Economics for Dummies: The real reasons for the lifting of the Cuba blockade?

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This is Puerto Mariel, Cuba. It looks pretty sleepy from the air right now, but don’t be fooled. What you’re looking at there is actually a sleeping giant with the potential to shake markets as far away as New York, if Telesur’s report (via Contrainjerencia) has anything to say. And if it reawakens before the Yanks come in with their suitcases full of money…

Mariel was built by Brazil and Cuba, during the government of Dilma Rousseff, with an investment of 957 million dollars, meaning that Brazil would become Cuba’s greatest economic partner.

In 2011, Brazil and Cuba obtained a combined market of $571 million, which surpassed the markets of China and Venezuela.

The port, which received $682 million from the National Development Bank of Brazil (BNDES) is considered to be one of the most modern ports, compared to those of Kingston (Jamaica) and Freeport (Bahamas). It has the capacity to receive large ships of the “Super Post Panamax” class.

Another benefit of the expected economic improvement of the Caribbean island, and especially for Brazil, is the geographic zone, which lies near the coast of the US, just 150 kilometres away; and it is from there that Brazilian companies could export to the US.

Translation mine.

Could this be what put a fire under the gringos’ butts? Oh, possibly. And if not that, there’s always a good chance that it would be that sweet, sweet, offshore Cuban crude oil that’s got them thinking that maybe, just maybe, an ideologically motivated anti-socialist blockade might not the the best thing for their capitalism, either:

Under the current embargo, Cuba cannot access U.S. oilfield equipment for both drilling and environmental protection. The embargo prohibits the exporting and re-exporting of items that contain more than 10 percent American components under the De Minimus Rule under Sections 734.4 and 736.2 (b)(2) of the Export Administration Regulations (EAR). What is particularly interesting about the embargo is the fact that Washington refued to allow an exemption for U.S. oil spill prevention and response companies even though the Obama Administration was very concerned about potential oil spills from drilling operations located relatively close to the U.S. – Cuba maritime boundary in 2012.   

Of course, with Venezuela firing up a plan to help Cuba exploit that oil itself, and with PDVSA’s significant presence in Cuba already, and with their access to equipment not of US provenance, well…that would put quite the crimp in the US’s blockade, not to mention any hopes Gringolandia’s oilmen might have of a future right to exploit those considerable offshore reserves!

And with Chavecito’s ALBA being nearly ten years old now, that means there’s been plenty of time for Cuba to strike up good mutual economic relations with not only Venezuela, but a number of other Latin American countries as well.

No wonder Gringolandia is out in the cold when it comes to the oilfields. And no wonder they want in now, before big, bad, socialistic-progressive Brazil and other Latin American countries gobble up all of that yummy, yummy Cuban economic pie.

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This entry was posted in Barreling Right Along, Brazil is the Bomb!, Cuba, Libre (de los Yanquis), Economics for Dummies, Huguito Chavecito, Isn't It Ironic?, Socialism is Good for Capitalism!. Bookmark the permalink.