John Kavulich is an old connoisseur of Cuba. He has been aware of Cuban reality for years, particularly its economic scenario and its fluctuating and limited relations with the United States.
Supported by this experience, he chairs the United States-Cuba Trade and Economic Council, an entity that defines itself as a source of record for the American business community for non-partisan trade and economic information related to the island.
With this endorsement, he is cited and referenced by companies and the media as well as by authorities and academic institutions.
In addition, he has explored first-hand the Cuban economic structure and has sought to establish ties with its private sector. In May 2022 it was news that the Biden administration had authorized an investment by him in a private business in Cuba ― the first in six decades from the United States on the island ― which, however, has not yet come to fruition.
Regarding the investment, Kavulich has preferred not to give many details, waiting for it to become a reality, but as it emerged then, the investment is “up to 25,000 dollars,” and the business that would benefit is not related to the government of Cuba and has more than 5 years of growth in the services sector.
EEUU autoriza por primera vez en seis décadas una inversión en negocio privado de Cuba
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The American businessman and analyst was one of the participants in an event that many have classified as “historic”: a meeting, in Miami no less, of private entrepreneurs from the island with businessmen, legal experts and authorities from the United States (many of them, born or with roots in Cuba).
The event, attended by about 70 Cuban entrepreneurs, hosted panels, talks, business presentations and visits to offices and facilities of American companies in South Florida.
About what happened and its meanings, Kavulich shared his appraisal with OnCuba.
What is your assessment of the meeting held in Miami?
It is not only a historic event but an incredibly significant one. It is important, first of all, because the topic addressed is operational and practical, not inspirational and aspirational.
It is not talking about what we would like, or what we want to happen; there has been no talk of ending the blockade/embargo in the abstract, but of actual U.S. regulations. And also those of Cuba. And what we can do in practice with them. This is what we do and what we have.
I think it is a great sign that so many representatives of Cuban SMEs have come to Miami. It is a sign that these private entrepreneurs are not afraid, and that is important. And also that they are interested in finding solutions to move forward. Their message is: “We have a business and we want to make it bigger and better.”
How could this meeting help them in that sense?
They are looking for the tools and alliances necessary for that growth, so this meeting helps provide them with those tools, and can open doors for new business alliances. Although other changes are also necessary.
We hope that the Biden-Harris administration will announce more changes aimed at Cuba’s private sector. But we also need the Cuban government to take new measures and establish regulations that allow investments and finances in private businesses.
As is known, I had my first license from the United States government in May of last year. And we’re still waiting! The money is still in the account and cannot reach Cuba because there are no regulations for it.
What other obstacles would have to be overcome to make the approach promoted by this meeting more viable?
In the scenario of relations between Cuba and the United States there are many obstacles. It’s like an Olympic event with hurtles.
Before, people wanted to do less, so the obstacles didn’t seem so big; but now they want to do more, so the obstacles are more challenging because they are placed on specific objectives and specific transactions. It is not just a matter of politics but of practical questions, of how one can do this or that; for example, moving money.
The Obama administration allowed U.S. banks to have accounts in Cuba, but not Cuban banks to have them in the United States. What’s frustrating for everyone here is that if we want to send money to Cuba from the United States — trading money, I mean — three banks would have to get a fee: my bank, a third-country bank, and the recipient’s bank. How could this make sense?
It is one of the frustrating issues for the business community that does business with Cuba under the Biden administration: banking policy. They will say: “Well, the banks are not going to do it because of the list of state sponsors of terrorism, because they are afraid.…” Maybe, but that is their decision. They are practical institutions. I hope someone asks the State Department: “What’s wrong with this?” and that situation can be changed.
It’s good that Cubans can have bank accounts in the United States, it’s good that Biden allows more to be done, but unless money can be moved efficiently, not much is going to be achieved. Everyone here has a silent partner, a bank in another country. But I don’t want a silent partner, and neither do they. We want a more direct route.
So, returning to the initial point: this event is important because it is large, with people from Cuba, with businessmen and authorities from the United States, and it has not been a theoretical event but about what we can do and how we do it.
Of the necessary changes, which do you think are most urgent in the short term?
Next year will be the Council’s thirtieth anniversary. Already thirty years. I have seen many changes in all this time, but right now I would be happy with two. One: that Cuba establish regulations that allow investments and financing for SMEs. Two: that the Biden administration change banking policy. So, even with the list, even with all the other restrictions, a tremendous scenario would open up.
So I’m not happy with what we have right now, but if we achieve both things, which are symmetrical: one from the United States, the other from Cuba, the possibilities would be very different. And in the next meeting that is held, like this one, instead of 70, there will be 300 SMEs from Cuba, and more American businesspeople as well. So let’s keep our fingers crossed.
TN: Kavulich’s answers were retranslated from the Spanish
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