New York, 18 October 2019. Total repercussions of the U.S. blockade on Cuba's foreign trade between April 2018 and March 2019 amounted to 2,896,581,555 dollars, with the resulting increase of negative effects hindering and distorting foreign trade activities.
To this should be added the dissuasive and intimidating effect of the blockade policy on the U.S. and third country business sectors, with even greater repercussions due to the banking-financial institutions that refuse to work with Cuban entities, and in the sector involving investments in the country.
In foreign trade, the greatest repercussions can be noted in the losses due to exports of goods and services, amounting to 2,343,135,842 dollars. This figure was significantly affected by the decrease in U.S. visitors during the period, a trend that has been maintained since 2017 as a result of the media campaign against traveling to our country and the manipulation of the alleged health-related incidents affecting American diplomats in Cuba.
Losses as a result of the geographical relocation of trade are estimated at 1,020.2 million dollars, representing a growth of 18% in comparison with the previous period.
Repercussions due to the impossibility of access to the U.S. market amounted to 163,108,659 dollars.
As a result of the blockade restrictions, it is not possible to export to the U.S. any Cuban brands registered in the U.S. market. This is the case of Cubita coffee, honey, and Caney and Varadero rums. In the case of sugar, the losses related to the exclusion from the system of sugar quotas have represented a loss of more than 29 million dollars.
In this period, repercussions due to the ban on the use of the U.S. dollar amounted to 85,139,436 dollars and the increased cost of financing/risk country amounted to 47,290,204 dollars. These indicators are influenced by the lack of access to bank loans or soft loans. Cuban companies must work with commercial loans granted by the suppliers themselves with disadvantageous financial terms.
The negative repercussions for using commercial intermediaries and the resulting increased prices for goods amounted to 173,210,916 dollars, showing an increase of 189% when compared to the previous period.
Another variable which continues to cause serious repercussions on our economy are the surcharges for freight and insurance that must be paid due to geographical relocation of trade to more distant regions. Because of this, we calculate losses of 72,160,602 dollars.
Permanent Mission of Cuba to the United Nations