BELGIUM: LIBERTAD ACT REVIEW

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 004057 SIPDIS NOFORN SIPDIS DEPT FOR WHA/CCA E.O. 12958: DECL: 12/07/2016 TAGS: ETTC ETRD PREL BE CU SUBJECT: BELGIUM: LIBERTAD ACT REVIEW REF: A. STATE 191752 ¶B. BRUSSELS 1419 ¶C. BRUSSELS 2678 BRUSSELS 00004057 001.2 OF 002 Classified By: ECONCOUNS T.L. ROBL, REASONS 1.4 B/D ¶1. (C) SUMMARY: In response to ref A, post submits the following information regarding the suspension of Title III of the Libertad Act. Post has no basis to suggest that any Belgian investments qualify for consideration under the Libertad Act. END SUMMARY ¶2. (C) In conjunction with its European partners, Belgian diplomats do meet with Cuban dissidents. Belgium has not undertaken any formal bilateral plans or programs specifically related to the promotion of democracy, human rights, and fundamental freedoms in Cuba. However, in August 2006 when Castro transferred power to his brother, the Belgian Foreign Minister issued a public statement expressing hope for a democratic regime in Cuba (see para 8). Cuba is not among Belgium's 18 partner countries that receive official development assistance. In October 2006 Marc Verwilghen, Belgian Minister of Economy, Energy, Foreign Trade, and Scientific Policy, visited Havana for several days. During the visit four Memoranda of Understanding (MOU) were signed (para 9). ¶3. (U) In Belgium, foreign trade is a regional competency, divided among the three regions: Flanders, Wallonia, and the Brussels Capital region. Flanders Investment and Trade, Agence Wallonne a l'Exportation (AWEX),and Brussels Export have a combined joint trade promotion office in Havana that is operated by two Brussels Export employees on behalf of the three agencies. ¶4. (U) As reported in ref B, the Flanders region accounts for approximately 80 percent of Belgian exports to Cuba in recent years. The value of overall exports from Flanders to Cuba has gone up sharply in recent years. In 2003, total exports were worth 13.3 million euros. In 2004 the figure rose to 15.6 million euros, and in 2005 it jumped to 27.3 million euros. Nonetheless, Cuba is just 102nd on Belgium's list of export target countries. The principal Belgian exports by volume to Cuba are: animal products (25 percent), pharmaceuticals and chemicals (21 percent),machines and electrical materials (17.5 percent) and rubber (16.5 percent). ¶5. (U) The value of exports from Wallonia to Cuba during past five years has averaged approximately three million euros annually. In 2002 exports were worth, in millions of euros, 3.58; in 2003, 2.41; in 2004, 3.03; and in 2005, 2.92. Through the first quarter of 2006, exports from Wallonia to Cuba were worth a total of 2.97 million euros. ¶6. (U) Belgian imports from Cuba have declined in recent years (ref B) in terms of value. From 5.5 million euros in 2003, their value fell to 3.1 million euros in 2004 and 2.7 million euros in 2005. Tobacco and food products (mainly fruits) account for 92 percent of imports from Cuba to Belgium by volume. Plant and animal products account for 4.5 percent and textiles 2.6 percent. ¶7. (C) Cuba and the Belgium/Luxembourg Union (BLEU) signed an accord on May 19, 1998 for the mutual promotion and protection of investment. In 1997, the Flemish Education Minister signed an agreement with Cuba on education; the accord was termed a "transnational contract" rather than a formal treaty. ¶8. (U) In August 2006 Belgim Foreign Minister De Gucht, speaking about Cstro's hospitalization and temporary relinquishment of power to his brother, issued a public statement in support of democracy. The FM told Belgian journalists, "I am always sad when someone is sick. But one should take Fidel Castro for what he is, i.e., a Communist Dictator. I am hoping for a democratic regime for Cuba." ¶9. (U) From October 30 to November 4, 2006 Marc Verwilghen (Belgium's Federal Minister of Economy, Energy, Foreign Trade and Scientific Policy) visited Havana for the 14th International Fair of Havana (FIHAU). Accompanied by directors of three federal scientific organizations, the Minister met with GOC officials at the Cuban Ministry of Foreign Investment and Economic Cooperation in Cuba. On November 4 four bilateral agreements (MOUs) on cultural and scientific cooperation were signed. The first MOU provides BRUSSELS 00004057 002.2 OF 002 for joint educational activities in the field of cultural preservation. Two MOUs on biological diversity were also signed. The fourth MOU is designed to facilitate professional contacts and information exchange between the respective national archives of each country. ¶10. (C) Overall, Belgian-Cuban relations remain formal and correct, but not warm. Post has no basis to suggest that any Belgian investments qualify for consideration under the Libertad Act. KOROLOGOS .