Doing Business in Cuba Citrus Club Orlando, Florida April 13, 2006

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Doing Business in CubaCitrus Club Orlando,
FloridaApril 13, 2006
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ALAMAR ASSOCIATES

• Visiting Cuba Since 1974

• Arranged visits for 450 companies

• Of these, 200 since January 1 , 2002

• Negotiated contracts for clients

- Founder and President, US-Cuba Trade
Association
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Set aside Clutter
Bay of Pigs - Missile Crisis Revolution
Embargo Hijackers Boat Lift Elian
Communism Socialism Capitalism Anti-US
Demonstrations - Immigration
Potential Business Opportunity?
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What is Happening Today ?
1.8 billion in Contracts for Ag / Food Products
150 Companies from 35 States Involved 300
products from 35 states Nebraska and New Mexico
Visits
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Cuba
Pre1959 United States
19601990 Soviet Union
19901995 Depression
19952005 Recovery and Transition
2006 New Economy
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Cuba - Today
- Country in Transition
- State Control - Education - Health -
Military - Bulk food and Medicines
- Mixed Control - Subsidies and Ministries
cut - Foreign Investment 275 Joint Ventures
700 Company Representatives
- Privatization?

• Cuban Companies
• - Cimex
• - Cubalse
• - Cubanacan
• - Gaviota
• - ITH

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Cuban Companies How do they work?
General Motors
Millions of Shareholders
EXECUTIVE MANAGEMENT
Buick
Chevrolet
Cadillac
Oldsmobile
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Cuban Companies How do they work?
Cuba
One Shareholder
EXECUTIVE MANAGEMENT
Cimex
Cubalse
Cubanacan
ITH
Gaviota
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Changes in Cuba

• -Introduction of foreign investment
• -Use of hard currency
• -Beginnings of small business
• -System of taxation
• -De-emphasis of sugar
• growth of new industry
• biotechnology
• computer/software services
• medical services
• tourism
• energy

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Future for Cuba

• Institutionalization

• Transition well under way

• New Generation

With or without Fidel Castro
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Doing BusinessinCuba
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What Can be Done NowandHow To Do It

• Visit Cuba to Meet Customer(s)
• Getting Ready
• Is product on Ag list?
• Research
• Are you really committed
• and
• Is your company committed?

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Visiting Cuba

• Travel license from OFAC
• Export license from Commerce
• Business visa from Cuban Interests Section
• authorization from Havana
• Choose Travel Service Provider

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Once in Cuba

• Meet your customer(s)
• Alimport signs all contracts
• CIMEX, Cubalse, ITH
• MediCuba
• Hopefully..sign a contract

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Lessons Learned

• Start small
• Cuban know their business hard negotiators
• Business-like meetings
• The process has worked well.but
• Cuba has its own process
• Dont confuse politics with business
• PatiencePatiencePatience
• Sanitary and veterinary requirements
• Maintain communication
• Look for potential partners
• Dont wait too long its not over

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What to watch for
Continuing Purchases by Cuba
New Laws Financing Licensing Travel
Elections in November
Form of Administration
vs.
Substance of Congress
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Doing BusinessinCuba