International newsmaker Q&A Jake Colvin

Feb. 11, 2015
An expert in U.S.-Cuba relations, Jake Colvin is vice president of global trade issues at the National Foreign Trade Council in Washington, D.C. and executive director of the NFTC’s Global Innovation Forum. He answered these questions about Cuba asked by Aftermarket Business World.

With President Barack Obama making overtures into normalizing diplomatic relations with Cuba and perhaps convincing Congress to soften the U.S. trade embargo of the island nation, much attention has been directed towards the Cuban automotive marketplace and its long-time affection for the classic American “Yank Tanks” that arrived prior to the embargo being initiated during the height of the Cold War.

An expert in U.S.-Cuba relations, Jake Colvin is vice president of global trade issues at the National Foreign Trade Council in Washington, D.C. and executive director of the NFTC’s Global Innovation Forum. He recently answered a series of questions about Cuba asked by Aftermarket Business World:

Q: Do you think Congress will be inclined to end or lessen the embargo?

A: Congress is going to be a tough nut to crack, though you’ll see a lot of enthusiasm by the business, agriculture, NGO (non-governmental organizations) and Cuban-American communities in pressing legislators to remove the rest of the sanctions. One nice thing about the change in policy that President Obama announced is that it permits this conversation to take place on The Hill, which wouldn’t have been on their radar screen otherwise.

Q: What is your assessment of Cuba’s current automotive market?

A: It’s a mix of old American peaches in various conditions and Asian imports. Cubans have gotten by on foreign parts and chewing gum and dental floss solutions for the past 60 years, along with some American parts shipped in by family and friends. There’s bound to be a great deal of pent-up interest in new American cars and parts for really old American cars, though the ability to afford the new vehicles in particular will be limited.

Q: We’ve seen so much about the classic “Yank Tanks” that keep on running, what is the demand for new vehicles?

A: My sense is that demand is high, though the ability of individuals or the Cuban Government to purchase new vehicles is limited by financial constraints. Cuba is not awash in foreign capital.

Q: Do you think the Cuban population would purchase used cars from the U.S.?

A: My read of the new U.S. regulations is that they provide wide latitude for Americans to ship products to Cuban entrepreneurs in support of their business ventures, and that could include autos and auto parts, both used and new. Automakers will have to assess what U.S. and Cuban regulations will actually allow, and then understand demand, which will likely be limited in the short term.

Q: Do you think that U.S.-style parts and repairs operations would fare well in Cuba?

A: Both because of U.S. regulations as well as the reality on the ground in Cuba at the moment, I think it’ll be a while yet before parts retailers such as AutoZone or repair shops such as Midas set up shop in Havana.

Q: Opponents of improved relations with Cuba say it is a bad idea because the U.S. should not be sending a message of approval to the Castro brothers and their human rights issues. How does this square with our existing trade relations among other nations that have displayed a disregard for human rights?

Q: The United States should be in the business of providing as many opportunities as possible to support Cuban individuals and entrepreneurs, as we do in countries around the world. U.S. sanctions in Cuba are contrary to our policies of economic and diplomatic engagement in countries like China and Vietnam. 

Q: How would you react to the idea of U.S. businesses – automotive industry suppliers – organizing car-culture cultural exchanges with like-minded Cuban car owners?

A: Cultural diplomacy around cars is a great idea. It would be nice to see programs such as Taillight Diplomacy get kick started by the change in policy.

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