WORLD TRADE  
ORGANIZATION   
WT/L/867 
19 November 2012 
 (12-6314) 
General Council 
11 December 2012 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 9 November 2012, is being circulated at the request of the delegation of Cuba.  
_______________ 
 
 
Pursuant to Article IX:4 of the Agreemen t Establishing the World Trade Organization 
(WTO), the Republic of Cuba hereby submits the first annual report on the renewal granted 
on 14 February 2012 of the waiver extension approved on 14 December 2006.  This waiver 
was granted to Cuba under th e 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.  
In 2011, Cuba continued to be the target of direct attacks by the Government of the 
United States of America (hereinafter 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$108,000 million, at current prices - in spite of  overwhelming opposition by the international 
community in the United Nations (UN) for two decades.  
The Obama Administration has been characterized  by a strengthening of the extra-territorial 
dimension of the blockade, of which the Torricelli and Helms Burton Acts remain prime examples.  
It is well known that, by adopting these laws, th e US Government illegally assumed the right to 
legislate for and on behalf of other countries with re gard to their relations with Cuba, even to the 
extent of authorizing itself to judge the behaviour and actions of other States and their nationals who 
are not subject to US jurisdiction. 
 
 The extra-territorial application of the blockade  is not only seriously prejudicial to Cuba, but 
also adversely affects the interests and sovereign ri ghts of third countries and is an ongoing source of 
trade and financial conflict.  
                                                      
1 WT/L/850. 
2 WT/L/182. WT/L/867 
Page 2  
 
   The main extra-territorial aspects of this policy continue to be as follows: 
 
 Subsidiaries of US companies established in third countries are prohibited 
from carrying out any form of transaction with companies in Cuba; 
 
 third-country companies are prohibited from exporting to the United States 
any product of Cuban origin or an y product containing Cuban inputs; 
 
 third-country companies are prohibited from selling to Cuba goods or 
services using technology that contains more than 10% of US inputs, even when their owners are nationals of those countries; 
 
 vessels carrying goods to or from Cuba, irrespective of their country of 
registration, are prohibited from entering US ports; 
 
 third-country banks are prohibited from opening US dollar accounts for 
Cuban legal or natural persons and from carrying out financial transactions in 
that currency with Cuban entities or  persons.  The processing by banking 
institutions in third countries of financ ial transactions associated with Cuba, 
even in other currencies, is considered  an offence and such institutions are 
threatened with reprisals for alleged violations of US legislation; 
 
 third-country businessmen are penalized for investing in or doing business 
with Cuba by the denial of visas to enter the US, a measure that can be 
extended to their family members.  Such businessmen may be subject to legal action before US courts if their operati ons with Cuba are related to property 
associated with claims filed by US citizens or Cuban-born persons who have 
acquired US citizenship. 
 
Furthermore, disruption of Cuba's financ ial transactions with third countries has 
intensified, irrespective of the relationship these c ountries may have with Cuba, the currency used and 
the banking regulations in force in the countries con cerned.  This systematically obstructs the normal 
development of external financial flows, thereby causing Cuba severe damage and placing it at serious 
risk.  Without any doubt, this constitutes an aggr ession in the area of international monetary and 
financial relations.  
The main adverse effects suffered by the Nati onal Banking System in 2011 were as follows: 
 
 Disruption of currency exchange operati ons 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 requi re to be paid in dollars. 
 
 closure of accounts owned by Cuban entities in foreign banks; 
 
 continued refusal by correspondent banks  to confirm or advise letters of 
credit; 
 
 refusal by certain foreign banks to make payments on behalf of Cuban 
banking entities; 
  WT/L/867 
 Page 3 
 
 
   need to keep minimum balances in Cuban accounts abroad given the risk 
of confiscation; 
 
 establishment by certain foreign banks, as a prerequisite to dealing with 
Cuban banks, of an information disclos ure obligation in respect of their 
shareholders and correspondent banks, inter alia , with the justification that 
Cuba is one of the countries sanctioned by the Office of Foreign Assets 
Control (OFAC). 
 
This policy has led to a substantial increase 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 effort s to integrate itself into the world trading system are being 
made under particularly difficult conditions - the out come of a policy which contradicts the so-called 
"free trade" advocated by the United States itself.  
In addition to the great sacrifices it has been comp elled to make to counteract the effects of the 
blockade, Cuba has also suffered the adverse effects of the global economic and financial crisis, all of 
which undermines its intent to sign a special ex change agreement with the Members of the 
World Trade Organization (WTO).  
On the domestic front, as of 2010, Cuba began to ta ke steps on the road to further change, as set 
out in the "Economic and social policy guidelin es for the period 2011-2015".  These guidelines are 
designed to provide solutions in the short, medium  and long term and have been drawn up for each 
economic and social policy area, taking into account  past experiences and trends and forecasts for the 
global economic and political climate, as well as the current reality of the Cuban economy in 
this context. 
 
In spite of all the external measures imposed on Cuba, in 2011 the country's economy recorded 
moderate growth of 2.7% over 2010, backed by  more vigorous growth in productive economic 
activities, such as agriculture, hunting, forestry and fishing (1.4%), mining and quarrying (1.5%) and the manufacturing industry (2.7%), as well as in the services sector (2.6%), notably exports of high 
value-added services. 
 
The State budget continued to back the country 's social policy while  at the same time 
contributing to economic growth.  The fiscal deficit represented 1.7% of Gross Domestic 
Product (GDP), the lowest level since the 1990s.  
The monetary policy implemented by the Centra l Bank of Cuba was char acterized by greater 
use of measures to regulate money supply, including  the legal reserve requirement, interest rates, 
credit control and regulation, inter alia , thus contributing to economic growth without inflation and a 
manageable money supply.  
In 2011, in the light of the effects of the in ternational economic crisis on the Cuban economy 
and the current circumstances surrounding the country 's economic activity, the Central Bank of Cuba, 
pursuant to Decision No. 30 of its Monetary Policy Co mmittee, revaluated the official exchange rate 
of the convertible Cuban peso (CUC) by 8% in relation to the United States dollar (US$) and other 
foreign currencies, re-establishing parity at one CU C to one US dollar.  Th is measure, which seeks to 
stimulate export activity and the import substitu tion process, represents a small step towards 
improving the country's foreign currency balance and, coupled with more effective economic 
planning, foreign exchange allocation procedures, more rational management of currency issue and WT/L/867 
Page 4  
 
  increased productivity and domestic economic efficien cy, will foster conditions that are more 
conducive to external financial relations. 
 
This measure has not had any adverse effect s on other WTO Members, as confirmed by the 
understanding expressed by our main trading and fi nancial partners.  Nor have there been any 
complaints from foreign investors with interests in Cuba, which proves that the measure does not run 
counter to the principles and objectives of the GATT 1994.  
With regard to the external sector, interna tional trade in goods increased by 31.2% and 
international trade in services by 15.3%, in annual terms. 
 
Furthermore, the country continued to move ahead in finding solutions to its strategic 
development problems, 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 infant mortality rate was 4.9 per 1,000 live births, the fourth lowest in the 
history of the country; 
 
 life expectancy at birth stands at 78 years; 
 
 Cuba has one physician per 143 inha bitants and 4.1 beds in medical 
institutions per 1,000 inhabitants; 
 
 85,757 students graduated in the va rious branches of higher education 
(medical, technical, agricultural, economic and educational sciences, etc.), out of a total of 474,422 graduates over the last ten years; 
 
 the average monthly wage rose by 1.6%. 
 
Cuba confirms that the particular circumstances that gave rise to the waiver extension granted 
to it in February 2012 continue to exist and that it remains committed to complying, where possible, 
with the principles laid down  in the General Agreement. 
 
__________