Cuba seeks to diversify exports to boost economy

HAVANA, May 26 (Xinhua) -- Cuba is mulling plans to promote exports of technology products as well as health and tourism services under an export diversification program aimed at boosting the economy, local media reported Saturday.

The Cuban government has in the past two years strived to "update its economic model," with a host of measures to increase and diversify its exports and reducing imports.

"Cuba is highly dependent on foreign trade, thus the government lays emphasis on increasing revenues from such a concept," Antonio Luis Carricarte, the first deputy minister of Foreign Trade and Foreign Investment, was quoted by the weekly Opciones as saying.

In 2011, Cuba exported about 9 billion U.S. dollars worth of goods and services, up 20 percent from the previous year, Carricarte said, adding that 70 percent of the earnings came from health care services and tourism.

The country's main economic target would continue to be "increasing income through exports, while increase savings by replacing imports," he said.

Official statistics show that the island country's efforts to boost exports and reduce imports have been credited with achieving annual trade surpluses averaging 2 billion dollars since 2009.

Noting that there are still many sectors whose potential remains largely untapped, Carricarte said the government plans to increase more items on the list of exports, such as medicines and products of biotechnology and genetic engineering.

Cuba is expected to see an increase in income from tourism and health care assistance, he said.

The country also produces 141 biotech products including various vaccines, whose exports generate about 400 million dollars annually.

Meanwhile, the government is developing programs to revive the established sectors, whose products constituted the bulk of exports decades ago, but sales dropped following the collapse of the former Soviet Union.

Sources from the Ministry of Agriculture said the authorities have planned to invest 200 million dollars to boost production of citrus, a once major export product, whose export has dwindled sharply due to the aging plantations and a rise of yellow dragon disease, one of the most serious citrus diseases.

May 26, 2012

Source: Xinhua