Moving swiftly, US eases travel and trade

Moving swiftly, US eases travel and trade
AAP

Swiftly expanding trade ties with Cuba, the Obama administration has
opened the door to easier travel and a wide range of new export
opportunities with the communist island, punching the biggest hole to
date in America's half-century-old embargo.
Most US travellers still have to go on supervised group trips, but now
virtually any US company or organisation can offer such trips without
the paperwork and inspections that discouraged past expansion of travel
to Cuba. Some tour operators, already seeing unprecedented interest in
legal travel to Cuba, expect some tourists to simply ignore the
restrictions.
The few US companies facilitating travel to Cuba say inquiries have
exploded since December and American visits are expected to surge this
year from about 90,000 annually.
"We're hiring more people. We've secured more hotel rooms and assets in
Cuba to provide additional travel," said Tom Popper, president of New
York-based insightCuba.
Commercial flights between the two nations are still some time off.
Before airlines offer routine service from one country to another, the
two governments must agree on the terms in a treaty.
Such an agreement did exist between the US and Cuba in the 1950s, but
the US Transportation Department says the two nations need to start
fresh. The US airlines with 1950s permission to fly to Cuba will not
suddenly regain that right and are not favoured in the government's new
deliberations.
"The US government will engage with the government of Cuba to assess our
aviation relations and establish a bilateral basis for further expansion
of air services," Susan L Kurland, the department's assistant secretary
for aviation and international affairs said.
United Airlines, Delta Air Lines and JetBlue Airways have all expressed
interest.
Hotels in Havana and elsewhere generally fall short of international
standards, and those with better food and service are almost always
fully booked during the winter high season. So the tourism surge could
be challenging.
"American tourists are really demanding," said Maikel Gonzalez, a
34-year-old hotel receptionist in Havana. "How do I explain to one that
the taxi didn't come because it doesn't have tyres or that there's no
water in the rooms?"
Cubans also can legally rent out their homes or apartments, which could
mean money outside of state control going to private citizens -
something American officials say they want.
Meanwhile, American companies can now export telephones, computers and
internet technology, and to send supplies to private Cuban firms.
However, Cuban authorities have said nothing about the restrictions they
might impose on US products entering a country that has long frustrated
foreign investors with red tape and tapped-out infrastructure.
US officials say American companies will have to weigh for themselves
the risks of their exports colliding with Cuban bans.
Profitability is another issue. Foreign companies operating in Cuba
currently deal almost entirely with state-owned firms that are
notoriously slow, inefficient and short on cash.
Also casting a shadow on potential deals is the possibility of
litigation by Cuban-Americans and US firms whose property was
confiscated in Fidel Castro's 1959 revolution. Some may sue companies
entering into business with the Cuban government. In Washington,
Congress may also seek to erect barriers to new investment.
The US is now "one step closer to replacing out-of-date policies,"
Treasury Secretary Jacob Lew said. White House spokesman Josh Earnest
said the new rules "immediately enable the American people to provide
more resources to empower the Cuban population to become less dependent
upon the state-driven economy".

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