Approaching Caribbean Pearl

Following unexpected rapprochement between United States and Cuba, the government of Japan embarked on making closer relationship with Cuba. While it is accounting on rich natural resources in and around the Pearl of the Caribbean, Japanese government considers how to deal with a great amount of debt Cuba owes to Japan. Trying to catch up with China that has been cultivating relationship with Cuba in its rivalry against U.S., Japan is looking for a business chance as a latecomer.

Shinzo Abe administration basically welcomes reestablishment of diplomatic relations between U.S. and Cuba. “I expect the agreement is leading to regional stability and prosperity,” told Abe to the reporters on the agreement to reopen embassy in the capital of counterpart each other. Chief Cabinet Secretary, Yoshihide Suga, stressed the possibility of acceleration of bilateral relationship between Japan and Cuba, and hoped closer tie with Cuba through various channels.

Cuba is the third country, following Vietnam and Myanmar, for Japan to expect as new open market. Japanese government focuses on minerals or sightseeing resources in Cuba. Although Cuba is located on the opposite sphere of the Earth, Japan has been maintaining diplomatic relation with the communist administration. Having imported Japanese culture or goods, the Cubans are familiar with karate or judo or rubber ball for kids baseball made in Japan. Cuban cigar, rum and music are significantly popular in Japan. Both nations have fundamental knowledge of each other.

However, Cuba owes Japan ¥61 billion of mid or long term debt, which is still unpaid. Japan cannot deliver new development loan until Cuba repay the amount, which is still unrealistic so far. Japanese government is considering a similar plan which was applied to Myanmar. Japan waivered ¥300 billion of debt out of total ¥500 billion to Myanmar through its bilateral negotiation. One option to Cuba is to waiver the debt in return of more preferable business environment for foreign companies.

Some colleagues of Abe are looking for an opportunity for Abe’s historical visit to Cuba. It is based on a simple idea that Abe’s visit may become a momentum for his diplomacy, along with U.S. President Barack Obama’s legacy making. But political priority of diplomacy to Cuba is undeniably low in Japan. It is hard for Japan to build as close relationship with Cuba as Europeans did beyond Atlantic Ocean. If Japan wants to make a deal with Cuba like the Chinese do, it needs to spend more time to convince the Cubans in seriousness of the Japanese on this issue.