World Steps In Where US Refuses To Tread

Despite 50 years of a trade embargo with its nearest neighbor, Cuba is doing plenty of business with the rest of the world. Gareth Jenkins, of the Cuba Business Ltd. Consultancy in London states: "The Canadians were really the pioneers."

In 1991, Ian Delaney, head of Sherrit, Inc. was the first; paving the way for 40 other Canadian companies to open offices in Cuba. There are currently 17 joint ventures between Cuba and Canada, with at least 20 more being negotiated.

Altogether, foreign investors have committed over 3 billion dollars to the island nation, with promises of lots more to follow.

Canadian Wally Berukoff is working with Cuba in pharmaceuticals, mining, and leisure industries, including a gold mine and 11 luxury hotels. He has opened several pizza restaurants in downtown Havana. But his customers are mostly tourists. The natives can't afford a $2 pizza.

And Canadian David Allen, chairman of York Medical, observes "The only reason any of us are there is because of the embargo."

But the Cuban government insists they are not returning to capitalism. Economic reforms are intended, instead, to defend socialism. While tourism is a vital component in the

Cuban economy, they do not intend to allow casinos (that doesn't compute well with las vegas business, now does it?).

Pioneer Sherrit International is the largest single foreign investor in Cuba at $650 million.

Carlos Lage Davila, secretary of Cuba's Council of Ministers, confirms that Sherritt International will be offered opportunities in communications, transportation, real estate, finance, and sugar. That inside track has not been without consequences. In 1995, Sherrit head Ian Delaney was blacklisted by the U.S. Treasury Department as a "specially designated national".

He doesn't care. With some admitted arrogance he declares "I can play poker with the cards face up and I'm still going to win."

And even as other countries reap the benefits of America's refusal to do business with Cuba, the U.S. may be missing out on what could be a significant future asset, Fuel.

Sugarcane products, especially ethanol, will become increasingly important in coming years. And Cuba is making oil drilling in the Gulf of Mexico-just 60 miles from the U.S-a priority.

Even if the embargo were to cease, it would take a significant amount of time to rebuild trust between the two nations. Cuba took careful note of the chaos in Moscow at the fall of communism there, and is understandably wary of modern-day carpetbaggers. An understanding of Cuba's business culture will be essential. Cubans' warm casual style and a lot of small talk may be a difficult prescription for U.S. businesses to swallow.

Difficult, but not impossible. Despite the embargo, over 150 U.S. businesses are already doing business with Cuba in the permitted humanitarian areas of food and medical supplies. Maybe its time we stopped sulking in the corner of the playground and came out to play with the neighbor kids.