Company says Trade With Cuba Could Affect Richmond Jobs

Company says Trade With Cuba Could Affect Richmond Jobs
Could lifting Trade Embargo with Cuba cause layoffs in Richmond?
2:22

President Barack Obama has talked about lifting this country's trade
embargo with Cuba and if it happens, one company says they'll be forced
to layoff more than 100 workers in the Richmond area.

The cigar-maker Swedish Match has its North American headquarters in
Richmond and it says opening the U.S. market to Cuban cigars may
jeopardize 120 jobs unless Americans play hardball with Communist Cuba.

Cuban-born Omar Gonzalez savors the flavor of his cigar and he also
savors the prospect of legally lighting up a Cuban-made cigar if the
Cuban trade embargo is lifted.

Cuba has a reputation for producing a fine quality cigars and cigar
maker Swedish Match wants to get into the game.

Gerry Roerty with Swedish Match says, "We estimate that 80% of the cigar
consumers would switch to Cuban cigars once they're available in the
U.S. Market."

The problem for Swedish Match is that they and other cigar companies
might not have a chance to sell Cuban-Made cigars because Imperial
Tobacco P.L.C. of Bristol, England has an exclusive arrangement with the
communist country and a 50% stake in its cigar business.

Roerty says if Congress doesn't intervene when it talks trade with Cuba,
Imperial Tobacco would be the only company selling Cuban cigars in the
U.S. through a U.S. subsidiary, and the result could be catastrophic for
other cigar companies.

He says thousands of jobs could be lost, including 120 in Richmond.

Roerty says, "What we would like to see is that all American companies
would have the same rights as Imperial Tobacco does to sell Cuban cigars
in the market."

Roetry knew this was coming, which is why the company strategically
placed its U.S. Headquarters in Richmond, just a stone's throw away from
Washington.

Swedish Match has already been in contact with Congressman Eric Cantor
and Senator Jim Webb about their company's concerns.

Company says Trade With Cuba Could Affect Richmond Jobs - CBS 6 - WTVR,
Richmond Va - (21 June 2009)
http://www.wtvr.com/Global/story.asp?S=10567832