FIHAV 2005
demonstrates Cuba’s commercial development
BY JOAQUIN ORAMAS
THE
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.