Along with biotechnology, the Information Technology sector is being consolidated in regard to the creation of the technical infrastructure of telecommunications and the society information.

Along with the development achieved in infratech and connectivity, there has been a massive introduction of the Information Technologies and Informatics in all teaching levels and economic life of the country, setting the basis for future benefits.

The training of thousands of students is yet paramount, who are involved in university careers associated to the informatics as well as in Informatics Polytechnics. There are 11 Universities and 14 Pedagogical Institutions delivering information specialties, thus, there is a University Center specialized in Informatics Sciences. The Computing Joven Club (Youth Club) network (3 Computing Palaces and 300 Joven Clubs) all along the island with 15 years, has involved within informatics over half a million Cubans and is currently training children and youth in these techniques.

Associated to the scientific sector in the country, information technologies applications are currently used in activities such as bio informatics and the involvement of Cuban experts in international projects as the human genome and the brain mapping. It is to highlight the Telematics Net from the National Health System (INFOMED) internationally awarded in 2002 by UNESCO, to which it will be added in 2003 a new network with similar characteristics devoted to the Education System. This net would connect institutions from all teaching levels in Cuba in order to achieve, in 2006, a connectivity of 5000 institutions of this type all along the country.

All the advances in the development of an infrastructure, the preparation of a highly qualified labor force able to develop the information technologies in Cuba along with the Organization of the Cuban Software Industry for export, provide unlimited potentials in a not too long term.

One of the transcendent decisions of Cuban economy in the last few years has been the reconstruction of the national sugar sector, driven by the ruinous and declining prices on the world-wide market.  The efficient production of this product continues.  That, together with the agro-industrial diversification, allows us  to reach the levels of efficiency required by the conditions of the market. 

Today, sugar production is concentrated in the most efficient lands and mills,and we have made progress in regard to the restructuring and diversification processes. The use of the sugar cultivation-free lands has also enhanced, as well as the delivery of electricity cogeneration via from the sugar sector to the National Electroenergetic Systems.

2002-2003 harvest, with 2.2 million tons was lower compared to the previous industrial campaign. It is perceived in the current harvest (2003-2004), a good performance in regard to the main economic and industrial indicators. General indicators are favored by the efficient performance of the energetic production (today, the chief byproduct from the agro-industry of ecological features) from sugar biomass as an example of the diversification of the productions, what provides added value to sugar. In the milling season, the industry self-supplies, and its surpluss goes to the national network, and for 2005, the sector is expected to self-supply during the complete year.

Other byproducts are developed to a small scale, to be enhanced in future years. Cuba currently produces over 20 byproducts including resins, production of alcohol, beverages, medications, animal feed, bagasse panels, among others, for over some decades of tradition and culture of production. All these products are expected to increase in number. Placing the island among the countries with higher diversification of this industry world-wide.

In addition, the country is also developing technologies and ways in regard to the production of organic sugar cane, product with higher added value and better prices in the international market. According to the sugar prices for 2004, no relevant increase has been foreseen regarding its production.

Non sugar Industrial Sector 

In this regard, the non-sugar industrial sector shows improvements in 10 of its 21 branches, with a growth of 2.1%.

The Graphic Industry grows in 23.2%, food industry in a 4.8%, and beverages and tobacco industries in a 3.4%.

It is to highlight within this sector the Cuban Iron and Steel industry which, since 1994 has maintained an average annual growth of about 20% and its goods and services productions are being consolidated. It has as well shown a growing tendency regarding its exports, particularly of products such as steel and carbon, scraps, electric and telephone cables, copper wire rod, stainless steel, agricultural machineries, aluminum productions, technological equipment, furniture, bus, kitchens, bicycles, among other, especially devoted to Latin America and the Caribbean.    

On the other hand,  communications and trade also show positive figures, growing 10.1% and 3.1% respectively, as well as the services activity, increasing in 4.1%.  

The non sugar industry in general is expected to grow 2.5% in 2004, showing greater development in the food industry and the production of medications which is expected to increase in about 37%. Other activities such as the mechanic industry, the basic industry, the light industry an others, have also recorded significant improvement.

Regarding services, the information and communications will continue developing during 2004, which have increased in 4%. On the other hand, trade has recorded 4.7%, while communications increased in 5.1%.

Foreign trade

The Ministry of Foreign Trade bears the faculty to carry out foreign trade operations. Since 1992, the commercial external activity was descentralized followed by a substantial increase in the number of institutions entitled to perform it. Today, there are over 419 entities engaged in the foreign trade activity, 217 of them are state-own enterprises or 100% Cuban mercantile societies, the rest with foreign capital participation.

Along 2003, it has been developed the premise to decrease the number of imports, which increased in 12%. This policy has reported benefitial results to the country, allowing for the acquisition of commodities on sale and with more favorable prices in many cases, especially in the case of foodstuff. For it, we have developed the concept of only producing in Cuba those items that are more economic, thus, additional benefits are given in the country as regard to the most efficient use of our natural resources.

We are also developing approaches allowing us to boost, in a short and medium term, the exporting capacity of the country in matters of goods, independently of the increasing levels achieved by the country regarding services and the substitution of imports (representing 74% of the commercial exchange), with national productions. All these would help to reduce the commercial deficit and would provide fresh hard currency devoted to the economic development and the social well being of the country.

The cuban chief export commodities are sugar, nickel, cigar, and sea products, which account for the 80% of the cuban export offer. There are other products included in the export portfolio, these are the biopharmaceutical products, cement, fresh and industrialized citrus fruits, rum, coffee, bee honey, steel bars, scraps, wires and electric wires, productions from the textile industry, cocoa byproducts, bagasse boards and others sugarcane byproducts.

In 2003, the Cuban commercial exchanges of goods was of over 6000 million dollars, and regarding exports, they boosted over 18%, influenced by the good performance of some commodities with higher prices in the international market like is the case of nickel and rolled cigar.

In 2003, there was an increase of 85% regarding non traditional exports, such as the biopharmaceutical and medical equipment industry as the most outstanding, especially vaccines as its most dynamic product. Traditional products only increased 5% compared to 2002.

Today, Cuba has commercial relations with over 176 countries (5 more than in 2002). The Americas (Latin American and the Caribbean account for 65% of the commerce activity with the region) constituted the most important region as regard to the total commercial exchange in 2003, followed by Europe, which used to be the leading region during the 90’s and at the beginning of 2000, although back in 2002 there was a re-direction towards the American continent with a differential of only 2%; just to mention that 1998 the relation was of 46 to35, while in 2002 it was of 41 to 39.

The statistic from 2003 show the following order regarding the main commercial partners: Venezuela, Spain, China, Canada, the Netherlands, Italy, United States, Mexico, France and Russia, concentrating the 72% of the total exchange.

Regarding importations, America was already in the first position in 2002 with commodities that have increased such as fuel and foodstuff. Regarding markets for Cuban exports, Europe stands out.

Among the chief export products are Sugar and Nickel, sharing first positions depending on unstable factors such as their market prices, as well as climate among others affecting their stability. There have no been major improvements in other staples neither in the sales volume, nor in the diversification or the increase of added values in any of them. However, within the Others section there have been recorded some changes which could mean the development of other sectors. One of them could be medical and pharmaceutical products (biotechnological, generic medications and medical equipment), which already rank fifth due to their export values after traditional productions as Sugar, Nickel, Cigar and Sea products (accounting for the 80% of exports). Other products are cement, fresh and industrialized citrus fruits, rum, bee honey, steel bars, scraps, wires and electric wires, productions from the textile industry, cocoa byproducts, bagasse-based boards and other sugarcane byproducts.

The exports’ promotion and diversification of non traditional products like the case of the fresh and industrialized citrus fruits, biotechnology productions, byproducts from the sugar industry, products from the iron and steel industry, inputs for agriculture, have an great development potential taking into account the existing production capacities.

There is a Center for the Promotion of Exports of Cuba (CEPEC) whose main objectives are to develop, diversify, and promote Cuban export offers.  

It’s a country’s strategy to put especial emphasis on the strengthening of its relations with Latin Amercia and the Caribbean.

• Export and Import System Policy.

Cuba does not follow any policy regarding export and import licences, regulations or provissions that may hinder the foreign trade activity.

Regulations inforce are associated to the conservation of the national heritage and bans on drugs and narcotics, as well as on sanitation and others regarding the protection of the environment, the protection of endangered species, dumping of wastes and other dangerous materials.

• Regulations for the establishment of Branches and Agents:

Due to the transformations taken place within the Cuban economy regarding its international economic relations, as well as the experienced gained and the international practice, the Cuban legislation, through Decree Law 206, April 1996, authorizes the establishment of offices from mercantile societies or individual foreign business people who may be interested in setting a branch office within the country in order to directly handle its commercial relations with Cuban enterprises or institutions, as well as the Resolution 550 from 2001 from the Ministry of Foreign Trade on the Procedures for the Files Proceedings by the National Registry of Branches and Agents of Foreign Mercantile Societies.

With this purpose, for those foreign entities or individual business people who seek to have representation within the country, without opening their own office, there is the possibility to be represented, previous to the issuing an agency contract,  by a national entity, with due legal authorization to act as agent within our country.

Registration in the National Registry of Branches and Agents of Foreign Mercantile Societies, located in the Chamber of Commerce of Cuba, is an indispensable requirement to set an office in the Republic of Cuba, and the document accreditting this authorization is the licence issued by this Registry.

Chamber of Commerce:  

The Chamber of Commerce of the Republic of Cuba represents the associated Cuban enterprise sector, favors the development of the mercantile activity, assists the State in developing commercial policies as provides different especialized services and informations in matters of commerce.

In it there are set the World Trade Center Habana and the Trade Point Habana, as well as the Cuban Arbitration Court of Foreign Trade and Cuba EAN Bureau, incharge of the registration and the barcodes. Lawyers Office Lex.SA. is part of its managerial system, agents of industrial property in Cuba. There is also the ARCAMARA Agency, whose task is the issuing of digital certificates as well as providing advisory by means of electronic mail.

The State empowers the Chamber of Commerce of the Republic of Cuba important public functions, to mention:

• Attention to different registries.
• Issue of origin certificates, Force Majeure Certificate,  and other Certifications
• Issue of Guarantee Seals

Membership in International agreements and Organizations

Cuba is founder member of the United Nations, and actively takes part in the majority of its organs and specialized agencies such as the United Nations Conference on Trade and Development (UNCTAD); United Nations Organization of Industrial Development (UNIDO), the United Nations Organization for Food and Agriculture (FAO); World Organization of the Intellectual Property (WOIP); the United Nations Program for Development (UNPD); the International Maritime Organization (IMO), and the International Trade Center UNCTAD/ WTO (ITC).

In the commercial arena, Cuba is part of the World Trade Organization (WTO), … and actively participates in all its works organs.

Cuba is also member of other organizations related to trade such as World Customs Organization, the International Standardization Organization (ISO), Sugar International Organization (SIO), Cereals International Council (CIC), the International Group on Nickel Studies (IGNS), and the Basic Products Common Fund (BPCF).

Cuba has signed multilateral agreements with important commercial provisions regarding certain categories of sensitive products like the Agreement on the Ozone Layer Protection as well as its protocols and amendments; the Agreement on the International Commerce of Endangered Species of the Flora and Fauna (AICES); the Basilea Agreement on the Control of Hazardous Wastes abroad and their disposal; the Convention of the United Nations on Illicit Traffic of Narcotics and Psychotropic Substances, as well as the Agreement on Biological Diversity.

In Latin America and the Caribbean, Cuba is also part of outstanding institutions related to the commercial sector like the Latin-American Association of Integration (LAAI), the Caribbean States Association (CSA), the Latin-American Economic System (LAES), and the Economic Commission for Latin America and the Caribbean (ECLAC).

It is important to mention that Cuba is also part of important organizations of developing countries such as the Movement of the Non Aligned Countries (NOAL); the Group of 77, the Group of ACP countries, and CARIFORUM.

Cuba in the context of Latin America and the Caribbean: 

Cuba has placed special emphasis on the consolidation of its relationships with Latin America and the Caribbean. Particularly in regard to the insular Caribbean, during the last decade, Cuba has taken important steps in favor of a much deeper link to the region, maintaining relations with all its States. In most of them, diplomatic missions have been opened, a vivid example of the interest of the country in strengthening its ties with the area.   

In November 6^th, 1998 it was approved the entrance of Cuba to the Latin American Association of Integration (ALADI), which favors the aim towards the creation of a Latin American common market.   

12 countries are part of ALADI: Argentina, Bolivia, Brazil, Colombia, Chile, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. 

With the commitment of establishing an area of commercial preferences, ALADI’s member countries have assumed the following mechanisms: 

• The Regional Tariff Preference (PAR). 
• Payrolls of Markets Openings (NAM). 
• Regional agreements of Partial Scope  

All them allow a significant percentage reduction of the tariffs obligations, for all member countries. 

Cuba has signed Agreements of Partial Scope with all ALADI’s member countries. Allowing signatories to negotiate products lists of interest for each one of them and the preferences granted among each other are, in general, more than the ones under the Regional Tariff Preference. 

The Origin Regional System Policy is another instrument of ALADI, which establishes the provisions applied to products from the member countries, in order to enjoy the tariff preferences. Including the products from ALADI, the ones produced in the member countries and those whose elaboration process, as well as their parts and components do not exceed 50% of the product value.  

The application of Origin Policy constitutes an incentive for foreign investment especially among ALADI’s member countries, although it does not exclude the possibility of participation of third parties in joint productions to be exported to the region.      

These actions and instruments can be as well applied to the tourist sector, in fact, Cuba has a especial interest in collaborating with ALADI’s member countries in order to enhance the involvement of the group in different activities of the international tourism. 

• Tariff Preferences within ALADI’s framework

The member countries of the Latin American Integration Association (ALADI) Cuba has signed agreements with are: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. Thus, with Guatemala and the Caribbean Community (CARICOM), under the same legal scheme of ALADI. This latter agreement has the objective to establish market openings through positive lists of products with cero tariff, it also covers a number of topics like the promotion and protection of investments, the commerce of services and the cooperation in the areas of transportation, intellectual property and tourism.

As part of the commitments assumed under ALADI’s framework, our country began to participate in the Regional Tariff Preference, consisting on the granting of mutual preferences among member countries, except in the case of the products included in the lists of exceptions from each of them. The Chamber of Commerce of the Republic of Cuba issues the corresponding ALADI ‘s origin certificates to the requests of Cuban exporters.

On the other hand, Cuba unilaterally opened its market to a specific list of products, especially industrial products from Bolivia, Ecuador and Paraguay, countries of less relative economic development of ALADI, which receive a preferential treatment within the association.  

Our country is also part of the Agreements on Seeds and Cultural Assets, signed by ALADI’s member countries, under which tariff debits for these products are revoked.

Since 1992, Cuba takes part in the Caribbean Tourism Organization, and in 1994 the Cuba-CARICOM Joint Commission is created. Since 1998, Cuba participates in CARIFORUM meetings, composed by the countries from the Caribbean Community (CARICOM) plus the Dominican Republic and Haiti (today, CARICOM member). On December 2000, Cuba was elected full-fledged member of ACP countries (Africa, Caribbean, and the Pacific) and in October 2001, as CARIFORUM Full Member.

On July, 5^th, 2000, an important Agreement on Trade and Economic Cooperation was signed between Cuba and CARICOM, which is an instrument involving aspects such as mutual concessions of tariff preferences, commerce of services, cooperation in the field of transportation, intellectual  property, tourism, and investments. This agreement has not yet entered into force, since both sides have been involved in the realization of all the corresponding proceedings for its implementation. It is expected that, once Cuba-CARICOM Joint Commission takes place, the list of products will be approved in order to execute the agreement. In the recent meeting of CARICOM Prime Ministers, held in December 2002, in Havana in occasion to the XXX Anniversary of the establishment of diplomatic relations of some Caribbean countries with Cuba, it was agreed to provisionally approve this Agreement on Trade and Cooperation.

At the end of 2001, the Agreement on the Reciprocal Promotion and Protection of Investment was signed between CARICOM and Cuba. CARICOM has, among its main objectives, the economic integration of its member states through the establishment of a common market system and the coordination of its foreign policies. It is composed by: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, Haiti, Montserrat, and Suriname.     

  Cuba actively participates in regional organs like the Caribbean State Association (CSA) and the Tourism Regional Organization, among others; in the consultation and coordination of positions towards third countries and issues related to multilateral commercial negociations aimed at achieving a joint and common position, while strengthening the subregion negociation power. With such purposes, Cuba is attending the CSA relaunching, there have been some progress regarding the agreement on the Caribbean sustainable tourism area, and in this regard, the development of international tourism is being promoted, supported by commerce, as well as maritime and air transportation. In matters of air transportation, some achievements have taken place with the objective to reach a common strategy within the region. In regard to maritime transportation, Cuba has made steps towards the integration, by opening different lines linking Caribbean ports.

Map of Cuba

Click Here to see a more detailed map.