CANADIAN POLICY ON CUBA

UNCLAS SECTION 01 OF 02 OTTAWA 001566 SENSITIVE SIPDIS STATE FOR WHA/CCA (DAVID MCFARLAND) E.O. 12958: N/A TAGS: PREL PHUM ETRD ETTC CU CA SUBJECT: CANADIAN POLICY ON CUBA REF: STATE 126578 OTTAWA 00001566 001.3 OF 002 ¶1. (SBU) Based on Embassy's ongoing dialogue with the Department of Foreign Affairs and International Trade's (DFAIT) Latin America and Caribbean officials, Embassy's assessment is that Canada has consistently worked to promote the advancement of democracy, good governance, and human rights in Cuba. Canada shares the U.S. goals of promoting democracy and human rights in Cuba, while maintaining its own policy of "principled engagement" with both the Cuban government and dissident elements. Canada believes its approach allows it to have a positive impact on human rights and democracy in Cuba. Canada maintains a diplomatic presence in Havana and conducts aid programs worth about C$10 million/year. ¶2. (SBU) Canada has engaged and intervened on behalf of human rights and the advancement of democratization in CUBA a number of times over the past six months: -- Canadian and Cuban officials met regularly to discuss the harsh treatment of dissidents. Conversations were reportedly "firm and frank;" -- the Canadian Embassy sponsors Canadian Studies Centers in several locations in CUBA to inform the general populace about life in a democratic country with a market-based economy. A wide range of literature on human rights and democracy is available in these centers. The Canadian government also regularly sends speakers to these venues, as well as funds economics professors teaching modern economic theory at the University of Havana; -- the Canadian Foundation for the Americas (FOCAL),a Canadian government-funded think tank, maintains an active series of programs on CUBA that focus on support for dissidents and democratization. It has a comprehensive program for documenting all Cuban government actions against dissidents, supports an active dialogue on planning for the post-Castro area, and assists civil society programs on human rights and democracy; ¶4. (SBU) High-level diplomatic visits between CUBA and Canada over the past six months have included: - Canadian Assistant Deputy Minister (Americas) of Foreign Affairs Alexandra Bugailiskis represented Canada at the Havana International Trade Fair on November 3; - Cuban Minister of Foreign Trade Raul de la Nuez visited Canada on November 28, and met with Canadian Minister of International Trade Stockwell Day and Minister of Agriculture and Agri-Food Gerry Ritz; and, - Canadian Assistant Deputy Minister of Foreign Affairs for Global Issues Keith Christie visited CUBA on December 1. ¶5. (SBU) According to DFAIT, Canada offered over C$1 million (approximately USD 830,000) in humanitarian assistance to the Cuban people in the wake of Hurricanes Gustav and Ike. The aid went through the Red Cross and other NGOs. The government is still considering providing additional aid to the Cuban people through the United Nations. ¶6. (SBU) DFAIT confirmed that Canadian businesses participated in the November 3 Havana Trade, but declined to disclose the names of the companies. Media reports have indicated Canada remains Cuba's third largest trade partner, with a 9.4% growth in trade over 2007. Cuban Minister of Foreign Trade de la Nuez said publicly that trade between Canada and CUBA amounted to USD $1.4 billion so far in 2008. The media also reported that the Canadian Wheat Board and Cuba's Alimport signed an agreement at the Havana Trade Fair for the sale of 150,000 tons of Canadian wheat to Cuba. Canada is also one of the largest foreign Qwheat to Cuba. Canada is also one of the largest foreign investors in Cuba. Canadian natural resources company Sherritt International, the largest and most established Canadian firm in Cuba, engages in OTTAWA 00001566 002.3 OF 002 mining, oil, and gas production as well as electricity generation, and soybean processing. Canadian companies operate in a variety of sectors of the Cuban economy, including tourism, construction, agriculture, bio-technology, and mining. Canadian exports to Cuba in 2007 were estimated at C$ 563 million (USD 524 million). Main exports are machinery, electronic equipment, motor vehicles, as well as copper, iron, and steel products. Canadian imports from Cuba were worth about C$1.06 billion (USD 988 million) in ¶2007. Primary imports are tobacco, books and newspapers, and seafood. Canadians represent close to one third of Cuba's foreign tourists. ¶7. (SBU) Canada has no bilateral trade agreements with Cuba. According to DFAIT, Canada and CUBA are set to begin negotiations on a Foreign Investment Protection Agreement (a bilateral investment treaty) in 2009. During his April visit to Cuba, Canadian Agriculture Minister Ritz and his Cuban counterpart renewed an existing MOU on technical cooperation in agriculture. ¶8. (U) Canada does not have any formal exchange programs specific to Cuba. The Canadian government maintains a Canada-Caribbean Community Leadership Scholarship Program offering university students scholarships for short-term research exchanges, for which students from across the Caribbean -- including CUBA -- are eligible to apply. In addition, many exchanges occur informally between organizations such as high school sports teams and cultural groups. Visit Canada,s Economy and Environment Forum at http://www.intelink.gov/communities/state/can ada WILKINS