Cuba on the road to Latin American and Caribbean unity

By Livia Rodríguez Delis & Juan Diego Nusa Peñalver

CUBA is to assume the presidency of the Community of Latin American and Caribbean States (CELAC) at the next Heads of State and Government Summit of the bloc in Chile, January 27-28.

 

As Cuban President Raúl Castro affirmed during the closing session of the 7th Legislature of the National Assembly of People's Power, "This is a great honor, a great responsibility, to which we are committed to devoting our best efforts and energy."

It also confirms CELAC member countries’ confidence in Cuba’s principles and values, its wide-reaching foreign policy, its vision of the problems facing humanity and characteristic solidarity, all of which will give new impetus to the bloc’s development and consolidation.

It is also palpable evidence of the failure of the U.S. policy of isolation maintained against Cuba since the triumph of the Revolution in 1959.

Resentful of the expression of unity and solidarity signified by any event of this nature in what it regards as its backyard, Washington has always attempted to block any kind of Cuban relations with the rest of the nations on the continent.

This policy of isolation began to collapse on December 8, 1972, when Barbados, Guyana, Jamaica and Trinidad & Tobago all established diplomatic relations with Cuba, in an act of unquestionable political courage on the part of these small Caribbean nations.

"If we go back to the 1960’s, Cuba only had diplomatic relations with Mexico (given U.S. pressure) and very few commercial links in the region," noted Deputy Foreign Trade and Investment Minister Orlando Hernández Guillén, approached by Granma International for an overview of the current situation of commercial ties between Cuba and Latin American and Caribbean sister nations.

"After the decisive step in relation to Cuba taken by the four English-speaking Caribbean countries, little by little Latin American nations approached us, some of them utilizing commercial links and others the diplomatic context. And today, the country has become an active member of the Latin American community."

 

What does maintaining relations with nations of the region signify for Cuba?

The priority of ties with Latin America is included in the Constitution of the Republic, which establishes that our government bases its international relations on principles of equality of rights, self-determination, territorial integrity, the independence of states, beneficial international cooperation and mutual and equitable interest; as well as the peaceful resolution of controversies on equal footing, and other principles proclaimed in the United Nations Charter and other international treaties to which Cuba is a party.

At the same time, it reaffirms Cuba’s willingness to integrate and cooperate with the countries of Latin America and the Caribbean, which share a common identity and the historic need to advance together toward economic and political integration in order to achieve genuine independence, something which will allow us to attain the position we merit in the world.

This is endorsed in the Guidelines approved at the 6th Congress of the Communist Party of Cuba, which also specify basic aspects of our close ties with Latin America, through the Bolivarian Alliance for the Peoples of Our America (ALBA), the Latin American Integration Association (ALADI) and the Association of Caribbean States, among other sub-regional institutions to which Cuba belongs. These have also provided a space for the development of relations with other countries, with the exception of the Organization of American States (OAS) and its sub-system of institutions.

Currently, Cuba’s foreign trade with the region represents more than 40% of its commercial interchange at the global level. This places the country in one of the top spots in the region, with regards to the volume of intraregional trade.

 

In this aspect, the relations we have with Brazil, Mexico and Venezuela have an important weight. In the case of Venezuela, it is our first trading partner, from which we obtain a significant amount of the energy resources the country needs to complement national production.

Even though the Cuban government is developing concrete actions to promote the replacement of food imports, the country still spend $1,700-1,800 million (per year) in this context alone, and Latin America is an important supplier of foodstuffs, basically countries like Brazil and Argentina, which are large global exporters of food and also in the case of Cuba.

In terms of numbers, Cuban exports to Latin America amount to approximately 650 tariff positions within the region. This is not all that we would like, but it speaks of the development achieved in the last few years through trade, no longer confined to exports of sugar and nickel, which have little weight in the region, but diversified, ranging from services (especially in health) and biotechnology products to construction materials.

In the same way, we import from Latin America raw materials, intermediate products, machinery and equipment, above all from Brazil, whose industry has the capacity to contribute this kind of technological goods.

Through our relations with Latin American countries, today there are also financial resources to support these relations. We have credit lines with Brazil and Venezuela and these are an important base, not only in the context of trade, but to advance investment and development processes in the country.

For example, the Port of Mariel construction, which is going ahead with Brazilian cooperation and funding and the participation of Brazilian and Cuban entities. This monumental work is symbolic of Cuba’s cooperation with the region and particularly with that South American nation.

Other financial arrangements and credit lines with distinct characteristics are provided by Venezuela and these are playing a very important role in our economic/commercial activity.

 

What were the elements that favored the impetus of links with the sub-region?

Relations with Latin America have reached this point because of Cuba’s gradual progress in terms of preferential trade links with virtually all of the ALADI member countries, which created the conditions for the country to become the 12th full member of the largest Latin American economic integration group in 1999.

That made it possible to extend ties with this group of states and negotiate parallel agreements with Central American countries like Guatemala, Panama, El Salvador and nations comprising the Caribbean Community (CARICOM).

In some cases these agreements have advanced more and respond to the political circumstances of our bilateral links, as is the case with Venezuela and Bolivia, with which Cuba currently has relations which we could say are equivalent to free trade, as there are no tariffs related to the circulation of merchandise.

We negotiated this in May 2012 with Venezuela and had previously done so with Bolivia.

I must mention that Bolivia, Venezuela, Cuba, Ecuador, Nicaragua, Antigua & Barbuda, Dominica, and St. Vincent & the Grenadines as members comprise the ALBA, a new kind of integration organization which, on the basis of political processes taking place in the region, has made it possible to draw up plans of a far greater reach within the approximation and integration processes among our peoples in the economic, financial, social and cultural spheres.

Thus, Cuba is fully inserted in the Latin American and Caribbean region, and is incorporated in all the area’s coordination and integration structures, apart from the OAS.

 

How has Cuba been able to resist the hardships of the international financial crisis and, in particular, how has our foreign trade confronted the U.S. blockade?

 

We have been able to resist the hardships of the international financial crisis primarily because of our people’s capacity for resistance (the Cuban economy grew 3.1% in 2012) and an intelligent strategy at the point when the situation became more serious and tense; by seeking within the country all possible means of saving, channeling limited resources available into sectors with a capacity to generate income, and limiting imports.

All those who trusted in Cuba at that moment can see that they were fully justified, because as the Cuban economy has confronted the crisis with more success, the tense situations which presented themselves at one point with foreign counterparts have been resolved.

On the other hand, Cuba has been intelligent in terms of confronting the 50-year economic, commercial and financial blockade of the U.S. government, a measure strongly directed in its actions against our country’s financial sector at the international level.

The Obama administration is the one to have imposed the most fines on foreign banking institutions for engaging in normal relations with Cuba and obviously, that means that the country’s way of confronting the blockade has also been more astute and careful. In this battle we have the support of the international community, which has repeatedly condemned this failed policy in the United Nations and many other forums.

January 25, 2013

Granma.cu

 

Bahamas Blog International

 

Freedom of movement curtailed since independence of Caribbean countries

By Oscar Ramjeet



The freedom of movement of Caribbean nationals has been severely curtailed since the breakup of the West Indies Federation five decades ago and the various countries in the region gaining independence.

It is unfortunate because in the colonial days persons were free to move from one country to another, even to Barbados, without hitch, but because some governments became intoxicated with sovereignty they imposed serious restrictions.

And although the Caribbean Community (CARICOM) Single Market and Economy (CSME) made provisions for free movements of professionals, musicians, journalists, etc., here is still a problem and regionalism does not seem to exist anymore.

There was some hope with the establishment of the University of the West Indies (UWI) and the West Indies cricket team, but that seems to be shattered because there is no longer that regional togetherness of UWI students because of recent significant changes.

For instance, students from Guyana now complete their LLB degrees in Guyana and no longer have to travel to Barbados, where hundreds of students enroll every year, and now Jamaica is offering the LLB programme and this reduces the Jamaican student population at Cave Hill.

Bahamas now has its own law school and, as a result, would-be lawyers study at home.

From the 1950s up to recently, all medical students in the region have had to attend Mona, but now they can do so in Trinidad and Tobago, Guyana, Grenada, and other Caribbean islands.

The poor performance of the West Indies cricket team has forced thousands of cricket fans to lose interest in the game and that to some degree has some effect on Caribbean unity.

The shameful behaviour of immigration and police officers at the Grantley Adams International airport against fellow Caribbean nationals should be dealt with by the Caribbean Community and it is unfortunate that CARICOM moves so slowly with these issues, as well as Caribbean unity.

Trinidad and Tobago Prime Minister, Kamla Persad Bisssessar made a couple of unfortunate statements that Trinidad and Tobago is not an ATM machine for other CARICOM countries, but she has nevertheless said that she is very much in favour of regional integration.

Owen Arthur, former Barbados prime minister, who was masquerading and preaching the importance of CSME, was critical of Mara Thompson, running for a seat in Barbados because she was not a born Bajan, but a St Lucian, although she was married to a Bajan, late Prime Minister David Thompson, for more than 20 years.

The British Overseas Dependant Territories of Anguilla, British Virgin Islands, Cayman Islands and Turks and Caicos require entry certificates (visas) from Jamaicans, Guyanese and citizens of the Dominican Republic.

For years the CARICOM has been discussing freedom of movement, but it seems as if they are not getting anywhere; as a matter of fact, it is getting worse since there is more harassment at airports, especially Barbados.

There have been reports that, in Antigua and Barbuda, Guyanese nationals are given a rough time by the Baldwin Spencer administration.

What is also unfortunate is the lack of interest and in some instances the refusal of governments to get rid of the Privy Council as their final court and accept the Caribbean Court of Justice as the final court.

Jamaica and Trinidad and Tobago were the first countries to gain independence from Britain in August 1962, and it unfortunate that after nearly five decades they are still holding on to the coat tails of the United Kingdom for justice. If you had political independence so long ago why not judicial independence, especially since you have highly qualified judges who can do a better job than the English Law Lords, who are so far away and do not understand the Caribbean culture and way of life.

April 11, 2011

caribbeannewsnow

Bahamas Blog International

Chinese take away?

By Sir Ronald Sanders


Problems have emerged in the Bahamas over the number of Chinese workers on a project funded in part by the Export-Import (Ex-Im) Bank of the People’s Republic of China.

The original number of Chinese workers appears extraordinarily high – 8,150 even though there is an undertaking from the owners of the project that the peak number of foreign workers, at any given time, will not exceed 5,000 non Bahamians.

Rightly, Bahamas’ Prime Minister, Hubert Ingraham, has raised concerns about the large number of Chinese workers. His concerns are particularly relevant against the background that, according to the International Monetary Fund “tourist arrivals declined by 10 percent and foreign direct investment fell by over 30 percent, leading to a sharp contraction in domestic activity and a large rise in unemployment” in the Bahamas in 2009.

Construction is a critical engine of growth in any economy, but especially so in small economies where payments to local workers and suppliers keep money in circulation over a wide area including supermarkets, transport providers, clothing and footwear stores, real estate rentals and banks.

If 8,150 Bahamians – or close to it as possible – could be employed in this project, it would definitely be a fillip to the Bahamian economy and help to expand domestic activity and create jobs directly and indirectly.

The issue troubled Ingraham enough for him to travel to China to raise the matter with the Chinese government and return to the Bahamas with the news that he had succeeded in securing $200 million dollars more for construction workers and for Bahamian sub-contractors, raising the total that would be allocated to them to $400 million.

How this translates into jobs for Bahamians and a reduction in the number of Chinese workers is unclear, but note should be taken that, not surprisingly, the opposition Progressive Liberal Party (PLP) has characterised Ingraham’s journey to China as “a failure”. To be fair, it should also be pointed out that it was the PLP which introduced this project, known as Baha Mar, when it served as the government.

Baha Mar, projected to cost $2.5 billion, is a very large tourist project. On completion it is expected to rival the Bahamas’ biggest tourist plant, Atlantis, which was developed by Kerzner International. The operator behind Baha Mar is Caesars Entertainment Inc, a private gaming corporation that owns and operates over 50 casinos and seven golf courses under several brands. Prior to November 18, the Company was called Harrah’s Entertainment.

Ceasar’s, like every commercial business, puts its profitability first. In seeking financing from Ex-Im Bank of China, they apparently agreed that the work force, in effect, would be 71% Chinese and 29% Bahamian – a bitter pill to swallow in the best of economic times and certainly indigestible in the present economic climate.

No one in the Bahamas or elsewhere doubts the contribution that Baha Mar will make to the Bahamas economy in the short and long term, but the conditions of the Chinese loan rankles on the requirement for such a large number of Chinese workers.

After all, this is not aid. It is not even emergency or disaster aid when a high component of Chinese material and people would be acceptable. It is purely and simply a commercial contract, lending money that will have to be repaid.

The only reason one can surmise for the insistence on such a large number of Chinese workers, vastly outnumbering Bahamian ones, is that the Chinese will work for less and trade union conditions, and rights, would not apply in their case thus reducing the cost of the project.

This commentary is less concerned about the local politics of the Bahamas that are involved in this issue; more qualified people can comment on them. It is more concerned with the present and future relations between Caribbean Community (CARICOM) countries and China.

The experience of African countries, notably Angola recently, in relation to China’s use of an overwhelming number of Chinese workers, shows a strain in their relations with China. In 2006, the former President of South Africa Thabo Mbeki famously remarked: Africa must guard against falling into a "colonial relationship" with China.

I have long argued that CARICOM countries should negotiate with China at least a long-term framework treaty that covers aid, trade and investment. It should be a treaty along the lines of the Lomé and Cotonou Agreements that existed with the European Union.

As in all their bargaining with third countries, the CARICOM states would secure better terms if they negotiated with China as a collective than if each of them tried to bargain alone. And, if they succeeded in settling a treaty with China, issues such as the paramountcy of local labour in commercial projects and in loan-funded projects could be settled upfront, as would issues such as the supremacy of labour laws and respect for human rights in the countries where such projects are undertaken.

To negotiate such a Treaty with China, however, CARICOM countries have to do one of two things: those who now recognise Taiwan over China will have to drop that stance so that there is a united CARICOM recognition of China only; or those that recognise China should proceed to negotiate the Treaty with China leaving the others to join when they can.

There is a small window of opportunity left to negotiate a meaningful treaty with China. As China grows more powerful economically crowding out CARICOM’s traditional aid donors and investment partners, it will become very difficult for small Caribbean countries to bargain for the best terms even on commercial projects.

Beggar thy neighbour policies will get CARICOM countries nowhere in the long term and the time is right for all CARICOM countries to strengthen their relations with China on the basis of a structured and predictable treaty.

My friend and fellow writer, Anthony Hall, wrote recently that Hubert Ingraham’s “challenge to China” on the issue of the 8,150 Chinese workers “is precedent setting... and it behoves all leaders in our region to support, and be prepared to emulate, the stand he’s taking: for together we stand, divided we fall”.

China has itself faced the challenges of division; it might – just might - respect Caribbean unity.

November 19, 2010

caribbeannewsnow

Bahamas Blog International