Japanese business leaders eager to expand trade with Cuba

A Japanese business delegation expressed bright prospects for expanded trade with Cuba as Foreign Minister Fumio Kishida pitched a new level of exchanges with the island nation.

Tomoyoshi Kondo led the 30-strong delegation from 15 companies as chief of the Japan-Cuba business association to coincide with Kishida's visit, the first by a Japanese foreign minister. Kondo is also an adviser to trading company Sojitz Corp.

Cuba's proximity to the United States and South America makes it an ideal production base, Kondo said, adding that the Caribbean nation's economic prospects are very favorable.

The delegation included representatives of trading companies Sumitomo Corp., Marubeni Corp. and Toyota Tsusho Corp. as well as automakers Mazda Corp. and Hino Motors Ltd., and heavy machinery maker Komatsu Ltd.

The group also toured the Mariel special development zone on the outskirts of the capital, and other areas, on May 2.

At a forum held in Havana later, the Cuban side proposed setting up a joint venture to develop and market pharmaceutical products and called for Japanese cooperation in the field of renewable energy sources.

At a meeting on May 2, Ricardo Cabrisas, vice president of the Cuba’s Council of Ministers, agreed to a proposal by Kishida to set up a public-private sector council with the aim of expanding economic exchanges between the two nations.

Japan was Cuba’s largest trade partner in the non-communist bloc in the 1970s.

Overall trade between the two nations exceeded 230 billion yen ($1.9 billion) in the peak year of 1975. But two-way trade plummeted in the 1990s after Cuba defaulted on payments to Japanese companies following the collapse of key ally the Soviet Union.

In 2014, trade between the two countries stood at just 6 billion yen. This led Tokyo to exempt 80 percent of payments owed by Cuba to the Japanese private sector.

The Cuban government is meeting its obligations to repay the remainder of the credit on time.

Japanese companies moved swiftly to gauge business opportunities in Cuba by sending study teams there after the United States and Cuba moved last December to normalize their relations following more than half a century of enmity.

“Cuba has the most potential to prosper in this region, given its 11 million population and high level of education,” said an official in the trade industry. “All Japanese companies are eager to jump on the bandwagon.”