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E C O N O M Y

Havana. November 9, 2005

FIHAV 2005 demonstrates Cuba’s commercial development

BY JOAQUIN ORAMAS

FIHAV 2005THE 23rd edition of the Havana Trade Fair wound up successfully with meetings, signed letters of intent and contracts between Cuban enterprises and companies from various countries, as well as the exhibition of the newest products that qualify the event as one of the largest trade fairs on the continent and an exponent of Cuba’s commercial development, despite the blockade and climatic adversities.

That was confirmed during the awards ceremony, during which Abraham Maciques, president of the fair’s organizing committee, announced that the country’s representation at FIHAV 2005 won 10 gold medals for quality and four design awards. Other winners in this category were producers from South Korea and Spain, as well as Brascuba Cigarillos S.A. and Havana Club International.

The award for best pavilion went to Canada, which together with Spain was the most represented nation at the event. In total, 2,000 companies from 42 nations were featured in the EXPOCUBA exhibition halls.

During this edition of the trade fair, dozens of contracts were signed for more than $400 million with companies from the United States, Canada, Japan, France and other countries.

Alimport, the Cuban food imports enterprise, signed agreements worth $57 million with U.S. companies for importing wheat, beans and soybeans, among others. The documents were signed by Pedro Alvarez, president of Alimport; Dave Heineman, governor of Nebraska; and Gregori Ibach, secretary of agriculture of that state.

Likewise, a letter of intent for next year was signed to purchase from the United States – mostly Nebraska – 150,000 tons of soy, a quantity that could double, Alvarez affirmed.

Alimport bought 25,000 tons of soy flour from a Nebraska company and concretized the purchase of 95,000 metric tons of wheat with other U.S. companies.

The Cuban company committed to buying the entire production of beef liver for 2006, from one of the top companies in that U.S. industry; plus an agreement with a California company.

Before FIHAV closed, Cuba signed a $20 million agreement to buy foodstuffs from North Dakota companies, something that Democratic Senator Byron Dorgan of that state described in a phone call to Alimport’s director as an important step toward broadening out trade possibilities with the island.

Cuba is to pay about $500 million USD this year to purchase U.S. products, Alvarez noted, adding that Heineman’s presence at FIHAV was very positive, and that he hoped that "the time will continue to draw closer when relations are normalized, benefiting not only the business world, but also both peoples."

The executive added that "trade between Cuba and the United States during the first five years after the end of restrictions could reach $20 billion." He was referring to U.S. restrictions on trade with Cuba, which were intensified in February when the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) decreed payment upfront for Cuban purchases, which moreover must be made in cash, with no possibilities of credit.

Due to these measures, Cuba has had to divert purchases worth $300 million to date this year to other markets, instead of the United States.

In addition, Marvin Leher, director of the USA Rice Federation, as well as Joe Mercerm Farms and Brian Wild, of Arkansas and Louisiana, respectively, stated that rice sales to Cuba could reach 176,000 this year, counting those purchases made at the trade fair.

Executives from Carolina Turkey, which exports turkey meat from North Carolina, could not be present at the event because the Bush government did not give them licenses to travel to Havana. However, they were able to send their Mexican representatives, who condemned Washington’s measures preventing trade with the island. Similar statements were made by Michelle Butler, of a California company called Navarrett, a facilitator of health and food product exports for several other corporations.

Alimport signed several deals worth $30 million with Canadian companies for 100,000 tons of wheat and 5,000 of powdered milk, among other foodstuffs.

Raúl de la Nuez, Cuban minister of foreign trade, noted that Canada is Cuba’s third-largest trading partner and one of the heaviest investors in the island. "Cuba and Canada represent one of the few examples in the world of a rich country investing in a poor one to the benefit of both," De la Nuez stated.

CHINA IS CUBA’S SECOND-LARGEST TRADE PARTNER

After inaugurating the People’s Republic of China Pavilion with a representation from that country’s businesses nearly triple what it was at last year’s fair, De la Nuez announced that the Asian giant is not only taking second place among Cuba’s trade partners, it has also become an important supplier of goods, whose presence is evident in the island’s economic and social development.

There has been a record increase in bilateral trade to date this year, he added, given that by the end of September, it was 42% higher than the same period last year, which will make China Cuba’s No. 2 trading partner by the end of the year.

Latin America presented a broad variety of high-quality products and equipment. These include the brand Argo, a large Argentine producer of fruit preserves and baking supplies that have been distributed in Cuba since 1993. Its representative, Angel M. García Pérez, commented that they have great prospects in the Cuban market.

Another stand that aroused lots of interest was from the Mexican state of Tabasco.

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