Balance of Trade
In 2013, Cuba recorded a trade deficit of 9190.30 million CUC. The average figure between 1990 and 2013 was -4019.75 million CUC (Harnecker, 2014). Cuba has a relatively consistent trade deficit mainly because of the economyâ€™s low productivity (Monreal, 2002). The country largely depends on imports to feed the population. Another reason why Cuba has problems with the balance of trade is the use of inappropriate trade policies in the past (Whitfield, 2008). The developments often lead to crises even in the face of strong preventive measures. For example, in 2008, the value of the Cuban currency depreciated. As a result, the country faced difficulties in conducting international trade. Foreign products became expensive due to the weak currency (Campbell, 2013).
International Trade in Cuba
The Cuban economy is largely dependent on imports (Ritter, 2004). The country has established trade relations with many nations around the world, especially those in Latin America, Europe, Asia, the Caribbean, and Africa. Other major trading partners include Venezuela, the Netherlands, the US, and Russia [see appendix 6] (Ritter, 2004). Cuba has been forced to re-establish broken relations with former trading partners so as to thrive economically. For instance, the sudden severance of trade ties with Russia and the Eastern bloc wrecked havoc on the Cuban economy (Harnecker, 2014). The government had to re-establish the ties to survive economically. The incident was a turning point for Cuba. It was during this period that the country diversified its trading partners.
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