Zoom in
Señor Herman Portocarero, Embajador de la Unión Europea en Cuba

Q & A with Mr. Herman Portocarero, European Union’s Ambassador to Cuba

THE EUROPEAN UNION IS PRESENTLY CUBA’S SECOND TRADING PARTNER, WITH PARTICIPATION IN 21.9 PERCENT OF THE OVERALL COMMERCIAL ACTIVITY, ONLY SURPASSED BY VENEZUELA (32.6 PERCENT). THE BLOC ALSO STANDS AS THE FIRST EXPORTING PARTNER OF THE ISLAND, FOLLOWED BY CANADA; AS WELL AS THE SECOND IMPORTING PARTNER AFTER VENEZUELA.

The recent reestablishment of bilateral relations between Cuba and the United States has triggered the interest of new markets in the largest Caribbean island, many of which are members of the European Community. The Old World’s bloc still clings to the “common position” adopted back in 1996; nevertheless, it has begun a negotiation process in order to reach a bilateral cooperation agreement and establish a political dialogue between both delegations. Five rounds of exchanges have been held to date.
The EU is also the first investor in Cuba, with nearly half of all direct foreign investments, and it is the origin of one third of the 2.5 million tourists that visit the island every year. Excelencias Turísticas sat down with Mr. Herman Portocarero to get an update on the dialogue between both delegations and the state of the trading relations.

You have pointed out in previous interviews that the process to reestablish bilateral relations between Cuba and the US, and Cuba and the EU are not connected. However, the position of some countries in regard to Cuba has started to change in terms of trade and investment. In this sense, what does the reestablishment of bilateral relations between Cuba and the US mean to the European Union?
First of all, this is the first time in the history of Cuba that the island has the opportunity to choose several trading partners for its economic and social development. As soon as US restrictions are lifted, other partners will benefit from the opening, but the relation with the EU is different and further steps have been taken in terms of trade, economics and politics.

What are the main agreements inked by both delegations up to the fifth round of negotiations?
We’re practically done with the chapters of Trade and Cooperation. We’re reviewing and coordinating the final texts. We still have a couple of legal aspects to work out. As for the Political Dialogue, we identified common aspects and the areas in which we have “agreed not to agree”. The negotiation process aims at establishing a terminology to support the evolutionary interpretation on both sides.

What are the main guidelines proposed by Cooperation and Trade chapters and how would the approval of this agreement benefit Cuba and the EU?
The Trade chapter currently comprises two different aspects: principles (reaffirmation of the World Trade Organization’s principles), and the other one refers to trading cooperation, with emphasis on trading facilitation. Having a stable legal framework is the advantage, but Cuba has to work hard in order to improve the competitiveness, quality and diversity of its exportations to the EU. We’ll help them get there too.
 As for the trading aspect, most of the concrete relation has to do with the Member States, those who foster specific business, investment and credits, within the legal framework to be established by the agreement. In terms of the cooperation, we have underlined the most interesting areas and main ways. The Trade chapter does not interfere in trading preferences and the Cooperation section has no influence on budgets for bilateral projects.

Out of the 28 member countries of the European Union, over 15 have signed bilateral agreements with Cuba. Do you think that the European “Common Position” could be removed in the near future? What could speed up or slow down this decision?
Over 20 bilateral agreements have already been inked, the last one with Germany. The Common Position is still in force as a series of principles, until it’s abolished as a separate decision by the European Council as a result of the framework-agreement we’re negotiating. The idea has always been to reach an agreement within the principles of the European diplomacy and the pragmatic rapprochement of most of the Member States. Due to its character, the Common Position has no significant influence on bilateral diplomacy, which is based on practical demands at the moment (tourism, investment, legal cooperation...).

Over the last years, many European delegations have expressed their interest in investing in Cuba. What are the emerging European markets and the new interests of already-consolidated markets? What investments and collaboration projects are being developed between Cuba and the EU? What are the main economic lines?
Since there is no EU company as such, only those related to the Member States, the Delegation takes no specific responsibility in terms of investment and trade. Those matters are tackled by the embassies of the Member Countries. We play a monitoring and informing role, we don’t negotiate concrete investments.

How about exports and imports between Cuba and the EU in 2015?
Due to such factors as oil prices in the world market, Cuba’s exports to the EU went down dramatically in 2014 and the situation hasn’t changed in 2015. A slump has also been experienced in the imports of European products in Cuba, but the numbers are not as low as Cuban exports to the communitarian bloc. We’re assessing this situation in order to solve it. But, as I’ve said, exporting countries take responsibility for their policies. Cuban exports are fragile due to the traditional character of them. The diversification of foreign trade is also a target of the cooperation between the EU and Cuba.