Economic Development and Business in Cuba
Note: This article is frequently updated with new business information.
The list of foreign businesses wishing to establish a presence in Cuba and of those in the process of negotiations with Cuba is ever-expanding. Over the past couple of years, many foreign governments accompanied by economic missions have been meeting with the Cuban Minister of Foreign Trade and Investment (MINCEX). Bilateral relations and deals are on the agenda.
Corporations interested in doing business in Cuba do so in joint ventures with Cuba. The relationship between Cuba and foreign companies is based on a mutually beneficial partnership. On average, it’s a 50-50 relationship. This percentage can vary. Corporations are expected to experience growing profits in Cuba.
American products and well known brand names such as Coca-Cola, Nike are commonly seen and sold in Cuba. But these products are imported by distributors from Europe, Asia, Latin America and Canada. None of these corporations are, as of yet, operating in Cuba. They’ll probably be operating one day, but that’s some day in the future.
A few companies from China have been added to the list. China (Cuba’s largest trade partner) invests and trades in transportation, technology, infrastructure, mining, oil, biotechnology and home appliances. The Chinese company in a technology partnership with Cuba is the Huawei Corporation which recently signed a smartphone and a broadband project agreement with ETECSA.
Russian business interests include oil exploration and pharmaceutical products.
In 1995, Cuba became a member of the World Trade Organization. Source: www.wto.org
Cuba has been open for business and investment for many years. Each year, the Minister of Foreign Trade and Investment publishes a portfolio of investment opportunities for foreign companies at the Havana trade fair (FIHAV). There are many opportunities.
Foreign companies have been hesitant to do business with Cuba because of the American blockade. This policy has failed to isolate Cuba or achieve anything but economic hardship for its citizen in terms of the basic necessities of life, including food and water.
All factors point to the necessity of ending the 55 year embargo. It has amounted to the economic strangulation of Cuba and the enormous suffering of its citizenship. It is a failed policy which never achieved a regime change. It failed to break Cuba and it failed in its attempt to isolate the Island. The blockade has become a very unpopular globally as seen in the recent UN vote to lift the embargo. It is also a policy failure as evidenced by the profusion of nations with relations and trade with Cuba. With President Obama’s historical visit in March and the numerous American businesses clamoring to do expand into the Cuban market, it is time to end it.
December 2014 will be remembered as the start date for the warming in US-Cuba relations. But this change in “strategy” is mired in hypocrisy. The US is still punishing foreign and American companies for doing business with Cuba as recently as the first quarter of this year. Since 2014, a total of $5,278,901 has been collected by the US Treasury Department as fines against American and foreign-owned businesses for violation of the American embargo. For example, as recently as the first quarter of this year, CGG Services of France was fined $614,250 US for using “spare parts and equipment of U.S. origin on oil and gas exploration vessels operating in Cuban territorial waters.” Source
Australia:
Australia has held friendly bilateral relations with Cuba since 1989. Trade between Australia and Cuba 2013 – 2014 amounted to $12.2 million. During the same time period, Australian imports from Cuba were worth $8.4 million. Cuban exports to Australia include manufactured tobacco, alcoholic beverages, edible products and preparations and coffee.
Some Australian companies doing business in Cuba:
- Western Mining Corp. (Mining)
- MEO Australia (Oil) now Melbana
Belgium:
- Anheuser-Busch InBev
Brazil:
Brazil and Cuba have had bilateral relations since 1986. Exports to Cuba include agriculture, machinery, cooling systems, heat pumps, agricultural machinery. Brazil imports Cuban pharmaceutical and tobacco products.
Some Brazilian companies doing business in Cuba:
- Petrobras S.A. (Oil)
- Odebrecht (Infrastructure: port construction and management – Port of Mariel)
- Brascuba (Tobacco)
Canada:
Canada has a long bilateral relationship of many years with Cuba. Canadian investments in Cuba include mining, power, oil and gas, agri-food and tourism sectors. Canada (and Mexico) were some of the countries that did not break relations with Cuba after the Cuban Revolution of 1959. Since 1991, more than 60 Canadian companies do business in Cuba.
Mining and tourism sectors are most popular with Canadian investors. Some of the Canadian companies doing business in Cuba:
- Groombridge Trading Corp (GTC) Exports of machinery, food products, agriculture
- Sherritt International (Mining and tourism)
- Cobatec Inc. (Mining)
- MacDonald Mines Corporations (Mining)
- Labatts Beer (Beer)
- York Medical Inc. (Pharmaceuticals)
- Holmer Gold Mines Ltd. (Mining)
- MacDonald Mines Exploration Ltd. (Mining)
- CaribGold Resources Inc. (Mining)
- Miramar Mining Corp. (Mining)
- Wilton Properties Ltd. (Tourism)
- Delta Hotels & Resorts (Tourism)
- Blue Diamond Resorts & Hotels
- Pizza Nova (Food)
- Gowlings (Consultancy services)
- Sunwing (tourism)
- Air Transat (tourism)
- Northern Gate (AG)
- WYM Group, S.A.
China:
- Greatwall Drilling Company
- Shanghai Electric Group Ltd.
- Huawei Corporation
- Beijing Enterprise Group
- Yutong
- CAISA
- China National Huachen Energy Holdings (Group) Co Ltd
- Haier (appliances and electronics)
- Yantai Golden Mountain
France:
France is the 10th largest trade partner of Cuba with a bilateral trade volume of 180 million euros in 2014. Main industry sectors include: tourism, construction, telecommunications, energy and banking. French Foreign Affairs Ministry, says approximately 60 French firms are currently operating in Cuba.
Some of the French corporations doing business in Cuba:
- Bouygues (Tourism)
- Air France (Airlines)
- Total Corporation (Oil)
- Pernod Ricard (beverages)
- CGG Services
- AccorHotels
- Alcatel-Lucent
- Pierre Cardin
- Rhone-Poulenc
- Alstom
- Air France
Germany:
A sure sign of German enthusiasm for investing and doing business in Cuba can be seen in the fact that the German pavilion at the FERIA International in Havana has been fully booked for the last three years running. Approximately 50 German companies are doing business in Cuba. Bosch breweries, MAN and ThyssenKrupp have expressed interest.
- Mercedes Benz (Heavy Machinery)
- Casa Alemania (umbrella organization for business and investing in Cuba)
- Bayer
- BASF
- Lufthansa
- LTU
- Siemens
- Air Berlin
- CON-IMPEX Touristik
- Klingele Group
Guernsey, Channel Islands:
- CEIBA Investments Limited
Holland:
Based on import-export numbers, the Netherlands is Cuba’s second most important trade partner in Europe. Source
The most recent Dutch-Cuban accomplishment is the joint venture of Unilever (British-Dutch) joining forces with Suchel, S.A. Unilever-Suchel, S.A. will construct a soap and toothpaste factory at the Port of Mariel.
- Heineken
- Unilever
- Womy Equipment Supply
Israel:
- World Textile Corp. S.A. (Industry: Textiles)
- Monte Baretto
- GBM Inc. (agriculture)
Italy:
One of Cuba’s leading trade partners in Europe. Approximately 120 Italian companies exhibited at last year’s FERIA International trade show (2015) in Havana.
- Benetton: (Industry: Textiles)
- STET
- Bodegas San Cristobal S.A.
- Nelson Servizi Srl
- L.R. Moroni Cellulose Converting Machinery S.r.l.
Japan:
Japanese businesses in Cuba include: automotive, tourism, industry-heavy machinery.
- Mitsubishi
- Suzuki Motor Corp.
- Komatsu
- MAYEKAWA DE MEXICO S.A. DE C.V.
Mexico:
Mexico enjoys a longstanding relationship with Cuba being one of the few countries who maintained a relationship with Cuba (alongside Canada) since the Cuban Revolution. Mexico is Cuba’s third most important trade partner in Latin America. Trade between the two countries for 2013 totaled $374,000 M.
Mexican corporations doing business or in negotiations with Cuba:
- Pemex: ( Oil)
- Richmeat of Cuba, S.A. (Food)
- FEMSA? (Beverages)
- CEMEX? (Infrastructure)
- Devox-General Paint
Portugal:
- Engimov Caribe S.A.
Russia:
- Tvervagonnostroitelny Zavod (railway cars)
- Skolkovo Center (pharmaceuticals)
- Sinara Group: (railways, machinery)
- Transmashholding, (transportation and machinery)
- Inter RAO, (energy)
- RusHydro, (hydroelectricity)
- Ivekta Company, (infrastructure – roads)
- Rosinformexport (technology)
- Uralkhimmash (refrigeration and heating equipment)
Spain:
Spain is one of Cuba’s biggest trading partners with an estimated 252 Spanish companies operating in Cuba. Most bottles of wine you will find in Cuba are Spanish. Most of the hotels currently in Cuba are Cuban-Spanish joint ventures.
- Gamesa (renewable energy – wind turbines)
- NH Hotels
- Melia Hotels International
- Iberostar Hotels
- Altadis (tobacco)
- Air Europa
- Bankia
- Banco Popular
- Llorente
- Cuenca
- Baleària cruise lines
- Bodegas del Caribe
- Fira de Barcelona
- Grupo Hotelero Sol
- Tryp Hotels
- Raytur Carib
- Freixenet
- EBM Marketing Solutions
- Hotelsa Alimentación S.L
South Korea:
- Samsung
- ArCo 33
South Africa:
- Anglo-American Corporation
- AMSA (Mining)
Switzerland:
United Kingdom:
Recent negotiations between the U.K. and the Cuban Foreign Ministry concluded with various agreements and projects. The UK invests in tourism, agriculture production, crisp manufacturing, a biopower project with the sugar industry, a project for processing marabu and a coffee production project. The Cuban Chamber of Commerce and the London Chamber of Commerce signed a Memorandum of understanding on a recent official visit. Bilateral trade figures totaled $168M in 2013 for the U.K. and Cuba.
- Castrol Oil (Oil)
- Alma de Cuba (Coffee)
- CEIBA Investments
- Unilever
- Lenigas Cuba (Investments)
- InCloud 9 (Tourism)
- Cuba Professionals (Employment Agency)
- WPP plc
- Groombridge Trading Corp (GT Corp)
- London & Regional Properties
- Hive Energy
- Imperial Brands Plc
- British-American Tobacco Plc
- Unilever
United States:
Corporations doing business or in the process of negotiations with Cuba:
- American Airlines
- Booking.com (online travel reservations)
- Carnival (Tourism – cruise lines)
- Cisco Networking Academy (Technology & Training)
- Caterpillar (Industrial machinery)
- Cleber (Industrial machinery)
- Colgate-Palmolive
- Air BnB (Tourism)
- AT&T (Telecommunications)
- Airlines – multiple US airlines are currently in stiff competition among themselves to obtain rights to 110 direct airline routes to Cuba.
- Fedex
- General Electric – GE
- Google – (Technology) Google is to unleash broadband and Wi-Fi access in Cuba.
- Gulfwise LLC
- IDT Corp – (Telecommunications) IDT was one of the first American companies to actually sign
- International Port Corp is the first US company to open an office in Cuba.
- JetBlue (Airlines)
- John Deere
- Marriott (Tourism)
- NatBank – Mastercard, Inc. (Finance)
- Netflix
- Norwegian Cruise Lines (Tourism – cruise lines)
- Paypal
- Priceline (Tourism)
- Pearl Seas Cruises (cruise lines)
- Southwest Airlines
- Sprint (Telecommunications)
- Starwood Hotels & Resorts Worldwide (Tourism) is the first US hotel corporation in partnership with Cuba and has taken on the project of the renovation and running of three hotels in Havana.
- Stonegate Bank (Financial), the first US bank with an agreement with the Cuban banking system.
- Stripe (Online payment system: Financial)
- Roswell Park Cancer Institute (Health)
- Royal Caribbean (Tourism – cruise lines)
- US Agricultural Coalition for Cuba (USACC)
- T Mobile (Telecommunications)
- Tripadvisor (Hotel reservations)
- United Airlines
- Verizon (Telecommunications)
- Western Union (Financial)
- Weber Shandwick (Consulting)
Venezuela:
Venezuela and Cuba share a longstanding trade relationship between the two nations.
- Cervecera Nacional (Beer)
- Petróleos de Venezuela S.A. (PDVSA) (Oil)
- Healthcare
Vietnam:
- Thai Binh Investment Trading Corporation
- Vietnam National Oil and Gas Group (PetroVietnam)
- Viglacera Corporation
- Hanel Company
- Tin Thanh Steam Power Co., Ltd.
- PetroVietnam Exploration Production Corporation (PVEP)
Note: We have attempted to summarize here international business in Cuba. All information reported in the above article is freely available in the public domain. If any additions or corrections are needed, please contact us. We welcome all contributions.
Last Updated: March 22, 2019.
