List of US imports for Cuba in the works

List of US imports for Cuba in the works
BY NORA TORRES GAMEZ NGAMEZTORRES@ELNUEVOHERALD.COM
01/23/2015 12:09 PM 01/23/2015 2:37 PM

The list of goods and services that could be imported to the United
States from Cuba by private enterprises will be comprehensive in an
effort to stimulate creativity among the island's "self-employed" and
motivate the Cuban government to expand its exports, according to a
source familiar with the draft document crafted by the the U.S.
Department of State.

The Obama administration issued new regulations to support small
businesses as part of its move to restore diplomatic relations with
Cuba. But even as the new rules are now in effect, the State Department
must decide who will qualify as part of Cuba's private sector and what
products would be allowed for imports to the island.

One of the major limitations of Cuba's current policy for the
"self-employed," is that of the 201 activities now allowed by Raúl
Castro's government, most require little training and technological
infrastructure and employment for other professionals is minimal. For
example, among the approved private enterprises are "food vendors" and
"beauty salons."

The import list in the works aims to "open the door as wide as possible,
so that it is the Cuban government that will have to decide whether to
remove barriers to entrepreneurs and, if they do not, that entrepreneurs
know it's because of an internal blockade," the source said, who spoke
on condition of anonymity due to lack of official authorization to
discuss the matter.

Among the items on the list are professional translation services,
programming and construction enterprises, said the source, adding that
the State Department is "anticipating a little ahead."

Some Cuba observers said the approach is positive.

"The big question is whether this will have an impact or if the Cuban
government will allow this exchange," said Ted Henken, professor of
Sociology at Baruch College.

Archibald Ritter, professor of economics at Carleton University in
Canada, said that one of the main obstacles for the United States in
trying to support private enterprise on the island is the government's
monopoly on imports and exports.

The new U.S. regulations on exports to Cuba, already made public,
authorizes shipments of construction materials, agricultural tools and
machinery for private enterprises. But according to Ritter, "this
requires changes to the state monopoly on foreign trade," since there is
currently no mechanism to allow private entrepreneurs to receive the
merchandize independent of the government. Nor is there a wholesale
market where the imports can be purchased.

So far, no information has been released in Cuba on the possibility of
Cuban export products to the United States from the private sector. The
official notice issued by the government on the new trade regulations,
in fact, stipulates: "restrictions on exports from the United States to
Cuba remains in effect, especially high-tech products, with limited
exceptions to sales of construction material, agricultural tools and
machinery that will be allowed for the private sector, apparently via
Cuban enterprises."

According to the source familiar with the list, the State Department is
considering using a Cuban state enterprise as an intermediary, if there
are guarantees that products and raw materials will reach the hands of
the self-employed.

Follow Nora Gamez Torres on Twitter @ngameztorres

Source: List of US imports for Cuba in the works | The Miami Herald The
Miami Herald -
<http://www.miamiherald.com/news/nation-world/world/americas/cuba/article7996827.html>