WT/L/895
24 October 2013
(13-5880)  Page: 1/3
General Council  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 22 October 2013, is being circulated at the request of the 
delegation of Cuba. 
 
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Pursuant to the provisions of Article IX.4 of the Agreement Establishing the 
World Trade Organization (WTO), Cuba transmits herewith the second annual report on the extension granted on 14 February 2012 of the waiv er 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. 
 
The reason for the request for a waiver is the continued existence of the conditions that justified its extension in 2012, albeit worsened by a further strengthening of the measures constituting the economic, commercial and financial blockade im posed on Cuba by the Government of the 
United States, in the form of increased economic sanctions, essentially the targeting 
of Cuban business activities and international financial transactions as well as reprisals against natural and legal persons with links to or which trade with Cuba, which make it impossible 
for Cuba to sign a special exchange agreement wi th the Members of the World Trade Organization 
(WTO).  
On the economic and trade front, we saw the continued application of the blockade measures 
described in previous reports, which reaffirm their extraterritorial nature in that they prohibit the branches of US companies located in third countries from trading with Cuba, deny Cuba its goods and services export earnings, impose sanctions ag ainst shipping lines and freight companies which 
transport cargo to and from Cuba without a licence issued by the United States Department of the 
Treasury, and so on, all of which has led to an increase in the costs of Cuba's imports.  
Over the last three years, the policy of hostility  pursued by the Government of the United States 
towards the Cuban banking sector has clearly intensified, with increased persecution and harassment of companies and of financial transactions abroad, limiting and considerably hindering 
operations to and from Cuban banks. As a result, the banks are unable to function properly, 
and have to continue seeking new alternatives to protect their financial assets abroad and continue operating efficiently.  
In this sector, the blockade has had the effect of gradually reducing the possibility of using 
the country's correspondent banks, making transa ctions more complex and impeding the normal 
operation of banking and financial institutions, owing to the increasing pressure by the 
United States Government on banking and financial institutions of other countries to break off their 
relations with Cuba - not to mention the already well-known limitations on the use of the US dollar as a means of payment. 
 
                                               
1 WT/L/850. 
2 WT/L/182. WT/L/895 
- 2 - 
  The cost of financing has increased as a result of the need to set up the structures required to get 
around the restrictions as well as the high country-risk pinned on Cuban operations, given that the main risk assessment agencies at the global level are partially or totally dominated by United States capital. 
 
The most important effects on the banking and financial sector over the past three years have been: 
 
• Placing obstacles in the way of any financial or commercial operation by obstructing 
and cancelling trade and financial negotiations, even at their final stage. 
• Persecution and penalization of entrepreneurs and investors interested in trading with 
or investing in Cuba, thus hindering the normal development of all external economic 
activity and access to resources to finance development. 
• Intimidation and fines aimed at investors or financial institutions operating or intending 
to operate with Cuba. 
• Increase in the cost of financing owing to the so-called "country risk" associated with 
the blockade. 
• Closure of accounts owned by Cuban entities in foreign banks. 
• Need to keep minimal balances in Cuban accounts abroad given the risk of confiscation. 
 The Government of the United States is thus pursuing the objective of harming the mainstay 
sectors of the Cuban economy to the greatest extent possible, reinforcing restrictions 
and implementing regulations designed to impede Cuba's economic development.  
For 21 years in a row, the international community has condemned this hostile policy of the 
United States towards Cuba. In November 2012, the United Nations General Assembly adopted a new resolution condemning the blockade which, as in other years, had the support of the 
overwhelming majority of members of that Organi zation, with 188 votes in favour to three against 
and two abstentions.  In spite of this, in 2012 the Cuban economy grew by 3% in comparison to the previous year. 
Almost all activities that make up the GDP have seen generalized economic expansion, 
with services, in particular, generating 80.8% of GDP.  
Fiscal policy displayed further proof of strength and strict management. In the midst 
of unfavourable conditions, the State budget continues to support the country's social policy while at the same time contributing to economic growth. 
 
The monetary policy pursued by the Central Bank of Cuba has mainly been directed towards the use of financial instruments to 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. 
 Great efforts were made in 2012 to secure strategic development objectives without affecting 
the social programmes designed to raise the st andard of living of the population. The most 
relevant social indicators of  the year were as follows: 
 
• The infant mortality rate reached its lowest level in history at 4.6 per thousand live births, 
having remained below 5% fo r five consecutive years. 
• Life expectancy at birth remains at 78 years. 
• Self-employment continued to become more flexible and to expand. 
• Entrepreneurial reorganization progressed, enhancing the efficiency and competitiveness 
of enterprises. 
• Higher education produced 89,558 graduates. 
• The universal education programme continued to  develop and university studies were made 
available to an ever-expanding number of students. 
 
In addition to these endeavours at the national level, Cuba continued to expand its cooperation 
and support programmes in favour of broad-based social programmes in a considerable number of developing countries, basically in the areas in health and education. International cooperation in the field of health continued to expand during the scholastic year 2011-2012. 
 WT/L/895 
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  This policy was maintained in spite of the difficult external conditions which the Cuban economy 
had to face during the year in the wake of the international financial crisis aggravated by the situation in Europe, the marked appreciation of the dollar, and the rise in oil and food prices, which led to a significant deterioration in the terms of trade. 
 
Cuba, a net food importing country, closely monitors international fuel and food price developments. The rise in fuel and food prices on  the world market has forced the country to make 
major financial sacrifices to ensure domestic food security, while the overall increase in commodity 
prices has not benefitted those giving greater weight to their exports.  Given these special circumstances, the application of the provisions of Article XV:6 would entail 
serious legal and practical difficulties for Cuba - the same as those which give rise to the 
extensions of the waiver granted to Cuba to date. Cuba confirms, once again, its willingness 
to comply with the principles laid down in the General Agreement. 
 
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