Time: 2017-02-17
glue
Cigar, rum, Caribbean travel enthusiasts and major league baseball managers are delighted to see the United States lift its 55-year-old embargo and restore normal relations with Cuba. But manufacturing, including plastics, is not yet able to raise a glass of real Havana club rum from Cuba.
There are still many hurdles to overcome to do business with or to Cuba.
The White House announcement came as a surprise, even to those who follow us foreign policy closely.
"Nobody I know of has had any plans to enter the Cuban market," said Michael Taylor, senior director of international affairs and trade at the American plastics industry association. "it's time to get ready." "It's too early to be happy," he said. We have yet to feel the purchasing power of ordinary cubans. Maybe it's not a huge market. ""
Any segment of the plastics industry would have to start from scratch to build a business case for entering an unfamiliar market that no American company knew much about. Taylor said material suppliers are unlikely to find a way to enter Cuba and build capacity there, although the lure of new markets could interest processing companies if there is a business case and the U.S. congress allows it.
Helms-burton act of 1996 and
other
Five existing laws severely restrict any business dealings between the United States and Cuba for non-humanitarian assistance. American politics remains hostile to raul castro, Cuba's President, and his brother Fidel castro, Cuba's revolutionary leader and long-time leader, particularly among cuban-americans of the republican party, which will control both houses of congress in 2015.
And even though the United States has cut off trade with Cuba, it doesn't mean the rest of the world is cut off from the castro government. Cuba joined the wto as early as 1995. Cuba has a plastics industry of its own, though the American market does not understand it.
In January 2014, Groupo Odebrecht of Brazil signed a deal to build a plastics processing base in Cuba, and the global infrastructure and construction giant is also breaking ground on a new $957 million container terminal.
In April last year, the Cuban government announced it would press ahead with a $1.4 billion natural-gas regasification project and a $1.2 billion urea and ammonia plant, co-financed by Petrolos DE Venezuela SA (PDVSA). Although construction has yet to begin, it is expected to produce 400, 000 tons of urea and 370, 000 tons of ammonia a year, according to a press release PDVSA issued at the time. That would benefit Cuba's plastics, agriculture and chemical industries, and the Venezuelan company would export excess capacity to other Caribbean and central American countries.
Perhaps helping and influencing the plastics industry is Cuba's recycling industry. Despite the government's modest environmental record, tourism is already a huge government-controlled business. Cleaning up plastic from beaches and waterways through recycling and cleanup programs promises to build credibility and bonds between industry and industry groups, even individuals, in the United States and Cuba.
"If Cuban society were more open, it would be something we would consider," Taylor said. We would love to sign Cuba up for Operation Clean Sweep."
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