American Companies Move In

The bigger story is American companies and their quest to do business on Cuban soil. In recent years, the U.S. has allowed citizens, after obtaining a special license, to sell certain types of agricultural and medical products, according to NPR, but several companies have steered clear of the opportunity. The reason: Banks, and some other stuff.

In the past, doing business in Cuba meant moving your finances through a Cuban intermediary, which was difficult because finding a Cuban bank to work with was a major challenge in and of itself. Under the new rules, as they’ve been explained by the White House, U.S. banks will henceforth be allowed to establish ties with existing financial institutions in the area, which should make doing business in Cuba much easier and cheaper for American-based companies.

However, despite these improvements, American businesses will still have to maneuver their way through the admittedly touchy labyrinth that is Cuban politics, answering questions about how their presence will improve the country’s economic position.

It’s an encouraging step towards a more symbiotic relationship, which promises future profits for parties on both sides of the spectrum, but it’s a transition still in its infancy. As NPR reported, in the last decade, the U.S. has levied increasingly stiff legal actions against companies and banks who circumvent legislation to do business with embargoed countries. And even though the Obama administration is working to end the Cuba embargo, doing business in the new market will undoubtedly mean adhering to a laundry list of obligatory stipulations – something that still has some companies on their toes.

Ultimately, Cuba is a blank slate market with immense money-making potential. A deep political and cultural divide will likely prove the most challenging hurdle, but as the presence of American businesses becomes more commonplace, the stigma should slowly subside and normalized business can be establish. Expect to see bigger developments in the years to come.