In a desperate and unconventional financial move, the Cuban government plans to pay for a batch of tractors from Belarus with rum and coffee. This proposal emerged during the visit of Belarusian Prime Minister Roman Golovchenko to Cuba, where the necessity of finding new markets for both countries' products was discussed, according to Plan B.
Prior to the visit in early June, Belarus and Cuba approved a mutual trade plan for the next two years, with an expected exchange of $6.8 million in exports from each country. However, trade between the two nations will not be conducted with cash due to the lack of funds in the Caribbean island's coffers.
Traditionally, Belarus has exchanged tractors for Cuban pharmaceuticals, but the current offer of tractors exceeds the demand for medications in that country. Belarus offers "flexible" payment mechanisms to its liquidity-strapped partners.
To balance this situation, Golovchenko proposed expanding the list of products for barter operations, including rum, cocoa, coffee, and fruit puree, among others. "Besides pharmaceuticals, we are interested in the supply of rum, cocoa beans, coffee, fruit puree, and other items. We are ready to discuss these matters, and upon reaching an agreement on price and quality, include them in our trade exchange scheme," the Belarusian official stated.
In addition to agreements with Cuba, Belarus has also bartered tractors for oranges in Africa. The report does not specify how Cuba will ensure these payments, given the island's severe issues in beverage and coffee production.
Belarus-Cuba Trade Questions
Given the unconventional nature of the Belarus-Cuba trade agreement, many questions arise about the logistics and feasibility of such an exchange. Here we address some of the most pertinent inquiries.
How will Cuba ensure the supply of rum and coffee?
Cuba faces significant challenges in beverage and coffee production. It remains unclear how the government plans to meet these demands, especially given the country's current economic struggles.
Why is Belarus offering tractors in exchange for goods?
Belarus has a surplus of tractors and seeks to trade them for other goods it requires. The country has previously exchanged tractors for Cuban pharmaceuticals and oranges from Africa, demonstrating flexible trade practices.
What products are included in the Belarus-Cuba trade agreement?
The trade agreement includes products such as rum, cocoa beans, coffee, fruit puree, and pharmaceuticals. Both countries are open to discussing and negotiating the prices and quality of these items.