Cuba invested $36 million in the first seven months of 2024 to import vehicles from the United States, thanks to the easing of the embargo promoted by President Joe Biden. According to the Biden administration, these measures consider the purchase of vehicles as a humanitarian issue, excluding the impact of the so-called "blockade" policy, and the increase has been significant.
According to the U.S.-Cuba Economic and Trade Council, the majority of this investment ($34,587,077) pertains to used cars imported between January and July 2024. John S. Kavulich, president of the Council, highlighted that this surge is one of the most remarkable compared to the previous year, as reported by the site Periódico Cubano.
In 2023, car exports amounted to $9,824,627, a figure that has already been vastly surpassed. Just in June of this year, purchases reached $3,705,643. In fact, the numbers are expected to increase gradually following the changes announced last week by Cuba's Minister of Transportation, Eduardo Rodríguez Dávila. The new government measures for vehicle imports could further boost purchases from the U.S.
Rising Costs and Import Trends
The total cost of an imported vehicle to Cuba depends on various factors, such as the initial price, import expenses, tariffs, and commercial margins. For instance, a mid-range car can cost around $15,900.
In contrast, food imports from the U.S. experienced a 2.6% drop in July 2024, reaching $31,457,528, compared to $32,313,837 in the same month of the previous year. This decline is partly due to the recent price-capping policy affecting basic products like chicken, sausages, oil, and powdered milk.
Currently, Cuba ranks 50th among the 222 export markets for U.S. agricultural and food products, highlighting the importance of trade between the two countries despite political tensions and the "blockade" argument raised by Cuban authorities, the digital media added.
Frequently Asked Questions about Cuba’s Vehicle Imports
To provide a clearer understanding of Cuba's recent increase in vehicle imports from the United States, here are some frequently asked questions and their answers.
Why has Cuba increased vehicle imports from the U.S. in 2024?
The increase is largely due to the easing of embargo restrictions by President Joe Biden’s administration, which views vehicle purchases as a humanitarian issue.
How much has Cuba spent on vehicle imports so far in 2024?
Cuba has spent $36 million on importing vehicles from the United States in the first seven months of 2024.
What is the impact of the price-capping policy on food imports?
The price-capping policy has led to a 2.6% decrease in food imports from the U.S., affecting basic products like chicken, sausages, oil, and powdered milk.