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Cuba’s food and agriculture purchases from the
US have dropped over the last few years, due to
the difficult conditions imposed by Washington’s
blockade on these imports.
Pedro Álvarez, president of Alimport, the Cuban
company in charge of food marketing, explained
that these buys, after maintaining an upward
trend until 2005, when they reached the highest
volumes, have experienced a decrease over the
last three years, although according to all odds
they should have continued to increase, given
the benefit they represent for both parties.
The fall of import volumes, Pedro Álvarez told
the weekly magazine Opciones, is due to
the fact that the maintenance of the blockade
and the strengthening of obstacles for purchases
make imports unsafe, which adds to the lack of
credit.
For this reason, Alimport has diverted imports
that used to be made from the United States to
safer markets without impediments for exports to
Cuba and that at the same time grant credit,
aspects to be taken into account in times when
the international economic crisis has had a
bearing on food prices.
The executive underlined that with these many
problems there’s no way the volume of imports
from the US to Cuba can increase, in spite of
the responsibility of US entrepreneurs, the
quality of products, and the geographic
proximity, the only advantages offered at the
moment.
He explained that the devious objections
legislated by the US government include the
regulation that all of that country’s companies,
to initiate contacts with Cuba, have to request
a license from the Treasury Department in order
for their representatives to travel to the
island.
In the case that an agreement is reached, the US
entrepreneurs must request another permit from
their country’s Department of Trade, before
signing any document. Once the business
transaction is sealed, a Letter of Credit issued
by a Cuban bank on a European bank and from the
latter to a corresponding US bank is needed, and
finally, from the supplier’s bank.
Since at least three or four banks participate
in these transactions, additional costs are
generated, as well as a higher risk of errors in
the handling of documents. Moreover, the bank of
the third country also needs a license from the
US Treasury Department in order to operate.
In addition, shipping companies, in order to
transport goods to Cuba, require another license
issued by the US Treasury Department and, after
unloading in a Cuban port, they must return
empty to their country, since the United States
doesn’t authorize imports of products from the
island.
And if this weren’t enough, a more recent
regulation allows US coastguards to intercept
and search a ship travelling with merchandise
from their country to Cuba, arbitrarily arguing
that the Caribbean nation lacks the necessary
controls to prevent possible terrorist acts.
(ACN) |