Caribbean - Cuba: EU to start talks with Cuba on a co-operation accord

Havana, Cuba

The European Union (EU) will agree next month to deepen relations with Cuba in its most significant overture to the communist island since the bloc lifted diplomatic sanctions in 2008, people close to the matter have told Reuters.

Foreign ministers from the EU’s 28 countries will give the go-ahead on February 10 to launch talks with Havana on a special co-operation accord to increase trade, investment and dialogue on human rights. The pact could be agreed by the end of 2015.

"Cuba wants capital and the EU wants influence," said one person involved in the talks who declined to be named because of the sensitivity of the issue. "This co-operation could serve as a prelude to much more."

Two other people with knowledge of the negotiations told Reuters that a consensus had been reached in Brussels to give momentum to Cuba’s market-oriented reforms under President Raul Castro and to position European companies for any transition to a more capitalist economy there in the longer term.

While the initial effect of a co-operation agreement will be limited, the symbolism is huge for the EU, whose ties with Cuba had been strained since it imposed sanctions in 2003 in response to Havana’s arrest of 75 dissidents.

he EU is Cuba’s biggest foreign investor and Cuba’s second biggest trading partner after Venezuela, and a third of the tourists to the island every year come from the EU.

Cuba recently opened a Chinese-style special economic zone and is preparing a new foreign investment law.

The country is seeking foreign investment at its port facilities in Mariel Bay to take advantage of the expansion of the Panama Canal.

Read more: EU to start talks with Cuba on a co-operation accord | Americas | BDlive