Advance Questions for Cuba in Its Universal Periodic Review by the U.N. Human Rights Council

As summarized in a previous post, Cuba’s human rights record is now undergoing its third Universal Periodic Review (UPR) by the U.N. Human Rights Council in Geneva, Switzerland. That post also discussed Cuba’s national report, submissions by stakeholders (NGO’s and others), a summary of U.N. information about Cuba and information about a pre-session hearing. Now we look at the questions submitted to Cuba in advance of the Council’s hearing on May 16 and an unusual criticism of Cuba by the U.N. High Commissioner for Human Rights along with additional background information about the Council and the UPR.

Advance Questions for Cuba[1]

 The following advance questions were submitted by other Council members:

Member Questions
Belgium 1. When does the Cuban government plan to ratify human rights conventions to which it is not yet party?

2. Does Cuba plan to extend an open invitation to the special procedures of the Human Rights Council?

3. Will Cuba respond favorably to requests for visits by the Special Rapporteurs on Human Rights Defenders and Freedom of Expression, which have been pending since 2015 and 2016?

4. Does Cuba now guarantee access to independent lawyers to all persons deprived of their liberty?

5. What concrete actions has Cuba taken to release persons deprived of their liberty for political reasons.?

Brazil 1.How does Cuba guarantee the rights of the LGBTI?

2.How does Cuba ensure the independence and impartiality of the judiciary?

Germany 1.Does Cuba plan to ratify the International Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights?

2.What will Cuba do to enable independent journalism?

3.Identify blogs and websites currently blocked and the reasons for same.

4.Will Cuba abolish travel restrictions for persons on parole or for those in certain professions, including the medical sector?

5.Will Cuba establish an independent national human rights institution?

Liechtenstein 1.Will Cuba ratify the Rome Statute for the International Criminal Court in its 2010 version?

2.Will Cuba join the Code of Conduct for U.N. Security Council action against genocide, crimes against humanity or war crimes?

Malta 1.What steps has Cuba taken to increase the effectiveness of control by the people of the activities of States bodies, elected representatives and civil servants.?
Portugal 1.How does Cuba coordinate the implementation of UPR recommendations that it accepts?

2.How does Cuba coordinate the implementation of recommendations/observations by U.N. human-rights Treaty bodies and Special Procedures and by regional mechanisms?

Slovenia 1.Provide more information on how non-governmental organizations operate in Cuba and details on any consultation process with them.
Spain 1. Is Cuba reforming its Law on Associations and the Electoral Law to promote a higher level of inclusion and social participation?

2. Which multilateral instruments on Human Rights does Cuba plan to sign and/or ratify?

Sweden 1.Provide more information on Cuba’s prevention of trafficking in persons.

2.Provide more information on Cuba’s effort to improve internet access.

3.Has Cuba denied exit visas for human rights defenders and ndependent civil society members?

4.How will Cuba secure free and unrestricted travel for all of its citizens?

Switzerland 1.What did Cuba do to guarantee free and open participation of all citizens in its last election?

2.How many Cuban citizens were candidates in the election “without being a member of an officially recognized Cuban institution [e.g. Communist Party]?

3.Is Cuba broadening the list of legal private businesses (cuentapropistas)? Is Cuba reviewing the definition of cuentapropistas to include self-declared human rights organizations, independent journalists and bloggers and community-based organizations?

4.Will Cuba amend its constitution to eliminate the subordination of the Supreme court to the National Assembly and to the Council of Ministers?

5.How is the Cuban Criminal Code’s concept of “pre-criminal social dangerousness” interpreted?

6.How do families have transparent and open information about a family member who is a temporarily detained as an alleged criminal?

United Kingdom 1.Will Cuba allow the development of independent political parties, including their legal registration and participation in future elections?

2.How does Cuba ensure that all Cubans are able to participate fully in political and electoral processes?

3.Will Cuba end laws and policies that apparently give primacy to the principle of national unity?

4.Will Cuba move towards international independent verification of the condition of its prisons and detention facilities?

5.Will Cuba bring its laws into compliance with international human rights standards on freedom of expression, association and assembly?

U.S.A. 1. Will Cuba ensure that members of the political opposition, including independent candidates, can participate freely and without threats?

2. When will Cuba allow members of Ladies in White and all other citizens to exercise their rights to peaceful assembly and freedom of expression, religion and association?

3. How does Cuba ensure that those responsible for violations and abuses of human rights and labor rights (including members of the police, military and security services) are investigated and held responsible?

4. Will Cuba respect the rights of peaceful assembly and freedoms of assembly, expression and association of members of the Independent Union Association of Cuba and all other workers and representatives?

5. How is Cuba promoting access to information and access to an Internet that is open, interoperable, reliable,  secure and affordable to its citizens?

 

U.N. High Commissioner’s Criticism of Cuba[2]

At a May 11 press briefing, a spokeswoman for the U.N. High Commissioner for Human Rights released statements of concerns about human rights in Cuba and four other countries. Here is what was said about Cuba:

“There are deeply worrying reports that officials in Cuba have prevented a number of human rights defenders and civil society representatives from boarding flights to travel to meetings abroad on the pretext of requiring more detailed identity checks. These measures have resulted in passengers missing their flights and therefore the meetings, which in some cases were organised by a UN entity.”

“So far this year, the UN Human Rights Office has received direct information relating to 14 cases of Cubans being told by officials that the computer system required extra screening. We are also aware of reports that dozens of other people may have been stopped in this way from travelling, allegedly with no explanation by the Cuban authorities as to why they were held up nor on whose orders”

“These cases suggest that these additional checks are being used deliberately as a form of intimidation, pressure and harassment against certain individuals. Civil society organizations have also told us that they were informed verbally by the authorities that their representatives would not be allowed to leave the island before June.”

“We have previously expressed our concern at the harassment and intimidation of human rights defenders in Cuba, including the arbitrary arrest and short-term detention of individuals, particularly before, during and just after demonstrations. “

“We call on the Cuban authorities to respect everyone’s right to freedom of expression and to freedom of movement, and to ensure that human rights defenders and civil society representatives are not unjustifiably prevented from travelling, including those planning to attend UN meetings, in particular the Universal Periodic Review of Cuba on 16 May in Geneva.”

“Article 13 of the Universal Declaration of Human Rights states that, ‘everyone has the right to leave any country, including his own, and to return to his country.”’Article 19 of the Universal Declaration states that ‘everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.’”

“The UN Secretary-General presents an annual report to the Human Rights Council on intimidation and reprisals, and in October 2016 the Assistant Secretary-General for Human Rights, Andrew Gilmour, was designated to lead the monitoring and response to reprisals for cooperation or intimidation, including that which aims to discourage or prevent future co-operation with the UN system. Cuba was among the countries named in the last two reports.”

“The UN Human Rights Office will continue to monitor such cases to ascertain whether they merit inclusion in the next report.”

U.N. Human Rights Council Membership[3]

The Council is made of 47 U.N. Member States, which are elected by the majority of members of the U.N. General Assembly through direct and secret ballot. The General Assembly takes into account the candidate States’ contribution to the promotion and protection of human rights, as well as their voluntary pledges and commitments in this regard.

The Council’s Members serve for a period of three years and are not eligible for immediate re-election after serving two consecutive terms. The seats are allocated on the following geographical basis:

  • African States: 13 seats
  • Asia-Pacific States: 13 seats
  • Latin American and Caribbean States: 8 seats
  • Western European and other States: 7 seats
  • Eastern European States: 6 seats

The current members include Cuba and the United States, both of whose terms expire on December 31, 2019, while Venezuela is also a member with its term expiring on December 31, 2018.

Council’s UPR Working Group for Cuba’s UPR[4]

The UPRs are conducted by the Council’s 47 members acting as an UPR Working Group. In addition, any other U.N. Member State can take part in the review.

Each State’s review is assisted by a groups of three States, known as a “troika,” who serve as rapporteurs. The selection of the troikas for each State is done through a drawing of lots following elections for the Council membership in the General Assembly

For Cuba’s third UPR the Troika members are Egypt, Nepal and Peru.

The May 16 hearing will last three and a half hours, during which the state under review is given 70 minutes to present its report, as well as answer questions made by other states and present concluding remarks. The remaining 140 minutes are allocated to states participating in the review to ask questions, make comments and recommendations to the state under review.

The second stage of the process will be take place during the Council’s 39th period of sessions in September 2018, at which time the final report will be presented by the Troika.

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[1] U.N. Hum. Rts. Council, Advance Questions for Cuba (First Batch); U.N. Hum. Rts. Council, Advance Questions for Cuba (Second Batch); Hum. Rts. Council, Advance Questions for Cuba (Third Batch).

[2] U.N. High Comm. Hum. Rts., Press briefing note on Yemen, Cambodia, Cuba, Nicaragua and Montenegro (May 11, 2018); The UN denounces the blockade of the Cuban regime on the departure of human rights defenders, Diario de Cuba (May 11, 2018).

[3] U.N. Hum. Rts. Council, Background on Council Membership; U.N. Hum. Rts. Council, Current Council Members.

[4] U.N. Hum. Rts. Council, Basic facts about the UPR; U.N. Hum. Rts. Council, List of Troikas (20th Session).

 

 

 

 

 

Salvadoran Attorney General Requests Reopening of Jesuit Priests Murder Case

On December 5 El Salvador’s Attorney General advised a Salvadoran court that the case over the 1989 murder of the Jesuit priests should be reopened. This follows a similar request on November 27 by the Institute for Human Rights of the University of Central America (UCA), where the priests lived and worked.[1]

The defendants in the case are the alleged intellectual authors of the crime: former president, Alfredo Cristiani; the former head of the Joint Chiefs of Staff, René Emilio Ponce (now deceased); ex-commander of the Air Force, Juan Rafael Bustillo; Deputy Defense Minister, Juan Orlando Zepeda; Public Security Vice Minister, Inocente Orlando Montano; the former commander of the First Infantry Brigade, Francisco Elena Fuentes; and the former Minister of Defense, Rafael Humberto Larios.

Another former Salvadoran military officer and intellectual author of the crime, Guillermo Alfredo Benavides, earlier was convicted of the crime in El Salvador and now is imprisoned in that country.

Montano, as reported in previous posts,[2] is now in Spain facing the same charges in a Spanish court. Apparently he is asserting the following defenses: (a) he had no knowledge of the orders to kill the priests, (b) he was not part of the military chain of command; and (c) at the time of the assassination of the Jesuits, former President Cristiani was present in the Joint Staff of the Armed Forces. At least one of these defenses is supported by an attorney for the Salvadoran military, who is asserting that Montano had no command over military personnel since as deputy minister he only could give  orders to members of the military corps security.[3]

In response, the prosecution in Spain is arguing that Montano was present at the Salvadoran Military General Staff meetings when the orders were given to commit the murders and that as Deputy Minister of Defense and Public Security he was empowered to command the security forces (National Police, National Guard and Treasury Police) while as a Colonel he had command over the military units.

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[1] Labrador, Prosecutor requests the reopening of the Jesuits case in El Salvador, El Faro (Dec, 7, 2017)

[2] See posts in “The Jesuit Priests” section of List of Posts to dwkcommentaries—Topical: EL SALVADOR.

[3] Burgos, Montano’s defense sins innocent, El Faro (Dec. 5, 2017).

Former Salvadoran Military Officer Extradited from U.S. to Spain for Trial in Jesuits Murder Case 

On November 29 Inocente Orlando Montano Morales, a former Salvadoran military officer, was extradited from the U.S. to Spain to face trial in the 1989 murders of five Jesuit priests in El Salvador.[1]

On November 30 Montano appeared before Judge Manuel Garcia Castellón of Spain’s National Court, who sent the Salvadoran to prison for pre-trial detention because the Spanish probe showed Montano had taken an “active part in the decision and design of the assassinations” and because there was a risk he would flee the jurisdiction. (Montano arrived at the court by ambulance and entered the court in a wheelchair.) [2]

Montano is to return to the court next week for testimony in the case.

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[1] Reuters, U.S. Deports Ex-Salvadoran Officer to Face Trial on Massacre of Priests, N.Y. Times (Nov. 29, 2017); Faus, The United States extradites to Spain the Salvadoran colonel implicated in the murder of Ellacuría, El Pais (Nov. 30, 2017). Many previous posts in this blog have discussed the murders of the Jesuits and legal proceedings regarding this horrendous crime, including Spain’s case under the principle of universal jurisdiction and the U.S. proceedings for extradition of Montano; they may be found in “The Jesuit Priests” section of List of Posts to dwkcommentaries—Topical: EL SALVADOR.

[2] Reuters, Spanish Court Orders Prison for Ex-Salvadoran Officer Over Priests’ Massacre, N.Y. Times (Nov. 30, 2017); Assoc. Press, Salvadoran Official Jailed Pending Trial for Jesuits’ Death, N.Y. Times (Nov. 30, 2017); Pérez, Prison for a Salvadoran ex-military for the murder of the Jesuits in 1989, El Pais (Nov. 30, 2017).

El Salvador Perspectives: A strong rebuke for El Salvador on human rights*   

The United Nations High Commissioner for Human Rights, Zeid Ra’ad Al Hussein,  had tough words for El Salvador in his concluding statement this week, highlighting many areas where the country falls short of international human rights standards.  Here is a selection of his comments.

On extra-judicial killings:

There are also alarming reports of extrajudicial killings and the return of death squads. No matter how serious the human rights violations committed by violent gangs, all perpetrators of violence need to be held fully accountable for their actions through judicial mechanisms. Victims on all sides deserve justice.

On prison conditions:

The Extraordinary Security Measures… have placed thousands of people in prolonged and isolated detention under truly inhumane conditions, and with prolonged suspension of family visits. The vulnerability of these inmates is highlighted by an outbreak of tuberculosis, affecting more than a thousand inmates, with several hundred also said to be suffering from malnutrition. I called on the President to end the extraordinary measures and grant international independent organisations, including my Office, access to these detention centres.

On internal displacement:

I heard how the high levels of violence have seriously affected people’s lives, and I noted how such violence is increasing forced displacement within El Salvador and migration. To fully address this growing problem, the Government needs to recognise that it is happening.

On violence against women:

El Salvador has the awful distinction of having the highest rate of gender-based killings of women and girls in Central America – a region where femicide is already regrettably high, as is impunity for these crimes.

On the country’s extreme abortion law:

I am appalled that as a result of El Salvador’s absolute prohibition on abortion, women are being punished for apparent miscarriages and other obstetric emergencies, accused and convicted of having induced termination of pregnancy.

On Thursday morning, I visited the Ilopango detention centre for women on the outskirts of San Salvador and had the privilege to speak to women who were convicted of “aggravated homicide” in connection with obstetric emergencies and as a result are serving 30 years in prison. I have rarely been as moved as I was by their stories and the cruelty they have endured. It only seems to be women from poor and humble backgrounds who are jailed, a telling feature of the injustice suffered.

I call upon El Salvador to launch a moratorium on the application of article 133 of the Penal Code, and review all cases where women have been detained for abortion-related offences, with the aim of ensuring compliance with due process and fair trial standards. Should it be found their cases were not compliant, I appeal for the immediate release of these women. To establish compliance, my Office has proposed that such a review could be established by presidential decree and be carried out by an expert executive committee composed of national and international members. I asked the Government to act on this proposal and indicated the readiness of my Office to assist. This is in line with the recommendations by the Committee on the Elimination of Discrimination against Women.

On impunity for human rights abuses during the civil war:

But despite the valiant efforts of civil society and victims’ groups, only three out of more than 100 criminal complaints brought over the years have so far been reopened. Left uninvestigated and unpunished, the crimes of the past fuel patterns of violence that poison the present and can undermine the future of a society. The past and the present are a continuum, I was told in my meeting with NGOs. The victims of the past are suffering still.

On attacks on human rights advocates and journalists:

I was struck by the dedication and courage of human rights defenders and journalists in El Salvador, who face threats, intimidation and smear campaigns. I urge the authorities to investigate these attacks and to establish effective means of ensuring their protection.

On LGBTI violence:

Similar action is needed to tackle the high rate of impunity for hate crimes against LGBTI persons, especially transgender women. As one civil society representative said: “There is no public policy for us, just institutional violence.”

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*This is a re-posting with consent of El Salvador Perspectives’ November 18, 2017 post of the same name (http://www.elsalvadorperspectives.com/2017/11/a-strong-rebuke-for-el-salvador-on.html). As noted in a previous post to dwkcommentaries, we learned on November 15, 2017, that Spain’s criminal case over the 1989 murders of the Jesuit priests and two women in El Salvador will be proceeding against at least one of the former Salvadoran military officers who soon will be extradited from the U.S. to Spain, and the Jose Simeon Canas Central American University, where the murdered priests lived and worked and were murdered, will be asking for Salvadoran prosecutors to do the same for the 15 other former officers who have been charged with that crime and who are living in El Salvador.

 

 

 

 

Spain Ready to Proceed with Case Over the 1989 Killing of Jesuit Priests in El Salvador

For the last nine years, a court in Spain has been trying to obtain the presence of 20 former Salvadoran military officers to face trial on their alleged involvement in the 1989 murders of six Jesuit priests and their housekeeper and her daughter in El Salvador. Recently one of them—Inocente Orlando Montano Morales (“Montano”)—Is about to be sent to Spain for trial.[1]

 Montano

Former Colonel Montano was the deputy minister of Salvadoran Public Security from 1989 to 1992 and since April 2015 has been the subject of a judicial request by the U.S. Department of Justice for his extradition from the U.S. to Spain to face these charges.

On February 4, 2016, a Magistrate Judge in the U.S. District Court for the District Court of the Eastern District of North Carolina, after an evidentiary hearing, granted this request for extradition based upon the following conclusions: the court had personal jurisdiction over Montano; the U.S. and Spain had an extradition treaty; Montano had been charged with extraditable offenses under that treaty (the terrorist murder of five Jesuit priests of Spanish original nationality); and there was probable cause the Montano committed these offenses.[2]

Montano then exercised his only means of appealing that order by filing in April 2016 an application for a writ of habeas corpus in the same court. After briefing and a hearing, a district judge of that court in August 2017, granted the U.S. government’s motion to dismiss the application and dismissed the application.  This was based on the court’s conclusion that this extradition followed accepted practice and did not appear to be infirm; the treaty “provides for the extradition of a defendant charged with murder when committed outside the territory of the requesting nation {Spain]; . . . [its] laws allow for such a prosecution; and the laws of the requested nation [the U.S.] would allow for a prosecution in similar circumstances.”[3]

Montano then appealed this order to the U.S. Court of Appeals for the Fourth Circuit and simultaneously asked the district court for a stay or postponement of his extradition. This was denied by the district court on September 6 after concluding that he has “failed to make a strong showing that he is likely to succeed on the merits [of his appeal]” and “cannot demonstrate that he will suffer irreparable injury in the absence of a stay.” Thereafter simple denials of the request for a stay were entered on September 28 by the Fourth Circuit and on November 15 by U.S. Supreme Court Chief Justice John Roberts.[4]

Undoubtedly important in Chief Justice Roberts’ denial of a stay was the brief in opposition to such a stay that was submitted by the U.S. Solicitor General, the principal attorney for the U.S. in the U.S. Supreme Court. In its first three of 29 pages, before setting forth a detailed review and approval of the lower courts’ actions, that brief set forth the following facts from the record: “Toward the end of that war [between the military –led government and a leftist guerrilla group]– on November 16, 1989—members of the El Salvador Armed Forces . . . murdered six Jesuit priests, their housekeeper, and the housekeeper’s daughter at the Universidad Centroamerica (UCA) in El Salvador. . . . Five of them were Spanish nationals.” Moreover, evidence submitted by the Spanish authorities showed that “in the days leading up to the murders, the . . .  radio station that [Montano] oversaw made threats against the Jesuit priests; that on the day before the murders, [Montano] participated in a meeting at which one of this fellow officers gave the order to kill the priests; that [Montano] provided ‘necessary information’—namely, the location of one of the priests—to those who carried out the murders; and that following the murders, [Montano] attempted to conceal [the Armed Forces] involvement by threatening the wife of a witness.”[5]

The Solicitor General concluded his brief with these comments: “the [U.S.] has a strong interest in having extradition requests resolved without undue delay, both to comply with its treaty obligations and to further its reciprocal interest in having other Nations cooperate swiftly with its own extradition requests and other law enforcement objectives.” Moreover, “Spain is an important partner of the [U.S.] in terrorism and other cases of national importance, and timely compliance with its extradition requests advances the [U.S.’] foreign policy and law enforcement interests.” (Pp. 27-28.)

As a result, Montano is now headed for imminent extradition to Spain. Almudena Bernabéu, an expert from the Center for Justice and Accountability (CJA) and a private prosecutor of the Jesuits case in Spain with her organization Guernica 37, said about four weeks ago the State Department determined that extradition was appropriate. “From that moment, the two countries are ready for delivery and reception of Montano, but they did not want to do it” until he had exhausted all of his U.S. remedies.

Other Former Salvadoran Military Officers

Of the other 19 former Salvadoran military officers charged with this horrible crime, one was convicted of the crime in El Salvador and was re-imprisoned after its Supreme Court invalidated its Amnesty law, one (former Defense Minister Emilio Ponce) is deceased and two others are cooperating with the Spanish prosecutors (Yussy Mendoza and Camilo Hernandez).

These other 15 still live in their home country, but its Supreme Court twice (2012 and 2016) has denied their extradition to Spain.

Manuel Escalante, a human rights lawyer at Jose Simeon Canas Central American University, where the murdered priests lived and worked and were murdered, after learning of the imminent extradition of Montano, called for prosecution of the 14 in El Salvador. He said that a conviction in Spain would be a big step toward “eliminating historical impunity” and that Salvadoran prosecutors must also act to advance the case in the Central American nation. The victims and their defenders “are going to seek justice. We are going to ask for the reopening of the trial.”[6]

The university, however, previously had said it considers the case closed against those who carried out the killings and even has called for clemency for former Col. Guillermo Benavides, who has served four years of a 30-year sentence as the only military official in prison for his role in the crime.

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[1] The charges subsequently were reduced to terrorist murder of the five priests of original Spanish nationality as a result of an amendment to Spain’s statute on universal jurisdiction. The priests, their murders, judicial proceedings about this crime, including the Spanish case, and these extradition proceeding have been discussed in the posts listed in “The Jesuit Priests” section in List of Posts to dwkcommentaries—Topical: EL SALVADOR.

[2]  Certification of Extraditability & Order of Commitment, In re Request by Spain for the Extradition of Montano, Montano v. Elks. No. 2:15-MJ-1021-KS (E.D.N.C. Feb. 5, 2016).

[3] Order, Montano v.  Elks, No. 5-16-HC-2066-BO (E.D.N.C. Aug. 21, 2017).

[4] Order, Montano v.  Elks, No. 5-16-HC-2066-BO (E.D.N.C.. Sept. 6, 2017); Order, Montano v.  Elks, N0. 17-7091 (4th Cir. Sept. 28, 2017); Order, Montano v.  Elks, No. 17A445 (U.S. Sup. Ct. Nov. 15, 2017); Drew, Last hurdle cleared for ex-Salvadoran official’s extradition, Assoc. Press (Nov. 15, 2017); Labrador & Rauda, Colonel Montano to Spain for the  murder of the Jesuits, El Faro (Nov. 15, 2017); Progress in Jesuit murder case on 28th anniversary, El Salvador Perspectives (Nov. 16, 2017); Alonso, The Supreme Court of the United States approves extraditing a Salvadoran ex-military man to Spain for the killing of the six Jesuits, El Pais (Nov. 15, 2017).

[5] Memorandum for the Federal Respondents in Opposition, Montano v. Elks, No. 17A445 (U.S. Sup. Ct. Nov. 8, 2017).

[6] Assoc. Press, El Salvador Jesuits Seek Reopening of Case in 1989 Massacre, N.Y. Times (Nov. 16, 2017); Lafuente, A halo of justice in the killing of the Jesuits in El Salvador, El Pais (Nov. 17, 2017.

Emerging Development of Cuba’s Mariel Port 

Only 28 miles west of Havana, Cuba has been developing the Mariel Special Economic Development Zone around a deep-water port. Now this project is reaching fruition.[1]

With a goal of becoming a bustling commercial city built on high-tech, advanced manufacturing and sustainable development, the Zone of 115,000 acres now has large tracts of land leveled and ready for construction of the following two major manufacturing operations:

  • The BrasCuba factory — a joint venturebetween Brazil’s Souza Cruz and Cuba’s Tabacuba–will turn out Popular, Cohiba and H. Upmann cigarettes for export and the domestic market.
  • Womy Equipment Rental, a Dutch company that rents cranes and other heavy equipment, has just finished its building as shown in this photograph.

In addition, a site has been prepared for a Cuban biotech factory, and two foreign companies–BDC-Log and BDC-Tec– have begun operating in the zone’s logistics sector.

Although only nine companies are currently operating there, another 18, including firms from Spain, the Netherlands, Panama, Brazil, Mexico, South Korea, Vietnam, France, Belgium, and Cuba itself have been approved and are getting ready to start.

The port has more than 2,300 feet of wharf space, four super Post-Panamax cranes and the capacity to handle 820,000 cargo containers annually.

In light of President Trump’s June 2017 announcement of still forthcoming regulatory restrictions on U.S. business’ doing business in Cuba, U.S. firms have been reluctant to make commitments for Mariel projects.

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[1] Whitefield, Mariel is Cuba’s big industrial gamble. Could U.S. companies be among investors?, Miami Herald (Oct. 23, 2017). An earlier blog post discussed potential U.S. interest in Mariel.

Cuba Pays $60 Million of Indebtedness to Major Creditor Nations     

The week of October 15 Cuba paid $60 million of indebtiness to 14 wealthy creditor nations. Last year Cuba paid $40 million to the same group. The total debt is $2.6 billion after the creditors in 2015 forgave $8.5 billion of $11.1 billion upon which Cuba had defaulted through 1986 plus charges.[1]

These creditor nations known as the Club of Paris are the following: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

Under the 2015 agreement, Cuba agreed for the first time to grant the creditors equity in development projects, in areas like manufacturing and agriculture, in exchange for a portion of their debt holdings. Many of these restructuring agreements include the establishment of so-called counter-value funds, under which a percentage of debt is discounted in exchange for the potential profits stemming from participation by a creditor country’s firms in Cuba joint-development projects.

The counter-value funds have an estimated combined value of around $750 million of the $2.6 billion owed. Japan, Spain, France and Italy – Cuba’s largest Paris Club creditors – are furthest along in negotiating swaps.

  • For example, a $46 million French project to develop cattle ranching and dairy products in central Camaguey province is ready to sign, according to France’s ambassador to Cuba, Jean-Marie Bruno.
  • Another example is Spain which has a project ready to manufacture cardboard and another aluminium structures for construction capable of resisting earthquakes and hurricanes, both involving Spanish companies.

This access to Cuban development projects gives the European countries and companies an advantage over U.S. companies who are banned by various U.S. laws from such projects.

This payment happened during dire economic times for Cuba due to the political and economic crisis in its ally Venezuela, declines in Cuban exports and tourism due, in part, to the damages caused by Hurricane Irma.

Cuba’s payment in these circumstances showed the importance Cuba attaches to the 2015 agreement with this group of major creditor nations.

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[1] Reuters, Cash-Strapped Cuba Makes Debt Payment to Major Creditors-Diplomats, N.Y. Times (Oct. 18, 2017); Chow, Cuba Reaches Deal to Pay $2.6 Billion in Arrears to Paris Club, W.S.J. (Dec. 12, 2015); Paris Club, Agreement on the Debt Between Cuba and the Group of Creditors of Cuba (Dec. 12, 2015).