Cuba Implications

Cooperation between the two countries was observed until the revolution in 1959. In that revolution a band of guerrillas led by Fidel Castro overthrew President General Effulgence Batista. Castro was supported by the US which immediately recognized him as the new country leader. By 1960, the well-known story began when Castor’s government seized private land, nationalized private companies and taxed American products excessively resulting in a decline of American products exports.

The US government responded by eliminating diplomatic ties, placing an embargo on sports to Cuba (except for food and medicine) and subsequently closing the embassy in Cuba by 1961. On 1962 the embargo was broadened by US President John. F. Kennedy to include almost all imports. On the same year the tension in the US-Cuba relationship escalated when the US discovered that the Soviet Union was building military bases with missile launching capability in Cuba.

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The US reached an agreement with Russia to not invade Cuba and withdraw its nuclear missiles from American bases in Turkey and Italy if the Soviet Union withdraws its nuclear missiles from Cuba. Also, the Cuban Adjustment Act (CA) was passed in the US which allowed for any native or citizen of Cuba who has been Inspected and admitted or paroled Into the United States after January 1, 1959 and has been physically present for at least one year to be admissible to the United States as a permanent resident. The rest of the sass’s were plagued by US failed attempts to overthrow Fidel Castor’s government with highlights on assassination attempts.

By 1 980, Cuban citizens sought asylum in foreign countries. This was allowed by Fidel Castor’s government in what is known as the Marine boatload. The Cuban government took this opportunity to lease prisoners and mentally-ill patients to the US. The embargo was reinforced in 1992 with Cuban Democracy Act which prohibited foreign-based subsidiaries of U. S. Companies from trading with Cuba, travel to Cuba by U. S. Citizens, and family remittances to Cuba. Minion the Democracy Solidarity Act (commonly known as the Helms-Burton Act) came Into place after Cuba shot two civilian airplanes that were carrying American citizens.

The act intended to extend the embargo to foreign companies trading with Cuba, and penalized foreign companies allegedly trafficking In property formerly owned by U. S. Tizzies that were nationalized by Cuba during the 1960 revolution. Commercial relationship between US and Cuba On 2001 Cuba was severely affected by Hurricane Michelle with losses estimated in rejected and a counteroffer was proposed by Cuba to buy food supplies from the US. Finally, US cargo ships carrying tons frozen chicken legs and corn arrived into Cuba. The shipments were part of a supposedly one-time $30 million purchase of U.

S. Food by the Cuban government to assist in the country’s present food shortage. This agreement remained in place up to the point where the United States is now Scuba’s main supplier of food, with sales reaching $710 million in 2008. On 2008, Fidel Castro retires and formally hands over the presidency to his brother, Rural Castro. Although the embargo continued and Cuba maintained its position of not advancing US-Cuba relationship Rail’s philosophy seemed to partially deviate to that of his brother Fidel by expressing that Cuba cannot progress with the current embargo situation.

President Barack Obama eases restrictions on travel and remittances to Cuba, In 2009, US President Barack Obama loosened restrictions on the US-Cuba relationship y allowing Cuban-Americans to send unlimited funds to family and non-family members in Cuba and permitting travel there for religious and educational purposes In 2012, Cuba President Rural Castro made public statements regarding US-Cuba relationship expressing “Any day they want, the table is set. This has already been said through diplomatic channels,” Castro said. “If they want to talk, we will talk. The Trade Sanctions Reform bill requires that good sold from the US to Cuba must be paid in advance and in cash. “Cuba has become a good place to do business for all but US firms. Our economic embargo hurts not only Cuba but, increasingly, us as well. ” (Gordon, 1997). Throughout the last fifty years the US has embarked on a mission “to keep illicit Cuban goods out of the United States” (Hanson, 2013) and vice versa. The US has spent massive amounts of money trying to enforce the Cuban embargo, only to find themselves isolated internationally by a policy of antipathy towards Cuba that they unsuccessfully created.

Estimates of the sanctions’ annual cost to the U. S. Economy range from $1. 2 to $3. 6 billion, according to the U. S. Chamber of Commerce. Forbes, 2013) “The US embargo against Cuba is a foreign policy tool designed to deny hard currency resources to the Castro government and foster political and economic changes on the island. It is a combination of statutes and regulations whose foundations were laid down in the Cuban Assets Control Regulations of 1963 pursuant to the Trading with the Enemy Act of 1917 with two significant additions such as the Torricelli’s law of 1992 and the Helms-Burton law of 1996. (Spading, Sabine, 2013). The Helms-Burtons lawsuit provision has been one of the act’s most controversial components. It was meant to keep foreign investors away from nearly 6,000 formerly American-owned companies in Cuba brought under government control following the 1959 Cuban revolution (PBS, 2001). At this point, it is becoming clearer that the isolation from the world that the US was aiming for is not achievable. The only isolation that is occurring is not Cuba from the world, but the United States from Cuba. Edgily, 2012) To this day, Cuba is the only country restricted under the Trading with the Enemy Act. Throughout the years Cuba has regained its relations with almost every country except the United States. “Every year for the past 22 years the United Nations has voted overwhelmingly for a Cuban resolution demanding that the United States end the economic embargo. The most recent vote, in October 2013, was 188 to United Nations for maintaining counterproductive and worn out trade and migration restrictions against Cuba despite the fact that nearly all U. S. Companies have dropped their claims. (Hanson, 2013) Repealing the embargo would fit into an American precedent of lifting trade and travel restrictions to countries who demonstrate progress towards democratic ideals. Forbes, 2013) Both the tragic events of September 1 lath and the damages in Cuba from Hurricane Michelle affected the US/Cuba policy. The Cuban government was quick to offer their sympathy and assistance to the United States after the attacks but the US government did not accept the offer. Cuba decided to take advantage of the opportunity to buy 10 million in food and medical supplies from the United States.

It seemed limerick a first step toward the eventual end of the embargo. (Haney, 2005) Cuba After assuming the role as Cuban President, Rural Castro has made some changes n the government controlled economy, but no changes have been forthcoming regarding democracy or human rights. (Edgily, 2012) Throughout the years Cuba has moderately opened its economy to allow the sale of state-owned companies and eased restrictions on foreign investment. Castro expressed his hope that Cuba and the United States might “establish civilized relations”. Castro 2013) Even with the embargo, American business has some presence in Cuba. Current U. S. Law allows American businesses with special licenses to operate there in telecommunications, publishing, cultural programs, news-gatherings, credit card recessing for certain transactions, travel bookings, humanitarian projects, and limited types of medical and pharmaceutical sales. US law also allows American businesses to purchase a non-controlling minority interest in a foreign company doing business in Cuba, except for cases in which the company has a separate division dedicated solely to Cuban work. Fall, 1996) The lack of progress in US/ Cuban relations has not been for lack of Cuban attempts. Since assuming power from Fidel in 2006, Raјl Castro has repeatedly offered olive branches to Washington while he pursues a reorganization of the Cuban economy. Raјl declared that Cuba was ready to talk and willing to “negotiate everything, except Scuba’s sovereign right to decide its own political and economic system”. (Lagrange,2014). United States News sources have stated that both Barack Obama and Rural Castro have shared interest in the amendment of Cuba and United States relations.

Obama has repeatedly expressed his desire to improve bilateral relations as well. “We’ve been engaged in a failed policy with Cuba for the last 50 years, and we need to change it,” (Obama 2007). Obama cannot lift the economic embargo without Congress cause of the strong oppositions from both parties. While in his State of the Union speech he vowed to act alone when Congress refuses, he has not acted upon Cuban policy changes. However, he could further liberalism travel restrictions and promote In 2009 the Obama Administration lifted restrictions on Cuban-American family visits.

It also announced measures to get broader cell-phone and television service to open the flow of information in the island. (Budget, 2009) Many hoped it would eventually lead to a dismantling of the trade embargo and end the travel ban for the rest of the U. S. Population. Supporting the elimination of the general travel ban would signal a sturdier interest in starting dialogue with Cuba. At the same time, it would put the ball in Haven’s court and give them advantage as to the topics up for negotiations.

In years before Cuba did not accepted conditions for having the embargo lifted but communicated that they could help the US in efforts to improve relations between them provided that these negotiations be “mutually advantageous”. (Budget, 2009) Despite the improved prospects for investment, several business groups are still opposed to doing any U. S. Equines in Cuba. Although they have a list of preconditions for endorsing investments, establishment of a free enterprise economy, enforcement of contracts, and protection for and expansion of private property. Many feel Corporate America should be calling the shots, not Cuba.

The debate on doing business with Cuba has shifted from “all or nothing” to “terms and conditions”. Businesses and Trade Commerce between Cuba and the US existed as early as the asses, and by mid nineteenth century it had created numerous and intimate economic, political and cultural connections. (Guava, 2008) The U. S. Embargo has cost Cuba a lot, but it has neither crippled the Cuban economy nor undermined Castor’s leadership. And the embargo not only has failed to persuade the international community that Cuba should be “punished” but in fact has isolated the United States within the world community. Gordon, 1997) The US trade sanction prohibits American tourists from visiting Cuba but allows the exportation of US foods, farm products, medical supplies and some telecommunications equipment. However wholesalers and distributors in Canada, Europe, Asia and Latin America sell many of the most recognizable American brands o Cuba. (Associated Press, 2007) The US Assistant Secretary of Exportation informed that Cuban representatives go on purchasing missions to third world countries to “hunt” for specific American products.

Since Cuba highly depends on the tourism industry, it is important for them to have brands that visitors are comfortable purchasing. “It’s important for the foreigners who visit Cuba to see products that they know and trust. ” (Erikson, 2007) Many non-medical brands like Coca Cola, Colgate, Gillette, Nikkei and Disney among others, can be found in lobbies of government-run hotels, supermarkets and ales in Cuba, and that the amounts involved are small and would be impractical to stop. (Associated Press, 2007) It is said that the US Cuban Democracy Act of 1992 makes these third party transactions illegal. The US Commerce Department states that the sanctions have international reach and it applies to American products around the world and any company selling the products to Cuban importers could be prosecuted. “Since 2008, the government has undertaken more than 300 economic reforms designed to encourage enterprise, and restrictions have been lifted on property use, travel, farming, municipal governance, electronics access, and more.

The cost of the embargo to the United States is high in both dollar and moral terms, but it is higher for the Cuban people, who are cut off from the supposed champion of liberty in their hemisphere because of an antiquated Cold War dispute. ” The progress being made in Cuba could be accelerated with the help of American charitable relief, business innovation, and tourism. (Forbes, 2013) Cuba is still a place of oppression and gross human rights abuse, but recent events would indicate the 11 million person nation is moving in the right direction it is up to the United States to decide the role they will lay in the future of the embargo.