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Ileana Nuñez Mordoche, Viceministra de Comercio Exterior de Cuba

Q & A with Msr. Ileana Nuñez Mordoche, Cuba's deputy mnister of Foreign Trade

IN RECENT YEARS, THE HAVANA INTERNATIONAL FAIR HAS PANNED OUT TO BE THE SETTING OF CHOICE TO SPEARHEAD THE CHANGES THAT, IN TERMS OF FOREIGN TRADE AND INVESTMENT, THE COUNTRY HAS IMPLEMENTED AS PART OF THE UPDATING PROCESS OF ITS ECONOMIC MODEL.

This 33rd edition also promises to reap fruitful exchanges and the signing of new business deals in a framework in which corporate America is showing an increasing interest in the Cuban market and the potentials the island nation has. In this respect, Excelencias sat down with Ileana Nuñez Mordoche, Cuba’s deputy minister of Foreign Trade.

How do you assess the attendance of exhibitors and business delegations for this year’s fair edition?
Attendance in this edition of the fair is higher than in 2014. Through mid-October, exhibitors from as many as 70 countries and a score of high-ranking official delegations had registered, most of them led by top foreign trade executives and authorities. In recent years, each and every edition of the fair has brought larger turnouts of participating nations, a trend that has resulted in sold-out attendances long before the official registration deadline had expired.

For the first time in FIHAV, an official U.S. delegation will attend. What are the main companies or areas and what are your forecasts for the US market in 2016?
The turnout of American companies in the Havana International Fair is nothing new. It has responded to a reality marked by a trade ban between the U.S. and Cuba because of the economic embargo imposed by that government, and also due to the lifting of some restrictions to the sale of foods and medicines in 2001, though plagued with limitations from a commercial standpoint. Cuba has bought certain foodstuffs in that market and companies from that sector have been the ones basically attending FIHAV.
Of course, the new setting of bilateral relations and President Obama’s recognition of the blockade failed policy, coupled with his willingness to make it go away altogether, generate a more favorable atmosphere for potential business deals between the two countries.
Therefore, this year there’ll be a larger turnout of American businesspeople. As it’s happened in recent months, we foresee an ever-growing exchange from now on between U.S. and Cuban companies.

How has the membership of the Chamber of Commerce fared?
The Chamber of Commerce of the Republic of Cuba currently counts on over 700 national companies registered as members from all sectors of the Cuban economy. All Cuban companies that perform foreign trade activities are also registered as members, as well as significant number of foreign partnerships and joint ventures. The Chamber’s membership is important from both qualitative and quantitative standpoints.
Foreign companies with representation offices in Cuba are not registered members of the Chamber, even though they maintain close ties trough the Affiliate and Travel Agency Registry managed by this institution and whose membership has been growing steadily in the course of recent years.

How has foreign investment fared in the country in the course of 2015?
Following the approval of the new foreign investment policy in October 2013, as well as of the regulatory framework and the Portfolio of Investment Opportunities in 2014, an increasingly larger amount of companies has shown interest, especially from Europe, Asia and Latin America, targeting mostly corporate Cuba and our governmental institutions. They seek further information on new incentives and warranties being offered to foreign investors, as well as more information on projects being promoted with foreign capital. In particular, there’s been tremendous interest in the Mariel Special Development Zone, where attractive location conditions and logistics around the new Mariel port are combined with a special incentive regimen for investors.
At the same time, since the reestablishment of bilateral relations between Cuba and the U.S. in 2015, there’s been soaring numbers of American businesspeople interested in learning about the allures to invest in the country and the legal framework that protects foreign capital.

What are the main business lines and the top markets?
Top-priority sectors to be developed by foreign capital are farming and food, tourism, power generation, mining, building, transportation, commerce, healthcare, the pharmaceutical industry and biotechnology. The Portfolio of Investment Opportunities embraces nearly 250 projects for more than $8 billion, so there’s indeed a vast availability of business and investment opportunities up for grabs.
A part of the projects target the replacement of importations, so there’s a secured domestic market for them. Across the board, an increase of exportations is being promoted, taking advantage of the benefits Cuba has to offer due to its geographical location and its possibilities of integrations with other economies in Latin America and the Caribbean.
Foreign investment fosters the establishment of productive chains within the Cuban economy and favors further linkages with international values.