BARBADOS: SUSPENSION OF TITLE III OF THE LIBERTAD

C O N F I D E N T I A L BRIDGETOWN 000716 SIPDIS STATE FOR WHA/CCA AND WHA/CAR SOUTHCOM ALSO FOR POLAD E.O. 12958: DECL: 12/10/2018 TAGS: ETRD ETTC PREL PINR PGOV CU BB XL SUBJECT: BARBADOS: SUSPENSION OF TITLE III OF THE LIBERTAD ACT REF: REF: STATE 126578 Classified By: Charge d'Affaires D. Brent Hardt for reasons 1.4(b) and (d). -------------- Summary -------------- ¶1. (C) Barbados and Cuba enjoy a close relationship. At the 2008 Caribbean Community-Cuba Summit, Barbados publicly declared its commitment to deepening its relationship further through increased bilateral collaboration and exchange in a number of areas such as renewable energy, sports, health, education, agriculture, engineering, disaster mitigation, tourism, and science and technology. Barbados PM Thompson called for an end to the U.S. trade embargo of Cuba at the December 1-3 Caribbean-Central American Action (CCAA) conference. End Summary. -------------- Nature of Investments -------------- ¶2. (C) The Canadian energy company Sherritt (www.sherritt.com) continues to operate two offshore companies in Barbados that it uses as a platform for investments in Cuba. The significant tax savings Canadian companies enjoy in Barbados, coupled with Barbados' tax and investment treaties with Cuba, mean there may be other Canadian companies using offshore subsidiaries in Barbados to enter the Cuban market. In 2008, the Barbados company Mulberry Patch entered into a bilateral cooperation agreement with the Cuban government to develop sericulture production of silk worms. Post has no evidence of Barbadian companies participating in FIHAV 2008. -------------- Bilateral Trade Agreements -------------- ¶3. (C) The only known trade agreements between Barbados and Cuba was a bilateral trade agreement "for the promotion and protection of investments," signed in February 2006. The objective of the agreement is to encourage reciprocal protections and stimulate capital investment, business development and economic prosperity. Barbados also ratified a trade agreement between CARICOM and Cuba with similar objectives, which was incorporated into Barbados' domestic legislation in April 2006. In July 1999, Barbados concluded a tax convention with Cuba to prevent double taxation and fiscal evasion with respect to income taxation. -------------- Exchange Programs -------------- ¶4. (U) Barbados has been the recipient of Cuban scholarships and Cuban-paid medical travel for Barbadians in need of eye surgery via the "Operacion Milagro" program. As of the end of 2007 over 450 Barbadians had received free vision correction surgery under the program. In 2008 there were 101 Barbadian students receiving some form of medical training in Cuba. There is no wide-scale program to utilize Cuban doctors in the local health care system. In addition, Barbados requested assistance from Cuba to provide specialized medical services for which there is no expertise in Barbados and for Barbadian medical professionals to access Cuban medical research and training institutions such as the Pedro Kouri Institute of Tropical Medicine. ¶5. (U) Barbados and Cuba intend to develop other exchange programs in the areas of sports development, primary education, sugar cane production technologies, disaster management, and the development of science and technology institutions in both countries. Barbados and Cuba also committed to exchange best practices in port security, passenger and cargo handling, and cruise ship management. The two sides also agreed to focus cooperation on renewable energy development during a 2007 meeting between Commerce Ministers. -------------- Democracy and Human Rights Promotion -------------- ¶6. (C) Barbados has done nothing to advance democracy and human rights in Cuba, but has instead shown solidarity with Cuba in international fora, particularly on matters related to the U.S. embargo. Barbados regularly votes to support pro-Cuba resolutions in the United Nations and almost never criticizes the Castro regime on its human rights record. -------------- High-Level Visits -------------- ¶7. (C) Prime Minister David Thompson was in Havana on December 8, 2008 attending the CARICOM-Cuba Summit. While at the meeting PM Thompson called on the United States to remove its trade embargo on Cuba. This followed closely on a similar call by the PM in remarks in Miami at the annual conference hosted by Caribbean-Central American Action (CCAA). -------------- Comment -------------- ¶8. (C) Barbados and Cuba have had solid diplomatic relations for over thirty years and consider each other "Caribbean brothers." Barbados' recent U.N. voting record on human rights and democracy indicates that Barbados does not support democracy and human rights in Cuba. PM Thompson's recent calls in Miami and in Santiago de Cuba on the U.S. to end the embargo on Cuba would seem to indicate that position is unlikely to change. HARDT HARDT