Alabama company gets U.S. permission to build tractors in Cuba

[Eugene]

Source: Reuters

World | Mon Feb 15, 2016 2:25pm EST

Alabama company gets U.S. permission to build tractors in Cuba

HAVANA | BY DANIEL TROTTA

The U.S. government has granted an Alabama company permission to build tractors in Cuba, one of the company's co-owners said on Monday, making it potentially the first American manufacturer to open shop in Cuba since the 1959 revolution.

Co-owners Horace Clemmons and Cuban-born Saul Berenthal plan to self-finance a $5 million to $10 million factory at the Cuban port of Mariel just west of Havana to build small tractors for sale to private farmers and builders in Cuba.

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) informed Clemens and Berenthal last week they were cleared to do business under new regulations issued by the administration of President Barack Obama that expand commerce with Cuba.

Clemmons and Berenthal, who call their Paint Rock, Alabama-based company Cleber LLC, are in advanced talks with Cuban authorities and hope to get official permission in March.

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Read more: http://www.reuters.com/article/us-cuba-usa-tractors-idUSKCN0VO28R

[valerief]

1. Offshore, offshore, offshore. nt

[FBaggins]

2. That isn't offshoring

If they build only for the local Cuban market (as is reported), then they're fine. And since they probably don't sell much of anything to Cuba now, they aren't even taking work from a US factory.

[valerief]

3. American company hires Cubans to sell to Cubans versus American company

hires Americans to sell to Cubans.

Which is it and how is it not offshoring? Is it a Cuban company now?

[FBaggins]

4. Offshoring refers to the moving of jobs and/or production to another country

That isn't happening here. No jobs are moving and no existing production is moving. They're expanding into a new market.

[valerief]

5. It's still an American company giving jobs to non-Americans instead of to Americans.

FFS, we have toilet paper and processed chicken shipped from the other side of the world. Everyone else gets to do our work but us.

[FBaggins]

6. I see no evidence of that

Does the article give some reason to believe that Cuba would purchase the equipment from an American company if they were made in the US?

[valerief]

7. Does it have to be in the article to exist? nt

[FBaggins]

8. Yes. The article reminds you that there's a trade embargo with Cuba

They couldn't make something here and sell it over there.

[valerief]

9. I thought that was ending. Oh, well, thanks for the info. nt