The Multinational Monitor

NOVEMBER 1981 - VOLUME 2 - NUMBER 11


G L O B A L   N E W S W A T C H

Ford Sells Cuba Trucks

The Reagan administration, despite its threats to call for an international trade boycott of Cuba, has quietly given permission to the Ford Motor Company's Argentinean subsidiary to export 300 medium-heavy trucks and spare parts, worth a total of $6.3 million, to the Caribbean nation.

Under the embargo against Cuba, initiated in 1961 by presidential proclamation, sales to Cuba of goods which contain components of U.S. manufacture are subject to the approval of the U.S. Commerce Department. Since 1975, products with up to 20% of U.S.-origin parts have normally received the nod from Commerce officials. In 1975, the regulations. were also modified to make sales to Cuba by foreign subsidiaries of U.S.based corporations subject to approval by the Treasury Department.

Ford Argentina had sold cars and spare parts to Cuba several times in the past. The current deal wag signed in early October, after Commerce Department permission was received on September 8 and Treasury Department clearance was given on September 11, according to John Thome, of Ford's U.S. public relations office.

Commerce Department personnel were tight-lipped when asked about the arrangement by Multinational Monitor, refusing even to acknowledge that Ford had applied for export permission.

Asked whether applications to export to Cuba were being subjected to,' new rules by the Reagan administration, Dan Cook of Commerce's Office of Export Administration commented, "There's certainly some indication that at least some at (the) State (Department) want to get tougher on Cuba."

But Ford reported smooth sailing in the clearance process for its request. "I am not aware of any particular problems with this clearance that would have made it more difficult than previously," said Ford's Thome.


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