The recent official establishment of the Special Development Zone Mariel (ZDEM), is a clear sign that Cuba intends to attract foreign capital as a way to stabilize economic growth.
With an area of 465 square kilometers, 45 km (west of the Cuban capital, the ZEDM includes as its main attraction the important geographical position equidistant from Gulf of Mexico’s ports and a deepwater pocket bay whose dimensions allow large Post- Panamax vessels maneuvering.
The floating giants can carry between 9500 and 12 000 standard containers and on average, its dimensions are 366 meters in length, 49 wide and a draft of up to 15 meters.
Mariel is inserted also in the possibilities that the canal expansion on the Isthmus of Panama will open, which facilitate the passage of large ships, and also ahead of the waterway that Nicaragua plans to build .
As part of the conception of ZDEM is the customs and tax regime and other flexibilities that there will favor those who install their industries and commercial enterprises.
The spirit of “mega project” is clearly inspired by the success of similar zones in China, and although it was not recognized by Cuban authority’s assimilation of such experiences, the first official presentation of the ZDEM was to Chinese companies in Beijing.
They are seductive benefits as total tax exemption for the use of the labor force, while profits may be repatriated without any charge during the first 10 years, with the possibility of a longer period exceptionally.
As stated in the Decree-Law 313 of September 19, 2013, which came into force on the first of November, foreign investment in the area cannot be expropriated
Another step towards potential investors favor is the creation of the famous ” ventanilla unica” , to facilitate all procedures of dealers in a single office , to which was added the granting of powers to the Area Office that administers for the approval of the majority of the proposals submitted .
In the latter regard, only related business with exploration of natural resources, including those from foreign yield to public property, real estate creation and one hundred percent foreign companies would require the government decision and analysis, according to Minister of Trade and Foreign Investment, Rodrigo Malmierca .
Currently a Cuban -Brazilian company is working on infrastructure, in addition to port facilities, including access roads, railway, technical networks, stores and other services, the first phase should be available early 2014.
The ZEDM is the first step in opening up the Cuban economy to foreign capital following the rules that currently make international practices, and the abandonment of methods that discourage traders and investors.
Cuba could be close to a favorable situation to renew its development strategy, Cuban economist Pedro Monreal predicted in an article, who said it is an opportunity that takes centuries to develop.
It would be the eventual transformation of important segments of international trade and global manufacturing organization, with the entry into operation of the new Panama Canal in 2015 and the possibility of transfer of Post-Panamax vessels.
But Monreal avoids triumphalism when he asserts that “economic scenarios regarding any outcome can be uncertain”, although if they do materialize it will likely mean development for Cuba.
“Being able to use it properly is another matter,” the economist warned.
The hypothesis proposed by Monreal stated that the process goes far beyond the actual shipping racking, is that Cuba could be a modest, but effective part, of a central process of global production that will modify costs and reconfigure schemes in the way a substantial part of the contemporary production and trade is organized.
By Douglas Tamayo
