Mr. Pedro Alvarez Borrego, Chairman, Alimport,
speaking by telleconference at the National Summit on Cuba in
Mobile, Alabama, on June 10th, 2005
Distinguished participants
I am grateful to the organizers of this august meeting for the
opportunity to talk to you from the distance, since certain visa
and travel restrictions are keeping me from a fruitful people-to-people
contact with you all.
Yours has been an excellent idea to hold a national meeting that
discusses the challenges and opportunities in the Cuba-US relations.
This conference has brought together many prominent Americans,
including senior execs of large, small and medium sized firms,
a worthy sample of the wide American business community, as well
as elected officials and other interested parties.
While Alimport is in the business of food and agricultural imports,
we understand that a seamless and mutually advantageous trade
requires the removal of a maze of restrictions that have, for
decades, pushed the Cuban market away from your competitive and
professional supply and in favor of your competitors elsewhere
who are aggressively keen to deal with us. In fact, early this
year, a new OFAC rule and its consequent uncertainties about US
supply, compelled us to resort to alternative sellers in other
foreign countries for $300 million in food and agricultural purchases
that had originally been planned from the US.
In December 2001 through May 2005, Alimport contracted 5 million
tones of food agricultural supplies, an estimated value of $1.3
billion. Cuba’s cash payments of $1.2 billion in the same
period have aroused interest in your agribusiness community that
actively pursues export markets for its products. In the process,
Cubans and Americans have come to know each other better and make
friends, like the many I am sure I have in your audience.
Alimport will continue to honor its commitments, and subject to
a normal regulatory business environment consistently with international
practices, we will keep increasing our US imports.
However, certain obstacles and restrictions are adversely affecting
the US competitive sales to Cuba. These are:
ð The existing cumbersome licensing procedure distorts trade and
adds unnecessary business costs.
ð The US travel ban and the prohibition of Cuban exports to the
US prevent Cuban cash generation for Alimport’s agricultural
purchases from the US.
ð Unavailability of US credit places.
ð The absence of direct Cuba-US banking relations defers business
transactions. As a result, Cuba has incurred in financial losses
of $12 million associated with demurrage and cargo detention,
in spite of Cuba’s timely payments through third-country
banks.
These restrictions prevent a full participation of the US business
community in our trade, cause insecurity of US supplies, and add
business costs supplies. Hence, the American exporters are in
stark disadvantage, as compared with their foreign competitors.
Cuba does not limit its US imports or trade. We are ready to negotiate
deals for supplies from not only Alabama, but all the other States.
Cuba does not restrict US investments in Cuban key sectors, including
food processing, port modernization and tourism, as well as oil
& gas, and air and sea transportation.
Cuba can only send a message of peace and friendship through trade.
However, we recognize that only the American people, as represented
in Congress, can make a difference and bring our two nations back
together in normal relations.
I salute the Alabama legislature for its initiative to ask the
US Congress to remove the trade and travel restrictions on Cuba.
Similar resolutions have been passed or are being considered by
other state legislatures. I keep fond memories of a historic visit
by an Alabama mission to Cuba last December headed by my good
friends Mayor Dow and Commissioner Sparks and inclusive of state
legislators, business reps and our Cuban American Maria Conchita
of the port of Mobile. The southern states have a history of mutually
advantageous trade with Cuba. Their proximity, diversity of supply,
and port facilities make them natural business partners, not only
as quality exporters, but also potential investment partners in
key sectors of the Cuban economy.
You are all invited to visit Cuba for the annual Havana International
Trade Fair in early November, as well as our US-Cuba Trade Round
in mid-December. The US south has a lot of opportunities to tap
in Cuba. Don’t let your competition take your share.
In 2005, Cuba is planning to import $1.7 billion in food and agricultural
products, including US $450 million – $500 billion from the
US. While Cuban imports from the US have increased significantly,
there is room available for further growth.
It has been estimated that the Cuba-US trade in goods and services
could amount to $21 billion in the first five years of normalized
bilateral relations.
For your information, I am mailing an update on payments by Alimport
for its US purchases.
Finally, I look forward to the success in your deliberations.
Rest assured that here in Cuba we will continue to strive for
normalized relations with your nation.
Friendship between our peoples can never be embargoed. It is high
time we realize this shared goal in the benefit of our two traditionally
close communities.
All the best,
Pedro Alvarez Borrego
Chairman
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