News Analysis: Cuba, EU pave way for new political, economic relations

Cuba and the European Union (EU) on Friday finalized a deal to normalize relations 13 years after the unilateral suspension of ties by the EU, marking a new chapter in their political and economic relations.

The agreement, which came just ahead of a historic visit to Cuba by U.S. President Barack Obama, was reached in Havana during a visit by EU foreign policy chief Federica Mogherini.

Without a doubt, the agreement marks another achievement for Havana's foreign policy after the Caribbean nation and the United States announced in December 2014 plans to normalize relations. Cuba also renegotiated its debt with creditors of the Paris Club nations last December.

The deal resulted from nearly two years of intense negotiations that also touched upon the thorny issue of human rights -- the one that prompted the EU to unilaterally suspend ties in 2003.

It also means the end of a 20-year policy, known as the "common position" on Cuba, which restricts EU ties with the island until political reforms are made. The policy was rejected by Havana as interference in its domestic policy.

Cuban Foreign Minister Bruno Rodriguez and Mogherini witnessed the signing of the pact by Cuban deputy Foreign Minister Abelardo Moreno and EU negotiator Christian Leffler.

"This is a historic day for bilateral ties and is a demonstration of our mutual trust and understanding," Mogherini said.

"Today, a new period begins that will allow us to deepen our relationship, set new ambitious goals and achieve results in the best traditions of the links between Europe and Cuba," said the Cuban foreign minister after holding talks with Mogherini.

Western powers have agreed to start a new chapter of political dialogue and economic cooperation with the island after years of hostile policies, Cuban political analyst Elsa Claro said.

In an interview with Xinhua, Claro said that this agreement with Cuba would allow the EU to pursue its economic interests in the country.

Noting that the EU is Cuba's second largest trading partner after Venezuela, she said that the Europeans have been very pragmatic and have sought business opportunities across sectors on the island.

She added that it is time to broaden cooperation between Brussels and Havana to new areas such as sustainable development, energy, mining, telecommunications and tourism.

European companies and governments would also like to explore other opportunities in health, biotechnology and agriculture, Claro pointed out.

Also on Friday, the EU announced an additional 10 million euros (about 11.2 million U.S. dollars) of new support to Cuba, which is a part of overall 50 million euros (about 55.8 million dollars) in development cooperation funds for the country.

"The 10 million euros of new support we are announcing today will help build the capacities of the Cuban public administration and sustainable food production," said Neven Mimica, EU Commissioner for International Development, on a visit to Cuba.

Out of the 10 million euros announced, 7.7 million euros will support the Cuban economic modernization process that started in 2008.

Other than economic interactions, the two sides are making progress in other fields, such as human rights, one of the most discussed issues during the talks and on which both sides agreed to continue discussing.

"We agreed to hold a future round of talks regarding human rights in the coming months, recognizing the complex nature and differences we have on this topic," said the Cuban foreign minister.

The signing of the agreement came just 10 days before Obama's planned visit to Cuba and this sends out a clear statement from the EU to Washington, Claro noted.

"Europe has taken the step to start a new political era, not only because the Common Position was obsolete, but also so (that) Washington understands the EU is an important player in Cuba's economic future," Claro said.

Mogherini also highlighted the rapprochement between the United States and Cuba and hoped this agreement could help the normalization of ties between the former Cold War enemies.

"We have a lot of history in common, a dynamic present and a bright future ahead of us. Europe never left from Cuba," said the EU foreign policy chief.

The deal, which establishes an ongoing political dialogue and sets parameters for economic cooperation and delivery of aid to Cuba, is subject to ratification by the governments of the 28 countries of the EU as well as Cuba.

The EU already has similar agreements with all other countries in Latin America and the Caribbean region.

Since 2008, Havana has signed cooperation agreements with 17 of the 28 countries of the European community. The EU is the largest foreign investor and the third biggest source of tourism in the Caribbean country. Endi