Khmer Times:Closer trade ties between Cuba, Cambodia to benefit both

Cambodia established diplomatic relations with Cuba on April 15, 1960. Since then, the two countries have maintained ties in the areas of trade & economics, politics, culture, health and education. Attempts to strengthen these ties were hampered by the existing United States Trade Embargo on Cuba. Because of the embargo, Cambodia only imported $166,000 worth of Cuban medicines, vaccines, tobacco and beverages in 2018, according to the United Nations (UN) COMTRADE data. During that same period, Cuba imported $111,000 worth of Cambodian textile/leather footwear and other products. In an exclusive interview with Khmer Times Business journalist Jose Rodriguez T. Senase, Cuban Ambassador to Cambodia Liurka Rodriguez Barrios discussed about the current state of the relationship between the two countries, effects of the US trade embargo, steps the embassy has taken to promote tourism and trade, among others.

 What is the current state of the relationship between Cambodia and Cuba?

These ties have been one of the legacies of the historic leader of the Cuban Revolution, Commander-in-Chief Fidel Castro Ruz, and King Norodom Sihanouk. Both were also founders of the Non-Aligned Movement and their ideas of progress, peace and justice contributed to mutual respect and admiration. There is a high level of agreement between the two nations at the multilateral level, with manifest mutual support in international forums and organisations. Cambodia, for example, has consistently and firmly voted against the US blockade of Cuba, which it calls unfair and immoral. We have very close parliamentarian relationships, expressed through the exchange of visits and mutual support in the international arena. The Parliamentary Friendship Group Cambodia-Cuba is very dynamic. The Cuban Communist Party and Cambodian People’s Party agreed to work together to improve the historically-friendly relations between both organisations. This was a result of an exchange of experiences and information. More than two hundred Cambodians have studied in Cuba in the field of Medicine, Engineering, Agronomy, and Languages. Cuba provides scholarship programmes for Cambodian youths to study Medicine, annually. Some of them are working with Cuban medical teams in the fight against the COVID-19 pandemic.

Cuba instituted a series of economic reforms since 2021. What would be its impact on Cuba’s external trade, including trade with Cambodia?

The country’s monetary and currency exchange structure has an interdisciplinary and transversal character; its re-ordering includes monetary and exchange rate unification, the elimination of unwarranted subsidies and the provision of some goods and services free of, as well as transformation of salaries. The process is a necessity that cannot be postponed and an essential prerequisite to advancing implementation of the country’s economic strategy. Although the elimination of the dual currency and exchange rate, in and of itself, will not magically solve all the problems accumulated in the Cuban economy, but it constitutes the process that is most decisive to the updating of the Cuban economic model, given the impact it will have in all spheres of the nation’s economic and social affairs. The creation of micro, small and medium-sized enterprises (MSMEs) are now a reality in Cuba. Experts believe that the constitution of these figures lead to a more flexible restructuring of the national economy, closer to the production activity and services of each territory in Cuba. Some 1,105 economic actors have been approved since the process began in September. Of the MSMEs, 1,066 are private, and 21 are state-owned, in addition to 18 cooperatives. In terms of origin, 58 percent are reconversions of pre-existing businesses, and 42 percent are new ventures. In total, it is estimated that these economic actors will generate 17,016 new jobs in the economy. Of all those approved, 66 are part of local development projects, 32 have previously carried out export operations, and eight are hosted by Havana’s  Science and Technology Park.

KT: What steps the Cuban Embassy has undertaken to improve the trade ties between the two countries?

In recent months we have received some groups of businessmen, not only Cambodians, but also other nationalities based in Cambodia. They are interested in developing investment projects in Cuba in different areas. We are in the process of receiving their applications officially. We are planning to develop a business forum in January 2022, with the aim of offering updated information on the new portfolio of business opportunities in Cuba.

Cuba holds trade fairs and related activities year-round, including the 2nd Cuban Business Forum this month. Was Cambodia among the 41 countries that participated in the event? 

From November 29-December 2, more than 2,200 entities from 86 countries participated in the Forum that took place virtually and sought to promote trade, investment and renewable energy sources in the Caribbean nation. Government representatives, a score of Chambers of Commerce and 41 trade and investment promotion agencies from different parts of the world were among those who attended the event, convened to replace the traditional International Fair of Havana. For the first time a virtual fair is being developed, in which around 600 companies from 46 countries requested stands.

The Cuban Trade Embargo remains to be the single greatest obstacle to external trade for Cuba. In July, Mexican President Andres Manuel Lopez Obrador said the US Economic Embargo of Cuba should be lifted to help the Cuban people…

The economic, commercial and financial blockade imposed by the US against Cuba, according to international law, has been a criminal and genocidal act since its inception almost 60 years ago, but its extreme reinforcement and cruelty amid the COVID-19 pandemic has no precedent. Donald Trump’s administration (2017-2021) decreed 243 measures to tighten the siege implemented for more than six decades, all those hostile actions maintained by his successor Joe Biden. For all practical purposes, the blockade means the denial to Cuba of access to medical equipment, supplies, and technologies of US origin, or even third countries’ technologies that incorporate US-made components. The US has tightened the persecution of Cuba’s financial and commercial transactions. It also banned flights to Cuban airports (except for Havana), as part of a reinforced practice of persecution and intimidation to companies that send fuel to Cuba. According to the report, from April 2019 to March 2020, the blockade caused Cuba to lose some $5.57 billion, accounting for an increase of $1.226 billion compared to the previous period. For the first time, the total damage due to the US blockade exceeds $5 billion. According to current prices, the accumulated damage in nearly six decades of blockade (excluding last year) amounts to $144.413 billion. For more than 28 years, the international community has expressed its rejection of the blockade imposed by the US on Cuba, describing it as a flagrant violation of international law and the UN Charter, and as the main obstacle to the development of the Caribbean nation. The human damage caused by the blockade cannot be measured.  No Cuban family is spared from the effects of this inhuman policy.

Are you optimistic that the Biden administration, which is friendlier to Cuba, will finally lift the embargo?

 

The Trump administration put into effect 243 additional measures, more than 60 conceived during the pandemic, which the Biden administration fully continues to implement. The unjustified and politically-motivated inclusion of Cuba in the State Department’s list of sponsors of international terrorism, the restrictions on family remittances and travel to Cuba, the persecution of Cuban financial assets abroad, the pressure against our international suppliers, including those who sell us fuel and medical supplies necessary to combat the pandemic, the demonisation of our internationalist medical brigades, are among the most absurd and outrageous punitive measures imposed against Cuba. US government statements had aimed to encourage, guide, and instigate destabilising actions in Cuba. An intense political-communication operation was developed by a large media platform. Its objective was to encourage unrest and instability in the country, taking advantage of the difficult conditions caused by the pandemic, and the intensified blockade.

How do you see Cambodia-Cuba economic ties in the event the US embargo is lifted?

Despite the impact of the US blockade, Cuba tries to develop economic, commercial and cooperative ties with countries willing to challenge the blockade. Historically, the Kingdom of Cambodia has opposed all kinds of blockades and coercive measures by one state against another. In particular, Cambodia has opposed the US blockade against Cuba and has expressed it with its vote in favour of the Resolution ‘Necessity to end economic, commercial and financial blockade imposed by the United States of America against Cuba’, which is presented in the UN General Assembly, annually. For Cuba, it is of great importance to take advantage not only of the opportunities to establish business with large capitals, but also the opening of small format business that can contribute to the development of a province or municipality with local projects.

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