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U.S. Embargo of Cuba Fades
Away
From Keith Porter, Your
Guide to Globalization
Issues.
Embargo:
A prohibition of commerce.
--New Merriam-Webster Dictionary
The full scale U.S. embargo of Cuba has
ended. With no fanfare or "fall of
the Berlin Wall" celebration, a mighty
flow of American goods is streaming into
Cuban stores and kitchens.
In 2000, Cuba ranked dead last among all
180 nations in terms of agricultural purchases
from the United States according to U.S.
government figures. In 2001, Cuba's ranking
rose to 138. This year Cuba is poised to
finish at 45th. Next year, Cuba will likely
buy $260 million in agricultural goods and
be 33rd on the list. Not bad considering
the two countries haven't had diplomatic
relations for over 40 years.
In September, over 150 U.S. companies,
organizations and state offices will participate
in a huge U.S. Food and Agriculture Exhibition
in Havana. The event, authorized by the
U.S. Treasury Department, will feature over
1000 brand name, American products including
cheese, ice cream, beer, pet foods, cotton,
tobacco, lumber, vitamins, and many others.
For the first time in 43 years American
buffalo, beef cattle, dairy cows, hogs,
and chickens will be shipped to Cuba as
part of the show.
As recently as last May, President Bush
vowed not to ease the trade ban on Cuba.
He said, "Well-intentioned ideas about
trade will merely prop up this dictator,
enrich his cronies and enhance the totalitarian
regime."
Yet Cuba is buying more food from the United
States than Denmark, Portugal, Greece, Hungary,
Austria, and over 100 other countries. How
is this possible? Do Congress and the White
House know about this?
In 1961, President John Kennedy cut diplomatic
relations with Cuba, imposed an embargo
against trade with Cuba, and effectively
banned most American travel to Cuba.
In October of 2000, the U.S. Congress passed--and
President Clinton signed--the Trade Sanctions
Reform and Export Enhancement Act (TSRA).
The law said Cuba could begin buying U.S.
food products for any purpose, but the Cuban
government was irked by restrictions the
legislation included. Specifically, TSRA
requires that all purchases by Cuba must
be made with cash...no financing is allowed.
Cuba said thanks but no thanks, and U.S.-Cuban
relations continued as they had in the past.
Then Cuba was hit hard by Hurricane Michelle
in November of 2001. To recover, Cuba made
what it said was a one-time exception to
buy American corn under the TSRA rules.
They bought 30,000 metric tons of corn from
Archer Daniel Midlands.
That corn came from nine different U.S.
states. And Cuba kept buying.
Since then they have bought peas, barley,
soybeans, condiments, soup, pasta, carbonated
beverages, onions, chicken, turkey, apples,
eggs, and many other items. These purchases
represent Cuban trade with 30 states.
Because of the TSRA rules, Cuba has been
devoting much of its small cash reserves
to U.S. trade. In fact, some suppliers in
other countries are not being paid on time
as Cuba uses its cash to build a financial
constituency in the United States.
With 30 states involved, 60 U.S. senators
and a majority of the U.S. House now have
an economic incentive to keep this breach
of the embargo open and perhaps expand it
further. And the U.S. embargo of Cuba will
end not with a breaking news bulletin on
CNN but with a few statistical lines in
a U.S. Department of Agriculture report.
Find out more:
The
U.S.-Cuba Trade and Economic Council
U.S.
Department of Agriculture "Trade with
Cuba" information
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