While considering the lofty expectations and numerous hurdles, last week's surprising move by the U.S. government to restore diplomatic relations with Cuba and re-evaluate the decades-long embargo may just create some opportunities for U.S. retailing and classic American brands.
The historic move also loosens some travel restrictions and allows some exports, including construction materials, farm equipment and telecommunications.
Congress has to approve any importing and exporting of goods in what promises to be a contentious fight. The communist nation likewise would have to accelerate economic reforms designed to expand private enterprise and attract foreign investment.
From an import standpoint, American brands may suddenly have the opportunity to sell to a nation only 90 miles away from the Florida Straits. Yet companies would be selling into an impoverished island nation where staples like meat, cooking oil and toilet paper are often scarce. While well educated and ranked equal to developed nations in health indicators, the average Cuban government employee takes home $20 a month. The nation's infrastructure is crumbling, internet access remains scant, and the government controls the media. A hatred of the U.S. has been instilled into its citizens for decades.
A tourism boom, however, may offer opportunities to reach foreign tourists with American brands and boost the local Cuban economy. Lifting the embargo and a steady broadening of economic freedoms also promises to further develop the country, although issues such as human rights and free speech will be closely watched.
Cuba's largest exports include sugar, tobacco products and nickel. Beyond baseball players, the big luxury items are cigars and rum.
The U.S. appears more eager to buy Cuban goods with many reports pointing to a "fascination" with Cuba. Part of that appeal is due to its proximity and the fact that many Cubans have migrated to the U.S. and brought much of its culture.
Part of the allure, however, has been because the island and its exports have been largely off-limits to Americans. Many are even wondering how demand may change for its treasured Cuban cigars if sales to the U.S. become legal. Gary Kolesaire, co-owner of The Tobacco Shop of Ridgewood, New Jersey told northjersey.com, "We always want the forbidden fruit. There's your demand."
- A prudent shift toward Cuba - The Virginian-Pilot
- Travel, trade with the U.S. are among Cubans' top hopes - Los Angeles Times
- Hope and some fear in Cuba amid thaw with US - Associated Press
- U.S. Eases Cuba Restrictions: What's the Footwear Impact? - Footwear News
- Moran: Obama can ease regulations on wheat exports to Cuba- Associated Press
- What U.S. Companies Can Expect in Cuba - New York Times
- As US-Cuba relations thaw, fight for the soul of Cuban rum could begin anew - The Guardian
- From 'I Love Lucy' to pop music, Cuba's influence on America runs deep - MSNBC
- Five Industries Set To Benefit From The U.S.-Cuba Thaw - Forbes
- Is the mystique of a Cuban cigar all smoke? - northjersey.com