by
Brendon Nafziger, DOTmed News Associate Editor | September 30, 2010
Cuba
Why is it embargoed? After Fidel Castro and his rebels deposed Fulgencio Batista and seized power in the late 1950s, relations between the United States and Cuba quickly went sour. On July 8, 1963, the United States passed a general embargo against Cuba - generally considered the toughest, longest-lasting trade embargo in American history.
Market size: Cuba's imported medical equipment market is believed to have taken a massive hit in 2008, dropping almost 43 percent, according to a recent Espicom survey. The country's health sector was bad all around in 2008, as three hurricanes struck the Caribbean nation and severely damaged its 2,000 health centers. Still, there are some positive signs. China is loaning the country $350 million to renovate its hospitals, while Raul Castro, now in charge, "is more open to liberalizing the economy whilst still retaining communist values, looking to China's example," Espicom said. That said, trade in medical devices with America is tiny. In 2009, it only amounted to $517,000, according to the magazine Poder 360.
Export rules
Companies wishing to export medical devices for civilian health care use in Cuba have to obtain a license from the Department of Commerce's Bureau of Industry and Security. According to the Department of Treasury's summary of the situation, the Commerce Department has "a favorable license policy" toward medical device exports and re-exports to the country.
But, of course, not everyone thinks so.
"For years, the United States has touted its openness to sell medicines and medical products to Cuba as a manifestation of its humanitarian generosity. But the reality is far different," Kirby Jones, president of Alamar Associates, a Cuban export consulting company, told Poder 360 in an interview. "The United States demands that any company that sells such medical products to Cuba must also certify and report to the U.S. government that none of those products will be used for members of Cuba's government. This regulation makes it nearly impossible for companies to sell since there is no real way in which they can make honest certifications."
Whatever the case, if you plan on trying to export, as always, first check with the U.S. Treasury and BIS to make sure that parties receiving the goods aren't on the banned list. Also, ships are generally restricted from bearing goods to or from Cuba, unless given a license from OFAC.
Back to HCB News
