
have bad habits,” said Estrada. “And every day, I tell them how<br />
they have to treat the customer.”<br />
Advertising differs, too. With internet access limited and<br />
costly, Estrada depends on word-of-mouth or ads in travel magazines<br />
and the Paquete Semanal, or Weekly Package, which provides<br />
digital content to customers across Cuba on flash drives. “In<br />
Spain, restaurants set up pages on Facebook, and that’s about it,”<br />
said Estrada, who is 50. Still, the chef is glad that he moved back<br />
to Cuba – and right after private home sales and larger restaurants<br />
were allowed. “The early arrivals found things cheaper. Now, this<br />
house would cost double,” he said. What’s more, the Cuban government<br />
has suspended issuing new licenses for restaurants.<br />
More importantly, Estrada is happy to provide work in<br />
Cuba both for a staff topping a dozen people and for masons,<br />
landscapers, plumbers, and others hired for specific projects. He’s<br />
also excited that the opening of new private eateries with more<br />
diverse menus is encouraging local farmers to grow more varied<br />
vegetables, from cherry tomatoes to zucchini, helping to expand<br />
food options for the island. “Restaurants,” he said proudly, “are a<br />
source of jobs for so many people.” H<br />
All chefs dream of having their<br />
own restaurants<br />
––Mauricio Estrada<br />
Photo by Jon Braeley<br />
40 CUBATRADE JANUARY/FEBRUARY 2018
THE RETURNEES<br />
ART AND DATABASES<br />
After years of living in Italy, photographer Luis<br />
Mario Gell returned home to make videos, launch<br />
an art gallery and create databases for models,<br />
photos, locations, and prop rentals. And he’s just<br />
getting started.<br />
Luis Mario Gell has so many projects going on that it’s hard<br />
to keep track. Since returning from Italy to Havana five years<br />
ago, the celebrated photographer launched an art gallery. He<br />
co-founded an online cultural magazine. And he’s been making<br />
music videos for Cuba’s top performers and travel videos for the<br />
Ministry of Tourism, some using drones and other technologies<br />
new to the island.<br />
In early 2017, Gell took out a 10-year lease on most of an<br />
old glass factory owned by Cuba’s government, and he’s renovating<br />
it into a TV, film and production studio. This summer,<br />
he started producing a weekly TV show in the space, where he<br />
sometimes hosts dance presentations and jam sessions.<br />
But that’s just a smidgeon of Gell’s wide-ranging projects.<br />
A digital aficionado, he’s built a database of Cuban models<br />
categorized by weight, height, hair color, and other characteristics,<br />
so filmmakers from the island and abroad can choose models<br />
for shoots. He’s created a separate database of photos of Cuba,<br />
organized by city, decade, and other factors to help filmmakers<br />
recreate authentic Cuban scenes and identify locations. And he’s<br />
working on another for rentals by filmmakers, everything from<br />
vintage radios to specialized photo equipment.<br />
Keen on education, Gell plans to offer training programs to<br />
recent graduates of Cuban art, design and film schools to help<br />
them experience how the international film industry really works,<br />
with high standards and tight deadlines. And he dreams of starting<br />
a private photography institute that would be tuition-free<br />
– like most Cuban education – and possibly funded by sales of<br />
stock images taken by the students.<br />
Gell has so many ideas and such contagious energy behind<br />
his Estudio50 venture that an investor from Latin America has<br />
already offered him a significant sum. But he’s developing his<br />
vision locally, recently opting to take out a loan from a Cuban<br />
bank to finance the factory renovation.<br />
“I’d like this to be a 100 percent Cuban project,” Gell said at<br />
his factory space. “I’d like to create a model that lets us operate<br />
with local funding, advertising and filming in the local market.”<br />
None of the new ventures would be possible, Gell said,<br />
without overseas experience. He studied photography at a private<br />
institute in Italy and worked for top architectural firms and luxury<br />
brands such as Bulgari while traveling the world. His decade<br />
abroad even featured over a year in the United States. “But I never<br />
gave up my home in Cuba. I never felt far away,” said Gell, 40.<br />
On a recent workday, Gell drove his family’s old, burgundy<br />
Lada through the metal gate of the factory and parked inside to talk<br />
with <strong>CubaTrade</strong>. He looked like a typical Italian urbanite, wearing<br />
Ray-Ban sunglasses, an orange Polo T-shirt, well-fitting jeans, and<br />
white leather sneakers, carrying his smart phone in a red case.<br />
He’d been up late building a set for a shoot, yet that morning<br />
was already training a young graduate to be his assistant. During a<br />
fast-paced conversation in Spanish, he seemed comfortable, downto-earth,<br />
and focused while sharing his experience as a returnee.<br />
Gell said he learned photography during childhood from his<br />
father, who kept a dark room at home. Interested in architecture,<br />
he pursued civil engineering but left college for a job in tourism<br />
that offered higher pay than state salaries. He met an Italian<br />
woman, married her, and settled in Rome.<br />
Although his career was thriving, Gell’s brother called and<br />
asked if he’d move back to Cuba to be with their mom. The<br />
brother, a pianist, was heading to Costa Rica to pursue a master’s<br />
degree. Already divorced, Luis Mario returned. He opened an<br />
art gallery in Vedado and later, online magazine “Vistar,” which<br />
helped showcase his photos in hopes of drawing better-paying<br />
gigs for commercial clients.<br />
“When I got here in 2012, commercial photography hardly<br />
existed. But then the private sector took off, and I could explain<br />
the importance of a good photo, showing the impact with statistics,”<br />
said Gell. “Now, more people understand it costs money for<br />
good images for music videos or tourism campaigns.” To be sure,<br />
Gell misses some aspects of his life abroad, from 24/7 access to<br />
the internet, photo supplies such as museum quality paper, and<br />
Europe’s quicker pace of production. He often travels overseas,<br />
recently exhibiting his work in Turkey and visiting friends in Italy.<br />
Yet he sees opportunity in Cuba to share the skills he learned<br />
abroad and to apply them in Cuba’s unique marketplace. Said<br />
Gell: “Optimal adaptation to new circumstances – that’s my<br />
motto for life.” H<br />
But I never gave up my home in<br />
Cuba. I never felt far away<br />
––Luis Mario Gell<br />
Photo by Franceseo Meliciani<br />
42 CUBATRADE JANUARY/FEBRUARY 2018
THE RETURNEES<br />
BRINGING THE<br />
BUSINESS HOME<br />
Marta Deus was working for a multinational<br />
in Spain when she saw the opportunity to help<br />
the growing entrepreneurial sector of Cuba<br />
She’s one of the most recognizable entrepreneurs in Havana,<br />
a business advocate who has spoken on Capitol Hill in<br />
Washington, D.C. and sent letters to U.S. leaders urging<br />
greater U.S.-Cuba links.<br />
Just 29 years old, Marta Deus has founded three businesses<br />
in Cuba so far: an accounting and financial consulting firm; a<br />
courier service; and a digital magazine aimed at Cuba’s emerging<br />
entrepreneurs. Often quiet and understated, Deus never set out to<br />
become the face of Cuban business. But a love for her homeland<br />
and a gift for seeing opportunities propelled her to act.<br />
Deus’ family moved to Europe when she was 12, and she<br />
grew up in Spain, where she earned a bachelor’s degree and a<br />
master’s in business administration in Madrid. In 2012, when<br />
Cuba changed its laws to permit more private ventures, Deus decided<br />
to start something in Cuba that could at least help pay for<br />
trips back and forth between Madrid and her beloved Havana.<br />
At the time, Deus was working in Spain for a multinational<br />
telecom company, so the Cuba venture started as a sideline. She<br />
rented a small space in Havana from family friends, fixed it up as<br />
an office, brought in a couple of computers, and with longtime<br />
Cuban pals, in 2013 launched her accounting and business services<br />
firm – though she worked mainly from Spain back then.<br />
The early months were tough: “People don’t know you.<br />
You have to build trust,” Deus told Cuba Trade. Young Cuban<br />
entrepreneurs starting out in restaurants and tech ventures were<br />
among the first clients. New to business, they liked the firm’s<br />
skills, its emphasis on efficiency, and “those who’d traveled outside<br />
Cuba knew of the need to subcontract services,” Deus said.<br />
With business growing, Deus returned full-time to Havana<br />
in 2016. She bought an office and now runs her Deus Expertos<br />
Contables with four staffers. The differences from operating in<br />
Spain are many: Cuba has stricter rules for what businesses are<br />
allowed; there’s little financing available; and access to the internet<br />
is limited. And business takes more time, because it relies less<br />
on emails and more on face-to-face interactions – “which makes<br />
it more humane,” said Deus. “In Cuba, you feel people more.<br />
You really build relationships. You feel the spiritual side of things<br />
more, and that’s so fulfilling.”<br />
While developing her firm, Deus found many fellow entrepreneurs<br />
hungry for support, advice and success stories. So, she and<br />
friends launched the digital magazine “Negolution,” named for a<br />
mashup of the Spanish word for business, negocios, with the word<br />
Revolution. It’s published four or five times a year via the Paquete, a<br />
package of digital entertainment and news distributed via flash drive.<br />
More recently, as her business expanded, Deus saw the need<br />
for couriers to pick up and deliver documents. So she launched<br />
courier service Mandao Express, which subcontracts with messengers.<br />
It now delivers not only not documents but also food<br />
from restaurants and, on such holidays as Mother’s Day, cakes<br />
and other gifts. The fee in Cuba’s roughly dollar-equivalent convertible<br />
CUC currency unit: between 1 and 5.5 CUCs per trip.<br />
Deus said living abroad has helped her identify opportunities<br />
that others may not see. “You know how things work differently<br />
elsewhere, so that lets you be more flexible in your way of thinking,”<br />
she said. To cope with the pressures, Deus looks for ways to<br />
unwind, from practicing yoga to salsa dancing. She’s also become<br />
active with fellow entrepreneurs in advocating for more open<br />
U.S.-Cuban links, even meeting with President Barack Obama<br />
during his trip to Cuba in 2016, then meeting with Congressional<br />
leaders in D.C. and, more recently, writing the Trump<br />
administration to urge stronger U.S-Cuba relations.<br />
“Additional measures to increase travel, trade, and investment,<br />
including working with the U.S. Congress to lift the<br />
embargo, will benefit our companies, the Cuban people, and<br />
U.S. national interests,” said a Dec. 7, 2016 letter to then President-elect<br />
Donald Trump that Deus signed along with more<br />
than 100 Cuban entrepreneurs. She later joined more than 50<br />
female entrepreneurs in a June 13 letter inviting the president’s<br />
daughter Ivanka to Cuba to see how expanded U.S. links have<br />
helped local women and bolstered Cuba’s emerging private sector.<br />
“A setback in the relationship would bring with it the fall of<br />
many of our businesses and, with this, the suffering of all those<br />
families that depend on them,” the letter said.<br />
As Deus pursued business activities, her parents had<br />
remained in Spain. But in 2017, they followed Marta back to<br />
Havana. She sees opportunities for her parents in entrepreneurship,<br />
too. “My mom cooks really well,” said Deus proudly. “I’d like<br />
her to start up in catering.” H<br />
In Cuba, you feel people more.<br />
You really build relationships<br />
––Marta Deus<br />
Photo by Gabrielle Jorgensen/EngageCuba<br />
44 CUBATRADE JANUARY/FEBRUARY 2018
Getting Your MD<br />
from Havana<br />
Primary Care Prep: U.S.students in their initial years of medical school at<br />
Cuba’s Latin American Medical School. From left ot right: Kelvin Rojas, Steve<br />
Singh Gill, La’Shelle Anita Manning, Ariana Abayomi, Ivan Smiley<br />
Talk about affordable healthcare: Over the<br />
past two decades, dozens of American students<br />
have signed up to get their medical<br />
degrees from Cuba’s free program, learning<br />
about the practice of medicine in less than<br />
ideal conditions<br />
Words and Photos By Julienne Gage<br />
American citizen Steve Singh Gill, a full-time student at<br />
Cuba’s Latin American Medical School outside Havana,<br />
sits up tall in his lab coat talking with the assurance of<br />
the doctor he will become in a few more years.<br />
“There’s a famous phrase that the doctor who only knows<br />
of medicine knows nothing of medicine, meaning that we have<br />
to be integrated doctors, that we need to know about medicine,<br />
but we (also) need to know about our community. We need to<br />
know that the source of illnesses really lies in community factors,<br />
community conditions, social conditions, economic conditions,<br />
and environmental conditions,” Singh Gill told Cuba Trade.<br />
Singh Gill is one of five U.S. students enrolled in the now<br />
19-year-old school, which goes by the acronym ELAM (short for<br />
Escuela Latinoamericana de Medicina). It has now has graduated<br />
over 28,000 foreign-born doctors, including 170 Americans.<br />
The program recruits heavily from poor countries or low-income<br />
communities in more prosperous ones. Students receive six full<br />
years of free room, board, and medical training – seven if they<br />
need to learn Spanish – on the agreement they return to their<br />
places of origin and make serving the underserved populations a<br />
lifelong endeavor.<br />
Singh Gill says that mission was always central to his career<br />
plans, which is why he chose to attend the ELAM. After graduating,<br />
he hopes to return to his native Los Angeles to serve as a<br />
primary care doctor the old-fashioned way: living and practicing<br />
medicine in the same house, or at least in the same neighborhood.<br />
Lowering overhead costs and living close to patients, he<br />
makes it easier for certain sectors of the population to access<br />
affordable healthcare, he explains.<br />
“It really opened my eyes to what the profession could do,”<br />
Singh Gill said, noting that his state has a high concentration of<br />
immigrants and minorities who often lack the time and resources<br />
to see a doctor, much less one who looks and talks like them.<br />
“Latinos are the largest ethnic group in California but less<br />
than 2 percent of the physicians in California are Latino,” said<br />
Singh Gill, who is of Nicaraguan and Indian descent.<br />
How U.S. Students Enroll in the ELAM<br />
About 90 percent of the U.S. doctors trained at the school continue<br />
working in needy communities well after their residencies are<br />
over, notes the New York-based humanitarian nonprofit IFCO/<br />
Pastors for Peace. The organization, one of the nation’s oldest<br />
anti-embargo groups, serves as the main U.S. recruiter for the<br />
ELAM, working to identify and prepare worthy candidates. As<br />
stipulated by ELAM, they generally recruit college graduates aged<br />
25 or under, and the vast majority of them are Americans who<br />
come from areas where access to affordable medical care is low.<br />
On the back end, the California-based organization ME-<br />
DICC (Medical Education Cooperation with Cuba) offers<br />
scholarships to help ELAM graduates defray the cost of their<br />
U.S. medical board exams.<br />
MEDICC founder and Cuba representative Gail Reed says<br />
altruism and social conviction aren’t the only good thing the U.S.<br />
can reap from Cuba’s free program. She says Cuba’s advances in<br />
science and health policy have led to high life expectancy, low<br />
infant mortality, and innovative pharmaceuticals to treat cancer<br />
and diabetes. Cuba’s healthcare system has also had excellent<br />
results in curbing infectious diseases, from HIV/AIDs to malaria<br />
and Zika, all of which plague communities with limited access to<br />
healthcare but also transcend social and class boundaries.<br />
“Uneven access to medical care is bad for everyone’s health, so<br />
46 CUBATRADE JANUARY/FEBRUARY 2018
Photo courtesy of Brea Bondi-Boyd<br />
Committed to Universal Healthcare: As rector of the ELAM, Dr. Antonio López Gutiérrez oversees some 2,000 foreign medical students in Cuba.<br />
Serving the Underserved: ELAM grad Dr. Brea Bondi-Boyd says there are “developing world” conditions across the U.S. She now serves the poor in California.<br />
it’s important that best practices are applied across the board,” she<br />
said. “What the ELAM grads bring home is a dedication to making<br />
everyone’s health better by applying their scientific knowledge.”<br />
A lot of what Cuba does best, she says, comes down to<br />
community-based prevention campaigns that start with ensuring<br />
patients get regular check-ups. “For example, they start a hypertension<br />
prescription with exercise and diet rather than a pill, and<br />
the doctors can help them stick with it because they’re right there<br />
in the community,” she said.<br />
What U.S. Graduates Bring Home<br />
Tampa Bay doctor-in-residence Graham Sowa graduated from<br />
ELAM last year. He says he saves patients and clinics time and<br />
money in lab work by operating as he did in Cuba – spending a<br />
few extra minutes talking to the patient to really understand the<br />
problem.<br />
“I think I have a higher threshold for tolerance before ordering<br />
tests,” he told Cuba Trade, after noticing that his U.S.-trained<br />
colleagues often run more lab tests and spend more time analyzing<br />
them via computer in order to come to the same prognosis.<br />
He also said that improved communication helps manage patient<br />
expectations about pain, which can then cut down on prescribed<br />
painkillers. That, he says, can help curb the nation’s skyrocketing<br />
rate of opioid addition.<br />
For him, this efficiency can result in shorter hospital stays.<br />
On the flip side, Dr. Marco Perez, a 2010 ELAM graduate, says<br />
the medical program gave him the skills to ensure patients stay in<br />
the hospital until they feel they’re truly on the mend. “When I<br />
was a medical student there I wasn’t pressured at all about moving<br />
patients and getting them out of the hospital,” said Perez.<br />
Going Global<br />
La’Shelle Anita Manning is excited that her ELAM degree will<br />
set her up for jobs working as a physician in the minority communities<br />
she grew up in around the U.S. Mid-Atlantic, but she<br />
wants her knowledge to influence public health policy the world<br />
over. Having obtained an undergraduate degree in biochemistry<br />
at Ohio’s Oberlin College, and a master’s in public health<br />
from Drexel University in Philadelphia that included fieldwork<br />
in Gambia, she was already on that path when she arrived at<br />
ELAM. But she wanted a medical school program that would<br />
bring her path full circle.<br />
“I didn’t like the idea of medical school in the States because<br />
it would just be all science and medicine. I wanted a program that<br />
had a very social mission,” she said.<br />
Back in the Washington, D.C., area, she’ll have plenty of opportunities<br />
to fulfill that long-term goal as it is home to the U.S.<br />
Congress, the National Institute of Health, the United Nations’<br />
Pan-American Health Organization, and dozens of think tanks<br />
and social and economic development groups.<br />
ELAM Rector Antonio López Gutiérrez says faculty and staff<br />
share her vision. The school was founded in 1999, a year after Cuba<br />
sent medical brigades into the Caribbean and Central America to<br />
care for victims of the devastating Hurricanes George and Mitch.<br />
“The commander in chief,” as he refers to the late Fidel Castro,<br />
“said that the most important thing wasn’t sending doctors<br />
to resolve the health crises that followed but to train doctors<br />
who could continue developing their own health systems,” said<br />
López Gutiérrez, who has been at the helm of ELAM for two<br />
years. Prior to that, he spent ten years working as the rector of the<br />
University of Medical Sciences in Santiago de Cuba, where he<br />
helped to train about 1,000 Haitian doctors.<br />
“There’s power in being able to show that our country has a<br />
lot of economic necessities, as many countries do, and yet we are<br />
able to offer them something they can develop throughout the<br />
rest of the world,” he said. “When I was in Mexico, I saw that<br />
their hospitals had a lot of technology but it didn’t reach everyone,<br />
and in our country, in spite of our economic scarcity, we have<br />
high-quality hospitals where everyone can go.”<br />
Gutiérrez noted that the current ministers of health in<br />
Bolivia and Costa Rica are both ELAM graduates, and that this<br />
year ELAM accepted about 1,000 medical students from Colombia<br />
– part of Cuba’s efforts to support the peace accords between<br />
the Colombian government and the FARC guerrilla movement.<br />
Asked about his own inspiration for teaching medicine, his<br />
eyes grew watery. He said one of the most impactful moments of<br />
his career was serving for two years and two months as a doctor<br />
and professor of medicine in Angola, where in 1975 the Cuban<br />
military assisted in a guerrilla war to overthrow Portuguese colonial<br />
rule, contributing to a civil struggle that would last until 2002.<br />
He said Portuguese medical professors were more likely<br />
to withhold important medical information over fears that up<br />
and coming Angolan doctors would start competing with their<br />
private clinics. On the other hand, Cuban doctors accustomed to<br />
capped Communist salaries had nothing to lose by imparting all<br />
the medical skills they knew.<br />
“I’ll never forget the desire that the Angolan students had<br />
for learning, they were so eager to learn because they saw how<br />
different we were,” Gutiérrez reflected.<br />
The Cultural Connection<br />
Aside from conducting fieldwork, the students generally stick<br />
around the facility because it’s a 45-minute drive from Havana.<br />
At night, they educate and entertain each other with “cultural<br />
galas,” in which groups from around the world showcase their<br />
native foods, dances, dress patterns, and other customs.<br />
“The best part about it to me is being in a community with<br />
people from all over the world that are really in disadvantaged<br />
positions and were given this opportunity. You learn a lot from<br />
those people,” said Perez, who now serves New Mexico’s Navajo<br />
community at Lovelace Westside Hospital in Albuquerque.<br />
During his time at the ELAM, Perez says he was humbled<br />
to meet the best and brightest minds from around the world<br />
and discover that many of them – especially ones coming from<br />
isolated or marginalized communities in places like the Amazon<br />
– first had to play catch up by learning to use a computer.<br />
The Americans could help them with that skill, and in exchange,<br />
those students taught folks like Perez the importance of being<br />
respectful of other ways of life and keeping an open mind.<br />
Continued on page 58<br />
48 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
49
BRINGING BABYBOOMERS TO<br />
CUBA'S OUTDOORS<br />
How an American tour<br />
company traversed Cuba’s<br />
regulatory maze to bring<br />
older U.S. travelers to<br />
Cuba’s picturesque terrains<br />
By Victoria Mckenzie<br />
Is there a way to service the niche of older Americans who want<br />
a rugged yet comfortable journey through Cuba’s hinterland?<br />
An Idaho-based company has done just that, making it their<br />
business to take baby boomers from Cuba’s tour buses and put<br />
them onto bikes, into kayaks, and onto mountain trails for immersive<br />
tours of the island’s stunning and varied terrains – with<br />
all the particularities of U.S. customers in mind.<br />
Cuba Unbound, headquartered in the lake resort town of<br />
Coeur d’Alene, Idaho, sprang from parent company Row Adventures<br />
shortly after U.S. travel restrictions to Cuba were relaxed in<br />
2015. It offers twelve different five- to 11-day excursions, from<br />
walking tours of Cuba’s national parks to kayaking and cycling<br />
tours, with a few more relaxed itineraries that focus on cultural<br />
history. Guests can also work with an “adventure consultant” to<br />
create a private trip with family and friends. The cost of a tour<br />
ranges between $1,800 and $2,950 per person.<br />
While Cuba Unbound trips can be taken by anyone, Row<br />
Adventures managing director Brad Moss said the company actively<br />
markets to the baby boomer demographic, in part because<br />
they are “extremely active, social and knowledgeable travelers,”<br />
and because the tours they’ve created need clients “who can<br />
invest in experiences.” They also understand that for a generation<br />
of people who came of age during the Cold War, Cuba holds a<br />
particular mystique – a forbidden-fruit quality that isn’t felt as<br />
keenly by younger travelers.<br />
Accessibility to outdoor gear, and especially kayaks, was a<br />
major roadblock. So was transportation. “You can’t just go and<br />
buy a trailer that will carry your kayaks or your bikes – there’s just<br />
no [Cuban] manufacturer who will do that,” explained Moss.<br />
Cuba Unbound joined forces with four Cuban travel agencies<br />
allowed to work with the U.S.: Havanatur, Amistur, San Cristobal,<br />
and Cubanacan. By law, every excursion must have both a leader<br />
representing the U.S. company and a Cuban guide, who also doubles<br />
as an interpreter. The group “people-to-people” educational<br />
requirements for U.S. travelers are fulfilled by local conservationists<br />
and other experts who give presentations on topics such as<br />
marine wildlife, swampland birds, and revolutionary history.<br />
Moss called the program’s first year “inconsistent” for what<br />
he chalked up to differences in culture, life experience, and cus-<br />
50 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
51
Top: Row Adventures managing director Brad Moss<br />
Top Right: Tour clients bike Cuba’s mountain roads<br />
Bottom: Kayaks are another way to experience<br />
Cuba’s raw, natural beauty<br />
tomer service. Cuba Unbound responded by offering week-long<br />
training programs for Cuban guides who had little familiarity<br />
with kayaking and long-distance cycling. Still, he says kayaking<br />
and biking are the easy part of the training. The bigger challenges<br />
were “the intangibles,” the soft skills required for relating to U.S.<br />
customers. The extra training made a big difference. “Some of<br />
these guides are saying, ‘No one has ever taken this type of interest<br />
in us, and we appreciate it,’” he said.<br />
They also had to convince Cuban tour agencies that U.S. customers<br />
are interested in active travel, as well demonstrate to the<br />
guides – who earn low wages from the government – that going<br />
the extra mile for American clients has rewards. “The reality<br />
is the United States culture tips better than any other culture,”<br />
Moss told Cuba Trade. Suggested tip amounts are in the tour<br />
literature and reach everyone involved in the trips, from the core<br />
guides to hotel and wait staff.<br />
Moss says Row Adventures has invested “tens of thousands”<br />
more dollars in its Cuba brand than any of the programs it offers<br />
across 32 countries in five continents. When asked about the<br />
tariffs to bring equipment into the country, and whether Row<br />
Adventure’s collaboration with Cuban travel agencies helped pave<br />
the way, Moss only said there were “lots of hoops involved.”<br />
“Now here we are going into Year Three, and it’s looking really<br />
good,” Moss said. “We have some guides that we really love within<br />
those agencies [who] we can request, and they typically request us<br />
back, and so we can kind of hand-select who’s on our tours.”<br />
But Moss is also aware that U.S. travelers have high standards,<br />
so he will offer the training workshop again this year.<br />
“What we really tried to capture is, ‘What’s the mindset of<br />
the U.S. traveler?’” he said.<br />
The typical Baby Boomer who joins the tours is “kind of<br />
a credit card and dream type,” said Landon, one of Row Adventures’<br />
U.S. guides. Her guests are typically between 50 to 75<br />
years old and want something in between a resort and a rugged<br />
outdoor challenge. “People want an authentic experience, but they<br />
still want comfort,” she said.<br />
Indeed, American visitors are still finding their legs after<br />
nearly six decades of estrangement, and part of Landon’s work<br />
is managing travelers’ expectations. She says inconveniences are<br />
inevitable over the course of an 11-day trip taking 15 people to<br />
five different lodging locations. “I can usually expect three pretty<br />
major challenges – whether it be ‘I don’t have running water,’ or ‘I<br />
don’t have power,’ or ‘I need an iron’,” she says.<br />
Many of the guests see their trip as a slim window of opportunity<br />
to experience Cuba before it changes – that is, before<br />
American investors carve out tourist traps across the island. From<br />
the beginning, Landon invites people to embrace challenges, with<br />
friendly reminders like, “That’s what makes this the experience<br />
you’re seeking.” H<br />
Now here we are going into Year Three,<br />
and it’s looking really good<br />
Row Adventures managing director Brad Moss<br />
52 CUBATRADE JANUARY/FEBRUARY 2018
Travel Directory<br />
Travel<br />
Directory<br />
A look at travel providers leading<br />
the way for U.S. visits to Cuba.<br />
All Your Cuba Needs<br />
It’s a great time to visit Cuba, and<br />
ABC (A Better Choice Travel) is<br />
here to make sure your legal trip<br />
meets all your expectations.<br />
With more than 30 years of<br />
experience in travel to Cuba, we<br />
are committed to providing excellence<br />
in service. It is an important<br />
time in the history of this beautiful<br />
Caribbean island, with an upcoming<br />
transition in government<br />
administration, the flourishing of<br />
small business, and the use of the<br />
internet. Let ABC’s professional<br />
and experienced staff help you<br />
visit one of the safest countries<br />
in the Western Hemisphere. With<br />
over 4 million visitors in 2017,<br />
there have been no reports of<br />
strange health issues or deaths<br />
due to terrorism for any of these<br />
travelers.<br />
Let us help you visit this culturally<br />
rich destination, full of friendly<br />
people wanting to learn everything<br />
they can from Americans.<br />
We can sponsor an organized<br />
People-to-People group that will<br />
meet your vision, or help you visit<br />
with a full-time schedule of activities<br />
under one of the other legal<br />
categories for travel to Cuba. We<br />
are your ONE STOP agency for<br />
everything Cuba, including securing<br />
visas and preferred pricing on<br />
your flights. ABC arranges travel<br />
to Cuba through scheduled U.S.<br />
airlines. In addition, we facilitate<br />
hotel accommodations, cruises,<br />
event planning, corporate travel,<br />
car rentals, and more.<br />
We can provide the travel<br />
documents for those born in or<br />
outside of Cuba. For non-Cuban<br />
born passengers, Cuba requires<br />
all travelers to have a tourist visa.<br />
Travelers must fall under one of<br />
twelve permitted categories.<br />
With proper documentation, visa<br />
approval will only take 24 to 48<br />
hours to process.<br />
Cuban-born passengers who<br />
immigrated prior to Jan. 1, 1971,<br />
will need to apply for a special<br />
“HE-11” entry permit. Cuban-born<br />
NEW DESTINATION<br />
MIAMI<br />
1125 SW 87 Avenue, Miami 33174<br />
Phone: 305.263.6555 • Fax: 305.263.7187<br />
Toll Free: 866.4ABC.AIR<br />
Sales: travel@abc-charters.com<br />
passengers who immigrated after<br />
Jan. 1, 1971 will need to apply for<br />
a Cuban passport.<br />
Call us now to book your next trip:<br />
866-4ABC-AIR • 305-263-6555 or<br />
send us an email: travel@abc-charters.com<br />
Book your Air, Hotel, Meals, Guides with<br />
ABC…<br />
A Better Choice<br />
Travel!<br />
ABC CHARTERS INC.<br />
www.ABC-CHARTERS.COM<br />
FOLLOW<br />
FACEBOOK<br />
TWITTER<br />
LINKEDIN<br />
GOOGLE+<br />
54 CUBATRADE JANUARY/FEBRUARY 2018<br />
SPONSORED CONTENT<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
55
Travel Directory<br />
Travel Directory<br />
The Original Cuban Experience<br />
Gulfstream Air Charter offers<br />
daily morning privateaircraft<br />
flights from Miami to Havana and<br />
Santa Clara. Our daily afternoon<br />
flights from Cuba to Miami are<br />
scheduled to ensure travelers can<br />
transit to other U.S. cities without<br />
staying overnight in South Florida.<br />
WE’LL GET YOU THERE!<br />
We offer high tech aircraft with sterling operative software.<br />
Our pilots and staff are experienced, well-trained and<br />
ready to serve you.<br />
Daily morning flights to Cuba<br />
We are proud to have a reputation<br />
of professionalism with<br />
both the U.S. and Cuban governments.<br />
Enjoy an authentic Cuba experience!<br />
Call us: 305-428-2828 • www.GulfstreamAirCharter.com<br />
782 NW 42nd Ave. Suite 7 (Lobby), Miami, Florida 33126<br />
Our staff is prepared to help<br />
you with passport forms, renewals,<br />
visas, invitation letters, and<br />
any other formalities that are<br />
required for your travel to Cuba<br />
by both U.S. and Cuban authorities.<br />
We only ask that you supply<br />
a copy of proof of citizenship (U.S.<br />
birth certificate, a report of birth<br />
abroad, or certificate of naturalization).<br />
We can also help customers<br />
who left Cuba before 1970 acquire<br />
PE-11 visas. Travelers only<br />
need to supply a copy of their U.S.<br />
passport and two 2 x 2-inch color<br />
photos, and we’ll handle the rest.<br />
Gulfstream Air Charters is also<br />
positioned to assist customers in<br />
the following scenarios:<br />
• If your passport was issued<br />
before you were 15-years-old.<br />
• If you are applying for a<br />
passport for the first time.<br />
• If you are trying to acquire a<br />
passport for somebody under the<br />
age of 16.<br />
If you lost your passport in<br />
Cuba, please contact the American<br />
Citizen Services Unit at (+53)<br />
7839-4100. If your passport was<br />
stolen, please report it to the<br />
closest police station and ask for<br />
a report of the loss.<br />
In addition to flying to Havana<br />
and Santa Clara from Miami, we<br />
offer charter flights to cities such<br />
as Camagüey, Holguín, Orlando<br />
and Tampa for reasonable prices.<br />
We are permitted to carry more<br />
cargo on our charter flights than<br />
on commercial airlines.<br />
Our very qualified staff and<br />
pilots are ready to welcome you<br />
onboard our high-tech aircrafts.<br />
We invite you to enjoy a real Cuba<br />
experience with us.<br />
Visit our Miami office at 782<br />
NW. 42nd St., Suite #7.<br />
Discover the Beautiful Island of Cuba<br />
Cuba is one of the most beautiful<br />
and exotic destinations<br />
anywhere in the world. VaCuba<br />
is here to make your travel and<br />
experience in Cuba absolutely<br />
fun, worry-free and completely<br />
convenient.<br />
VaCuba is a USA-based organization<br />
with more than 30 years<br />
of experience. We fly with major<br />
commercial U.S. airlines, such as<br />
American Airlines, Delta, Jet Blue,<br />
and others. We have a vast network<br />
for booking flights, hotels,<br />
vacation rentals, and cabs, as well<br />
as for venues such as paladares<br />
(privately owned restaurants),<br />
concerts, and more.<br />
Travel permits can be given<br />
for: training purposes, group<br />
tours, religious activities, study<br />
abroad, public performances,<br />
athletic competitions, support for<br />
the Cuban people, humanitarian<br />
projects, private foundations, research<br />
and educational missions,<br />
professional meetings, journalism,<br />
news-casting groups, official<br />
activities of the U.S. government,<br />
foreign governmental organizations,<br />
and family visits.<br />
In addition to planning and<br />
booking flights, tours, hotels,<br />
houses, and car rentals – as<br />
well as helping you complete<br />
documentation, VaCuba has a<br />
shipment/cargo division that<br />
provides complete transit services<br />
for our clients. VaCuba can<br />
also send to your family in Cuba<br />
remittances, medicines, gifts,<br />
parcels, hardware, electronics,<br />
furniture, personal items, and<br />
much more. Our staff can help<br />
you with regulations and logistics<br />
for an effortless shipment. When<br />
it comes to any variety of service<br />
related to your travel experience<br />
or shipping needs, VaCuba<br />
offers guidance and provides<br />
solutions. Please call us at 305-<br />
649-3491 or go to www.vacuba.<br />
com. We are here to help you get<br />
to Cuba worry free.<br />
LOCATIONS:<br />
• MIAMI: 2994 NW 7th St. 33125<br />
• HIALEAH: 2900 W. 12 Ave. # 24 Hialeah<br />
33012<br />
• WESTCHESTER: 3721 SW 87 Ave. Miami<br />
33165<br />
You can reserve ONLINE at<br />
www.vacuba.com<br />
or call our offices in South Florida<br />
1.305.649.3491<br />
DISCOVER<br />
the beautiful island of Cuba<br />
We have a great variety of options<br />
and best prices in:<br />
FLIGHTS HOTELS HOUSE RENTALS TOURS CAR RENTALS<br />
56 CUBATRADE JANUARY/FEBRUARY 2018<br />
SPONSORED CONTENT<br />
SPONSORED CONTENT<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
IMMIGRATION &<br />
PASSPORTS<br />
FOLLOW US<br />
REMITTANCES GIFT & PARCELS MEDICINES<br />
• HIALEAH GARDENS: 2794 West 68 th St.<br />
Hialeah Gardens 33016<br />
• W. PALM BEACH: 5904 Dixie Hwy, West<br />
Palm Beach 33405<br />
• SOUTH DADE: 11460 Quail Roast Dr. Cutler<br />
Ridge 33157<br />
• KENDALL: 13792 SW 152nd St. Kendall<br />
33177<br />
• TAMPA: 4801 Hillsborough Ave. # 405,<br />
Tampa 33614<br />
• ORLANDO: 948 Semoran Blvd. 32807<br />
57
Getting Your MD from Havana, continued from page 53<br />
This happens a lot with his Navajo patients, who may ask to<br />
bring a tribal healer to the medical consultation.<br />
“I tell them, ‘I’m a doctor, I know medicine and what I can<br />
give you is my advice. But you’re free to have your spiritual leader<br />
come and give you advice as well,’” he said, noting that while this<br />
slows the appointments, it can make for a speedier recovery back<br />
home because the community joins in the recovery efforts. “They<br />
listen to what you’re saying even more because they can see that<br />
someone’s not judging them for what they believe,” Perez said.<br />
The Luxury of Learning<br />
The U.S. ELAM students know they’ll eventually head back to<br />
a capitalist system, but they won’t be under as much pressure as<br />
peers who rack up tens of thousands of dollars in medical school<br />
debt. U.S. student loans is what prompts many doctors to specialize<br />
in more lucrative medical fields that don’t necessary translate<br />
to public health solutions.<br />
A 2016 study by the Association of American Medical<br />
Colleges projected a shortage of as many as 35,600 primary care<br />
physicians by 2025. It also noted that if more people in low-income<br />
areas could afford to get to the doctor, that shortage could<br />
crest 96,000 doctors.<br />
During her six years of higher studies in the United States,<br />
Manning worked two jobs and still took out loans, which she<br />
stacked with loans from her bachelor’s in biochemistry at Oberlin<br />
College. Medical school tuition in the U.S. would have been<br />
crippling, but as long as she’s studying in Cuba, her expenses are<br />
covered and her U.S. debt is on a long-term deferment plan.<br />
“Here I can focus on studying medicine. I don’t have to worry<br />
every semester about where I am going to get the money from,”<br />
she said. “It’s refreshing. It’s a break – all that stuff is on pause.”<br />
Privileges, Limitations, and Lessons Learned<br />
ELAM says its foreign students have everything they need<br />
during medical school. In fact, it might be more comfortable<br />
than what they had back home. The large facility comes with a<br />
spectacular oceanside view, sports fields, dormitories, cafeterias, a<br />
barber and beauty salons, a computer lab with internet access, and<br />
cable television with up to ten stations.<br />
But over the years, those very luxuries have raised some<br />
concerns among Cubans, especially ones studying in the other<br />
state-run schools, notes Dr. Romy Aranguiz, a Cuban doctor<br />
who works in Fort Meyers, Fla. She began her medical studies in<br />
Cuba and a finished them with a specialization in rheumatology<br />
in the United States. The ELAM program started in 1999, while<br />
she was studying at the University of Medical Sciences of Havana.<br />
Her professors asked students like her to mentor ELAM’s<br />
It really opened my eyes to<br />
what the profession could do<br />
Steve Singh Gill<br />
incoming class, and that stirred up some mixed emotions. Cuba<br />
was barely on the road to recovery after the collapse of the Soviet<br />
Union sent it into an economic crisis.<br />
“We liked the concept that they would go back and help in<br />
poor communities, but we were a little upset because things were<br />
already hard for us,” she said, noting that while ELAM students<br />
had all their expenses covered, their Cuban counterparts had<br />
practically no access to the latest books or transportation to get to<br />
class. “I think it was a normal reaction, but it was also nice because<br />
up until then, we didn’t have access to people from elsewhere. To<br />
meet people from other countries was a great experience,” she said.<br />
She agrees with ELAM faculty and students that Cuba has<br />
one of the best preventative healthcare systems in the world, one<br />
that can stretch limited resources to meet a wide array of needs.<br />
Still, she says her own specialization doesn’t exist in Cuba, which<br />
isn’t focused on the medicines and procedures needed for treating<br />
debilitating muscle and joint problems.<br />
“The population is aging really fast, the middle-aged population<br />
is dying at high rates, there’s not enough young people to<br />
take the jobs – how are you going to keep working with arthritis?<br />
It’s a problem,” she said.<br />
Plus, she added, many ailments can be quickly diagnosed<br />
with just one CT scan or MRI, technology which is hard to come<br />
by in most Cuban hospitals. “You cannot do empirical medicine<br />
without resources,” she said. López Gutiérrez agrees the lack of<br />
resources can create obstacles. For example, even if the U.S. embargo<br />
oallows for the sale of most medicine and medical supplies<br />
to Cuba, medical books and some medical equipment are not.<br />
“It would be so much more cost-effective if we could purchase<br />
these things from Florida,” he said, although he added that<br />
Cuba has defended itself by creating its own medical books, and<br />
coordinating carefully so that schools know exactly what items<br />
they need before going on a supplies mission to Asia.<br />
In addition to campaigning for widespread health education<br />
and preventative medicine, Aranguiz says ELAM graduates could<br />
have a powerful voice for ending the U.S. embargo. “These students<br />
can be advocates for a better future in Cuba,” she said, noting how<br />
the embargo stifles its ability to stay technologically relevant.<br />
Back in Albuquerque, Perez is off to a good start. As the<br />
U.S. healthcare debate rages on, he says he has plenty to discuss.<br />
“When people say that providing healthcare for everyone is very<br />
expensive and not very feasible, I can say I have first-hand experience<br />
working in a country where healthcare is for everyone,” he<br />
said. “The numbers are great, their health indicators are very good<br />
– in some cases better than ours here – and they also spend a lot<br />
less because they have great patient education where the community<br />
knows what to do, when to go to the hospital and when not<br />
to, what to do in certain cases, and how to prevent and manage<br />
chronic diseases.” H<br />
FILM<br />
Chronicling<br />
45 years of<br />
Cuban History<br />
The new Netflix documentary,<br />
“Cuba and the Cameraman,” offers<br />
an intimate look at Cuba through<br />
footage that dates back to 1972<br />
By Odalis Garcia<br />
Gil Scott-Heron wrote in the 1970s that “the revolution will<br />
not be televised.” Jon Alpert sure did try to, though. Alpert<br />
is the director, screenwriter, and producer of the new Netflix<br />
documentary, “Cuba and the Cameraman.” Its opening scenes<br />
are of an eerily quiet morning in Havana’s Malecón boulevard,<br />
the emblematic words “Patria o Muerte” (Fatherland or Death)<br />
painted on a wall on the side of the road.<br />
“We are in mourning,” a taxi driver tells Alpert. Sure enough,<br />
you hear Raúl Castro over national radio announcing the death<br />
of Cuba’s long-standing revolutionary, Fidel Castro. It’s a strong<br />
opening for a film that was released one day before the one-year<br />
anniversary of the iconic leader’s passing.<br />
Alpert first started going to the island with his wife in the<br />
early 1970s after they founded the Downtown Community Television<br />
Center in New York and started to experiment with early<br />
iterations of the video camera, while uncovering the injustices of<br />
everyday living in the city.<br />
“Just over the horizon, down in Cuba, there was a revolution<br />
going on. We heard that Fidel Castro was implementing the<br />
social programs that we were fighting for in New York,” narrates<br />
Alpert, referencing Cuba’s free healthcare, universal education,<br />
and public housing. Alpert wanted a closer look at the revolution<br />
and the ways in which Castro’s policies would transform the<br />
country and the world order.<br />
The documentary, which features footage shot over four<br />
decades, chronicles the rapid changes of the island post-Revolution,<br />
the collapse of the Soviet Union, the dire “special period,”<br />
and the modest economic liberalization of the new millennium.<br />
It also documents what didn’t change under Castro. On<br />
that end are the first friends Alpert made during his first trip<br />
to Cuba, the Borregos family, three farmer brothers and their<br />
sister. In the documentary, Alpert first meets them when they<br />
The Man Behind the Lens: Photographer Jon Alpert on the streets of Havana<br />
are in their sixties, and every time he pays them a visit, they<br />
demonstrate an unflinching commitment to their farm. Indeed,<br />
the highlights of the film are the decades-long connections<br />
Alpert made with ordinary Cubans who experienced the good<br />
and bad times of Castro’s Cuba. He can’t seem to forget them,<br />
nor they him.<br />
We also see the unlikely camaraderie between an American<br />
journalist and the late leader of the Revolution. Sparked by Castro’s<br />
interest in their equipment, Alpert was the only American on<br />
the plane that took Castro from Cuba to New York for his historic<br />
speech to the United Nations General Assembly. Alpert captures<br />
rare footage of Castro, even making his way into the leader’s suite.<br />
The documentary can feel apolitical at times. For example,<br />
it doesn’t explore Cuba’s human rights record under Castro.<br />
Sometimes it even feels like an ode to the commander himself.<br />
But the film isn’t a story about the recent history of Cuba, or why<br />
the Revolution succeeded, or even why it failed. Instead, it creates<br />
a direct line between the viewer and those living on the island.<br />
While many journalists at the time were looking at those<br />
who were fleeing Cuba or already in exile, Alpert chose to fix his<br />
lens on those who stayed – like his friend, Luis Amores, who goes<br />
from dealing in the black market, to prison, to eventually running<br />
his own private hardware business.<br />
More than anything else, “Cuba and the Cameraman” is a<br />
candid window into Cuba from the point of view of its people.<br />
It doesn’t romanticize the poverty or Cuba’s mysterious allure.<br />
Rather, it shows Cubans striving to overcome adverse circumstances<br />
on their own. We watch as many of them improve their<br />
lives by establishing hydroponic gardens, urban farms, and private<br />
businesses, among other ventures.<br />
Ultimately, and most importantly, the film is a beautiful story<br />
that chronicles friendship with the resilient Cuban people. H<br />
58 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
59
ART<br />
The<br />
Elephant Man<br />
Popular Cuban artist JEFF pours his<br />
art out in Miami during Art Basel<br />
By Odalis Garcia<br />
Jose Emilio Fuentes Fonseca, known as<br />
JEFF, in Miami’s Wynwood Arts District<br />
Every year, thousands of artists from around the world<br />
travel to Miami’s Art Basel and Art Week to display their<br />
work at the event’s main facilities or at satellite galleries<br />
around the city. For artists like Jose Emilio Fuentes Fonseca,<br />
known in his native Cuba as JEFF, it’s one of the best opportunities<br />
to get international recognition.<br />
His 15 small sculptures and lithographs had a sort of guest<br />
appearance alongside a larger exhibit by Florida photographer<br />
Bridges Aderhold at the “My Shining Moment” pop up gallery<br />
in Miami’s Wynwood Arts District.<br />
JEFF’s pieces included two stainless steel hearts with faucets<br />
molded into them, a metaphor for pouring one’s heart out.<br />
“If you leave [the faucet] open, everything pours out and then<br />
you don’t know what to do,” explained the artist to Cuba Trade.<br />
His small exhibit is a sharp contrast to his much larger<br />
artistic presence in Cuba, where he gained recognition for an installation<br />
of almost life-size metal elephants that he would move<br />
around the city by night.<br />
“For me, the success behind contemporary art is in the<br />
staging,” said JEFF, who began his pachyderm project in 2009<br />
with his sponsoring gallery La Casona. The exhibit was a prime<br />
example of how putting your art out there at just the right time<br />
can yield big results. The installation was set up during the 10th<br />
Havana Biennial. Even though the Biennial committee rejected<br />
his project, the Ministry of Culture allowed him to install it in<br />
the Plaza Vieja, Old Havana’s historic city center.<br />
La Manada or The Herd, as the exhibit was known, “ended<br />
up being one of the works the press covered most,” JEFF said. “No<br />
one, not even I, knew the magnitude of what was going to happen.”<br />
He chose the elephants because they are the largest terrestrial<br />
animals on the planet, and they are herbivores. He was drawn<br />
to their peaceful, emotional demeanor, including the way they<br />
mourn and remember their kin. He also noted that many people<br />
see them as good luck symbols. “All kinds of people were able to<br />
connect with the piece,” he says.<br />
Over the course of a week he moved the installation every<br />
night. After the Plaza Vieja, the elephants moved to the Capitol<br />
Building, the University of Havana, and the Plaza de la Revolución.<br />
Shortly thereafter, the Miramar Trade Center agreed to buy<br />
it as a permanent exhibit for their courtyard. The facility is in the<br />
municipality of Playa, one of the most modern parts of Havana’s<br />
metropolitan area. The installation’s transition from Havana’s<br />
colonial heart to a higher-tech business hub represents hope for<br />
Cuba’s progress, JEFF explains. The elephants are “drinking from<br />
the future,” he said.<br />
JEFF was born in the eastern Cuban province of Granma<br />
and moved to Havana as a young boy. At 13, someone noticed<br />
the paintings he was making on cardboard at a children’s outdoor<br />
art workshop and encouraged him to take art classes. In 2003, he<br />
graduated from Cuba’s prestigious Instituto Superior de Arte (ISA),<br />
and he went on to work with galleries across Cuba and Europe,<br />
including Madrid’s Ángel Romero Gallery, around the corner<br />
from the Museo del Prado.<br />
Throughout his career, JEFF’s art has largely focused on the<br />
feelings and experiences of childhood, and how those translate<br />
into adult circumstances. “It’s a language we all understand,<br />
because we were all kids once,” he said.<br />
JEFF returned to Cuba after the show to begin work on two<br />
installations, this time for his hometown Bayamó. Cuba’s national<br />
electric company is sponsoring him to build two giant light posts<br />
in the shape of sunflowers at the entrance of the utility worker’s<br />
school. “Life blooms when there’s electricity,” he explained.<br />
He has also been scavenging through garbage and debris for<br />
materials he plans to use in an exhibit of wooden and stainless<br />
steel soldiers. “The soldiers are like the people, the masses,” he<br />
said, recycling and reinventing themselves to survive. H<br />
La Manada (The Herd) on permanent display at<br />
the Miramar Trade Center, in the municipality of<br />
Playa, one of the most modern parts of Havana’s<br />
metropolitan area<br />
Photo courtesy of the Cuban Cigars, Culture & Lifestyle blog<br />
60 CUBATRADE JANUARY/FEBRUARY 2018
BOOK REVIEW<br />
Fried Suffed Potatoes<br />
Plantain Fitters<br />
“Paladares: Recipes Inspired<br />
by the Private Restaurants<br />
of Cuba,” is a panorama of<br />
traditional and new recipes<br />
born of the current, tourismsparked<br />
culinary renaissance<br />
by Julienne Gage<br />
In spite of spending six months studying in Cuba in the late<br />
1990s, I didn’t really know the island’s “traditional” cuisine<br />
until I first moved to Miami in 2002. That’s because my field<br />
studies came on the heels of Cuba’s “Special Period.” Access to<br />
food supplies was still limited, and most Cubans were so eager to<br />
ward off a bout of hunger they overloaded their plates with every<br />
simple protein and starch they could find – fried eggs, fried Malanga,<br />
fried potatoes, beans and rice, hot dogs, and even pizza.<br />
Today’s Cuba visitor will find a far more diverse and well-balanced<br />
array of food options. Whether you’re planning a trip to<br />
Cuba or simply savoring one in your dreams, the new cookbook<br />
“Paladares: Recipes Inspired by the Private Restaurants of Cuba”<br />
can help get you there. The colorful hardback’s 150 recipes are nestled<br />
between hundreds of images by photographer Megan Fawn<br />
Schlow depicting Cuban food and restauranteur profiles written<br />
by award-winning food critic Anya von Bremzem.<br />
Together, the book’s collaborators teach readers everything<br />
they need to know about the return of Cuban classics such as ropa<br />
vieja (‘old clothes’, aka shredded beef ), picadillo (spicy ground<br />
beef) and lechón (roasted suckling pig), as well as the art of the<br />
island’s most celebrated spirits: the mojito, the daiquiri, and the<br />
Cuba Libre. At the same time, it details how – in spite of the<br />
constraints of the U.S. embargo and the glaring lack of a Cuban<br />
wholesale market – Cuba’s culinary creatives still manage to infuse<br />
their restaurants with lighter fare and fusion dishes.<br />
The book highlights this with recipes such as ceviche with<br />
mango and black-eyed peas, avocado salad, okra curry with papaya,<br />
and just about anything containing, oddly enough, blue cheese.<br />
Even traditional Cuban croquets – usually made with chicken,<br />
fish, or pork – get an upgrade with this French fromage, as does<br />
what is quickly becoming my favorite late-night Havana meal<br />
option: pumpkin cream soup with blue cheese crumbles.<br />
Thanks to the book’s meticulous investigation into the most<br />
promising new paladares, I found that soup at the festive bar<br />
of Old Havana’s shabby chic bistro O’Reilly 304, located at the<br />
address of its name. I didn’t have to wander far for desert, because<br />
the book noted that owner José Carlos Imperatori also owns the<br />
appropriately titled El Del Frente (The One Across the Street),<br />
where I found plenty of room for an almond tart and a glass of<br />
sauvignon blanc upstairs on an airy deck, enlivened by a laptop<br />
livestreaming music from radio stations around the globe.<br />
One thing the globally minded will surely note is that<br />
many of the so-called “traditional” Cuban recipes hail from the<br />
madre patria. For example, Casa Pilar makes a succulent Spanish<br />
salmorejo – gazpacho with serrano ham – and Catalonia-inspired<br />
tomato bread, also enhanced by serrano ham. Meanwhile, don’t let<br />
the name O’Reilly 304 fool you. Its lightly-fried papas bravas (spicy<br />
potatoes) are so perfectly crisp and peppery on the outside, and so<br />
soft and warm on the inside that they rival the best tapas of Spain’s<br />
celebrity chef José Andres (who offered praise for the cookbook).<br />
But few of Cuba’s creative establishments can compete with<br />
the artistic flavors and ambiance of Sasha Ramos and Rafael<br />
Muñoz’s El Cocinero between Havana’s Vedado and Miramar<br />
neighborhoods, just past the end of the Malecón. Adjacent to<br />
the popular Fábrica de Arte (Art Factory), an old cooking oil<br />
factory-turned-multi-platform-arts-and-entertainment venue,<br />
it incorporates the factory’s 200-foot smokestack as its entrance.<br />
The fine-dining establishment uses virgin olive oil, herbs, and<br />
yes, more blue cheese to slay visitors with a mouthwatering filet<br />
mignon and a coconut flan drizzled with organic Cuban honey.<br />
Some Cubans – including the young hipsters who now tend<br />
the bars of these delightful haunts – may have been born too late<br />
to remember the hunger and vitamin deficiencies that plagued<br />
those first post-Soviet years. But the creators of “Paladares” see the<br />
island’s ever-growing restaurant scene as a sign of hope for a more<br />
diverse and flavorful future.<br />
And if you ever get nostalgic for the simple life, not to worry.<br />
Salted fried plantains and malanga fritters still reign at these new<br />
Cuban bistros, on the dinner tables of everyday Cubans, and in<br />
the first few pages of “Paladares.” H<br />
Pumpkin Soup with Blue Cheese<br />
FROM THE PRIVATE PLATE<br />
Cuba Libre<br />
62 CUBATRADE JANUARY/FEBRUARY 2018<br />
JANUARY/FEBRUARY 2018 CUBATRADE<br />
63
in closing<br />
Can’t Stop,<br />
Won’t Stop<br />
Why U.S.-Cuba cooperation<br />
must - and will - continue<br />
By Daniel Whittle<br />
Daniel Whittle (left) with a boat captain during a scientific exchange in the Gulf of Batabanó<br />
For every person who hesitates, there are others<br />
who are pushing ahead with new initiatives...<br />
Last month I participated in a series of talks in Havana on<br />
the prospects for improving U.S.-Cuba relations during the<br />
Trump era. At the event, hosted annually by Cuba’s Center for International<br />
Policy Research, American and Cuban speakers agreed<br />
that recent actions taken by the Trump administration would only<br />
harm the Cuban people and undermine American interests.<br />
Fortunately, most also believe that these setbacks will be temporary<br />
and that the strategic drivers in favor of normalization remain<br />
strong. For example, popular support for improved relations with<br />
Cuba remains high, even among Cuban-Americans in South Florida.<br />
With time and perseverance, relations can and will get better.<br />
The new restrictions on trade and travel, along with the<br />
severe rhetoric coming out of the White House, are no doubt<br />
creating confusion and prompting many Americans to postpone<br />
or cancel plans to travel to or invest in Cuba. But for every person<br />
who hesitates, there are others who are pushing ahead with<br />
new initiatives, deals, investments, and exchanges in Cuba, still<br />
allowed by U.S. law and policy, and welcomed by Cuban partners.<br />
When asked about the implications recent U.S. policy<br />
changes might have on Environmental Defense Fund’s work with<br />
Cuban scientists, fishermen and conservationists, my colleague<br />
Valerie Miller said it best “We can’t stop and we won’t stop.”<br />
This sentiment is shared by many on both sides of the Straits<br />
of Florida. Several American groups continue to collaborate with<br />
Cuban institutions to research and protect the Island’s remarkable<br />
biodiversity. In November, scientists from the Woods Hole<br />
Oceanographic Institute teamed up with Cuban researchers to<br />
study coral reefs in the renowned Gardens of the Queen National<br />
64 CUBATRADE JANUARY/FEBRUARY 2018<br />
Park off Cuba’s south coast. Scientific data collected from this trip<br />
will help managers develop more effective strategies for protecting<br />
imperiled coral reef ecosystems in the region and worldwide.<br />
In November, dozens of farmers, academics, and others from<br />
the U.S. traveled to rural communities on the island to compare<br />
notes and share best practices with Cuban farmers about sustainable<br />
agriculture. Cuba has become a leader in agroecology and<br />
Americans have much to learn from their example – and can help<br />
them succeed in the future.<br />
There are a number of other active collaborations on clean<br />
energy, climate change, public health, livable cities, and other<br />
issues, led by Cubans and Americans who are undaunted by<br />
current politics.<br />
So far, President Trump has left much of President Obama’s<br />
policies on Cuba intact, including the 22 agreements signed<br />
between the two governments between November 2015 and <strong>January</strong><br />
2017. Several of these address environmental and scientific<br />
matters, including how the two countries will cooperate to prevent<br />
another catastrophic oil spill in the Gulf of Mexico. Though<br />
U.S. environmental officials are temporarily unable to travel to<br />
Cuba because of U.S. State Department restrictions, non-governmental<br />
groups are helping keep these agreements alive by hosting<br />
dialogues and exchanges in the U.S. and third countries.<br />
This is not a time to put normalization on hold. We can’t<br />
stop and we won’t stop. H<br />
Daniel Whittle is the Senior Attorney and the Senior Director of the<br />
Cuba Program at the Environmental Defense Fund<br />
From Houston to DC to Havana…<br />
Experience. Expertise. Results.<br />
CUBAN RELATIONS • LEGAL SERVICES • GOVERNMENT AFFAIRS<br />
713.893.0500<br />
www.chevalierlaw.com
EXPLORE CUBA.<br />
ALL OF IT.<br />
Now flying to six cities from Miami<br />
Whether you choose Havana, Cienfuegos, Holguin, Santa Clara,<br />
Varadero or Camaguey, now you can fly nonstop from Miami.<br />
With frequent daily flights, low fares and easy booking,<br />
American makes it easy to get there.<br />
Book today at aa.com or call your local travel agent.<br />
American Airlines and the Flight Symbol logo are marks of American Airlines, Inc.<br />
oneworld is a mark of the oneworld Alliance, LLC. © 2016 American Airlines, Inc. All rights reserved.