http://www.bbc.com/news/world-latin-america-12159943
President Obama has a very pivotal and historic meeting Raul Castro, President of Cuba. A direct result of this meeting has been many US companies pursuing opportunities in Cuba with the new, healthy relationships being built between the United States of America and Cuba. Relations between the US and Cuba have been improving rapidly and the very recent meeting between the two Presidents has shined light on past disputes, leading to the increase of interest in future business opportunities. A crucial outcome of the meeting between Obama and Castro is that the US embargo on Cuba is expected to end, which will restore a functional relationship between the US and Cuba. There is great economic opportunity for both countries if communal ties are to be normalized. The President also met with many US business leaders/executives and Cuban entrepreneurs to further discuss the opportunities at hand with the lifted US embargo of Cuba. In order to further increase awareness of very possible and mutually beneficial business opportunities in Cuba with the US, Obama brought many distinguished executives, from multiple business industries, with him on the trip to Cuba.
Timeline of US + Cuba Relations:
1934: The US abandons its right to intervene in Cuba's internal affairs, revises Cuba's sugar quota and changes tariffs to favour Cuba.
1960: All US businesses in Cuba are nationalised without compensation; US breaks off diplomatic relations with Havana and imposes a trade embargo in response to Castro's reforms.
1962: Cuban missile crisis ignites when, fearing a US invasion, Castro agrees to allow the USSR to deploy nuclear missiles on the island. The US released photos of Soviet nuclear missile silos in Cuba - triggering a crisis which took the two superpowers to the brink of nuclear war. It was subsequently resolved when the USSR agreed to remove the missiles in return for the withdrawal of US nuclear missiles from Turkey.
1993: The US tightens its embargo on Cuba, which introduces some market reforms in order to stem the deterioration of its economy. These include the legalisation of the US dollar, the transformation of many state farms into semi-autonomous co-operatives, and the legalisation of limited individual private enterprise.
1996: US trade embargo made permanent in response to Cuba's shooting down of two US aircraft operated by Miami-based Cuban exiles.
Nov 2001: US exports food to Cuba for the first time in more than 40 years after a request from the Cuban government to help it cope with the aftermath of Hurricane Michelle.
Aug 2006: US President George W Bush - in his first comments after President Castro undergoes surgery and hands over power to his brother Raul - urges Cubans to work for democratic change.
Dec 2006: The largest delegation from the US Congress to visit Cuba since the 1959 revolution goes to Havana. Jeff Flake, a Republican congressman heading the 10-member bipartisan delegation, said he wanted to launch a "new era in US-Cuba relations", but the group is denied a meeting with Raul Castro.
Oct 2011: Convicted Cuban agent Rene Gonzalez is freed as scheduled from a Florida jail. Gonzalez is part of a group known as the Cuban Five, who were given long terms in 2001 in the US after being convicted of spying. Havana has repeatedly called for the men to be freed.
Dec 2011: The US again calls for the release of Alan Gross, an American who is serving 15 years in a Cuban jail for taking internet equipment into the country. Cuba's refusal to free him has frozen relations for months.
Sep 2012: Cuba suggests it is ready to negotiate with Washington on finding a solution to the Gross case.
- It is truly amazing to see relations between the US and Cuba improving hastily today with all of the past turmoil (summarized above) that has been produced between the two countries starting in the late 1800s. Healthy relations maintained between the US and Cuba could mean certain future economic expansion/improvement for both countries as well.
- Airbnb - matches travelers with home rentals
- AT&T - telecom monopoly
- Google - internet access/search engine/multiple computerized programs
- Marriott International - hotel operating company
- PayPal - global money transfer service
- Priceline - booking site
- Starwood Hotels & Resorts Worldwide - hospitality company
- Stripe - Stripe Atlas product for budding businesses/start-up business aid
- United Airlines, American Airlines, Southwest and JetBlue - airlines
- Western Union - global payments services company
This is a very interesting article. I did a project on Cuba last year and looked at some of the business options both countries had and their given limitations and challenges that go along with them. One of the biggest challenges I think the US will have to combat is that the Cuban culture is something that is very ingrained into the country. By the US coming in and developing businesses and infrastructure, it will disrupt the culture of the Havana. However, I think if they are able to preserve the culture of the Havana as well as make business mutually beneficial to both countries, Cuba will become a great place of business and one that has massive potential.
ReplyDeleteIt's no surprise that many of the companies are Hotel and Travel related. Airbnb is a perfect example of a company that will benefit from the new opportunities in Cuba. I am a little surprised that Google is jumping on the bandwagon, but I guess it makes sense. They want to be able to corner the market for browsers and replace any existing ones. Time will tell what other companies jump on the bandwagon because they see a gold mine in Cuba.
ReplyDeleteCuba has been seemingly untouched for so long resulting in a rich culture that is ingrained in so many facets of the country. I just hope that businesses will not destroy that unique beautiful part of the country. This will be a test of whether businesses can balance social consciousness with a desire for profit. Will the incoming businesses respect the culture or stamp it out?
ReplyDeleteI have the same quandary as you Emily. I hope this isn't simply the US attempt to conquer the global market and continue to impose its culture and desire for materialism on other cultures. I don't mean to sound cynical, because I think this can be really positive for giving individuals freedom in Cuba, where it has been and will continue to be pretty oppressive. Time will tell...
ReplyDeleteDo you think this move would be internationally seen as a positive transition?
ReplyDelete