• Submitted by: manso
• Business and Economy
• 09 / 11 / 2011

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Iran signed six economic cooperation agreements with Cuba, including one that increases a line of credit to the island to euro 500 million ($690 million), an agreement under which Iran will help several Cuban cities restore and expand their water system, and one under which Cuba will export sugar and nickel to Iran, according to official media.

The agreements were signed during a visit of First Vice President Mohamed Reza Rahimi in Havana. He was accompanied by Mehdi Ghazanfari, minister of industry, mining and trade.

The two countries also signed an agreement about energy. No details were released.

Foreign Trade Minister Rodrigo Malmierca said that Cuba will use the euro 500 million line of credit — which was raised from euro 200 million — to buy Iranian products for water infrastructure, energy and agriculture.

Despite a wide range of existing agreements, bilateral trade dropped to $27 million last year from $46 million in 2009, according to Reuters. Iran has been buying pharmaceuticals from Cuba, while Cuba imported rail wagons, machinery, food and textiles from Iran. Existing joint ventures produce appliances and railroad parts on the island, and pharmaceuticals in Iran.

Other agreements include one signed between the Cuban institution supervising insurance with its Iranian peer, a healthcare agreement, and one about maritime trade. The lack of existing shipping routes between the two U.S.-embargoed nations is a major obstacle for trade.

Source: www.cubastandard.com/2011/09/09/iran-boosts-line-of-credit/