Cuba country brief
Introduction
Australia and Cuba formally established diplomatic relations in January 1989. Cuba opened an embassy in Canberra on 24 October 2008 and has a Consulate-General in Sydney. Australia’s embassy in Mexico City is accredited to Cuba.
Australia-Cuba relations were given a fresh start in November 2009 when the former Foreign Minister, Stephen Smith, visited Cuba. The visit was the first by an Australian Foreign Minister since 1995 and demonstrated the Government’s commitment to enhanced relations with Latin America and the Caribbean. In October 2009 a delegation of Cuban science officials, led by the Scientific Adviser to the President of Cuba, visited Australia and met with Minister for Innovation, Industry, Science and Research, Senator Carr and visited a number of research institutions and universities. In June the following year, the Cuban Minister for Foreign Affairs, Bruno Rodriguez, visited Australia as a guest of government. The Australian and Cuban Foreign Ministers signed a Memorandum of Understanding establishing political cooperation between their foreign ministries and identified as priorities for closer bilateral cooperation: expanding people-to-people links, aid cooperation in the Pacific and Haiti, and encouraging closer ties in science and technology, sport and culture. On 8 June 2011, AusAID and its Cuban counterpart signed an agreement on medical cooperation in Haiti, to which AusAID has committed A$3million over 4 years, including A$750,000 in 2010-11. On 21-22 July 2011, Mr Richard Marles, the Parliamentary Secretary for Pacific Island Affairs, visited Cuba to take forward a similar proposal for medical cooperation with Cuba in the Pacific.
Since 1996, Australia has voted in favour of Cuba's annual resolution in the United Nations General Assembly calling for an end to the US trade embargo of Cuba. The embargo is codified in US law as Cuban Liberty and Democratic Solidarity Act (also known as the Helms-Burton Act). Australia welcomes recent US moves to improve relations with Cuba. On 13 April 2009, President Obama lifted restrictions on family travel, telecommunications and family remittances to Cuba and expanded the scope for delivery of humanitarian items directly to the Cuban people. On 12 January 2011, President Obama announced a further easing of restrictions on US citizens travelling to Cuba, non-family remittances and US airports supporting licensed charter flights to and from Cuba
Political overview
Background
Cuba had been Spanish colony since Columbus's arrival, though in 1762 it was briefly held by Britain before being returned to Spain in exchange for Florida. A series of rebellions during the 19th century failed to end Spanish rule but the Spanish-American War finally led to Spain’s withdrawal, and formal independence for Cuba, in 1902.
In the years following independence, Cuba saw significant economic development but was often ruled by military figures who obtained or remained in power by force. On 1 January 1959, following a three-year guerrilla campaign, a young lawyer, Fidel Castro, and Ernesto 'Che' Guevara and Camilo Cienfuegos, overthrew the dictatorship of General Fulgencio Batista. President Castro declared Cuba a socialist state on 16 April 1961. This move caused relations between Cuba and the West, especially the United States, to deteriorate. For the next 30 years, President Castro pursued close relations with the Soviet Union. During that time Cuba received substantial economic and military assistance from the USSR, estimated at US$5.6 billion annually, which kept Cuba's economy afloat and enabled it to maintain a large military establishment.
Political outlook
After dominating Cuban politics since 1959, Fidel Castro transferred power to his brother Raúl temporarily in August 2006 and then permanently in February 2008. A process of incremental reform has followed. In 2008, Cubans were given title to the state-owned homes. In 2009, in the biggest cabinet reshuffle in 30 years, ten new ministers were appointed, including the current Foreign Minister, Bruno Rodriguez, and Trade Minister, Rodrigo Malmierca. In March 2011, Cuba released its remaining political prisoners. In April 2011, the first Cuban Communist Party Congress in 14 years endorsed Raúl’s agenda for cuts to public sector employment and state enterprises, a reduction of the food ration, an increased role for small business, expansion of small farming cooperatives, and a focus on attracting foreign investment into mining, energy, agriculture and tourism.
Economic overview
Economic outlook
Having averaged 10.2 per cent GDP growth for several years, growth decelerated to 1.4 per cent in 2009 following the global financial crisis and three damaging hurricanes. A renewed upward trend began in 2010, with GDP growth of 2.1 per cent, forecast to reach 3.5 per cent in 2011.
Growth sectors of the economy are tourism mining, energy, telecommunications and manufacturing sectors. Offshore oil exploration is underway in association with Chinese and Norwegian investors. A new oil refinery and a tanker port are being built in anticipation of significant deposits, which if found should revitalise the Cuban economy within five years.
Bilateral economic and trade relationship
Two-way merchandise trade between Australia and Cuba in 2010 totalled almost A$16 million up from A$7 million in 2009. Australian exports to Cuba totalled A$11 million primarily of milk and cream, heating and cooling equipment and transmission shafts. Cuban exports to Australia were worth A$5 million, mainly tobacco, crustaceans and alcoholic beverages.
Updated July 2011.