Fantasy Island

Glowing report in the Tampa Bay Business Journal about the Cuba trade expo, the opportunities to do business with Cuba just waiting to be plucked like some ripe fruit.   One would think that an organ which purports to be a business journal has some obligation to ground its reporting in fact.  But apparently kids aren’t the only one neglecting homework these days.

It’s really not surprising that we are in the economic mess we’re in when this, uncorrected,  is what passes for savvy business and business reporting:

But, growth in U.S. exports to Cuba is being held back by hard-line rules that prevent U.S. shippers from offering credit to Cuban importers.

“The non-U.S. companies can offer credit, but the U.S. cannot offer credit,” said Kirby Jones, whose consultancy, Alamar Associates, helps U.S. companies do business with Cuba.

You betcha it does.  Paris Club, anyone?

4 thoughts on “Fantasy Island”

  1. abuc13,

    Cuba owes billions of dollars to all of its other trade partners for goods it purchased on credit. The U.S. currently requires Cuba to pay cash up front. If we were to “normalize” trade with Cuba that would mean our producers would “sell” more but let me ask this question: if you sell someone to something who never pays is it still “selling” or are you just “giving”?

    You might be asking, “why would companies want to ‘give’ stuff to Cuba?” Well because they aren’t really the ones doing the giving. The U.S. Export-Import bank will be glad to provide Cuba the financing. Therefore you and I as taxpayers are the ones who really end up doing the “giving”. Whatever you want to call this, it’s not commerce.

    Is that simple enough?

  2. Aw, shucks, I thought I was actually quite restrained. Seriously, any discussion of trade with Cuba which would seem to encourage the extension of credit should of necessity include a nod to its status as a debtor nation. See Henry’s reply above. The Paris Club mention is a reference to the amounts of debt, some unpaid since 1986, owed its members.

  3. and so you admit that the statement

    “But, growth in U.S. exports to Cuba is being held back by hard-line rules that prevent U.S. shippers from offering credit to Cuban importers.

    “The non-U.S. companies can offer credit, but the U.S. cannot offer credit,” said Kirby Jones, whose consultancy, Alamar Associates, helps U.S. companies do business with Cuba.”

    is a fact, thanks.

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