WT/L/964  
18 November 2015  
(15-6106)  Page: 1/3  
General Council 
30 November and 1 December 2015  Original: Spanish  
 
  CUBA - ARTICLE XV:6 OF THE GENERAL AGREEMENT 
ON TARIFFS AND TRADE 1994 
REPORT BY THE GOVERNMENT OF CUBA UNDER 
THE DECISION OF 14 FEBRUARY 20121 
The following communication, dated 17 November 2015, is being circulated at the request of the 
delegation of Cuba.  
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 1.1.  Pursuant to the provisions of Arti cle IX.4 of the Agreement Establishing the 
World Trade Organization (WTO), the Republic of Cuba hereby submits the fourth annual report on 
the renewal granted on 3 February 2012 of the wa iver extension approved on 14 December 2006. 
This waiver was granted to Cuba under the Decision of 14 October 1996
2 in relation to Article XV:6 
of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and was extended on 
20 December 2001. 
1.2.  On 20 July 2015, Cuba and the United States re-established diplomatic relations following 
announcements by the Presidents of both countries on 17 December 2014. On 16 January and 
21 September 2015, measures were brought into effect by the United States Government to 
modify the application of some aspects of that country's economic, commercial and financial blockade on Cuba. The scope of these measures is limited and the blockade remains in force. 
1.3.  In 2014, Cuba continued to be the target  of direct attacks by the Government of the 
United States in the context of the infamous and unfair blockade that the latter has imposed for more than 50 years - and which has cost around US $121,000 million, at current prices - in spite of 
overwhelming opposition by the international comm unity in the United Nations (UN) for 23 years. 
1.4.  In recent years, the blockade has been reinforced, especially in the financial sector, as 
evidenced by the ever-increasing targeting of Cuban business activities and financial assets 
abroad. In addition, the Office of Foreign As sets Control (OFAC) of the United States 
Treasury Department has imposed fines and sanctions on foreign banking institutions for dealing 
with Cuba, with the result that ties have been broken and/or Cuban transactions have had to be conducted in more difficult and onerous conditions. This confirms the extraterritorial nature of this 
policy. All of the above, together with the ad verse effects of the international economic and 
financial crisis, prevents the signing of a spec ial exchange agreement with the Members of the 
World Trade Organization (WTO). 
                                               
1 WT/L/850. 
2 WT/L/182. WT/L/964 
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  1.5.   The main adverse effects suffered by the National Banking System in 2014 include: 
 Disruption of currency exchange operations due to the impossibility of Cuba using the 
US dollar in its foreign trade; this forces the country to resort to the double forex mechanism (use of currencies other than the US dollar) with the consequent increase in 
financial costs in order to be able to honour the obligations which creditors require to be 
paid in dollars. 
 closure of accounts owned by Cuban entities in foreign banks; 
 refusal by correspondent banks to confirm or advise letters of credit; 
 refusal by certain foreign banks to make paym ents on behalf of Cuban banking entities; 
 need to keep minimum balances in Cuban acco unts abroad given the risk of confiscation. 
1.6.  This policy has led to substantial increases in financial costs and serious difficulties in 
financing essential imports, principally food, medicines and fuel, and this in turn has had the effect 
of holding social and economic development in check. Consequently, the country's efforts to integrate itself into the world trading system are being made under particularly difficult conditions 
- the outcome of a policy which cont radicts the principle of free trade. 
1.7.  The US authorities imposed a fine of US$8, 900 million (the largest to date) on the French 
bank BNP Paribas in 2014, and a fine of US$1,170 million on Commerzbank AG (the second 
biggest banking institution in Germany and consider ed the fifth biggest in the world) in early 2015, 
for having breached US trade sanctions and carried out transactions with Cuba, Iran and Sudan. These measures confirm the distinctly extraterrito rial nature of the blockade imposed on Cuba. 
1.8.  In 2015, the Financial Action Task Force (FATF) removed Cuba from its so-called "grey list" 
and excluded its monitoring mechanisms, in recognition of the country's efforts to combat money 
laundering and the financing of terrorism, thus demonstrating international confidence in Cuba's financial system. 
1.9.  In these circumstances, the Cuban ec onomy grew by 1.0% in 2014, driven by the 
services sector. 
1.10.  Tourism maintained its upward trend, attracting three million visitors, a 5.3% increase on 
the previous year. 
1.11.  Likewise, the telecommunications sector co ntinued to expand its services. At the end of 
2014 there were 1.3 million telephone lines and an equal number of digital landlines installed across the country, an increase of 3.2% and 3.8%, respectively, on the 2013 figures. Furthermore, 
in recent years the country has experienced accelerated growth in mobile communications - at the 
end of 2014 there were more than 2.5 million ce llular phone subscribers, with 85.3% population 
coverage across the national territory. 
1.12.  Equally, expansion in high value-added services such as health and education also 
contributed to economic expansion. 
1.13.  The number of employed persons in the economy grew by 1.0% and the unemployment 
rate fell to 2.7%, from 3.3% in 2013. At the same time, the average monthly salary increased 
from 471 pesos to 584 pesos - a 24% rise on the previous period. 
1.14.  The State budget showed a fiscal deficit estimated at 2.2% of nominal GDP. Budget outturn 
was directly linked to the performance of the pr oduction and service sectors, provided financial 
support to the policies approved for the continue d updating of the Cuban economic model, and 
reflected progress in the gradual implementation of the tax law. 
1.15.  In the monetary sphere, work was done to improve the instruments for controlling currency 
issue and guaranteeing financial balance in the population sector, whose participation in the 
economy is predicted to increase in the future. Gradual expansion was maintained in credit policy, providing greater access to financing for both natural persons and the various forms of non-State 
management. WT/L/964 
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  1.16.  Credit policy continued to be developed and made more flexible, thus making it possible, 
inter alia , to increase credit supply to the non-State sector of the economy. 
1.17.  Cuba continued implementing its planned health programmes, which involve application of 
the most advanced technologies for diagnosis and treatment. At the end of 2014, the infant 
mortality rate stood at 4.2 per thousand live births, the lowest in the history of the country, which, 
taken together with a life expectancy at birth of 78 years, is an indication of the quality of life of 
the Cuban population. 
1.18.  In 2014, the value of the reforms undertaken in the educational sector was confirmed, as 
was the need to enhance teaching standards in order to achieve better results. The academic year 2014-2015 saw a total of 1,901,559 students enrol in primary, secondary, special, technical and vocational, adult and higher education. 
1.19.  The country continues to be engaged in preparatory work for monetary unification, which is 
to be carried out when economic conditions allow. Progress has been made from the conceptual point of view and a comprehensive programme of measures has been successfully outlined in the 
interest of avoiding harm to the economy and the population. 
1.20. It should be noted that the changes introduced to date have not affected relations with the 
other WTO Members, since they are consistent wi th the principles of free trade between nations 
and do not prejudice the interests of foreign investors in Cuba, which shows that the country's 
planned macroeconomic policies do not run counter to the principles and objectives of the GATT 1994.  
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