President Obama’s surprise announcement that the U.S. will seek to re-establish diplomatic relations with Cuba after more than 50 years includes a call for increased exports of building materials for housing and, down the road, also could provide export opportunities for U.S. construction-equipment manufacturers, industry officials say.
The plan, which Obama announced in a Dec. 17 address, is the culmination of about 18 months of secret negotiations between the two countries.
Bill Lane, Caterpillar Inc. director of global government affairs, welcomed the announcement. He told ENR: “Caterpillar’s been calling for a new policy toward Cuba for more than a decade. And we believe engagement’s a powerful force in change and we’re hopeful this will cascade into a positive change in Cuba.”
He adds, “Based on actions from the business community in the past…I think you’re going to find the business community nearly unanimous on this move and will be very supportive.”
Lane says, “Hopefully, Cuba will respond in a positive way.”
The plan calls for increased sales and exports from the U.S. of products and services, including “certain building materials for private residential construction,” as well as consumer communications devices, software, hardware and services, according to a White House summary.
It will require amendments to Treasury and Commerce Dept. regulations.
Obama said, “I believe that American businesses should not be put at a disadvantage and that increased commerce is good for Americans and for Cubans.”
Initial plans do not include any U.S. assistance or increased exports of construction engineering, large commercial or infrastructure projects, or heavy-equipment sales.
But Caterpillar’s Lane says, “At one level, everything that Caterpillar makes in the United States is needed in Cuba.”
He adds, “Cuba doesn’t need to rebuild its infrastructure, it literally needs to build an infrastructure. So there’s going to be a demand for everything that we produce.”