As a former international chair for the JAX Chamber, George Gabel has seen first-hand how Jacksonville can attract foreign business. So he thinks the city is making a mistake by not actively pursuing opportunities in Cuba.
“When we can get people to come here, they like what they see,” Gabel said Tuesday at an Economic Roundtable of Jacksonville discussion on opening Cuba.
“The problem is somebody needs to tell the people in Cuba about Jacksonville,” he said.
Gabel, a partner at Holland & Knight in Jacksonville, represents several shipping companies and has been trying to organize a private trip for Jacksonville logistics company officials to visit the island nation. However, he thinks government and chamber officials should get involved.
“Tampa has already sent five delegations (to Cuba). Jacksonville has sent zero,” Gabel said.
“My message is we’re missing out,” he said.
John Caulfield, former chief of mission to the U.S. Interests Section in Havana, told the luncheon meeting at Jacksonville University that Cuba is moving very slowly under President Raul Castro to open up its business climate.
“They’re not about to change everything overnight,” he said. “A lot has to change in Cuba in the regulatory and legal system.”
Caulfield said the Cuban revolution led by Fidel Castro was sparked by resistance to large private enterprises and U.S. influence that was dominating Cuba, so the country is less likely to make major changes with the Castros still in charge.
“I think we’re going to have to see a generational change in Cuba to allow things to happen,” he said.
That change may not come for several years, but U.S. businesses can prepare now by establishing relationships in Cuba.
“Have a plan. When things change, they will change quickly,” Caulfield said.
Gabel said the Port of Jacksonville should be a big attraction to Cuban interests. While Miami is closer, goods shipped through Miami’s port would still have to travel at least 350 miles to Jacksonville to reach destinations in the rest of the country, so they should prefer shipping directly to Jacksonville.
Gabel said his shipping clients’ experience with Puerto Rican companies demonstrates that advantage.
“Seventy percent of the trade that Puerto Rico has, which mostly is by sea, is with Jacksonville,” he said.
Cuba is behind the times in a lot of ways.
“The Cuban government is very afraid of the Internet,” Caulfield said. “The biggest complaint you hear from Cubans is they don’t have access to the Internet.”
Cuba’s economy has historically been driven by agriculture.
“There is no mineral wealth in Cuba,” Caulfied said. “It’s a very rich agricultural land.”
The Cuban economy was propped up by the Soviet Union before it collapsed a quarter-century ago. Although Russian President Vladimir Putin may be trying to re-establish the former Soviet empire, Caulfield doesn’t see Cuba reemerging as a threat to the U.S. because of Russian influence.
“Russia doesn’t have a lot to offer Cuba today,” he said. “I don’t see this as a security threat.”
Both Caulfield and Gabel said while Cuba may not offer enough right now for U.S. companies to profit, businesses could see big opportunities in future years.
“Vietnam was in the same shape and five years later they had a booming economy,” Gabel said.
“I think we have to plan ahead.”