More Details on Cuba’s Foreign Tourism

During the first quarter of 2018, 95,520 U.S. citizens visited Cuba, which was 40 percent fewer than came in the same quarter of 2017. This “is hurting this island’s access to hard cash and setting back the effort to reestablish ties between U.S. citizens and Cubans.“.[1]

The Cubans most adversely affect by this decline are ”the very Cubans the Trump administration has vowed to defend here — small-business owners looking to inject a dose of the free market into the economy.” They are “Airbnb hosts, the owners of small restaurants and art galleries, and tour operators.” Indeed, “unlike many European visitors to Cuba, the American newcomers largely eschewed the package tours that corralled tourists at big, beachfront hotels and assembly-line restaurants. Instead, the Americans spent more time exploring the colonial streets of Old Havana on their own” and patronizing the newer privately-owned businesses

Yes, there has been an increase in foreigners arriving on the island on cruise ships, 177,000 this quarter versus 38,000 in 2017’s first quarter, but they “spent relatively little money onshore.”[2]

Another positive development for Cuban tourism generally, but not the Cuban entrepreneurs, according to the Reuters article, are recent announcements of new hotels by foreign “hospitality companies including Spain’s Melia Hotels International and Iberostar Hotels & Resorts; Singapore’s Banyan Tree Holdings Ltd., Apollo Global Management LLC’s Diamond Resorts International Inc.;” and “Louvre Hotels SAS, a French subsidiary of China’s state-owned Jinn Jiang International Hotels Development Co, one of the world’s largest.”

The construction of such new hotels, however, is “generally carried out jointly with the Cuban Government and especially with the military , which controls a good part of the island’s tourism sector.” For example, “there are currently five new five-star hotels under construction in Havana, owned by the Gaviota Corporation -a military company-, and will be administered by foreign firms.”[3]

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[1] Faiola, In Cuba, the Great American tourism boom goes bust, Wash. Post (May 11, 2018); Drop in Foreign Tourists for Cuba, dwkcommentaries.com April 25, 2018).

[2] Reuters, Despite Hurricanes and Trump, Cuba Retains Charm for Foreign Tourism Firms, N.Y. Times (May 11, 2018).

[3] The Government and the military will continue to make cash with tourism, Diario de Cuba (May 11, 2018).

Secretary of State Tillerson’s Provocative Remarks About Latin America

On February 1, U.S. Secretary of State Rex Tillerson embarked on a seven-day trip to five Latin American countries (Mexico, Argentina, Peru, Colombia and Peru). Before he did so he delivered an overview of this trip in a major speech at the University of Texas, Austin entitled “U.S. Engagement in the Western Hemisphere.” In addition to talking about the countries he will be visiting, he touched on Cuba and Venezuela and, in response to a professor’s question, the Monroe Doctrine, which will be discussed below. [1].

The Secretary’s Speech and Answers to Questions

  1. Cuba

The Secretary’s prepared remarks about Cuba essentially reiterated President Trump’s National Security Presidential Memorandum, which has been discussed in previous posts. In addition, in response to a professor’s question, Tillerson criticized President Obama’a policy of normalization’s allegedly not obtaining advantages for the U.S. “other than a clear economic opportunity for U.S. business interests, which is great.” But  “that was coming on the backs of the Cuban people, who are still very repressed.”

The Trump Administration’s policies, he claimed, are all directed to helping the Cuban people. “That’s what we want to do is help the Cuban people.” Nevertheless, at the same time, “we stay engaged with the Cuban authorities that in this transition, can they find their way to maybe a different future? I don’t know. We’ll see.”

2. Venezuela

According to Secretary Tillerson, “he corrupt and hostile regime of Nicolas Maduro in Venezuela clings to a false dream and antiquated vision for the region that has already failed its citizens. It does not represent the vision of millions of Venezuelans – or in any way comport with the norms of our Latin American, Canadian, or Caribbean partners.”

“Our position has not changed. We urge Venezuela to return to its constitution – to return to free, open, and democratic elections – and to allow the people of Venezuela a voice in their government. We will continue to pressure the regime to return to the democratic process that made Venezuela a great country in the past. . . .”

“We encourage all nations to support the Venezuelan people. The time has come to stand with freedom-loving nations, those that support the Venezuelan people, or choose to stand with the Maduro dictatorship, if that is your choice.”

Tillerson returned to Venezuela in response to a student’s question whether the removal of President Maduro was “ necessary, and what could the U.S.’s role be in the possible regime change, especially considering the turmoil that could surmount from such a change?”

The Secretary’s response: “Well, President Maduro could choose to just leave. . . . “We have not advocated for regime change or removal of President Maduro; rather, we have advocated that they return to the constitution. We do not recognize the constituent assembly as legitimate, and they need to get back to the constitution and follow the constitution.” (Emphasis added.)

“I think there will be a change. We want it to be a peaceful change. Peaceful transitions, peaceful regime change is always better than the alternative of violent change. In the history of Venezuela and in fact the history in other Latin American and South American countries, oftentimes it’s the military that handles that, that when things are so bad that the military leadership realizes they just – they can’t serve the citizens anymore, they will manage a peaceful transition. Whether that will be the case here or not, I do not know. Again, our position is Maduro should get back to his constitution and follow it. And then, if he is not re-elected by the people, so be it. And if the kitchen gets a little too hot for him, I’m sure that he’s got some friends over in Cuba that can give him a nice hacienda on the beach, and he can have a nice life over there.” (Emphasis added.)

3. Monroe Doctrine

A  professor asked about Tillerson’s opinion of the Monroe Doctrine, which was a unilateral principle of U.S. foreign policy first enunciated in the 1823 State of the Union Address by President James Monroe and in 1850 became known in U.S. parlance as the Monroe Doctrine. Monroe stated that any “further efforts by European nations to take control of any independent state in North or South America would be viewed as “the manifestation of an unfriendly disposition toward the United States.” At the same time, Monroe noted that the U.S. would recognize and not interfere with existing European colonies nor meddle in the internal concerns of European countries.[1] 

Perhaps caught off guard by this question, Tillerson said, “Well, I think it clearly has been a success, because as I mentioned at the top, what binds us together in this hemisphere are shared democratic values, and while different countries may express that democracy not precisely the same way we practice democracy in this country, the fundamentals of it – respect for the dignity of the human being, respect for the individual to pursue life, liberty, happiness – those elements do bind us together in this hemisphere. So I think it clearly was an important commitment at the time, and I think over the years, that has continued to frame the relationship.”

Tilleson added, “it’s easy for the United States as a country, because of our size and our engagements with so many countries and regions around the world, . . . through nothing more than just perhaps a period of neglect, to let certain relationships atrophy a bit. . . . I think we’ve gone through those periods of time in our history as well, and if you look back and whether . . . by individual country or regionally as well, due to other events, sometimes I think we have forgotten about the importance of the Monroe Doctrine and what it meant to this hemisphere and maintaining those shared values. So I think it’s as relevant today as it was the day it was written.”

Cuba’s Criticism of the Secretary’s Remarks [3]

Cuba’s Criticism of the Secretary’s RemarksOn February 5, 2018, Cuba’s Foreign Ministry registered its strong objection to the Secretary’s comments about Cuba, its ally Venezuela and the Monroe Doctrine, which, Cuba said, were ones of “arrogance and contempt.”

According to Cuba Tillerson had “reiterated U.S. interference “ in Cuba’s internal affairs, on demanding from our upcoming electoral process changes that are to the liking of the United States.” He also ”aimed at undermining the unanimous repudiation of the region of the retrogressive measures and tightening of the economic, commercial and financial blockade against Cuba, whose purpose is to harm the Cuban economy and people to attempt to subdue the country.”

Cuba added that “Tillerson’s comments about the history of military overthrowing elected governments in Lain America “openly instigate the overthrow, by any means, of the legitimate government of Venezuela” and are also “clearly in line with the regime change schemes that have claimed the lives of millions of innocent victims in various parts of the world and promoted violence, war, humanitarian crises and instability, demonstrating their failure.”

Moreover, said Cuba,  the Secretary’s defense of the Monroe Doctrine reiterated “the postulates of the infamous doctrine that established as a policy that the Americas were the backyard of the United States.”

In short, the Secretary’s remarks “adds a new act to what has been a pattern of successive outrages in the history of domination of our region, and confirms the sustained contempt with which the government of President Donald Trump has unequivocally referred to the nations of Latin America and the Caribbean, whose peoples it denigrates whenever it has the opportunity.”

“The Ministry of Foreign Affairs of the Republic of Cuba condemns this new attack against Cuba and Venezuela, which follows the recent disrespectful statements of President Trump in his State of the Union Address.”

“Before departing for his imperialist tour, the Secretary of State announced that 2018 will be the year of the Americas and made clear that he will seek to encourage division and submission among Latin American governments. In doing so, he will come up against the repudiation inspired by his announcements and the dignity of the peoples of the region, who bear the memory of the hundreds of thousands of dead and disappeared by the military dictatorships sponsored by the United States, and that Secretary Tillerson today calls to repeat.”

“Ours has been a continent subjected to the humiliating dominance of the U.S., interested only in extracting its resources in an unequal relationship. But Our America has awakened and it will not be so easy to crush it.”

Conclusion

Tillerson’s direct comments abut Cuba were rather limited and by themselves did not deserve Cuba’s strong rejection. However, the Trump Administration’s announced policies regarding Cuba do deserve the Cuban rebuke. Those policies also are not aimed at helping the ordinary Cuban people, especially those who are now engaged in the island’s private sector.

Although this blogger has not  carefully followed recent developments regarding Venezuela, he does believe that the country is in a horrible mess and that President Maduro’s actions are a major cause of this situation. While Tillerson did call for a peaceful solution to the country’s problems, was his unnecessary reference to military coup d’tat solutions in Latin America an implicit call for such action in Venezuela? If so, it was totally inappropriate and undiplomatic. And Cuba was right to criticize him for those remarks.

Unless Tillerson previously has been tipped off about the professor’s interest in the Monroe Doctrine, the question may have caught him off guard and the Secretary’s response obviously did not recognize the hostility throughout Latin America to the U.S. history of trying to impose its solutions to various problems upon the countries Latin America. This too deserved Cuba’s criticism.

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[1] U.S. State Dep’t, [Secretary’s] Travel to Texas, Mexico, Argentina, Peru, Colombia, and Jamaica, February 1-7, 2018  (Feb. 1, 2018); U.S. State Dep’t, Secretary of State Remarks, U.S. Engagement in the Western Hemisphere (Feb. 1, 2018).

[2] Monroe Doctrine, Wikipedia.

[3] Cuba rejects a return to the Monroe Doctrine, Granma (Feb. 5, 2018). 

 

New U.S. Senate Bills Embrace Normalization of Relations with Cuba

A prior post discussed the recent rumors that the Trump Administration, next month, is planning to reverse various aspects of the U.S. normalization of relations with Cuba that commenced on December 17, 2014.

In resistance to this threat, the U.S. Senate this week saw two new bipartisan bills embracing such normalization.

Protecting American Travel to Cuba [1]

On May 25 A bill to allow United States citizens and legal residents to travel between the United States and Cuba (S.1287) was offered by Senator Jeff Flake (Rep., AZ) with 54 bipartisan co-sponsors (43 Democrats, 9 Republicans and 2 Independents). It would eliminate current restrictions on traveling to Cuba for tourist purposes completely and permanently deregulate U.S. travel to Cuba.

According to Senator Flake, “Recognizing the inherent right of Americans to travel to Cuba isn’t a concession to dictators, it is an expression of freedom. It is Americans who are penalized by our travel ban, not the Cuban government. Lifting the ban on U.S. citizens traveling to Cuba can pave the way to meaningful change by increasing contact between Cubans and everyday Americans, and it is certain to have positive benefits for the island’s burgeoning entrepreneurial and private sector.”

Senator Patrick Leahy (Dem., VT) , one of the leading cosponsors, added, “A bipartisan majority of the Senate agrees that the federal government should not be telling Americans where they can or cannot travel, especially to a tiny country just 90 miles from Florida.  The restrictions in law that our bill would strike down are a failed vestige of the Cold War.  The travel ban is neither justified nor in our national security or economic interests.  If we don’t engage, China and Russia will – in fact they already are.  While this bill doesn’t lift the embargo, it at least would restore to Americans the freedom to travel they are entitled to.”

The increased U.S. travel to Cuba over the last two years has contributed to economic growth and job creation in the U.S. travel and tourism sectors and provided significant economic support to Cuban entrepreneurs and small business owners. Removing all restrictions on traveling to Cuba would further strengthen Cuba’s growing private sector.

Expanded travel to Cuba is supported by 81% of the American public, including 71% of Republicans plus U.S. travel groups, over 100 U.S. agriculture groups, the National Association of Manufacturers, U.S. national security experts and almost 100% of the Cuban people.

Ending the U.S. Embargo[2]

On May 25 A bill to lift the trade embargo on Cuba (S. 1286) was introduced by Senator Amy Klobuchar (Dem., MN) with 13 cosponsors (9 Democrats, 3 Republicans and 1 Independent). It would pave the way for new economic opportunities for American businesses and farmers by boosting U.S. exports and allow Cubans greater access to American goods. The legislation repeals key provisions of previous laws that block Americans from doing business in Cuba, but does not repeal portions of law that address human rights or property claims against the Cuban government.

“For far too long, U.S.-Cuba policy has been defined by the conflicts of the past instead of the realities of today and the possibilities for the future,” Senator Klobuchar said. “More than 50 years of isolating an island just 90 miles from our border has not secured our interests and has disadvantaged American business owners and farmers. This bipartisan legislation would benefit the people of both our countries by boosting American exports and creating opportunity for the Cuban people. We need to turn the page on the failed policy of isolation and build on the progress we have made to open up engagement with Cuba by ending the embargo once and for all.”

Senator Michael Enzi (Rep., WY), one of the cosponsors, said, “Over the last 50 years, our strategy of isolating Cuba hasn’t been very successful. This bipartisan legislation would lift the travel restriction to Cuba, providing new opportunities for American businesses, farmers and ranchers. But trade is very powerful. It can be more than just the flow of goods, but also the flow of ideas – ideas of freedom and democracy are the keys to positive change in any nation. It is time we moved on from the failed ideas of the past and tried a new approach to Cuba.”

Another cosponsor, Senator Patrick Leahy, added, “Decades after the end of the Cold War we continue to impose punitive sanctions against Cuba, a tiny island neighbor that poses no threat to us. After more than half a century, the embargo has achieved none of its objectives.  President Obama took a courageous and pragmatic step in opening diplomatic relations with Cuba.  It is now up to Congress to end the embargo, which is used by the Cuban government to justify its repressive policies, and by foreign companies to avoid competing with U.S. businesses that are shut out of the market.  Lifting the embargo will put more food on the plates of the Cuban people, allow them to access quality U.S. products, and spur reforms in Cuba’s economy, all while benefiting American companies.  I commend Senator Klobuchar for her steadfast leadership on this issue.”

Cuba relies on agriculture imports to feed the 11 million people who live on Cuba and the 3.5 million tourists who visit each year. This represents a $2 billion opportunity for American farmers annually. This bill would repeal the current legal restrictions against doing business with Cuba, including the original 1961 authorization for establishing the trade embargo; subsequent laws that required enforcement of the embargo; and other restrictive statutes that prohibit transactions between U.S.-owned or controlled firms and Cuba, and limitations on direct shipping between U.S. and Cuban ports.

Conclusion

Now is the time for all U.S. supporters of normalization to engage in public advocacy of these policies and to urge their U.S. Senators and Representatives to oppose any rollback of normalization.

We also need to express our support of those who have introduced bills in this Session of Congress to end the embargo and to expand Americans’ freedom to travel to Cuba. In addition to the two previously mentioned bills, the following bills also deserve support:

  • Senator Heidi Heitkamp (Dem., ND), Agricultural Export Expansion Act of 2017 (S.275);
  • Senator Jerry Moran (Rep., KS), Cuba Trade Act of 2017 (S.472)(end the embargo);
  • Representative Mark Sanford (Rep., SC), Freedom to Travel to Cuba Act of 2017 (H.R.351);
  • Representative Tom Emmer (Rep., MN), Cuba Trade Act of 2017 (H.R.442)(end the embargo);[3]
  • Representative Kevin Cramer (Rep., ND), Cuba DATA Act (H.R.498);
  • Representative Rick Crawford (Rep., AR), Cuba Agricultural Exports Act (H.R.525); and
  • Representative Jose Serrano, (Dem., NY), Promoting American Agricultural and Medical Exports to Cuba Act of 2017 (H.R.572), Baseball Diplomacy Act (H.R.573), Cuba Reconciliation Act (H.R.574).

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[1] S.1287: A bill to allow United States citizens and legal residents to travel between the United States and Cuba; Flake, Leahy Reintroduce Bill Restoring Freedom to Travel to Cuba (May 25, 2017); Statement of Senator Patrick Leahy on The Freedom for Americans to Travel to Cuba Act of 2017 (May 25, 2017); 55 U.S. Senators Introduce Bipartisan Bill to Life the Travel Ban on Cuba, Engage Cuba (May 25, 2017); Reuters, U.S. Lawmakers Reintroduce Bill to End Restrictions on Cuba Travel, N.Y. Times (May 25, 2017); Torres, More than 50 senators support eliminating restrictions on travel to Cuba, Miami Herald (May 26, 2017).

[2] S. 1286: A bill to lift the trade embargo on Cuba (May 25, 2017); Klobuchar, Enzi, Leahy Flake Lead Bipartisan Coalition to Introduce Major Legislation to lift Cuba Trade Embargo (May 25, 2017); Sens. Introduce Second Cuba Bill, Sending Clear Message to Trump, Engage Cuba (May 26, 2017).

[3] Representatives Emmer and Castor Introduce Bill To End Embargo of Cuba, dwkcommentariese.com (Jan. 12, 2017).

European Union and Cuba Agree To Cooperate on Political Dialogue, Cooperation, Trade and Economic Relations             

On December 12, in Brussels, the European Union and Cuba signed the Agreement on Political Dialogue and Cooperation. It will form the legal platform for future relations to support economic development and promote democracy and human rights on the island.[1]

The Agreement is divided into three chapters: (1) political dialogue, covering issues such as governance, human rights, stability and regional and international security and weapons of mass destruction; (2) cooperation, which is the most comprehensive and identifies sectors of cooperation; and (3) promotion of trade and economic relations based on the rules governing international trade, as well as strengthening of existing relations “on the basis of mutual respect, reciprocity, mutual interest and respect sovereignty.” The Agreement also states the goal for both sides is to “engage in dialogue for the purpose of strengthening human rights and democracy.”

The Agreement was signed by the EU foreign policy chief, Federica Mogherini, and Cuba’s Foreign Minister, Bruno Rodriguez, and below is a photograph of them on this event.

cuba-eu

Minister Mogherini said, “This is a historic day, we’ve turned a page. Today we’re starting to write together a new chapter.” She also stated, “The developments in Washington that will come as of the end of January onwards will not affect in any way the relations between the European Union and Cuba. We are friends, we are partners. We want to work together and we will work together. The impact of this on others, it’s not for me to judge.”

This thought was echoed by Minister Rodriguez. “Relations between the EU and Cuba do not go via Washington and I remain convinced that there is now a very promising opportunity afforded us to further improve” EU-Cuba ties. He also noted “one major obstacle to trade relations between the EU and Cuba” — the U.S. economic and financial blockade.

Mogherini, supporting Rodriguez, said, “The European Union has raised concerns about the extraterritorial effect of U.S. sanctions on Cuba. We will continue to do so because we believe that this is not only in the interest of the island and its people — all of them — but most of all in our case, it’s in the interest of Europeans to tackle this issue.”

This new pact must now be ratified by national and regional parliaments in all EU member states before it can enter completely into force, although the bloc has decided to provisionally apply parts of it immediately.

As a prelude to the signing of the pact, on December 6, the EU agreed to terminate its 1996 Common Position on Cuba that required Cuban progress on human rights and democracy before normal trade relations with the EU.

This development should be a wakeup call to U.S. opponents of normalization of its relations with Cuba. The U.S. is not the only country that has relations with Cuba and delaying our normalization gives our competitors an advantage.

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[1] Norman, Trump Presidency ‘Will Not Affect in Any Way,’ Relations between EU and Cuba, W.S.J. (Dec. 6, 2016); Assoc. Press, EU, Cuba Sign Cooperation Pact, Vow Trump Will Not Hurt Ties, N.Y. Times (Dec. 12, 2016); The European Union and the regime sign the Agreement on Political Dialogue and Cooperation, Diario de Cuba (Dec. 12, 2016); Cuban foreign minister arrives in Brussels for signing agreement with the EU, Granma (Dec. 11, 2016); The European Union repealing Common Position on Cuba, Diario de Cuba (Dec. 6, 2016); Delegation of the European Union to Cuba, Cuba and the EU, 10/05/2016.