The official Cuban economic indicators, the veracity of which has been called into question by numerous specialists in the field, will cost the island the preferred customs status with which it has been privileged until now in its exports to the European Union (EU).
Beginning next January 1, the E.U. will proceed to eliminate Cuba’s preferred customs status, based on Cuban statistics that put the country’s economic levels above other low-income countries.
During a seminar for Cuban entrepreneurs and government officials as part of the 31st International Fair in Havana, Herman Portocarrero, ambassador of the E.U. in Cuba, said that “the measure is in fact an automatic loss due to the Cuban economic indicators which put the country in the upper middle-income.”
In 2012, the gross domestic product per capita --forecasted by the Cuban National Statistics Office for 2012-- was 4,500 Cuban pesos, which represents an increase of 133 pesos in relation to the previous year.
“The bad news for Cuba”, explained Erja Askola, assistant to the Department of Commerce for the European Commission, “is that Cuba loses the preferred customs status offered by the Organization for Generalized Systems Preferences (SPG), which benefited 38.9 % of their exports and now it must adhere to the Most Favored Nation status (NMF), which automatically increases the customs tariffs that the country has to pay.”
Askola added that the most affected Cuban exports are nickel, tobacco, some agricultural products and fishing. The new tariff for tobacco will be increased from 17% to 25%, whereas nickel, which up to now was free from customs tariff, will have to pay 2.4%.
During 2012, Cuba exported $44 million worth of tobacco to the Republic of Malta and $47 million to Spain -- the two European Union member countries that import the most tobacco from Cuba.
After Latin America, Europe is Cuba’s second most important commercial partner.
According to the secretary of the Cuban Chamber of Commerce, Omar Fernández, from January to August of this year, there was a 20% increase of Cuban imports from the E.U. whereas exports were reduced by 12%.
Beginning next January 1, the E.U. will proceed to eliminate Cuba’s preferred customs status, based on Cuban statistics that put the country’s economic levels above other low-income countries.
During a seminar for Cuban entrepreneurs and government officials as part of the 31st International Fair in Havana, Herman Portocarrero, ambassador of the E.U. in Cuba, said that “the measure is in fact an automatic loss due to the Cuban economic indicators which put the country in the upper middle-income.”
In 2012, the gross domestic product per capita --forecasted by the Cuban National Statistics Office for 2012-- was 4,500 Cuban pesos, which represents an increase of 133 pesos in relation to the previous year.
“The bad news for Cuba”, explained Erja Askola, assistant to the Department of Commerce for the European Commission, “is that Cuba loses the preferred customs status offered by the Organization for Generalized Systems Preferences (SPG), which benefited 38.9 % of their exports and now it must adhere to the Most Favored Nation status (NMF), which automatically increases the customs tariffs that the country has to pay.”
Askola added that the most affected Cuban exports are nickel, tobacco, some agricultural products and fishing. The new tariff for tobacco will be increased from 17% to 25%, whereas nickel, which up to now was free from customs tariff, will have to pay 2.4%.
During 2012, Cuba exported $44 million worth of tobacco to the Republic of Malta and $47 million to Spain -- the two European Union member countries that import the most tobacco from Cuba.
After Latin America, Europe is Cuba’s second most important commercial partner.
According to the secretary of the Cuban Chamber of Commerce, Omar Fernández, from January to August of this year, there was a 20% increase of Cuban imports from the E.U. whereas exports were reduced by 12%.
