CUBA & IRAN: IS IT TIME TO INVEST?
Whether or not the
time is right to invest
is largely a question
of point of view—and
of morals.
Cigar Exports
An air of celebration accompanied the historical
meeting between US President Barack Obama
and Cuban President Raul Castro in March 2016,
but the reaction amongst Cuba’s cigar producers
was likely to have been rather less enthusiastic.
While trade between the two countries is
expected to grow as sanctions begin to lift,
restrictions dictate that Americans traveling to
Cuba can take home just $100 worth of cigars.
This means that cigar exports are not expected
to grow significantly over the coming years. The
question is, if US tobacco restrictions change,
will Cuba be capable of ramping up production to
meet demand?
According to the Internacional Cubana de Taba‑
cos, the Communist country produced more than
134 million cigars last year, 75 percent was ex‑
ported — either legally or illegally. That number
is expected to grow between two and three per‑
cent per—annum.
26 Emerging Markets Business Summer 2016 • Issue No. 1