Cuban imports soar, widening trade deficit-report
By Marc Frank
Havana
Reuters
Infosearch:
José F. Sánchez
Bureau Chief
USA
Research Dept.
La Nueva Cuba
November 8, 2005
Cuba's trade deficit has widened this year as imports soar and exports have weakened on declining sugar output and falling nickel prices, a top trade official said in remarks published on Monday.
Deputy Foreign Trade Minister Antonio Luis Carricarte said in an interview in the official business weekly Opciones, that imports jumped 34 percent in the first nine months of the year, compared with the same period last year, while exports declined slightly.
Total foreign trade, including both imports and exports, rose 22 percent in the first nine months of this year, compared with the same period last year.
He said total trade was $7.5 billion in 2004, according to preliminary figures, of which 23 percent was exports and the rest imports.
According to the breakdown, exports last year would have been about $1.7 billion and imports about $5.8 billion, which would leave a trade deficit of around $4 billion.
Carricarte did not explain why imports had soared, but said exports had declined this year because nickel was being hit by lower international prices and sugar output had fallen.
World nickel prices have slumped since mid-year. The London Metal Exchange nickel price for 3-month delivery - was trading on Monday at $12,100 per tonne, down from its 2005 high in may of $16,850 a tonne.
This year's sugar crop was the lowest in a century at 1.3 million tonnes, leaving little for export after domestic consumption of 700,000 tonnes.
Nickel was expected to account for 48 percent of total exports this year, Foreign Trade Minister Raul de la Nuez said last week, which he estimated at just over $2 billion.
Second in importance would be about $300 million in exports of pharmaceuticals, followed by tobacco products and sugar.
In the first nine months of 2005, crude oil and refined products accounted for 26 percent of imports, followed by food, with 20 percent. Machinery and parts accounted for 17 percent, followed by metals and manufactured goods, with 6 percent and chemicals with 5 percent.
SERVICES SEEN PLUGGING TRADE GAP
Cuban President Fidel Castro said earlier this year that service revenues from tourism and medical services, as well as family remittances and money transfers, would cover the trade deficit this year, resulting in a current account balance of payments surplus.
However, a local economist said she doubted that would be possible as export revenues were well below expectations.
The Central Bank put Cuba's foreign debt at $12 billion in 2004.
Last year Cuba achieved its first current account surplus since 1993, of $176 million, and posted an $800 million increase in its capital account due to the replacement of the dollar in circulation by a local scrip called the convertible peso.
Cuba narrowed its goods and services trade deficit in 2004 to $124 million from $397 million in 2003, while the already positive surplus of money transfers in and out of the country also improved.
The current account balance of payments is the broadest measure of a country's foreign transactions, encompassing trade in goods and services, and so-called "invisibles" like remittances and money transfers.
Over the last few years the structure of Cuban trade has changed, with Venezuela growing into its No. 1 trade partner.
Cuba imports Venezuelan petroleum and derivatives on preferential terms, and China which provides soft credits for consumer goods and infrastructure development.
Cuba has also imported large quantities of food, more than $400 million in 2004, from archenemy the United States under a 2000 amendment to the trade embargo allowing the purchases for cash.
De la Nuez said last week that the Western Hemisphere accounted for 49 percent of trade, Europe 29 percent and Asia and the Middle East 19 percent, compared with 2002 when the government said Europe accounted for 41 percent of trade, the Americas 39 percent and Asia and the Middle East 18 percent.
Carricarte told Opciones the country's top 10 trade partners were Venezuela, accounting for 22 percent of trade, followed by China with 10 percent, Spain with 8 percent, Canada with 8 percent, Netherlands with 7 percent, United States with 5 percent, Brazil with 4 percent, and Vietnam, Italy and Japan with 3 percent each.
http://www.lanuevacuba.com/nuevacuba/notic-05-11-802.htm
By Marc Frank
Havana
Reuters
Infosearch:
José F. Sánchez
Bureau Chief
USA
Research Dept.
La Nueva Cuba
November 8, 2005
Cuba's trade deficit has widened this year as imports soar and exports have weakened on declining sugar output and falling nickel prices, a top trade official said in remarks published on Monday.
Deputy Foreign Trade Minister Antonio Luis Carricarte said in an interview in the official business weekly Opciones, that imports jumped 34 percent in the first nine months of the year, compared with the same period last year, while exports declined slightly.
Total foreign trade, including both imports and exports, rose 22 percent in the first nine months of this year, compared with the same period last year.
He said total trade was $7.5 billion in 2004, according to preliminary figures, of which 23 percent was exports and the rest imports.
According to the breakdown, exports last year would have been about $1.7 billion and imports about $5.8 billion, which would leave a trade deficit of around $4 billion.
Carricarte did not explain why imports had soared, but said exports had declined this year because nickel was being hit by lower international prices and sugar output had fallen.
World nickel prices have slumped since mid-year. The London Metal Exchange nickel price for 3-month delivery - was trading on Monday at $12,100 per tonne, down from its 2005 high in may of $16,850 a tonne.
This year's sugar crop was the lowest in a century at 1.3 million tonnes, leaving little for export after domestic consumption of 700,000 tonnes.
Nickel was expected to account for 48 percent of total exports this year, Foreign Trade Minister Raul de la Nuez said last week, which he estimated at just over $2 billion.
Second in importance would be about $300 million in exports of pharmaceuticals, followed by tobacco products and sugar.
In the first nine months of 2005, crude oil and refined products accounted for 26 percent of imports, followed by food, with 20 percent. Machinery and parts accounted for 17 percent, followed by metals and manufactured goods, with 6 percent and chemicals with 5 percent.
SERVICES SEEN PLUGGING TRADE GAP
Cuban President Fidel Castro said earlier this year that service revenues from tourism and medical services, as well as family remittances and money transfers, would cover the trade deficit this year, resulting in a current account balance of payments surplus.
However, a local economist said she doubted that would be possible as export revenues were well below expectations.
The Central Bank put Cuba's foreign debt at $12 billion in 2004.
Last year Cuba achieved its first current account surplus since 1993, of $176 million, and posted an $800 million increase in its capital account due to the replacement of the dollar in circulation by a local scrip called the convertible peso.
Cuba narrowed its goods and services trade deficit in 2004 to $124 million from $397 million in 2003, while the already positive surplus of money transfers in and out of the country also improved.
The current account balance of payments is the broadest measure of a country's foreign transactions, encompassing trade in goods and services, and so-called "invisibles" like remittances and money transfers.
Over the last few years the structure of Cuban trade has changed, with Venezuela growing into its No. 1 trade partner.
Cuba imports Venezuelan petroleum and derivatives on preferential terms, and China which provides soft credits for consumer goods and infrastructure development.
Cuba has also imported large quantities of food, more than $400 million in 2004, from archenemy the United States under a 2000 amendment to the trade embargo allowing the purchases for cash.
De la Nuez said last week that the Western Hemisphere accounted for 49 percent of trade, Europe 29 percent and Asia and the Middle East 19 percent, compared with 2002 when the government said Europe accounted for 41 percent of trade, the Americas 39 percent and Asia and the Middle East 18 percent.
Carricarte told Opciones the country's top 10 trade partners were Venezuela, accounting for 22 percent of trade, followed by China with 10 percent, Spain with 8 percent, Canada with 8 percent, Netherlands with 7 percent, United States with 5 percent, Brazil with 4 percent, and Vietnam, Italy and Japan with 3 percent each.
http://www.lanuevacuba.com/nuevacuba/notic-05-11-802.htm
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