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TABLE 65.-United States exports to Cuba, 1936-401

i Does not include reexports. Official United States trade statistics.

2 Exclusive of hides, skins, and leathers.

3 Including grain, cereal products, and starch.

'Including pickles and relishes.

TABLE 66.-United States imports from Cuba, 1936-40

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Cuba normally exports more goods to the United States than it imports from the United States; the difference averaged about 30 million dollars annually in 1938-40. The value of imports from the United States during this period equaled only 72 percent of the value of Cuba's exports to the United States. However, the same situation holds true for Cuba's total foreign trade. The proportion of Cuba's imports obtained from the United States has steadily and rapidly increased since 1932 to over 87 percent in 1941. This was the highest percentage on record and was approximately equal to the percentage of Cuban exports going to the United States.

The balance of the tangible or material foreign trade in Cuba's favor is necessitated by the fact that Cuba is a debtor nation and must service its debt by repaying other nations both interest and principal on the debt. The largest portion of the foreign investments in Cuba is held by interests in the United States, 55 and naturally the disparity between the value of goods imported and exported is greater in the case of the United States than for most other countries. United States direct investments in Cuba exceed those in any other country in the world, except Canada, and at the end of 1936 were estimated at 666 million dollars.56

Payment to the United States for the service on investments in Cuba is the most important single intangible item in the balance of trade between the two countries, but there are no reliable estimates as to the total amount of money involved in such payments. Other items of payments to the United States are about 4 million dollars of expenditures by Cuban travelers in the United States and about 3 million dollars (considerably higher since the war) for freight, insurance, and other shipping expenses on United States ships. The most important intangible item on the other side, payment to Cuba, is about 15 million dollars spent by United States travelers in Cuba.

TRADE POLICY

With no other country does the United States have as close economic relations as with Cuba.57 Cuba is the only country with which the United States has a reciprocity treaty involving exclusive preferential tariff treatment. For nearly four decades trade betweeen the two countries has received such special tariff treatment; each country accords lower rates to the products of the other than it accords imports from other countries. Under the Treaty of Commercial Reciprocity of 1902 the United States granted Cuba on all dutiable commodities exclusive reductions of 20 percent below the rates to other countries. Reductions of 30 percent were granted on wheat flour from the United States and 40 percent on rice (16).

55 The greater part of the United States investments in Cuba date back to the World War period, 1914-18. 56 United States investments in Cuba in 1936 were estimated by the U. S. Department of Commerce as follows (11):

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7 For further discussion of the commercial relationships between the two countries see The Foreign Trade of Latin America (14).

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TABLE 66.-United States imports from Cuba, 1936-40

1 Less than 500.

2 Including fresh, canned, and in brine.

Official United States trade statistics.

Cuba normally exports more goods to the United States than it imports from the United States; the difference averaged about 30 million dollars annually in 1938-40. The value of imports from the United States during this period equaled only 72 percent of the value of Cuba's exports to the United States. However, the same situation holds true for Cuba's total foreign trade. The proportion of Cuba's imports obtained from the United States has steadily and rapidly increased since 1932 to over 87 percent in 1941. This was the highest percentage on record and was approximately equal to the percentage of Cuban exports going to the United States.

The balance of the tangible or material foreign trade in Cuba's favor is necessitated by the fact that Cuba is a debtor nation and must service its debt by repaying other nations both interest and principal on the debt. The largest portion of the foreign investments in Cuba is held by interests in the United States, 55 and naturally the disparity between the value of goods imported and exported is greater in the case of the United States than for most other countries. United States direct investments in Cuba exceed those in any other country in the world, except Canada, and at the end of 1936 were estimated at 666 million dollars.56

Payment to the United States for the service on investments in Cuba is the most important single intangible item in the balance of trade between the two countries, but there are no reliable estimates as to the total amount of money involved in such payments. Other items of payments to the United States are about 4 million dollars of expenditures by Cuban travelers in the United States and about 3 million dollars (considerably higher since the war) for freight, insurance, and other shipping expenses on United States ships. The most important intangible item on the other side, payment to Cuba, is about 15 million dollars spent by United States travelers in Cuba.

TRADE POLICY

With no other country does the United States have as close economic relations as with Cuba.57 Cuba is the only country with which the United States has a reciprocity treaty involving exclusive preferential tariff treatment. For nearly four decades trade betweeen the two countries has received such special tariff treatment; each country accords lower rates to the products of the other than it accords imports from other countries. Under the Treaty of Commercial Reciprocity of 1902 the United States granted Cuba on all dutiable commodities exclusive reductions of 20 percent below the rates to other countries. Reductions of 30 percent were granted on wheat. flour from the United States and 40 percent on rice (16).

55 The greater part of the United States investments in Cuba date back to the World War period, 1914-18. 86 United States investments in Cuba in 1936 were estimated by the U. S. Department of Commerce as follows (11):

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Million dollars

315

240

27

15

15

6

48

666

37 For further discussion of the commercial relationships between the two countries see The Foreign Trade of Latin America (14).

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