G/C/W/734 
4 November  2016 
(16-6055) Page: 1/6 
Council for Trade in Goods  Original: Spanish  
 
  CUBA – ARTICLE XV:6  
REQUEST FOR AN EXTENSION OF THE WAIVER CONCERNING ARTICLE XV:6  
OF THE GATT 1994 CONTAINED IN THE DECISION OF 14 FEBRUARY 2012  
(WT/L/850)  
The following communication, dated 3 November  2016, is being circulated at the request of the 
deleg ation of the Republic of Cuba.  
 
_______________  
 
 
I have the honour to inform you, in your capacity as Chairman of the Council for Trade in Goods, 
that Cuba wishes to request the inclusion of an item regarding the extension of the waiver 
concerning Article  XV:6 of the General Agreement on Tariffs and Trade (GATT) 1994 on the 
agenda of the next meeting of this Body.  
Pursuant to Article IX of the Marrakesh Agreement Establishing the World Trade Organization, the 
Republic of Cuba requests an extension , until 3 1 December  2021, of the waiver of the provisions of 
Article XV:6 of the GATT, as is appropriate given that Cuba is not a member of the International 
Monetary Fund (IMF) . The current waiver is due to expire on 3 1 December  2016. The reason for 
this request f or a further extension of the waiver is the continued existence of the conditions 
reported in previous years.  
To this end, please find a ttached the draft Decision, identical to that approved in 2012 except for 
the period of validity of the waiver extension , which is to be considered at the next Council for 
Trade in Goods with a view to recommending its adoption by the WTO General Council 
immediately following the meeting of the Council for Trade in Goods , currently scheduled for 
7 and 8 December  2016. 
1  PURPO SE AND BACKGROUND OF  THE REQUEST  
1.1.  The Government of the Republic of Cuba requests a renewal of the extension granted on 
14 February  20121 of the waiver extension approved on 1 5 December  20062 and prior to that on 
20 December  2001.3 This waiver was granted t o Cuba under the Decision of 1 4 October  19964 in 
relation to Article XV:6 of the General Agreement on Tariffs and Trade 1994 (GATT 1994).  
1.2.  The request for a further extension of the waiver is based on the fact that the circumstances  
that justified the waive r extension granted in 2012 , in particular the economic, trade and financial 
blockade measures which the Government of the United States of America is continuing to impose 
on Cuba, remain  virtually unchanged . 
1.3.  More than one year after the Governments of Cub a and the United States of America decided 
to re-establish their diplomatic relations and initiate a process geared towards normalizing their 
trade and financial links, there have been no substantial  changes in the application of the embargo 
policy  against  the country , meaning that the  embargo measures are still imposed directly against 
                                                
1 WT/L/850.  
2 WT/L/678.  
3 WT/L/440.  
4 WT/L/182.  G/C/W/734  
 
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  Cuba as rigorously as in previous years  and that their extraterritorial scope is continuing to affect  
third countries.  
1.4.  In pursuance of this process, the US Government has be gun to take action, mainly in the 
telecommunications and trade spheres, in order to "relax" the blockade against Cuba.  
1.5.  March  2016 saw the announcement of new amendments to the regulations governing the 
sanctions applied by the US, including, for the first time since the blockade entered into force, 
permission for Cuban citizens and financial institutions to use the dollar to conduct certain 
transactions . This would to some extent change one of the most significant aspects of the 
blockade ; nonetheless , the m easure has not been implemented in practice, and Cuban monetary 
assets abroad remain subject to harassment and persecution.  
1.6.  The relationship with North American  banks is hampered , for all legal intents and purposes, 
by the measures still in effect , and their regulations are still restric ting relations with Cuban 
entities . The policy of financial per secution of third -country banks , constrained  in their operations 
with Cuba , has led the Office of Foreign Assets Control (OFAC) in the US  Department of the 
Treas ury to impose  fines amounting to  more than  ten billion  dollars over the past three years  
alone . Cuban financial entities are not allowed to have correspondent banks in the United States, 
which unnecessarily increas es the cost and length of procedures, including when the country uses 
a currency other than the dollar.  
1.7.  Normalization of  banking relations demands that  the issue of the ban on using the US  dollar 
in international transactions with Cuba be resolved , as a first step towards the lifting of the 
econom ic, trade and financial blockade still in place against the country, along with access to 
North  American  banking sources of financing, including com mercial banks, as a tool that is 
necessary for and inherent in international trade.  
1.8.  A development of signal importance for Cuba was the decision taken by  the United States  
Congress in May 2015 to remove the country from the so-called blacklist of state sponsor s of 
international terrorism , in which Cuba had unjustly been included  in 1982 . Nonetheless, the 
prohibi tions on exports and the broad range of other financial restrictions facing any country on 
the state sponsors of terrorism list could be maintained in Cuba's case , because of other sanctions 
ordered by the US Congress , underpinned by the embargo  legislatio n. 
1.9.  Another step forward on the international s cene was made  in October  2015 at the 
27th Plenary session of the Financial Action Task Force (FATF), which reaffirmed the finalization of 
the country's evaluation  process, meaning that Cuba's review  by the FATF  and the  Financial Action 
Task Force of Latin America (GAFILAT)  has come to an end , putting the country on the regular 
monitoring  process . The results achieved show ed that, to date, Cuba is among  the countries that 
have scored  the best results at global le vel, reflecting  its context  and actual situation , and the 
objective of Cuba's full integration in the international network of countries that combat  money 
laundering, the financing of terrorism and the proliferation of weapons of mass destruction  has 
thus been achieved . 
2  JUSTIFICATION  
2.1.  The rigid and hostile blockade policy against Cuba is still  the main impediment to the 
country's economic development , by hampering the performance of all sectors of its domestic 
economy, by substantially increasing financial c osts and impeding access to external financial 
flows, as well as by obstructing essential imports, mainly  food, medicines and fuel , which is a 
serious obstacle to economic development.  
2.2.  Consequently, the country's efforts to integrate into the world  trading  system are being made 
under particularly difficult conditions - the outcome of a policy which contradicts the principle of 
free trade.  
2.3.  The embargo laws also prohibit loans to Cuba by multilateral and regional financial 
organizations, thereby denying the c ountry access to sources of long -term financing under 
favourable conditions and forcing it to resort to short -term loans with high interest rates and G/C/W/734  
 
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  supplier financing on a much less flexible basis than credit from financial institutions and official 
sources. 
2.4.  The blockade is a blatant violation of international law and the principles of free trade and 
navigation enshrined in numerous international legal instruments, including the rules of the 
World  Trade Organization (WTO) . It runs counter to the purposes and principles of the United 
Nations Charter, and it constitutes an infringement of a sovereign State's right to peace, 
development and security.  
2.5.  The main laws that allow the blockade to continue are the following:  
 The Trading With the Enemy Act (TWEA) : originally enacted as a wartime measure in 
1917 to restrict trade with nations that were considered hostile, it was on this law that 
the first regulations of the 1962 blockade against Cuba were based . In September  2015, 
arguing foreign policy interests, Pres ident Obama renewed this Act, which constitutes 
the cornerstone of the laws and regulations governing the blockade, for one more  year. 
 
 The Foreign Assistance Act, enacted by the United States Congress in September  1961, 
authorizing the President of the Un ited States to establish and maintain "a total embargo 
on trade between the United States and Cuba" . It also prohibits the granting of any aid 
to the Government of Cuba.  
 
 The Export Administration Act (EAA), adopted in 1979, which empowers  the President to  
control, in general, exports and re -exports of goods and technology, in particular those 
that are considered detrimental to the national security of the United States.  
 
 The Cuban Democracy Act (CDA), better known as the "Torricelli Act", signed by 
Preside nt Bush Senior in October  1992, reinforcing the economic measures against Cuba 
and providing a legal basis for the extraterritoriality of the blockade . Among other 
restrictions it prohibits subsidiaries of Northern American  companies in third countries 
from doing business with Cuba or Cuban nationals, and prohibits the entry into 
North  American  territory for a period of 180 days of ships from third countries that have 
touched port in Cuba.  
 
 The Cuban Liberty and Democratic Solidarity (Libertad) Act, commonl y known as the 
"Helms -Burton Act", approved by President Clinton in March  1996. Its essential aim is to 
impede and discourage foreign investment and to internationalize the blockade against 
Cuba. It codifies the provisions of the blockade, limiting the Pre sident's prerogatives to 
suspend the policy and broadening its extraterritorial scope . It denies entry into the 
United States of directors of foreign companies (and their family members) that invest in 
"confiscated" property in Cuba and provides for the po ssibility of filing legal action 
against them in the courts of the United States.  
 
 The Export Administration Regulations (EAR), which regulate the exceptions to the 
Export Administration Act or those that are authorized under licences issued by the 
Bureau of Industry and Security of the Department of Commerce . They come under the 
Trading With the Enemy Act and the Export Administration Act . 
2.6.  This body of l egislation  applied over more than 50 years ha s caused enormous  damage to 
Cuba,  assessed at some 125 .873 billion dollars (at current prices) and amounting to  no less than 
753.688 billion dollars at gold value  at the end of 2015 , taking into account the depreciation of the 
dollar in the world market.  
2.7.  Moreover, the economic, commercial and financial siege that has been kept in place 
unchanged by all of the US  administrations since 1961 imposes extraterritorial restrictions on Cuba 
which also affect other WTO Members.  
2.8.  The effects of the economic, trade and financial blockade are compounded by the adverse 
impact o n the Cuban economy of the continuing  global economic and financial crisis . The host of 
difficulties mentioned above  prevent the  signing of a special exchange agreement with 
WTO Members.  G/C/W/734  
 
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  2.9.  In spite of all the problems it is facing, the Cuban economy has nonetheless continued to 
recover, growing at an average annual rate of 2.8 % during the period 2010 -2015. This period saw 
the key macroeconomic indicators develop favourably, and the implementation of various 
measures led to considerable progress in the monetar y, financial and fiscal areas as well as in the 
social sphere.  
2.10.   Over the past five years, w orthy of special mention in the goods production sector for their 
contribution to economic expansion are the non -sugar industry and mining, especially increases in 
the production of domestic crude oil, natural gas and nickel . 
2.11.   The services sector was the driving force of the Cuban economy, basically underpinned by 
the growth of tourism, telecommunications, and construction.  
2.12.   Tourism continued to grow, with a total of 3.5  million  visitors at end -2015, an all -time high 
representing a 17.4 % increase over arrivals in 2014 . Earnings from touris m activities have 
increased as a result.  
2.13.   Progress continued in implementing the telecommunications modernization programme, 
particularl y in the domestic telephony area, where development has reached a level  unparalleled in 
the country's history, with a rate of digitalization of 99.7 % at the end of 2015 . Cuba has also 
witnessed rapid growth in mobile communications and cellular telephony i n particular.  
2.14.   Economic measures were also taken to promote work in the non -State sphere, which 
involved more than half a  million  people at the end of 2015 . This figure is expected to  continue to 
rise as existing relations  become more flexible  over time and  activities included in the new forms 
of non -State management  expand . 
2.15.   Likewise, non -agricultural or services cooperatives continued to grow as a new form of 
economic management ; most of them operate in the areas of  trade, catering, transport and 
constructi on, which are expected to help raise the quality of services in the country.  
2.16.   Unemployment dropped to 2.4 % in 2015, its lowest rate over the past five years . The 
average wage rose by 53.3 % over the figure recorded in 2010.  
2.17.   In the social sphere, Cuba continu ed implement ing its planned  health programmes, which 
involve application of the most advanced technologies for diagnosis and treatment . In 2015, t he 
infant mortality rate was 4.3 per  thousand  live births, the lowest in the country's history, which, 
taken t ogether with a life expectancy of 78 years, is an indication of the quality of life of the 
Cuban  population . 
2.18.   The State budget addressed the country's most urgent needs within the limits of the income 
generated by the economy , posting a deficit of 5.7% of GDP at end -2015, and was executed in 
keeping with the Plan for the Economy . Work also continued with a view to improving and 
modernizing the tax system, so as to  ensure sufficient levels of revenue collection to support 
greater  social investment and promote  increased  self-employment as a result of  the restructur ing 
of public -sector employment.  
2.19.   In the monetary sphere, work is still under way  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 . 
3  CONCLUSION  
3.1.  Cuba's us e of the waiver granted in 1964 has not had any adverse effects on other 
WTO Members, which have not had any need to hold consultations in that connection . Cuba has 
shown that it has complied with its commitment to make use of the waiver without affecting the 
objectives of the General Agreement or harming or impairing the rights of the other parties.  G/C/W/734  
 
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  3.2.  The Government of the Republic of Cuba assures the other WTO Members of its willingness to 
use the waiver in order to promote investment and trade with Members . 
3.3.  In light of the foregoing, Cuba confirms that the particular circumstances that led to the 
approval of the previous extensions  still exist . 
_______________  
 
 G/C/W/734  
 
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  ANNEX  
CUBA – ARTICLE XV:6  
EXTENSION OF WAIVER  
Draft Decision [...] 20161 
 Noting  the request by  the Government of Cuba for an extension of the waiver relieving it 
from the provisions of paragraph 6 of Article XV of the General Agreement on Tariffs and 
Trade  1994, which provide that any Contracting Party which ceases to be a member of the 
Internation al Monetary Fund shall enter into a special exchange agreement with the WTO;  
 Considering  once again that, owing to special circumstances, the application of the 
provisions of paragraph 6 of Article XV to Cuba would raise a number of legal and practical 
difficulties;  
 Noting  the assurances given by the Government of Cuba that it will use the waiver with the 
purpose of continuing to promote trade and investment with Members;  
 The Members, acting pursuant to the provisions of paragraph 3 of Article IX of the 
Agreement on the WTO,  
 Decide:  
1. Without derogation from any other provisions of Article XV and subject to the terms and 
conditions set out below, to extend the waiver granted to the Government of Cuba by Decision of 
7 August  1964, as extended on 1 8 Octob er 1996, 2 0 December  2001, 15 December  2006, and 
14 February  2012, relieving it from the provisions of paragraph 6 of the said Article from 
1 January  2017 to 31 December  2021. 
2. The extension shall be subject to the Government of Cuba satisfying the WTO t hat it has 
complied with its undertaking to make use of the waiver without thereby affecting the objectives of 
the General Agreement or harming or impairing the rights of the other contracting parties.  
3. The Government of Cuba will submit to the General C ouncil an annual report on the 
implementation of this waiver with a view to facilitating the annual review provided for in 
paragraph 4 of Article IX of the WTO Agreement.  
4. The Government of Cuba will, upon request, promptly enter into consultations with any 
interested Member with respect to any difficulty or matter that may arise as a result of the 
implementation of this waiver, where a Member considers that any benefit accruing to it under the 
GATT 1994 may be or is being impaired unduly as a result of s uch implementation.  Such 
consultation shall examine the possibility of action for a satisfactory adjustment of the matter.  This 
decision does not affect Members' rights as set forth in the Understanding in Respect of Waivers of 
Obligations under the GATT 1 994. 
__________  
                                                
1 Adopted in accordance with the Decision -Making Procedures under Articles IX and XII of the 
WTO Agreement agreed by the General Council on 15  November  1995 (WT/L/93).