Caterpillar in Cuba? Maybe Someday: A Message from Vice President Kathryn Karol

August 31, 2015

Earlier this month, the American flag was raised over at the United States Embassy in Havana, Cuba, for the first time in more than 54 years. As part of Secretary of State John Kerry’s U.S. delegation attending the Embassy opening, I was proud to represent Caterpillar and witness this event. I also had the opportunity to have several meetings with Cuban officials and get a firsthand taste of the appetite for American products in Cuba.

The excitement and energy of the opening of the U.S. Embassy in Cuba matched the significance of this historic moment. I was surprised by how well known and loved Caterpillar is in Havana. In meetings with the Ministries of Trade and Foreign Affairs, it was clear that they are anxious to have Caterpillar return to Cuba. Caterpillar continues to press the U.S. government to end the embargo and let us get to work in this once familiar market.

As the U.S. inches toward fully reestablishing relations with Cuba, including ending the embargo – a move Caterpillar has supported for nearly 20 years – many wonder how Caterpillar will be impacted. The U.S. embargo against Cuba has prevented open trade between the two countries since its inception more than five decades ago. With over 11 million Cuban citizens seeking modern lifestyles and most of the country’s aging infrastructure in disrepair, it seems likely that loosening trade restrictions between the two neighbors could present a variety of opportunities for our company and the Cuban people.

Cuba was once known as an advanced Latin American country with its lush tropics, pristine beaches and a tourism industry. But decades of inaction has left the nation without infrastructure. As Caterpillar has noted in its public outreach, most people think of the 60-year-old cars – we’re focused on the 60-year-old roads.

Many of the country’s roads are in significant disrepair, and only 64 of the 133 Cuban airports have paved runways. Add to this what many are calling Cuba’s crumbling housing crisis, and it’s easy to see why a repeal of the U.S. embargo would give Caterpillar an opportunity to serve new customers close to home – a situation already enjoyed by many of our non-U.S. competitors. 

So while Caterpillar officials are optimistic about the restoration of free and open trade between the two countries and what it would mean for improving the lives of those in Cuba, caution remains. The road to normalizing relations is long and complex. The U.S. embargo remains in effect and travel restrictions for U.S. citizens continue. Change won’t occur overnight. But through diplomatic effort, Caterpillar continues to support free trade and other changes that will promote human rights and increased engagement with the Cuban people.