Diapositiva 1

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U.S. Cuba Trade Association Florida Chapter
EXPERIENCES AND PROSPECTS ON PURCHASES FROM THE
US
Pedro Alvarez Borrego Chairman CEO Havana.
April 2006
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Aerial view of Havana
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Alimport thanks the US-Cuba Trade Association and
the sponsors of the Orlando Seminar for the
invitation to attend this event in which
potentially useful discussions will be held.
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1) Nethercutt Amendment (2000) authorized US food
and Medicine Sales. Cuba refused to purchase
under terms of amendment, which reinforced
existing restrictions. 2) Sept. 11/01, Cuba among
1st countries to condemn terrorist acts and
offered assistance. 3) Hurricane Michelle
(Nov./01) devastated half of the Island.
Humanitarian aid offered by US Government. 4) Cuba
proposed to purchase from US to replenish
inventories and asked only that US licensing
process be expedited.
Initial Purchase for US 35 million (FOB terms)
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5) American businesses show interest. Export
and shipping licenses issued for up to one year.
Cubas purchases reached US 140 million between
Feb and September 2002. 6) US travel visas denied
to various Alimport executives and
specialists 7) 1st US Food Agribusiness
Exhibition (Sept./02), organized in less than
three months, attracted 750 representatives from
288 businesses and associations from 33 States
and Puerto Rico, as well as broad media coverage
Additional US 112 million signed in contracts
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TRADING RESULTS TO-DATE
Contacted companies over 4 300 Contacted
states 45 Relations with ports 23 Deals
with 159 firms in 35 states Trade in 300
food agricultural items Over 128 farm
associations and federations in 32 states have
also been contacted.
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(No Transcript)
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TRADING RESULTS TO-DATE

• CUBAS RANKING
• AMONG THE US FOOD AGRICULTURAL EXPORT MARKETS
• 25st
• Wheat........... 12th ( US Wheat Association )
• Chicken......... 8th ( USAPEEC )
• Rice............... 3rd ( USA Rice Federation )

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TRADING RESULTS TO-DATE
1. Over US 1.8 billion in deals, including US
1.7 billion in actual cash payments for 5.9
million tons delivered (Total of 6.8 million MT
in contracts).
1829
6.8
5.9
1711
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PAYMENTS MADE FOR FOOD IMPORTS ( USD ) TOTAL
PAID YEAR 2001
4,433,654.28   TOTAL PAID YEAR 2002
175,858,590.81   TOTAL PAID YEAR 2003
343,947,276.14   TOTAL PAID YEAR 2004
474,113,308.38 TOTAL PAID YEAR 2005 540,
897,493.99 TOTAL PAID YEAR 2006
172, 700,050,40
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TRADING RESULTS TO-DATE
2. 73.0 of the vessels involved in 713 Cuba
journeys have been US flagged or chartered from
23 American ports. New ports to join the Cuba
trade. Freight paid so far 180.0 MMUSD.
713
520
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EXISTING RESTRICTIONS

• US Travel Ban no American tourism
• Cuban Exports prohibited
• Cubas main cash sources for food purchases
  Tourism and Exports
• No US public or private credit allowed for the
  Cuba trade
• Licensing requirement for product sales and
  related shipments

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IMPLICATIONS OF EXISTING RESTRICTIONS

• American public does not benefit from Cuban
  exports (including unique and advanced
  life-saving drugs)
• Fewer jobs generated in the US due to limited
  sales and restricted travel to new market

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IMPLICATIONS OF EXISTING RESTRICTIONS

• Cumbersome US licensing policy deters
  participation by small and medium-sized American
  firms in Cuban food ag. import market
• Uncertainty about changing US trade payment
  rules discourages Cuba from significantly
  expanding its US imports

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• Alimport will welcome the elimination of the US
  travel ban on Cuba, a step consistent with the US
  Constitution, which will support Cubas
  incremental food imports, with expanded
  employment in the US, and facilitate currently
  restricted people to people contact

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Normalizing trade and travel relations Expert
estimates show that normalized Cuba-US relations,
inclusive of two-way travel, commerce and foreign
investments, will see bilateral trade in goods
and services of 21 billion in initial five
years
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Cuba welcomes American tourists