US
businesses are lining up to take advantage of the enormous investment potential
of Cuba, all but untouched for more than half-a-century by American capitalism.
Last week,
President Barack Obama announced a breakthrough in US relations with Cuba,
reviving diplomatic ties and making some commercial transactions easier.
No sooner
was the historic announcement made, than the American business (Other OTC: ARBU
- news) community began assessing Cuba's untapped markets.
Emilio
Morales, president of the Miami-based Havana Consulting Group, described a
"tsunami" of interest among investors, particularly in Florida, just
90 miles (144 kilometers) from the island.
No-one, he
said, wants to miss out on such a market, fueled by decades of pent-up demand.
"There
are a lot of people in the US business community who are in panic," said
Morales, who told AFP that since last week, his phone has been ringing off the
hook.
The president
of the US Chamber of Commerce, Thomas Donahue, representing business groups and
companies, also spoke of a barely-contained enthusiasm to invest in Cuba.
"The
chamber and its members stand ready to assist as the Cuban people work to
unleash the power of free enterprise to improve their lives," he said in a
statement.
The Small
Business Administration, another interest group, was equally upbeat about the
investment prospects.
"The
best way to ensure opportunity and democracy in Cuba is by empowering the Cuban
people ?- rather than denying them access to resources," said SBA
President Maria Contreras-Sweet.
New
markets for good, services
"At
the same time, American businesses, small and large, stand to gain access to an
important new market for goods and services only 90 miles from our
shores."
America's
farm states are particularly keen to sell corn, wheat, soy and other crops to
Cuba, which has to import much of its food.
And there
also has been interest from US technology firms in Silicon Valley in a market
that is decades behinds the United States with respect to its high-tech
infrastructure.
Morales
said, however, that it may take many months before investors get to make good
on that dream of increased trade, because of legislative hurdles in the United
States.
"They
want to hurry up, but it's not like that. There is an entire process that's
only getting started now and that will last at least a couple of years,"
Morales said.
An act of
Congress is needed to repeal the economic and travel embargo, put place a
half-century ago and then strengthened in 1996 with the Helms-Burton Act.
Last week,
Obama described the trade embargo as "self-defeating," but
acknowledged that a congressional repeal would not be easy.
There is
substantial opposition in Congress to doing away with the embargo --
particularly from the powerful bloc of Cuban-American lawmakers who want the
administration to extract more concessions from the Havana government.
Chief among
them is prominent Republican Senator Marco Rubio, incoming chairman of the US
Senate's Foreign Relations Committee's subcommittee on Foreign Operations, who
has vowed to do whatever is necessary to block normalization of relations.
Still,
experts point to an altered business climate in just the few days since Obama announced
the seismic policy shift.
There has
been a "dramatic change in the tone of the conversation," said Pedro
Freyre, a Cuban American attorney with the international division of the
Akerman law firm.
One of the
areas poised for the most dramatic growth is tourism.
Even with
the embargo, there are already more than 90,000 US citizens who travel to Cuba
each year.
That number
is expected to grow once the Obama administration eases restrictions on how
much they can spend and on the Cuban products they can bring home.
In the past
few years, President Raul Castro already has put some reforms in place,
allowing private restaurateurs, beauticians and other small business people to
open up their own shops.
He also has
relaxed some restrictions on travel outside the country and granted permission
for Cubans to to sell real estate and cars for the first time in nearly 50
years.
But the
creation of Cuba's nascent free market is nothing to the growth anticipated
once the embargo is dismantled.
"The
market will grow," said Morales, adding: "The process is going to
take a while."
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