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North & Central America and Caribbean
Cuba |
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Last reviewed: 10 July 2008 |
Country information
CUBA TODAY
Country Facts
Area: 110,860 sq km (42,803 sq miles)
Population: 11.2 million
Capital City: Havana (population 2.2 million)
People: Ethnically mixed population (white 66%; mixed race 22%; black 12%), Chinese 1%
Language: Spanish
Religion: The State is secular in Cuba; the main religions are, Catholicism, Santeria (an informal mixture of Christianity and African religions brought over by slaves), and Protestantism.
Currency: Cuban Peso (Moneda Nacional) and Convertible Cuban Peso (CUC) (1 CUC = 25 Cuban Pesos)
Major Political Parties: Only party – Cuban Communist Party or PCC (Fidel Castro Ruz, First Secretary)
Government: Cuba has a one party system of government and is the only country in the western hemisphere with a communist government. Over 47 years after the Cuban revolution, Fidel Castro remains Head of State and leader of the Communist Party. The Vth Party Congress in October 1997 reaffirmed the Revolution's political direction and named Raul Castro as Fidel's chosen successor.
President of the Council of State: Raúl Castro Ruz
First Vice-President of the Council of State: José Ramón Machado Ventura
Foreign Minister: Felipe Pérez Roque
Membership of international groups/organisations: Cuba's memberships include United Nations (UN), Organisation of American States (OAS – excluded from formal participation since 1962), Non-Aligned Movement (current chair), IAEA, WHO, WTO, WO and others.
ECONOMY
Basic Economic Facts
Nominal GDP: US$45.5 billion (2007 est)
Nominal GDP per head: US$4,051 (2007 est)
Inflation rate: 2.8% (2007 est)
Main industries: tourism, sugar, nickel, tobacco, and agriculture and rum.Please note that Cuba calculates its GDP to include "social services". These estimated figures, taking that into account, are provided by the Economist Intelligence Unit..
The Cuban economy has experienced a gradual recovery since its 'freefall' in the early 1990s. This followed the collapse of the former Soviet Union, Cuba's preferential partner in trade and aid, and Cuba was forced to take tough economic measures. These included the legalisation of the use of hard currency (US dollars) and of some private enterprises, as well as reform of agricultural production and land tenure to permit more private ownership. Nonetheless private enterprise is still heavily restricted. Furthermore, 2003/2004 proved to be difficult years for the Cuban economy, with droughts, hurricanes and power shortages, increasing US economic restrictions and falling foreign investment. Tourism is now a key foreign exchange earner for Cuba, with over 2 million visitors a year bringing in about $2bn dollars in revenue. However, GDP levels are still below those of the late 1980s. In October 2004, the government announced that the dollar would no longer be used in commercial transactions, ostensibly to reduce the vulnerability of the Cuban economy to US measures throughout 2004 to limit the flow of hard currency to the island. The Cuban peso and Cuban Convertible Peso were both revalued (the latter by 8% - 1 CUC = 1.08 USD) against the US Dollar and other foreign currencies in early 2005.
Shortages of basic foodstuffs and medicines, and poor public transport are all still regular features of daily life for ordinary Cubans, although transport is improving in the capital. The national average wage is roughly $10-15 a month at real market prices. The state provides basic rations of food; education and health are free and universal; utilities are subsidised heavily and most, if they do not 'own' their houses, pay little or no rent. Nevertheless only those with regular access to foreign currency - through remittances (now limited by US measures introduced in May 2004), or by working or providing services for foreigners - can achieve a reasonable standard of living and ownership of cars and freedom to travel are extremely limited.
The Cuban authorities remain firmly committed to maintaining a planned economy, but will continue to carry out enterprise restructuring and to seek foreign business participation.
Under the Foreign Investment Law passed in 1995 (which allows 100% foreign ownership in certain circumstances), Cuba started actively seeking foreign participation in commercial activities. There are opportunities for establishing joint ventures or other forms of commercial association in Cuba, although investors face practical difficulties, and often need patience. Since 2004, the Cuban Government has prioritised and actively encouraged investment from Latin America, China and Vietnam (especially in the nickel and energy sectors), while cutting back on the small and medium sized private investment joint ventures. Through central planning and sacrifice, Cuba has, for the region, an unusually diversified economy - including a prominent biotechnology industry. Other positive developments include the re-structuring of the banking sector, resulting in the formation of the new Central Bank (both in May 1997). A poor hard currency debt situation, lack of medium and long-term finance and a perception of threat from the Helms/Burton legislation (US legislation to penalise foreign companies with business interests in Cuba) remain significant potential deterrents for foreign suppliers.
Further information on US extraterritorial legislation and how it may affect foreign companies trading with Cuba can be found on the following pages of Department for Business, Enterprise and Regulatory Reform’s (BERR) website.
Department for Business, Enterprise and Regulatory Reform (BERR)
HISTORY
Pre-Colombian Cuba inhabited by Amerindian tribes: the Guanahatabey, Taínos, Siboneys and Caribs.
1492 Christopher Columbus lands on Cuba, the start of Spanish occupation.
1607 Havana replaces Santiago de Cuba as Cuba's capital
1762 British forces take control of Havana.
1763 British hand Cuba back to the Spanish in exchange for Florida.
1868-78 Ten Years War ends in Spanish victory over Cuban rebels.
1895-8 War of Independence: End of Spanish rule.
1899-1902 US Military occupation of Cuba.
1902 Republic of Cuba is created.
1934-58 Fulgencio Batista effective Head of State for 17 of these 25 years.
1959 Cuban Revolution. Fidel Castro Ruz takes control
1961 US sponsored Bay of Pigs invasion defeated. Castro proclaims Cuba a Socialist State and begins to ally it with the USSR. US declares trade embargo with Cuba.
1962 Cuban Missile Crisis.
1972 Cuba admitted to COMECON economic bloc.
1976 Promulgation of Cuba's new Socialist Constitution.
1980 Mariel rafter crisis - over 100,000 Cubans seeks asylum in the USA.
1990 'Special Period in Time of Peace' austerity programme in place throughout 1990s.
1991 End of Soviet subsidies to Cuba.
1996 US Helms Burton Act toughens US sanctions on Cuba.
1998 Visit to Cuba of Pope John Paul II.
2001 US exempts foodstuffs and medicine from trade embargo (US 2005 exports to Cuba are approximately US$500m).
2003 Crackdown on peaceful Cuban opposition leads to crisis in EU-Cuba relations.
2006 Fidel Castro is taken ill in July with intestinal illness. Raul Castro temporarily assumes leadership of the party and presidential responsibilities.
2008 Raúl Castro elected President of the Council of State and Council of Ministers.
Recent History
BBC News Country Timeline: Cuba
On 24 February 2008 the new National Assembly unanimously voted for Raúl Castro, Fidel Castro's younger brother, to become President of the Councils of State and of Ministers (and thus Head of State and Government) and Commander in Chief of the Cuban Armed Forces. Fidel Castro remains First Secretary of the Politburo of the Central Committee of the Communist Party of Cuba, with Raúl Castro as Second Secretary. José Ramon Machado Ventura (78), became First Vice-President of the Council of State (the post Raul vacated by becoming President).
Raúl Castro had temporarily assumed power on 31 July 2006 when President Fidel Castro issued a proclamation announcing that he had undergone surgery for a severe intestinal crisis with sustained bleeding.
INTERNATIONAL RELATIONS
Relations with the UK
The United Kingdom and Cuba have full diplomatic relations, unbroken since they were established in 1902 following Cuba's independence.
UK policy towards Cuba is based on the EU Common Position adopted on 2 December 1996. This states the EU's objective is to encourage a process of transition to pluralist democracy and respect for human rights and fundamental freedoms, via intensified dialogue with the Cuban authorities and all sectors of Cuban society. Progress towards these objectives is the key to improved EU/Cuba relations. The EU evaluates the Common Position every 12 months. Following the crackdown on the opposition in March 2003, including summary trials and long sentences, the UK, along with EU partners, introduced a series of measures to express EU discontent with the crackdown on human rights. These measures included the invitation of the peaceful opposition to Embassy events and the limitation of ministerial visits. As a response, the Cuban Government 'froze' contact with EU embassies in the summer of 2003. In January 2005, the EU agreed to temporarily suspend these measures, while reaffirming the Common Position of 1996. The Cuban Government also ended its 'freeze' on contact with EU Embassies in Havana in early 2005.
The most recent review of the Common Position, in June 2008, recognised recent changes in Cuba and encouraged the government to introduce liberalising changes. The EU agreed to pursue a comprehensive and open dialogue with Cuba on a wide range of topics, including human rights, and to facilitate this, lifted the suspended measures. The EU will evaluate the dialogue in June 2009, which will continue if it has proved to be effective.
The UK, along with EU partners, shares the same goal as the US (ie a peaceful transition to a pluralist democracy in Cuba). But our approach differs fundamentally from the US on the means to achieve this. We favour constructive engagement rather than isolation.
Law Enforcement Co-operation
The UK enjoys excellent counter-drugs co-operation with Cuba. HM Customs and Excise trainers have worked with Cuban customs officers in the airports at Havana, Varadero, Holguin and Santiago under UK-funded training programmes. Cuba has also participated with distinction in joint UK/EC-funded regional training programmes, itself helping run and deliver Caribbean-wide courses in Havana in November 2001 and July 2002. This work continued in 2005, when the Embassy funded successful courses in tackling drugs and money laundering. The Embassy has also funded an English Language Training course to enable the Cuban authorities to counter drugs trafficking/money laundering more effectively in the Caribbean region.
The UK has also funded further programmes in areas such as child protection. In January 2008, the British Embassy in Havana and the Cuban Interior Ministry jointly held an regional conference on child protection with the British NGO Child Development Trust. This conference was attended by experts from 16 Latin American and Caribbean countries and territories.
Cultural Relations
Since 1998, the British Council in Cuba has been creating opportunities for cultural exchange and professional development in education, English language teaching, building links between Cuban and UK Scientists, and promoting the arts. A British Council office is co-located with the British Embassy in Havana. For more information, please see:
British Council, Cuba
The British Embassy in Havana also produces an electronic newsletter – "UK Today" – with interesting information about the UK and the Embassy.
Recent Visits
Former Foreign Office Minister Bill Rammell visited Cuba in March 2005. This was the first visit of an EU Minister following the suspension of the special measures introduced by the EU in March 2003 (see above). Mr Rammell's visit focused on important bilateral areas such as anti-drugs work as well as human rights concerns.
In 1998 Baroness Symons (then Parliamentary Under-Secretary of State) made the first visit by an FCO Minister since the 1959 Revolution. The then FCO Minister Baroness Scotland visited Cuba in September 2000. Alan Johnson MP, Minister of State for Trade and Industry was HMG's representative at the 2001 Havana International Trade Fair. Jane Davidson AM, Welsh Minister for Education and Lifelong Learning, visited Cuba in February 2002. Baroness Amos visited Cuba in June 2002 as FCO Minister for the Caribbean.
There have been extensive exchanges of parliamentarians, business delegations, trades unionists, academics and officials in fields including trade, investment, health, justice, science, agriculture, finance, culture and sport.
GEOGRAPHY
Cuba is the largest island in the Caribbean, located between the Caribbean Sea and the North Atlantic Ocean.
TRADE AND INVESTMENT
Trade and Investment with the UK
Cuba is a unique and challenging market in which to do business, but there are opportunities for UK companies to win new business on the island.
The trade team at the British Embassy has identified niche opportunities for UK companies in the following sectors:
Energy (including oil and gas)
Information and Communication Technology
Life Sciences
Reforms have been introduced since Raúl Castro became President which have improved the quality of life for the Cuban people, although these reforms have yet to make it easier for overseas companies to invest. However, there is no doubt Cuba needs foreign direct investment and overseas expertise, particularly in areas such as agriculture, as the island currently imports over 80% of its food.
UK exports to Cuba are subject to considerable fluctuation. The figures are perhaps not an accurate reflection of true levels of trade with Cuba as significant trade is undertaken through third countries (especially Mexico, Panama and Spain); likewise the figures do not take into account service exports (consultancy, insurance etc).
UK/Cuba Bilateral Trade (£ million)
| 2002 | 2003 | 2004 | 2005 | 2006 | |
| UK Exports | 11.3 | 17.4 | 11.5 | 15.7 | 20.5 |
| UK Imports | 8.1 | 9.1 | 12.3 | 8.9 | 8.1 |
The UK’s principle exports to the market are road vehicles, medicinal & pharmaceutical products, specialised and electrical machinery, and power generating equipment. The main imports to the UK from Cuba are tobacco, vegetables & power generating machinery (most likely used equipment and goods for refurbishment/servicing).
UK Trade & Investment Country Profile: Cuba
UK Development Assistance
The British Embassy in Havana runs a Bilateral Programmes scheme which provides an opportunity for local communities and organisations within Cuba to access funding for small-scale community-based development projects, which have a strong focus on energy security, sustainable development, solution to community problems and building capacity within organisations.
Recently financed projects in Cuba have focused on the use of renewable energy sources, sustainable agriculture, empowerment of women and other sectors.
EU Development Assistance
Unfortunately, the Cuban Government decided to decline all direct EU aid in July 2003. Since then, Cuban institutions have not accepted any direct aid from any EU member states.
POLITICS
HUMAN RIGHTS
Cuba's record on civil and political rights falls well below accepted international standards. Freedom of expression, information and association are denied. All opposition parties are prohibited. Of particular concern are the high numbers of political prisoners (some estimates indicate that nearly 300 remain in jail) and increasing government-sponsored acts of violence/intimidation against dissidents. In July 2005 the Cuban authorities suppressed peaceful demonstrations, arresting 33 demonstrators, and in April 2003, 75 Cuban dissidents were sentenced to up to 28 years in jail. Some of these prisoners have been released, but many remain in jail – often without trial and suffering from serious health problems. The Cuban Government continues to arrest other civil society figures. In 2003, Cuba also broke a 3-year moratorium on executions by imposing the death penalty on 3 Cubans who had tried to hijack a ferry to Miami. On 28 April 2008 President Raúl Castro announced that all but three death sentences would be commuted to life or 30 years imprisonment, but that the death penalty would still be used in terrorism cases.
UK government ministers and officials continue to raise concerns about human rights with the Cuban authorities. On 4th April 2008, FCO Minister Meg Munn expressed concern about political prisoners and other human rights issues during a meeting with Cuban Vice Foreign Minister Eumelio Caballero. The EU continues carefully to evaluate its relations with Cuba to ensure a measured and proportionate response to Cuban actions.
Cuba has ratified 4 of the 6 UN human rights instruments. They are:
- International Convention on the Elimination of Racial Discrimination (CERD (1972));
- Convention Against Torture (CAT (1995));
- Convention on the Rights of the Child (CRC (1991)). [In 2000, Cuba signed the Optional Protocols to CRC on i) Child Soldiers and ii) the Sale of Children and Child Prostitution];
- Convention on the Elimination of Discrimination Against Women CEDAW (1980). (In 2000, Cuba also signed the Optional Protocol to CEDAW – Right of individual petition to the Committee on the Elimination of Discrimination Against Women).
Foreign Minister Felipe Pérez Roque signed the International Covenant on Economic, Social and Cultural Rights (ICESCR) and International Covenant on Civil and Political Rights (ICCPR) in New York on 28 February 2008. Cuba still has to ratify the covenants and implement the human rights enshrined by them.
In February 1999, a Cuban National Assembly extraordinary session approved a law to 'Protect the Independence and Economy of Cuba' from US aggression. This provides for prison sentences (depending on the offence) of up to 30 years and fines of US$5,000 for those found guilty of collaborating with the 'constant economic, political, diplomatic, propaganda and ideological war against our nation'. The new legislation raised international concern.
The early years of the Revolution saw a period of religious intolerance. Though the situation has improved, religious activities are still tightly controlled. In 2005, the government introduced legislation directing all house churches to register with the authorities. Catholicism was never as strong in Cuba as in the majority of Latin American countries, and Protestant churches are now seeing increasing membership. But, even so, the Catholic Church is seen as one of the few non-State organisations with limited national influence. The Pope made his first visit to Cuba in 1998, when he called on Cuba to open up to the world and the world to Cuba. The Cuban Government offered Christmas as a permanent public holiday in 1998 and there were other forward moves in Church/State relations. Cardinal Tarcisio Bertone, Vatican Secretary of State, visited Cuba in February 2008 for the tenth anniversary of the Pope’s visit. Many Cubans also practise Santería, which has its origins in African religions (particularly Yoruba) brought to Cuba during the slave trade, when it synchronised with Catholicism.
There is some civil society activism in Cuba. In May 2002 the Varela Project, calling for a referendum under the Cuban constitution on civil and political freedoms, was presented to the Cuban parliament. Oswaldo Payá, author of the project, visited the UK in January 2003 and met the former FCO Minister responsible for Human Rights, Bill Rammell. Varela attracted support from those inside and outside Cuba who wish to see peaceful change to a democratic system of government; EU Heads of Government issued a statement in support of it in June 2002. Oswaldo Payá was awarded the European Parliament's Sakharov prize for freedom of thought in 2002. Payá has continued to collect signatures for the Varela project (there are now more than 35,000). In December 2005, the UK Government invited Payá to the UK to undertake a programme of visits and to speak at the EU-NGO forum on Freedom of Expression in London, but he was unable to travel because the Cuban authorities denied him an exit visa.
In May 2006, Payá published his proposal for a new constitution, which included greater freedoms for Cuban people. This document was based on the results of his ‘Todos Cubanos’ programme, an initiative that involved consultation with thousands of Cuban citizens.
The Damas de Blanco (Ladies in White) are another important civil society group in Cuba. These wives and family members of political prisoners hold peaceful vigils and marches for the release of their relatives. The Damas de Blanco were awarded the European Parliament's Sakharov Prize for Freedom of Thought in December 2005. They were not permitted by the Cuban Government to travel to collect their award. In October 2006, the Damas de Blanco were honoured with another award- the Human Rights First Prize for 2006.
Most recently, a wide group of key opposition figures, including Oswaldo Paya, Damas de Blanco and Martha Beatriz Roque, have formed an alliance known as "Unidad por la Libertad", which recognises their common objectives:
- To achieve respect for all human rights for Cuban people;
- To jointly demand the immediate and unconditional release of all political prisoners;
- To encourage co-operation and participation of all citizens and;
- To use and promote peaceful means to achieve these objectives
This is a positive development, indicating a more united and organised approach from the Cuban opposition.
Country information
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Useful Links
- UK Trade & Investment Country Profile: Cuba
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British Council, Cuba
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Department for Business, Enterprise and Regulatory Reform (BERR)
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1996 EU Common Position
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Council Conclusions
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BBC News Country Timeline: Cuba
Contacts
Address:
Embassy of the Republic of Cuba
167 High Holborn
London WC1 6PA
Consular Section
Embassy of the Republic of Cuba
15 Grape Street
London WC1 6PA
Telephone:
(020) 7240 2488
Fax:
(020) 7836 2602
(020)7240 2488 - Consular
Email: embacuba@cubaldn.com
Office hours:
Website: http://www.cubaldn.com