Cubans may be anxiously awaiting the benefits of their newly relaxed ties with the United States, but the communist government in Havana is also turning to old allies as it announced a new trade agreement with North Korea.

Rodrigo Malmierca, Cuba's minister of foreign trade and foreign investment, and North Korean Ambassador Pak Chang Yul signed the deal on Jan. 28 in Havana, Xinhua reported. The agreement establishes a barter regime that will allow the two countries to exchange goods, the Chinese news agency detailed.

Cuba, North Korea to Rely on Barter for Business

The barter mode will allow the trading partners to swap goods or services directly and in exchange for other goods or services without using a medium of exchange, such as money, Prensa Latina explained.

Cuba hopes the deal will help the nation obtain supplies for Cuba's Railway Union and the sugar industry. It is also expected to aid fields as diverse as healthcare, higher education, culture, sports and agriculture, Xinhua enumerated.

The Caribbean nation has long sought to update its 2,600-mile railway network and has a long history of cooperating with China on transportation issues. The Cuban network, crucial to the country's tourism and sugar industries, meanwhile, is similar in size to that operated by North Korea's State Railway.

Communist Countries Have Long Bilateral History

After the signatures were placed on the document, Malmierca underlined "Havana's strong political will to expand our relationship" with North Korea, El Diario de Cuba pointed out. Pak, for his part, noted that he was "satisfied by the signing and by the strengthening of ties" between the two nations.

Cuba and North Korea -- countries whose economies are heavily affected by sanctions imposed by the United States and other nations -- have a longstanding relationship that goes back to the Cold War and have signed a long list of cooperation agreements. The two nations work together on agricultural, educational and commercial issues, the newspaper added.

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