Spain to Make the Most of Economic Reforms in Cuba

The signing of documents related to the steps to be follow by Spanish companies to invest in Cuba, in such sectors as energy, industry, telecommunications and the growing travel industry, sealed the visit of a significant Spanish business delegation, headed by Spain’s Minister of Industry, Energy and Tourism, Jose Manuel Soria; and Trade Secretary of State, Jaime Garcia-Legaz.

Nearly ninety companies were represented by the trade delegation, at the highest level, and they held important meetings with Cuban businessmen, senior officials like the Ministers of Foreign Trade, Energy and Mining, and Cuba’s Chamber of Commerce.

In this regard, the Spanish Minister of Industry, Energy and Tourism, Jose Manuel Soria, pointed out that the objectives are well defined in order to strengthen Spanish investments in Cuba, a pioneer country on this matter: supporting companies based here, with the biggest number of branches, as well as fostering the opening of investments in traditional and new sectors, including Mariel’s Special Development Area.

Spain, which currently ranks third among Cuba’s main trade partners and it’s the first one in Europe, made business with the Island for over a billion euros last year, according to Cuban Vice-minister of Foreign Trade, Ileana Nuñez.

That’s the reason why, Spanish Minister Soria hinted, several investment funds have been created after the economic crisis. In a peculiar move, the Bank of Spain decided to free investments in Cuba from additional tax charges that are applied to the capital taken to third countries.

According to Spain’s Trade Secretary of State, Jaime Garcia-Legaz, this initiative aims at boosting the arrival of Spanish capital to Cuba, so as to maintain and enrich existing projects, and open new fronts.

The situation is undoubtedly favorable, just as it was recognized by businessmen and official of the trade mission. The gradual improvement in the Cuba-US relations, the economic reforms implemented by the government of the Island nation and incentives for foreign capital, including the possibility to repatriate 100 percent of the benefits obtained at Mariel Special Development Area, with its attractive tax policy, has unleashed investing appetites.

Of course, the Spaniards are in advantage and they are aware of this reality. They have been trade partners of Cuba for over twenty years, "even in the hardest times”. They have developed a long-standing career in such sectors as the travel industry or the importation of food and beverages, not to mention the traditional relation between both countries.

Potential northern competitors? According to Minister Soria it’s actually going to be an incentive to be better and more efficient, and the situation favors them. Just in case, they are strengthening their positions and exploring new possibilities. The delegation flies back home with a portfolio of projects and paved ways.