CARICOM should seek to implement trade credit arrangement with Cuba

Dear Editor,

I am writing this letter from Havana, Cuba where I have been over the past week attending the Havana International Fair and Expo and cannot resist the compulsion to publicly express the folly of the Trump policy toward this Caribbean island nation. The recently imposed restrictions/sanctions, which represent a reversal of the Obama policy that is responsible for enhancing the quality of life of the Cuban people, coupled with the continuing embargo, do nothing but hurt the Cuban people…especially women and children.

I have visited Cuba a few times since 2015 and was afforded the opportunity to witness the efforts of private Cuban citizens, perhaps with help from their relatives in the US, upgrade their homes, get involved in business enterprises and enjoy aspects of American popular culture including music, movies and dance. One could not help but admire and appreciate that finally there was emerging a seat at the hemispheric table for the citizens of every nation of the Americas.

Why would the current US president undo policies that were providing Cubans an improved quality of life and access to those aspects of western style democracy which they are prepared to embrace?

As if the reversal of the policies of President Obama is not enough, the current US president has recently imposed sanctions and restrictions on remittances as well as US airline service to all cities in Cuba except Havana as from December 10 thus making it more difficult for Americans who had begun to enjoy visiting Cuba on vacation. Cuban Americans had also begun returning home for the Holiday Season each year to be with loved ones.

Further, because of Cuba’s support for Venezuela’s Nicolas Maduro, the US president has threatened to punish countries that help Cuba, especially those that would facilitate Venezuelan fuel getting to Cuba. The fuel situation in Cuba has now occasioned long lines at gas stations and the sporadic availability of fuel.

What one finds hard to reconcile is how this US president, a friend of President Putin of Russia, is seeking to punish Cuba over its Venezuela policy which is no different from Putin’s. Will he be punishing Russia and China which have embarked on major projects in Cuba to help develop electrification and railroad transportation? Will he punish Putin? Can he punish Putin?

During the recent FIHAV, Cuba expressed interest, as it has done previously, in a number of products from CARICOM member countries. The problem with supplying Cuba is mainly with the length of time some private sector companies have to wait on payments. Up to 360 days in some cases. I was informed some time ago that Republic Bank which has an office in Havana, offers a form of a line of credit under which it pays a part of the invoice to

CARICOM suppliers which provide for some upfront payment which is later recovered from the Cuban buyers. I am not sure how well this has worked thus far.

However, from my interaction with representatives of the CARICOM private sector at the event, the payment issue remains a barrier to expanded trade, seemingly except for Jamaican enterprises which apparently benefit from an arrangement put in place by its government to advance payments to suppliers to the Cuban market.

I would like to recommend that CARICOM governments, perhaps through the Caribbean Development Bank (CDB), examine putting in place a trade credit arrangement that could provide for companies to supply critically needed products to Cuba and receive payments in the usual 30 to 60 days timeframe, with Cuba repaying the CDB over an extended period of time. This would be a” win win” situation for both Cuba and CARICOM as Cuba would get much needed supplies and CARICOM producers would enjoy an expanded export market.

CARICOM should not be afraid of any reprisals for entering such an arrangement with Cuba. CARICOM member states must seek to maintain excellent relations with the US. They should negotiate for it when necessary, even sacrifice for it when necessary but never surrender for it. Yours faithfully,

Wesley Kirton