Cuba succeeds in efforts to improve relations with Europe.(Brief Article)

After a period of diplomatic coolness with the European Union over the past year, Cuba's relations with the ED have improved significantly in recent months.

At the EU meeting in May in Sweden, EU officials decided to resume an effort to seek association agreements with Cuba regardless of differences over human rights and democracy. The Europeans, particularly Spain, perceive such agreements as effective tools in influencing Cuban behavior, though US officials vehemently disagree.

European pragmatism prevails

Cuba has succeeded in breaking through European ire over the government's crack down against dissent last year and in 1999, in part because Europe's decision to slow the development of relations had no effect on the island's government. In addition, the commercial ties between the EU and Cuba are simply too extensive to have them put on hold indefinitely. The EU's recent decision to support Pernod Ricard's legal claim against Bacardi in the dispute over the Havana Club trademark was just one example of this.

Trade with the Netherlands increased significantly, reaching the unprecedented figure of $541 million, more than Cuban trade with China and Russia. Nickel accounts for most of this trade. Europe now accounts for about 45% of all trade with Cuba. Spain is Cuba's leading trading partner, with bilateral sales reaching more than $850 million in the first half of 2001. Cuba imported $600 million dollars worth of Spanish goods, which makes the island Spain's fourth largest trading partner in Latin America.

British exports to Cuba reportedly will top $100 million this year and more than 100,000 UK tourists are expected to visit Cuba. Britain is expected to provide up to $40 million in export financing and development credits to Cuba in 2001.

Cuba also remains loyal to the euro and sells its tourism packages in the relatively weak and untested European currency. Cuban officials say that while their quick adoption of the euro has hurt tourism revenue, it should win loyal customers in the long run.