U.S. corporates eyeing for business in Cuban market
Washington ( Agencies + DIPLOMAT.SO) – The U.S. President Barack Obama recently announced to restore diplomatic ties with Cuba. While the announcement is subject to stringent public scrutiny, many are blaming this decision as well as President for taking ‘U’ turn from his 2008 stand. At that time, Obama advocated to maintain the embargo against Cuba through principled diplomacy and push the nation toward human rights reform.
While the criticism continues, the U.S. corporate houses, including Marriott International (MAR), Deere & Company (DE) and PepsiCo (PEP), are exploring opportunities to introduce their businesses in the island-nation.
Ken Golden, a spokesman for Deere & Co., said that Cuba is a potential market for the company, which is a leading provider of farm and construction equipment.
The experts believe that the announcement would mark significant entry point for Cuba, which has long been isolated from the global economy. In addition, it would also allow the U.S. to leverage significant advancements made by Cuba on the biotechnology forefront. Cuba also holds the largest deposits of nickel, and hence mining could also be one of the key entry points. Experts also anticipate the Cuban rum and sugar industries to benefit from the trade resumptions.
Kirby Jones, founder of Alamar Associates, said the entry would not be that easy in Cuban market, as the government would closely assess how a particular business could help the local economy. Alamar Associates is providing consulting services to the U.S. corporations in pursuing business with Cuba for nearly four decades.
The U.S. government statistics showed the exports to Cuba totaled $359 million in last year, much below the $711 million level achieved in 2008. The U.S. is already the fourth largest exporter to Cuba and hence the recent announcement could bring more opportunities to Cuban businesses to expand their footprint in the world’s largest economy.For more news and stories, join us on Facebook,Twitter , or contact us through our Email: email@example.com, firstname.lastname@example.org