General Motors could eventually export vehicles to Cuba, a nation filled with aging relics. (Ernesto Mastrascusa, EPA)
By Andrew Khouri
December 17, 2014
President Obama’s decision to start normalizing relations with Cuba gives American business a fresh opportunity on an island once known as a travel hub for the U.S. jet set.
The policy changes, which may foreshadow the end of a half-century of gridlock, could benefit a litany of industries, chief among them banking, finance, technology and telecommunication.
U.S. financial institutions will be able to open accounts at their Cuban counterparts. U.S. travelers can use their debit and credit cards, instead of stacks of cash. And businesses can expand their exports of software and telecommunication systems.
Business groups cheered the changes.
“We deeply believe that an open dialogue and commercial exchange between the U.S. and Cuban private sectors will bring shared benefits, and the steps announced today will go a long way in allowing opportunities for free enterprise to flourish,” U.S. Chamber of Commerce CEO Thomas J. Donohue said.
Telecom companies will be allowed to establish infrastructure to enable phone and Internet service.
The market is almost entirely untapped: Only about 5% of the Cuban population has access to the Internet, according to the White House. As of last year, there were only about 18 cellphone subscriptions per 100 Cubans, according to the International
The administration also seeks to boost travel to an island that, before the Cuban Revolution, was a destination for American travelers and gamblers. The U.S. already allows Americans to visit the communist island for 12 specific purposes — including education, humanitarian projects, family visits and professional research — but that travel will be expanded and made easier under new agreements.
And as long as Americans visit Cuba legally, they can now bring back $400 worth of goods. That includes cigars, although alcohol and tobacco imports will be capped at a combined $100.
Agriculture exports also will be streamlined, a move hailed by California farm interests.
To read entire story, click here.