

Currently released so far... 12553 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
APECO
ASEC
AMGT
AFIN
APER
ACABQ
AORC
AEMR
AF
AE
AR
AGMT
AU
AY
ABLD
AS
AG
AJ
APCS
AX
AM
AMEX
ATRN
ADM
AMED
AFGHANISTAN
AZ
AL
ASUP
AND
ARM
ASEAN
AFFAIRS
AQ
ATFN
AMBASSADOR
AODE
APEC
ACBAQ
AFSI
AFSN
AO
ABUD
AC
ADPM
ADCO
ASIG
ARF
AUC
ASEX
AGAO
AA
AER
AVERY
AGRICULTURE
AIT
AADP
ASCH
AORL
AROC
ACOA
ANET
AID
AMCHAMS
AINF
AMG
AFU
AN
ALOW
ASECKFRDCVISKIRFPHUMSMIGEG
ACS
ADANA
AECL
ACAO
AORG
AGR
BEXP
BR
BM
BG
BL
BA
BTIO
BO
BP
BC
BILAT
BK
BU
BD
BRUSSELS
BB
BF
BBSR
BIDEN
BX
BE
BH
BT
BY
BMGT
BWC
BTIU
BN
CA
CASC
CFED
CO
CH
CS
CU
CE
CI
CM
CMGT
CJAN
COM
CG
CIS
CVIS
CR
CKGR
CHR
CVR
COUNTER
CIA
CLINTON
CY
CPAS
CD
CBW
COUNTERTERRORISM
CITEL
CDG
CW
CODEL
COUNTRY
CLEARANCE
COE
CN
CARICOM
CB
CONDOLEEZZA
CWC
CACS
CSW
CIDA
CIC
CITT
CONS
CL
CACM
CDB
CDC
CAN
CF
CJUS
CTM
CBSA
CARSON
CT
CLMT
CBC
CEUDA
CV
COPUOS
CTR
CROS
CAPC
CAC
CNARC
CICTE
CBE
ECON
ETRD
EIND
ENRG
EC
ELAB
EAGR
EAID
EFIS
EFIN
EINV
EUN
EG
EPET
EAIR
EU
ELTN
EWWT
ECIN
ERD
EI
ETTC
EUR
EN
EZ
ETC
ENVI
EMIN
ET
ENVR
ER
ECPS
EINT
EAP
ES
ENIV
ECONOMY
EXTERNAL
EINN
EFTA
ECONOMIC
EPA
EXBS
ECA
ELN
ETRDEINVECINPGOVCS
ENGR
ECUN
ENGY
ECONOMICS
ELECTIONS
EIAR
EINDETRD
EREL
EUC
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
ENERG
EFIM
EAIDS
EK
ETRDECONWTOCS
EINVETC
ECONCS
EUNCH
ESA
ECINECONCS
EUREM
ESENV
EFINECONCS
ETRC
ENNP
EAIG
EXIM
EEPET
EINVECONSENVCSJA
EUMEM
ETRA
ERNG
ETRO
ETRN
EINVEFIN
ICTY
IN
IS
IR
IC
IZ
IA
INTERPOL
IAEA
IT
IMO
IO
IV
ID
IRAQI
IEA
INRB
IL
IWC
ITU
ICAO
ISRAELI
ICRC
IIP
IMF
IBRD
ISLAMISTS
ITALY
ITALIAN
ILO
IPR
IQ
IRS
IAHRC
IZPREL
IRAJ
IDP
ILC
ITF
ICJ
IF
ITPHUM
INMARSAT
ISRAEL
IACI
IBET
ITRA
INR
IRC
IDA
ICTR
IGAD
INRA
INRO
IEFIN
INTELSAT
INTERNAL
INDO
ITPGOV
KWMN
KSCA
KDEM
KTFN
KIPR
KCRM
KPAL
KE
KPAO
KPKO
KS
KN
KISL
KFRD
KJUS
KIRF
KFLO
KG
KTIP
KTER
KRCM
KTIA
KGHG
KIRC
KU
KPRP
KMCA
KMPI
KSEO
KNNP
KZ
KNEI
KCOR
KOMC
KCFC
KSTC
KMDR
KFLU
KSAF
KSEP
KSAC
KR
KGIC
KSUM
KWBG
KCIP
KDRG
KOLY
KAWC
KCHG
KHDP
KRVC
KBIO
KAWK
KGCC
KHLS
KBCT
KPLS
KREL
KCFE
KMFO
KV
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KVPR
KTDB
KSPR
KIDE
KVRP
KTEX
KBTR
KTRD
KICC
KCOM
KO
KLIG
KDEMAF
KMRS
KRAD
KOCI
KSTH
KUNR
KNSD
KGIT
KFSC
KHIV
KPAI
KICA
KACT
KHUM
KREC
KSEC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCMR
KPIN
KESS
KDEV
KNAR
KNUC
KPWR
KENV
KWWMN
KWMNCS
KPRV
KOM
KBTS
KCRS
KNPP
KWNM
KRFD
KVIR
KTBT
KAID
KRIM
KDDG
KRGY
KHSA
KWMM
KMOC
KSCI
KPAK
KX
KPAONZ
KCGC
KID
KPOA
KIFR
KFIN
KWAC
KOMS
KCRCM
KNUP
KMIG
KNNPMNUC
KERG
KTLA
KCSY
KJUST
MOPS
MARR
MASS
MNUC
MX
MCAP
MO
MR
MI
MD
MK
MA
MP
MY
MTCRE
MOPPS
MASC
MIL
MTS
MLS
MILI
MAR
MU
MEPN
MAPP
MTCR
MEPI
MZ
MEETINGS
MG
MW
MAS
MT
MCC
MIK
ML
MARAD
MV
MERCOSUR
MTRE
MPOS
MEPP
MILITARY
MDC
MQADHAFI
MUCN
MRCRE
MAPS
MEDIA
MASSMNUC
MC
NZ
NZUS
NL
NU
NATO
NP
NO
NIPP
NE
NH
NR
NA
NPT
NI
NSF
NG
NSG
NAFTA
NC
NDP
NEW
NRR
NATIONAL
NT
NS
NASA
NAR
NV
NORAD
NSSP
NK
NPA
NGO
NSC
NATOPREL
NW
NPG
NSFO
OPDC
OTRA
OIIP
OREP
OVIP
OSCE
OEXC
OIE
OPRC
OAS
OPIC
OTR
OMIG
OSAC
OFFICIALS
OECD
OSCI
OBSP
OFDA
OPCW
ODIP
OFDP
OES
OPAD
OCII
OHUM
OVP
ON
OIC
OCS
PHUM
PREL
PGOV
PINR
PTER
PARM
PREF
PM
PE
PINS
PK
PHSA
PBTS
PRGOV
PA
PORG
PP
PS
PGOF
PL
PO
PARMS
PKFK
PSOE
PEPR
PAK
POL
PPA
PINT
PMAR
PRELP
PREFA
PALESTINIAN
PBIO
PINF
PNG
PMIL
PFOR
PUNE
PGOVLO
PAO
POLITICS
PHUMBA
PSEPC
PTBS
PCUL
PROP
PNAT
PNR
POLINT
PGOVE
PROG
PHALANAGE
PARTY
PDEM
PECON
PROV
PHUMPREL
PGOC
PY
PCI
PLN
PDOV
PREO
PGIV
PHUH
PAS
PU
POGOV
PF
PINL
POV
PAHO
PRL
PG
PRAM
POLITICAL
PARTIES
POLICY
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGGV
PHUS
PSA
PHUMPGOV
PEL
PSI
PAIGH
POSTS
PBT
PTERE
RS
RU
RW
RM
RO
RP
REGION
RSP
RF
RICE
RCMP
RFE
RIGHTS
RIGHTSPOLMIL
ROBERT
RUPREL
RELATIONS
ROOD
REACTION
RSO
REPORT
SENV
SNAR
SCUL
SR
SC
SOCI
SMIG
SI
SP
SU
SO
SW
SY
SA
SZ
SAN
SF
SN
STEINBERG
SG
ST
SIPDIS
SNARIZ
SNARN
SSA
SK
SPCVIS
SOFA
SAARC
SL
SEVN
SARS
SIPRS
SHUM
SANC
SWE
SHI
SYR
SNARCS
SPCE
SYRIA
SEN
SH
SCRS
SENVKGHG
TRGY
TSPL
TPHY
TSPA
TBIO
TI
TW
THPY
TX
TU
TS
TZ
TC
TH
TT
TIP
TO
TERRORISM
TRSY
TINT
TN
TURKEY
TBID
TL
TV
TNGD
TD
TF
TP
TFIN
TAGS
TK
TR
UNSC
UK
UNGA
UN
US
UNHRC
UG
UP
UNMIK
UNHCR
UE
USTR
UNVIE
UAE
UZ
UY
UNO
UNESCO
USEU
USOAS
UV
UNODC
UNCHS
UNFICYP
UNEP
UNIDROIT
UNDESCO
UNDP
UNPUOS
UNC
UNAUS
USUN
UNCHC
UNCHR
UNCND
UNICEF
UNCSD
UNDC
USNC
USPS
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 06OTTAWA2420, THE PROSPEROUS CANADA-CUBA ECONOMIC RELATIONSHIP
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06OTTAWA2420.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06OTTAWA2420 | 2006-08-12 12:30 | 2011-04-28 00:00 | UNCLASSIFIED | Embassy Ottawa |
VZCZCXRO8941
RR RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #2420/01 2241230
ZNR UUUUU ZZH
R 121230Z AUG 06
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC 3445
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEHUB/USINT HAVANA 0008
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS SECTION 01 OF 03 OTTAWA 002420
SIPDIS
SIPDIS
STATE PASS USTR
E.O. 12958: N/A
TAGS: ECON ETRD EAGR CU CA
SUBJECT: THE PROSPEROUS CANADA-CUBA ECONOMIC RELATIONSHIP
REF: A. OTTAWA 2258
¶B. OTTAWA 1245
¶C. 05 0TTAWA 3518
¶1. (SBU) Summary: Canada,s economic relationship with Cuba
began in the late 19th century, long before the U.S. embargo.
Today, Canada-Cuba economic ties continue to be strong. The
annual two-way trade between the countries is around $1
billion USD. About 22 percent of Cuban exports (mostly
nickel, cigars, and seafood) go to Canada, second only to the
Netherlands. Cuba generally imports oil and food, and from
Canada it gets mainly computer equipment, mining and oil and
gas machinery, and wheat. Foreign direct investment in the
form of oil exploration and production is expanding, and at
least one Canadian company, Sherritt International, is
involved. Tourism is also a big part of the economic
relationship, as Canadians make up the largest group of
travelers to the island. The number of Canadians visiting
Cuba also continues to grow. And despite possible sanctions
under the U.S. Libertad Act, around 85 Canadian companies
continue to do business in Cuba. End summary.
BRIEF HISTORY
--------------
¶2. (U) The economic relationship between Canada and Cuba is
not merely an opportunistic response to the U.S. embargo.
The two countries have enjoyed economic ties dating back to
the late 19th century when vessels from Canada,s east coast
traded cod and beer for rum and sugar. As early as 1910, a
trade commissioner was posted in Cuba to promote Canadian
products. After the Revolution in 1959, Canada was one of
only two countries (Mexico being the other) to maintain
formal relations with Cuba. Cuba,s tourism industry grew
steadily starting in the 1970s, and today Canadians compose
Cuba,s largest group of visitors, with more than 600,000
flocking to the island last year.
CANADIAN IMPORTS FROM CUBA
---------------------------
¶3. (SBU) Canadian imports from Cuba in 2005 were 456 million
USD, an increase of less than one percent over the previous
year. Almost all, 97 percent by value, was nickel. Other
imports were cigars, seafood, scrap-metal, alcohol, and
coffee. Trade analysts in Canada are fond of pointing out
that Cuba is "one of the few export markets not dominated by
the United States", thanks to the U.S. trade embargo on Cuba.
For Canadian exporters, who see in the U.S. both their
largest market and their largest competitor, this situation
is appealing despite the continuing difficulties of doing
business with a country "constrained by deep structural
problems."
CANADIAN EXPORTS TO CUBA
-------------------------
¶4. (U) In 2005, Canada's exports to Cuba totaled 369 million
USD, which made up 0.1 percent of its total exports, roughly
equal to U.S. exports to Cuba. The two biggest exports were
computer and peripheral equipment, and mining and oil and gas
field machinery; each accounted for about 10 percent of total
exports. The leap in mining, oil, and gas equipment
shipments (38 million USD in 2005 versus 4.7 million USD in
2000) has been stimulated by the recent offshore oil
exploration effort in Cuba. Wheat was the third largest
Canadian export, accounting for 7.4 percent of the total.
Agricultural products, machinery parts, and sulfur make up
the majority of the rest of the exports.
¶5. (SBU) The current level of exports to Cuba represents an
increase of 47% over 2004 levels, with much of the growth in
the agricultural sector. The Canadian Wheat Board, the
largest single seller of wheat and barley in the world, is
working with ALIMPORT, Cuba's state importing agency for
Qworking with ALIMPORT, Cuba's state importing agency for
agricultural products, to increase Canadian wheat exports to
Cuba. The Canadian Agri-Food Trade Service of Agriculture
and Agri-Food Canada reports that Canada is currently Cuba's
second largest supplier of wheat after France. At ALIMPORT's
request, the Canadians are also providing information on
Canadian barley and oats for food uses. Agricultural exports
to Cuba are closely linked to the tourism trade, since with
the exception of basic foodstuffs and commodities for the
local population, the government of Cuba imports food
products to meet the demands of tourists, and the demand for
imported food is expected to increase with the tourism trade.
Cuba also lifted a BSE-related ban on Canadian beef exports
in 2005, which may account for some of the increase in
OTTAWA 00002420 002 OF 003
agricultural exports.
¶6. (SBU) Canadian machinery exports to Cuba, which also
increased between 2004 and 2005, are less likely to continue
to increase. The Canadian equipment sector is geared toward
contract work, so exports to a country can fluctuate
significantly year-to-year, as contracts are filled and are
sometimes not renewed. Export Development Canada lists Cuba
as a notable example of this trend, where exports grew in
2005 but are expected to fall in 2006.
OIL
----
¶7. (SBU) Canadian oil companies have taken an interest in
Cuba in recent years. While Cuba does produce its own oil,
mostly from a reservoir off the north coast discovered in
1971, that oil is poor-quality &sour8 crude. However,
thanks to foreign investment from places like Canada and
Spain, Cuban oil production has taken off lately. According
to press reports citing public and confidential records,
Cuba,s Economic Exclusionary Zone, which lies in the North
Cuban Basin between Key West and Havana, potentially holds
petroleum reserves amounting to an estimated 4.5 to 9 billion
barrels. While Canadian, Brazilian, and Spanish companies
have carried out test drilling in the zone for years,
although usually with only minimal returns, new exploration
efforts could soon be paying off. In conjunction with its
increased oil investment, Cuba plans the construction of 36
new oil rigs built in partnership with Canadian and Chinese
companies within territorial waters.
¶8. (SBU) Sherritt International is involved in the oil
production off Cuba,s northern coast. We are also aware of
one other Canadian entity, Pebercan, which exploits offshore
drilling licenses in Cuban waters. The Cuban government has
divided its exclusive drilling zones to the north and west of
the island into 59 deep-water blocks, and Sherritt has
acquired the rights to four of them.
TOURISM
--------
¶9. (SBU) Like sugar, tourism is a pillar of the Cuban
economy. Canadian tourists to Cuba, attracted mainly by low
cost vacations, account for roughly a third of Cuba,s
tourist trade and compose the largest single group of foreign
visitors to the island. Canadian tourists also are Cuba,s
largest source of tourism revenue. Cuba is the fifth most
popular international destination for Canadians, after the
United States, Mexico, United Kingdom, and France.
¶10. (SBU) In 2003, approximately 494,000 Canadian tourists
visited Cuba, and that number is expected to increase to
nearly 640,000 this year. Half of Canada,s tourists are
from Quebec. Air Canada currently runs 10 flights a week to
Cuba, including to the island of Cayo Coco and the resort
town of Varadero. During Cuba's busy winter season, Air
Canada increases its operations to 28 weekly flights,
including daily service from Toronto to Havana.
¶11. (SBU) Canadian companies are active in the Cuban tourism
industry through hotel supply-contracts. Two Canadian-based
tourism-related companies have recently been listed as
Specially Designated Nationals under the Cuban Assets Control
Regulations.
OTHER FDI
----------
¶12. (SBU) Canada is also the largest foreign investor in
Cuba. There are about 85 Canadian companies operating in
Cuba, including Labatt, a brewing company, and Pizza Nova, a
fast-food pizza chain which has six locations in Cuba. The
U.S.-Cuba Trade and Economic Council lists the companies
which do business or have done business with Canada (listing
available at www.cubatrade.org).
¶13. (SBU) The largest Canadian investor in Cuba is Sherritt
Q13. (SBU) The largest Canadian investor in Cuba is Sherritt
International, a natural resources company based in Toronto
that earned more than C$100 million in the first quarter of
this year. State-owned Cubaniquel and Sherritt jointly
operate a nickel and cobalt facility in Moa, Cuba, in
addition to Sherritt,s oil production efforts mentioned
above. Nickel accounts for 20% of Sherritt,s earnings. As
of 1997, there were over 200 foreign investment operations,
valued at US $2.1 billion, and over 30 Canadian joint
ventures.
OTTAWA 00002420 003 OF 003
¶14. (SBU) Canadian contacts say that the mere threat of the
Title III implementation has acted as an obstacle to
investment in Cuba. Because of the high-level of
cross-investment between Canada and the United States, most
major Canadian enterprises already have some legal exposure
to the Libertad Act through their U.S. affiliates (40 percent
of Canadian foreign direct investment overseas is in the U.S.
and U.S. investors account for 64 percent of foreign direct
investment in Canada.) U.S. entry restrictions on key
Canadian corporate officials under Title IV of the Libertad
Act (for example, a number of Sherritt executives are barred
from entry) already create a significant disincentive to
Canadian investment in potentially expropriated properties
and effectively underscore U.S. opposition to such
investments.
¶15. (SBU) Given Canada's location, and the degree of its
economic, social, and cultural integration with the U.S., an
entry bar to the U.S. is a major logistical and social
headache for a Canadian. Canadian officials have
consistently complained about the extraterritorial reach of
the Libertad Act, and Canada's Foreign Extraterritorial
Measures Act attempts to counteract U.S. laws by enabling a
clawback of any losses awarded in U.S. courts, enforceable
against American assets in Canada (although this provision
has not yet been enforced.)
¶16. (SBU) Still, fear of Title III implementation is often
not enough to stop Canadian companies from investing in Cuba,
according to the press. For instance, the Ministry of
Economic Development for the Quebec provincial government
leads a trade mission of about 10 provincial companies to
Cuba each year.
¶17. (U) Since June 1994, Cuba has been eligible for benefits
from the Canadian International Development Agency,s
Industrial Co-operation Program (CIDA-INC). Under CIDA-INC,
Canadian firms can apply for co-financing for feasibility
studies of potential joint ventures or partnerships. The GOC
also guarantees Cuban purchases from Canadian companies
through the Canadian Export Development Agency.
¶18. (U) Summer intern Andrew Jaynes researched and drafted
this report.
Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa
WILKINS