HAVANA, Nov. 1 (Xinhua) -- Cuba announced on Wednesday it has approved the first ever U.S. company for its flagship economic project at the Mariel special development zone despite political tensions between Havana and Washington over alleged sonic attacks against U.S. diplomats on the island.
Rimco, a privately-held Puerto Rican company, which distributes Caterpillar construction machinery, will open a distribution center for the U.S. heavy equipment maker at the Mariel special development zone, just 45 kilometers west of Havana.
The announcement was made at a conference on the sidelines of the 35th Havana International Trade Fair (FIHAV 2017) where Mariel officials said that 12 other new projects had been approved at the special zone over the last year.
"This means a lot to us and we're going to set up a warehouse and distribution center for Caterpillar equipment at the Mariel special development zone. There are a lot of business opportunities in Cuba and we're glad to help in the development of infrastructure here," Caroline McConnie, Rimco's vice president, told Xinhua.
The approval for this U.S. company based in Puerto Rico came on the same day as a UN General Assembly resolution where 191 countries called for the lifting of the U.S. economic embargo against the island.
According to McConnie, the company obtained a license to operate in Cuba from the U.S. Department of Commerce and all the paperwork was done prior to the announcement by the Trump administration of a new policy towards the island country in June.
"The Mariel project is very important for Cuba and it will be able to attract foreign investment from all over the world because they offer economic and fiscal benefits to those who wish to participate," said McConnie.
Mariel special development zone director, Ana Teresa Igarza, said at the conference that Rimco will open its distribution center in 2018 and the deal was one of 31 projects already approved and underway in the zone.
The zone was created by Cuba over three years ago to attract foreign capital with tax and customs breaks to boost economic development. This plan is a linchpin for Cuba's goal to become a production hub for the Caribbean and Latin America.
"We have entities of 14 countries represented at Mariel and of the 31 projects, five are Cuban companies, 16 of them are 100 percent foreign capital, eight are joint ventures and two are international economic associations," said Igarza.
Among the new projects approved are the Cuban-Spanish mixed companies Logistica Hotelera del Caribe, and El Salado, the latter to build luxury apartments and a golf course near a beach just west of Mariel.
Foreign investors at Mariel are exempt from taxes and contributions on profits for ten years while also receiving major cuts on sales and services during the first year of operations as well as for the use of labor force and imported equipment.
