The continuing thawing of relations between the US and Cuba took a significant step this weekend when the leaders of both countries met at the Summit of the Americans in Panama. US President Barack Obama and his Cuban counterpart Raúl Castro sat down for their first formal talks since announcing attempts to normalise relations last December.
Castro said that despite some disagreements, the renewed dialogue was encouraging
As discussed in the latest issue of World Finance, the improved relations between Cuba and its largest neighbour could see the Caribbean island’s economy undergo a dramatic transformation. Since the Cuban revolution in the late 1950s, the two countries have been at odds, with the most damaging consequence being the embargo placed on all trade by US authorities.
While the embargo has yet to be removed, the desire from both regimes to foster better relations offers a tantalising future for Cuba. The first steps of the new deal may lead to more money flowing between the two countries through remittances, which may in turn help boost Cuba’s underdeveloped private sector. US firms will also be looking at the improved relations closely, with a previously untapped market offering considerable new opportunities.
Speaking at the summit, Castro said that despite some disagreements, the renewed dialogue was encouraging. “We are disposed to talk about everything, with patience. Some things we will agree with, and others we won’t.”
Obama hailed the talks as an historic step towards cooperation with its former foe. “Wheat we have both concluded is that we can disagree with a spirit of respect and civility. Over time, it is possible for us to turn the page and develop a new relationship between our two countries.”
