Cuba

The Republic of Cuba is the largest island of the grouping of the Caribbean, situated west of Hispaniola island (Haiti and the Dominican Republic), and 145 km south of Key West, Florida (US). It has a population of 11 240 000 inhabitants. The HDI for Cuba is high, at 0.863, which means that Cuba ranks 51st out of 182 countries with data. GDP per capita is estimated at between USD 4.000 and 6.000 (Cuba calculates its GDP using estimated market values of government services, rather than cost1), average lifespan exceeds 77 years, the literacy rate is as high as 99.8%, and the infant mortality rate of 4.7 per 1,000 live births is the best in the region and equal to that of the US.

Cuba is situated in the hurricane belt and frequently suffers severe impacts from hurricanes or tropical storms. The island was severely hit by three hurricanes in 2008, with overall damage estimated at some USD 10 billion. Climate change may be increasing the frequency and strength of the hurricanes that affect Cuba.

Cuba has been a member of the ACP group since 2000, although it is not a signatory of the Cotonou Agreement. It is the only country in Latin America and the Caribbean which does not have a formal agreement with the EU. However, it participates in the Strategic Partnership between the European Union (EU) and the countries of Latin America and the Caribbean (LAC) and is a member of the Rio Group.

The EU's relations with Cuba are based on the Common Position adopted in 1996, which opts for a policy of constructive engagement and dialogue instead of coercive measures, whilst firmly stating that contentious issues such as the human rights situation, in particular that of political prisoners and restrictions to freedom of expression, remain a priority for the EU.

Within this context, an EU-Cuba political dialogue covering the whole range of potential fields of cooperation including the political, human rights, economic, scientific and cultural aspects, was re-launched and development cooperation between the European Commission and Cuba was resumed in October 2008, following the Council decision to lift the diplomatic measures that had been adopted vis-à-vis Cuba in 2003.

The EU is Cuba's largest trading partner, with one third of all trade, almost half of foreign direct investment and more than half of all tourists coming from Europe. Cuba benefits from the Generalised System of Preferences in its trade exchanges with the EU.

Cuba joined CARIFORUM in October 2001 and has also signed a 'partial scope' free trade zone agreement with CARICOM.

As regards Cuba's strategic priorities, in 2010-11 the Cuban authorities will focus mainly on measures to try to boost efficiency and productivity, particularly in the agricultural sector, and to raise the living standards of the population. The 2008 hurricanes, as well as the rapid and sustained increase in international food prices (Cuba imports 80% of its food consumption), represent an enormous challenge for Cuba, making food security the national priority, along with the protection of natural resources and adaptation to climate change.

Following his nomination on 24 February 2008 as President of the Council of State, Raul Castro announced a series of reforms, ranging from largely symbolic measures to farther-reaching reforms such as the recent leasing of agricultural land to individual farmers and the decentralisation of some decision-making in this sector. In this context, decisions are gradually being put in place with a view to increasing the quantity, efficiency and quality of food production in Cuba through greater empowerment of the small-holder sector.

An indicative allocation of €20 million has been earmarked for Cuba for the period 2011-2013 under the EU Development Cooperation Instrument (DCI). Three priority sectors have been identified for this Country Strategy Paper, namely:

1. Food security;
2. Environment and adaptation to climate change;
3. Expertise exchanges, training and studies.

Cooperation in these areas does not imply any changes in the EU policy towards Cuba.

These funds can be complemented by projects and programmes financed under the DCI and EDF regional programmes, as well as from DCI thematic programmes and other cooperation instruments of the EU.