WT/L/1043  
29 November  2018 
(18-7541) Page: 1/3 
General Council  
12 and 13 December 2018  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 12 DECEMBER 20161 
The following communication, dated 2 8 November  2018, is being circulated at the request of the 
delegation of Cuba . 
 
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1.1.  Pursuant to Article IX:4 of the Agreement Establishing the World Trade Organization (WTO), 
the Republic of Cuba hereby submits the second annual report on the  waiver extension granted 
under the decision of 1 2 December  2016 (WT/L/1003) . This waiver was granted to Cuba under the 
Decision of 1 4 October  1996 (WT/L/182) in relation to Article XV:6 of the General Agreement on 
Tariffs and Trade 1994 (GATT 1994).  
1.2.  The u nfair economic, commercial and financial blockade policy adopted by the United States in 
regard to Cuba continues to be strictly implemented, and is one of the greatest obstacles to 
development faced by the Cuban economy . 
1.3.  The body of legislation unde rpinning this policy has grown  since Donald Trump 's administration  
came to power in January  2017, with the introduction of new regulations that have caused relations 
between our two countries  to take a step backwards . 
1.4.  On 8 November  2017, regulations were p ublished by the Departmen ts of the Treasury and 
Commerce . Also published were Department of State provisions for implementing the measures to 
tighten  the blockade  that were set out in the National Security Presidential Memorandum on 
Strengthening the Polic y of the United States Toward Cuba , which was signed on 1 6 June 2017 by 
the country's current president, Donald Trump.  
1.5.  In the area of finance , the new regulations and provisions pro hibit individuals or companies 
under  US jurisdiction from engaging in direct financial transactions with Cuban entities or 
sub-entities associated with  the national defence and security sectors . The Department of State 
issued a list of 179 "restricted Cuban entities", making an exception only for commercial relations , 
contracts and travel involving  entities already authorized by licence at the time when the list was 
published. 
1.6.  This measure has resulted in the cancellation of bank transfers  ordered by Cuban businesses 
unfairly included on  the aforementioned list . This action indirectly affects the operations  of Cuban 
banking institutions, which have been  forced to modify their usual banking channels, in themselves 
restricted, in order to make and receive payments, all of  which generates additional difficulties and 
costs in commercial operations . 
                                                
1 WT/L/1003.  WT/L/1043  
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  1.7.  The rise in aggressive rhetoric against Cuba incre ases mistrust and uncertainty among  financial 
institutions in third countries and among US suppliers themselves, due to the fear and risk of being 
penalized for interacting with C uban entities, whether or not they appear on the list . 
1.8.  The foregoing  derives from the extraterritorial nature of the US Government's blockade 
legislation . Its extraterritorial application can be seen through  the financial persecution of 
third-country banks  and entities, which has recently intensified , and the i mposing  of fines on these 
entities  on the grounds of them having broken  the rules implementing  the economic, commercial 
and financial blockade measures against Cuba . 
1.9.  This situation has led to a notable increase in foreign banks refusing  to engage in any type of 
operation with Cuban banking entities, including the closure of Cuban  bank accounts abroad . 
1.10.   Cuba remains unable to access sources of financing from North Americ an banks  and 
commercial entities – something that is a common practice in world trade . 
1.11.   The main difficulties encountered by Cuban banking institutions in their operations during the 
period under review  are described below : 
• The impossibility of using the US  dollar in commercial and financial transactions  abroad . 
• Account closure requests from foreign banking entities . 
• Refusal of foreign banks  to transfer  funds to or from Cuba and to provide other banking 
services, and the return of Cuban bank transfers . 
• Withh olding of the funds of Cuban entities in foreign banks . 
• Cancellation by foreign banks of SWIFT Relationship Man agement Application (RMA) 
codes, which serve as authorizations exchanged between correspondent banks, managing 
which messages can be received and  the type of message that can be sent.  
• Refusal of foreign banks to notify and/or handle letter of credit operations or to make  
amendments to this type of payment document . 
• Cancellation of banking operations and signed agreements . 
• Requests to Cuban banks fo r additional documentation  in order to conduct banking 
operations.  
• Proble ms sending and receiving bank  documents through international courier agencies . 
• Cuban entities are obliged  to access external financing in extremely burdensome 
conditions as result of  the country's risk classification rating (a key factor in the 
determination of the viability and cost of financial o perations), which has risen due to the 
current blockade . 
1.12.   The economic, commercial and financial blockade  is, without a shadow of a doubt, t he Cuban 
nation's main obstacle to development . Given its scope, its objectives – both officially declared and 
veiled - and the means used and action taken to achieve these , the blockade violates the purposes 
and principles of the Charter of the United Nat ions, the principles of international law governi ng 
relations between sovereign S tates, and the principles of freedom of international trade and 
navigation enshrined in numerous international legal instr uments, including the WTO rules.  
1.13.   In spite of all this , in 2017 the Cuban economy  grew at an annual  rate of 1.8 % at constant 
1997 prices ; most noteworthy  was the growth of services activities, which generated 82.7 % of 
the GDP. WT/L/1043  
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  1.14.   Fiscal policy implementation  remained  within the limits approved by the Cuban Parli ament 
and in line with the Plan for the Economy . In the midst of unfavourable conditions, the State budget 
recorded a deficit lower than tha t projected . 
1.15.   The monetary policy pursued by the Central Bank of Cuba has been directed towards the  use 
of financial instruments that  regulate the money supply . The main monetary variables, such as 
inflation and the exchange rate, are stable, thereby bolstering confidence in the Cuban financial 
system . 
1.16.   Great efforts were made in 2017 to secure strategic development objec tives without affecting 
the social programmes designed to raise the standard of living of the population . The most relevant 
social indicators of the year were  the following : 
• The infant mortality rate reached its lowest level in history of 4.0 per  thousand  live births , 
remaining  below 5. 0 for the tenth consecutive year . 
• The maternal mortality rate fell from 41.9 per 100,000 live births in 2016 to 38.3 in 2017 . 
• Life expectancy at birth continued to be 78 years . 
• The country has one doctor per 122 inhabitants and one dentist per 602 inhabitants . 
• The unemployment rate fell from 2 % in 2016 to 1. 7% in 2017.  
• A total of 394, 885 students graduated from the education system : 23,478 from higher 
education institutions and 57, 743 from technical and vocational courses . 
• Primary and secondary education for all  has been guaranteed, as has s chool retention at 
primary and secondary level . 
1.17.   In addition to such endeavours at national level, Cuba continued to extend its social 
cooperation and support programmes in a considerable nu mber of developing countries, primarily in 
the areas of  health and education . 
1.18.   One particular event of note to have an adverse impact on the Cuban economy was the 
devastating hurricane "Irma" (category five) , which struck almost the entire north coast of th e 
country , causing extensive damage and the significant destruction of housing, tourist and industrial 
facilities , and warehouses , not to mention the road, electrical, hydraulic and telecommunications 
infrastructure . 
1.19.   For all of these  reasons, Cuba confirms that the particular circumstances preventing it from 
signing a special exchange agreement with WTO Members continue to exist, but that it remains 
committed to complying, where possible, with the principles laid down in the General A greement . 
The application of the provisions of Article XV:6 of the GATT 1994 would involve serious legal and 
practical difficulties for Cuba.  
1.20.   It must be stressed that the measures taken during this period have  to date  not had any 
adverse effects on other W TO Members, which have not had any need to hold consultations in that 
connection . Cuba reaffirms its commitment to make use of the waiver without affecting the 
objectives of the GATT 1994 or harming or impairing the rights of the rest of the Membership . 
 
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