NETHERLANDS/CUBA: LIBERTAD ACT REVIEW

C O N F I D E N T I A L THE HAGUE 000322 E.O. 12958: DECL: 05/27/2019 TAGS: ETRD ETTC PREL EU NL CU SUBJECT: NETHERLANDS/CUBA: LIBERTAD ACT REVIEW REF: A. STATE 48487 ¶B. 08 THE HAGUE 1030 Classified By: Political & Economic Affairs Counselor Andrew C. Mann for reasons 1.5 (b,d) ¶1. (U) In response to Ref A, following is an analysis of Dutch relations with Cuba in the first half of 2009. (Note: Ref B reports on Dutch relations with Cuba in the second half of 2008. End note.) -------------- Political Relations with Cuba -------------- ¶2. (C) The Government of the Netherlands (GONL) continues to actively promote human rights in Cuba through outreach to dissidents; it supports a "two track" policy, with the aim of engaging both the Cuban government and civil society on human rights. MFA Senior Policy Adviser Jan Jaap Groenemeijer recently told Poloff that relations with Cuba are "status quo." Groenemeijer does not expect a change to the EU common position on Cuba this summer. The MFA is still considering a trip to Havana by the MFA,s Director of Western Hemisphere Affairs Laurent Stokvis (mentioned in reftel B). However, the trip is on hold until an agenda has been finalized, and the Cubans have been unwilling to agree to certain key agenda points such as GONL meetings with Cuban civil society and side events. Negotiating with the Cubans has been difficult, according to Groenemeijer, and he doesn,t expect a change in next few months that would permit a visit to proceed. -------------- Economic Relations with Cuba -------------- ¶3. (U) The primary Dutch imports from Cuba are fruit, inorganic chemicals, and non-ferrous metals -- specifically nickel. The primary Dutch exports to Cuba are meat products, factory machinery, and transportation materials. According to Statistics Netherlands (CBS),the trend of decreasing imports from Cuba to the Netherlands, reported in reftel B, continues: -- 2006 imports from Cuba: 471,573,000 euro ($655 million) -- 2007 imports: 315,283,000 euro ($438 million) -- 2008 imports: 116,330,000 euro - estimated ($162 million) However, the value of exports to Cuba does not follow the same trend: -- 2006 exports to Cuba: 70,655,000 euro ($98 million) -- 2007 exports: 71,564,000 euro ($99 million) -- 2008 exports: 92,375,000 - estimated ($128 million) (Note: All of these trade figures likely are inflated, because they count goods from third countries moving to and from Cuba via the Dutch port of Rotterdam. The Ministry of Economic Affairs states that Dutch imports from Cuba totaled only 19 million euro ($26 million) in 2006 and 24 million euro ($33 million) in 2007. End note.) ¶4. (U) The Netherlands Council for Trade Promotion (NCH) organized a May 26 meeting of the Netherlands-Cuban Business Council. The meeting examined the warming of U.S.-Cuban relations and its potential to spur political reform and greater foreign direct investment in Cuba, including by Dutch companies. The Dutch Ambassador to Cuba and representatives from Atradius (a Dutch export insurance company) offered their views on these issues. (Note: NCH organizes these meetings once or twice a year. It is a privately funded trade organization not affiliated with the GONL. End note.) ¶5. (SBU) Despite their ongoing trade relationship, the Netherlands and Cuba do not have a formal trade agreement in place. According to the Ministry of Economic Affairs, the Netherlands does not consider Cuba a "priority country." GALLAGHER