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Friday, January 6, 2017, 16:04

Charcoal becomes first Cuban export to US in 50 years

By Reuters

Charcoal becomes first Cuban export to US in 50 years
Handout picture released by www.cubadebate.cu showing the president of the US company Coabana Trading LLC, attorney Scott Gilbert (C), and the director of CubaExport, Isabel O'Reilly (L), are pictured after signing an agreement to export Cuban charcoal to the United States, on January 5, 2017 in Havana. (HO / www.cubadebate.cu / AFP)

HAVANA -- Cuba announced a landmark deal on Thursday to sell charcoal to a US company, the first legal Cuban export to the United States in five decades, as part of the fragile rapprochement between the former Cold War foes.

The sale of 40 tonnes of charcoal derived from the woody plant marabu comes at a time when the two-year US-Cuban detente looks under threat. It is also largely symbolic, given that it is worth around US$17,000.

This is a first contract but we hope to continue our relationship for many years and not just with vegetal charcoal, but other products that we have ready to export like honey and coffee

Isabel O'Reilly, the director of state exporter Cubaexport

The first delivery is scheduled for Jan 18, two days before the inauguration of US President-elect Donald Trump , who has threatened to row back on the normalization of US-Cuba relations unless he gets a "better deal".

"This is a first contract but we hope to continue our relationship for many years and not just with vegetal charcoal, but other products that we have ready to export like honey and coffee," Isabel O'Reilly, the director of state exporter Cubaexport, told Cuba's official media outlet Cubadebate.

While a damaging US trade embargo on Cuba remains in place, outgoing President Barack Obama has facilitated some commercial links with executive orders.

Obama's administration eased restrictions on imports of goods and services from private Cuban entrepreneurs in early 2015. It was unclear, however, how this would work in practice given that individuals cannot independently import and export products or services under Cuban law.

Under the charcoal deal, private cooperatives will deliver the product to a local packager that will sell it on to state-run export firm CubaExpo, which in turn will deal directly with US company Coabana Trading LLC.

Coabana Trading will pay US$420 per tonne, above the usual market price of US$340 to US$380 per tonne for Cuban charcoal, Cubadebate quoted O'Reilly as saying.

Cuba exports up to 80,000 tonnes of charcoal per year to about six different countries and was also seeking to sell it to Great Britain and Germany, Cubadebate said.

Cuba and the Obama administration have been scrambling to deepen and cement their detente, through bilateral agreements and commercial links, since Trump's election in November.

Increased trade with the United States would be welcome news for the beleaguered Cuban economy, which fell into a recession last year in the wake of the political and economic crisis in its strategic ally Venezuela.

Charcoal becomes first Cuban export to US in 50 years
Handout picture released by www.cubadebate.cu showing the president of the US company Coabana Trading LLC, attorney Scott Gilbert (L), and the director of CubaExport, Isabel O'Reilly, signing an agreement to export Cuban charcoal to the United States, on January 5, 2017 in Havana. (HO / www.cubadebate.cu / AFP)

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