United States embargoed Cuba

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The Capitol in Washington: Seat of the US legislative Congress

The United States' embargo against Cuba (in Cuba as el bloqueo - span. For the blockade ) is a trade, economic and financial embargo consisting of several measures , which was launched from 1959 by Fidel Castro and since 2008 by his brother Raúl- led Cuban government. The first measures were in 1960 by President Dwight D. Eisenhower imposed only after the Cuban government property of citizens and companies in the United States in the amount of approximately one billion dollars had expropriated. The embargo has since been tightened in several steps and partially relaxed again.

In 1992 the embargo was made law. In accordance with the stated goal of “helping the Cuban people to achieve democracy”, it was named the Cuban Democracy Act . The law also came to be known as the Torricelli Act . In 1996, the United States Congress passed the Helms-Burton Act , which further restricted the ability of US citizens to do business with Cuba. It contained restrictions on any public or private support for the regime in Havana or its successor until essential demands against the Cuban government have been met. In 1999, President Bill Clinton changed the trade embargo to require foreign subsidiaries of US companies to cease trading with Cuba. He also allowed various US products to be sold to Cuba.

As of now (December 2014), the embargo, which restricts US companies to do business for the benefit of Cuba, remains in place, and it is the longest-running trade embargo in modern history. Despite this embargo, the US is the fourth largest exporter to Cuba. Around 7% of Cuban imports come from the USA (as of 2009).

In December 2014, as political talks resumed, the US government announced that Cuba would be removed from the list of countries supporting terrorism and the associated sanctions lifted. On January 16, 2015, significant easing of trade and travel restrictions came into force.

Before the embargo

The United States of America has a long history of close economic and political ties with Cuba. Although part of the Spanish colonial empire for over 400 years , the country developed steadily better relations with the USA in the 19th century. In December 1898, as a result of its defeat in the Spanish-American War , Spain surrendered control of Cuba to the United States.

The US supported Cuba in its struggle for independence against Spain and later intervened several times in Cuba's political affairs. There has been substantial investment in Cuba's sugar and tobacco production for export and tourism. With its exports, Cuba had privileged access to the US market. In 1926, US companies owned 60% of the Cuban sugar industry and they imported 95% of the crop.

After liberalization, the Cuban economy grew dramatically, especially in the tourism sector. Revenues rose and for the first time in its history, Cuba developed a substantial and affluent middle class . With the Cuban Revolution , which was crowned with success on January 1st, 1959, the dictator General Fulgencio Batista was overthrown and Fidel Castro came to power.

Although the recognized US government , the new Cuban government to formally, but the relationship deteriorated quickly after Cuba adopted the first agrarian reform law that allowed the contained mostly US-owned large estates to expropriate . The compensation offered (based on a 20-year bond with an interest rate of 4.5% on estimated value) was rejected as insufficient by US investors. The US government also worried about the deepening of Soviet-Cuban relations, which from the end of 1959 was considered certain . In 1960 tensions between Cuba and the USA escalated into an economic war. Every time the Cuban government took control of US property, the US government countered with countermeasures, which resulted in a total export ban to Cuba on October 19, 1960.

history

Fidel Castro at a UN General Assembly meeting

An arms embargo against Cuba had been in place since March 1958, when the armed conflict openly broke out between the revolutionary rebels and the Batista government. In July 1960, in response to the expropriations by the Cuban government, the United States reduced the import quota for Cuban sugar to 700,000 tons. Previously, 3.2 million tons were exported to the USA annually. For its part, the Soviet Union responded by purchasing the sugar instead. Cuba also took other actions to acquire US companies.

In response to Cuba's orientation towards the Soviet Union during the Cold War , President John F. Kennedy expanded the measures by presidential decree , first increasing trade restrictions on February 7 (promulgated February 3) and then on March 23, 1962. As part of the Cuban missile crisis , when the Soviet Union wanted to station nuclear weapons in Cuba, Kennedy installed travel restrictions on February 8, 1963. The Cuban Assets Control Regulations under the Trading with the Enemy Act came into effect on July 8, 1963. Under these restrictions, Cuban capital in the United States was frozen and existing restrictions cemented.

From July 26, 1964, multilateral sanctions came into effect by the Organization of American States , but they were lifted on July 29, 1975.

The travel restrictions for US citizens to Cuba expired on March 19, 1977. The regulation should have been renewed every six months. But President Jimmy Carter did not renew it. The restrictions on sending money were also lifted shortly thereafter. President Ronald Reagan renewed the trade embargo on April 19, 1982. This was then further changed, up to the current version, which has been in force since June 30, 2004. Current regulations do not restrict travel to Cuba per se; it is illegal for US citizens to spend money or accept gifts in Cuba without approval from the US government's Office of Foreign Assets Control .

In 1992, the US embargo was restored by the Cuban Democracy Act ( Torricelli Act ) and further tightened in 1996 by the Cuban Liberty and Democracy Solidarity Act known as the Helms-Burton Act . The latter punishes foreign companies doing business with Cuba by banning them from trading in the US. The reasons for these restrictions were that these companies would trade in stolen US property and should therefore be excluded from US trade.

The EU opposed this law because it believed the US was dictating other nations how to trade and wanted to challenge the law. Ultimately, however, the challenge was abandoned in favor of negotiations.

After the Brothers to the Rescue aircraft were shot down in 1996, a Congress majority made up of MPs from both parties passed the Helms-Burton Act. Chapter III of this law stipulates that any non-US company that "knowingly trades in property in Cuba that has been expropriated by a US citizen without compensation" faces legal consequences and that the respective company management is banned from entering the USA can be proven. Other trade by non-American companies with Cuba is also subject to sanctions. Ships that have called at a Cuban port, for example, are not allowed to use a US port for six months. However, the US President has the right to repeal these regulations. They also need to be renewed every six months, whatever has happened so far.

However, American farmers and industrial agriculture in the United States put pressure on their government, so the embargo was relaxed by the Trade Sanctions Reform and Export Enhancement Act ( Law on Reforming Trade Sanctions and Export Facilitation ). The law passed Congress in October 2000 and was subsequently signed by President Bill Clinton . The relief allows agricultural products and pharmaceuticals to be sold to Cuba for humanitarian purposes. Although Cuba initially refused to enter into such a trade, the Cuban government itself had refused food aid from the US in the past because this measure would only serve US interests, Castro allowed food deliveries from the US in November 2001 as a result of Hurricane Michelle . Since then, food exports to Cuba have not only continued but have increased. In 2007, the United States was Cuba's largest food supplier and Cuba's sixth largest trading partner.

Encouraged by a burgeoning interest in certain Cuba products, a growing number of free trade supporters in Congress, supported by industrial agriculture-related MPs from the western and states of the Great Plains , tried to enforce travel restrictions for Americans To soften Cuba or to abolish it entirely. Four times during that time, the US House of Representatives decided to lift travel restrictions. In 2003 the Senate followed suit for the first time. However, the then US President George W. Bush vetoed it every time. Then every year Congress put aside its attempt to loosen travel restrictions. US citizens can bypass this by traveling via third countries such as Mexico , the Bahamas or Canada , since the Cuban side does not stamp the passport with an entry endorsement when entering the country, but they must expect prosecution in their home country if such trips should take place become known to the authorities. On October 10, 2006, the establishment of a task force consisting of officials from various agencies was announced to pursue embargo breakers more closely. They face fines of several thousand dollars and up to ten years in prison.

On March 11, 2009, about seven weeks after President Barack Obama took office , the US Congress passed some easing of the embargo. Cuban Americans are now allowed to visit their relatives on the island again every year and transfer more money there. The export of agricultural products and medicines to Cuba was also made easier. Obama had announced a review of the previous policy on Cuba. However, the law threatened to fail in the Senate due to opposition from two senators from states with a large Hispanic population. Only after the assurance that further changes in Cuban policy would first be discussed with the Senate in the future could the law pass. Many restrictions remain formally in place, but funds will no longer be made available to implement them. On April 13, 2009, restrictions on travel and sending money to Cuba by Cuban Americans were completely lifted. In addition, US telecommunications companies are now allowed to offer Internet and cellular services to Cubans, with the exception of higher party officials. This also includes connections with fiber optic cables or satellite channels between the USA and Cuba. US Senator Richard Lugar declared the trade embargo to have failed in February 2009. The US would have to rethink its current policy on Cuba. The embargo, which has existed for 47 years, clearly failed to achieve its goal of bringing democracy to Cuba. Instead, it would be used by the Cuban regime as an excuse to claim further victims from the impoverished people.

On January 16, 2015, President Obama implemented some embargo eases that did not require the approval of Congress. In Congress, the Republican Party had a majority in both chambers and continued to oppose easing or lifting of the embargo. US citizens have made traveling to Cuba much easier. Although purely tourist trips are still prohibited, the catalog of officially permitted travel reasons has been expanded so that individuals no longer need to apply for permits. Travel agents no longer need an authorization from the US Treasury Department to sell tickets to Cuba. The same applies to airlines, which are now allowed to fly to Cuban airports without a permit. In addition, the limit for sending money to non-family members in Cuba has been increased from $ 500 to $ 2000 per quarter. Cuban Americans are still allowed to send unlimited amounts of money to their family members living in Cuba. The use of credit cards has also been approved by US banks. US banks are now allowed to open correspondent banks in Cuba. In addition, some trade facilitations, such as those for building materials or agricultural machinery, as well as materials for small businesses, have come into force. Most trade restrictions remain in place, however, as they are legally binding and can only be lifted by Congress. Since mid-February 2015, Cuban private companies have been allowed to export certain products to the USA. However, they have to prove that they are not controlled, in whole or in part, by the Cuban state. The US government also issued a list of products containing important export products such as rum and cigars, which are still completely exempt from trade. In January 2017, the first legal Cuban trade export to the USA took place in over 50 years: It consisted of two container loads with a total of 40 tons of high-quality charcoal from the colored kitten bush ("marabú"), which is widely used in Cuba as untreated willow, and which was carried out by a smallholder cooperative and shipped by ship from Port of Mariel to Port Everglades in Southwest Florida. He arrived there a few days after Donald Trump took over the presidency .

On May 29, 2015, Cuba was removed from the list of countries supporting terrorism, which it was added to the list in 1982 under the Ronald Reagan presidency for supporting left-wing Latin American guerrilla organizations. This deletion means relief in the area of ​​finance and commerce. In this way, Cuba can resume business relationships with US banks without having to fear sanctions from the US government, which would affect the diplomatic activity of Cuba and Cuban citizens such as B. in the USA scientists working within the USA much easier.

On March 16, 2016, in the run-up to Barack Obama's visit to Cuba, the embargo was further eased by presidential decree. Direct mail between the two countries was resumed. In addition, financial transactions with Cuba through the US banking system and in US dollars have been allowed, which will greatly facilitate Cuba's access to the international financial system. A Cuban citizen can now open an account in the USA and receive a salary without having to officially emigrate from Cuba. Individual travel to Cuba for US citizens has been made easier. Although purely tourist trips are still prohibited, official approval no longer has to be obtained in order to travel under the twelve exceptional provisions, for example for cultural and educational trips. All you have to do is keep a kind of travel diary and keep it for five years.

Effects of the embargo

Economic impact

Cargo ship entering Havana Bay

“After the end of the US war, the government in Hanoi asked Cuba to teach the Vietnamese how to grow coffee. We went there and showed them ... Today, Vietnam is the second largest coffee exporter in the world. And a Vietnamese official asks his Cuban colleague how it is possible that we, who once taught them how to grow, could buy coffee from them today. I don't know what the Cuban replied. He certainly said: the blockade. "

- Raúl Castro :

The real impact of the embargo on the Cuban economy is difficult to determine.

First of all, Cuba had to completely reorient its foreign trade, which was oriented towards exports to the USA, which resulted in corresponding adjustment costs. Furthermore, there were losses due to technology transfers , higher transport costs in foreign trade , deficits in the global marketing of own products and the resulting reduced domestic economic growth as well as access restrictions to international credit and funding programs, for example from the IMF and World Bank . In addition, there are even higher expenses for defense due to the changed threat situation.

The attempt to express the blockade costs in concrete monetary terms, however, is subject to obvious political interests. The costs mentioned by Cuba in 1987 totaled 20 billion US dollars and rose to around 45 billion by 1995. In June 1997, $ 60 billion was already mentioned. The cost of the Helms-Burton Act alone is estimated at around one billion dollars annually. In the 24 months between 1995 and 1997, the officially named costs are said to have increased at a similar rate as in the 25 years between the start of the embargo in 1962 and 1987.

The concrete background to these exorbitant cost increases is likely to be an offer of negotiation made by the Cuban government to the USA in 1993, according to which Cuba was willing to make reparation payments for expropriated US property if Cuba were reimbursed for the blockade costs in return. In order to create a relatively high basis for negotiation, own losses were extrapolated accordingly.

In 2006, Cuba's government put the total embargo losses at around 89 billion US dollars.

Cuban opposition and other critics of the Cuban government, however, strongly question the effect of the US trade embargo. On the contrary, it only serves as a pretext to justify the catastrophic living conditions of the Cuban population, the main cause of which lies in the socialist mode of production and the restrictive economic policy. Independent economists also come to the conclusion that Cuba's economic problems are primarily due to internal development obstacles, despite the most adverse external circumstances. Other Latin American countries, even though they enjoyed unrestricted trade with the US, did not show a corresponding economic performance.

Raúl Castro , who succeeded his brother Fidel as president in 2006, also refuses to blame Cuba's economic difficulties on the “blockade”. Rather, structural problems in the state's central economy are responsible, as he noted in a speech to the National Assembly in December 2010 .

Political Impact

The political effects of the embargo are manifold and extend to different levels. The boycott has not only affected relations between the US and Cuba, but also that between the two adversaries and their respective allies.

For the USA, the embargo was also accompanied by a loss of image that should not be underestimated. During the Cold War , the boycott was accepted and supported by practically all US allies. With the end of the East-West conflict and the increasing tightening of the embargo, instead of the expected relaxation of the situation, there was a change of opinion among the members of the international community. The blockade was seen more and more as a relic of the Cold War, which now seemed unjustified and out of date. The continuation of the embargo against the will of the UN General Assembly and the extension of the sanctions to companies in third countries aroused increasing protests and strained relations between the United States and other governments. The political goals of the embargo were only partially achieved, most of which became superfluous with the end of the Cold War. However, the main objectives were by no means satisfactorily achieved. Instead of weakening the Castro government, the embargo has strengthened its backs, as the boycott made a welcome scapegoat for domestic political problems and the Cuban people moved together rather than revolting against Castro: “In a broad strategic sense, US policies toward Cuba have failed. Punitive US policies toward Cuba have not deterred the Cuban behavior to which the United States objected, and have often rallied Cubans to support their government. ”The isolation of Cuba from the world market also failed due to the limited influence that the USA exerted on the foreign trade policy of other states can.

criticism

Many Cubans oppose the embargo because, in their opinion, it mainly affects the economic resources of the Cuban people and less of the Cuban government. The economic damage from the embargo is partly responsible for the food shortage and the transport difficulties. However, food imports from the USA have increased steadily in recent years.

Amnesty International condemns the US embargo on Cuba for its negative impact on Cubans' economic and social rights, particularly their right to health. The embargo will worsen the supply situation for Cubans and make it more difficult to import medicines and medical equipment.

Scientists outside of Cuba also criticized the embargo in terms of its effects on food provision, clean water, pharmaceuticals and other needs for the Cuban population. Shortages in medical equipment and soap were also pointed out, leading to a number of medical crises and increased levels of infectious diseases . Mental illnesses or blindness as a result of poor nutrition were also found. The travel restrictions also meant that the flow of medical information from the United States to Cuba was limited. Malnutrition resulting from increased food and medicine prices particularly affected men and the elderly, as the rationing system favored women and children.

The Helms-Burton Act has been the target of criticism, particularly from the Canadian and European governments, as it made legal claims to punish non-US companies and non-US investors who pursued economic interests in Cuba. The Canadian House of Commons ridiculed Helms-Burton by passing the Godfrey-Milliken Bill , which called on the US government to surrender property confiscated from British loyalists in British North America during the American independence movement . (The bill never came into force.) The European Parliament declared compliance with the Helms-Burton Act illegal for EU citizens. Nevertheless, there are always cases of discrimination against Cuban citizens in European countries by US-owned companies. Swiss financial institutions are also increasingly submitting to the pressure from the US administration. With a few exceptions, Postfinance closed the payment channel to Cuba at the end of September 2019, which is causing massive problems for Swiss SMEs and NGOs operating in Cuba.

Some libertarian and conservative critics have argued that the embargo is actually helping the Castro regime more than it hurts by providing a scapegoat for Cuban problems. The US Secretary of State in the Reagan administration , George P. Shultz , called the maintenance of the embargo "insane". US business leaders and free market supporters believe that as long as the embargo persists, foreign (non-US) companies will not have to compete with US companies, which will give them a head start when the embargo ends. You call for an end to the embargo.

In 1998 the US State Department turned in the report Zenith and Eclipse: A Comparative Look at Socio-Economic Conditions in Pre-Castro and Present Day Cuba (Zenith and Darkness : A Comparative Look at the Socio-Economic Conditions in Cuba Before Castro and Today ) that the US embargo caused relatively low additional procurement costs for Cuba. The main problem for Cuba's economy is not the embargo, but rather the lack of foreign currency due to the unwillingness to liberalize the economy, the diversification of exports and existing payment obligations to Cuba's Japanese, European and Latin American trading partners, which were acquired during the years of opulent Soviet aid .

Religious leaders oppose the embargo for a variety of reasons. This also includes humanitarian and economic hardship for the Cuban people. Pope John Paul II, for example, called for an end to the embargo during his 1979 visit to Mexico . Patriarch Bartholomew I described the embargo during a visit to the island on January 25, 2005 as a "historical error". Religious leaders from the United States also opposed the embargo. In a joint letter from the Disciples of Christ and the United Church of Christ to the US Senate in 1998, they called for economic sanctions against Cuba to be relaxed. Jesse Jackson , Al Sharpton and Louis Farrakhan also called for an end to the embargo. On May 15, 2002, former US President Jimmy Carter spoke in Havana and called for an end to the embargo.

United Nations General Assembly

The United Nations has regularly condemned the embargo since the 1990s. In 2002, for example, 173 nations voted against the embargo and only three in favor. In 2013, 188 states voted in favor of lifting the embargo, only the USA and Israel voted against and three island states (Micronesia, Marshall Islands, Palau) abstained. Cuban Foreign Minister Pérez Roque called the embargo an "act of genocide". He also called it a "theft" that frozen Cuban state funds in the US were used in US legal proceedings against the Republic of Cuba.

Current polls show an ambivalent public opinion in the USA regarding the continuation of the embargo. A 2007 poll by the AP news agency showed that 48% of Americans supported the continuation of the embargo. 40% were against it. Despite the predominantly negative assessment of Fidel Castro (6% agree, 64% disagree), the vast majority were in favor of resuming diplomatic relations with his government (62% in favor, 30% against). A survey of Cuban exiles or their descendants in December 2008 found that 55% of them were in favor of lifting the trade embargo, especially the younger generation. While 68% of those over 65 voted in favor of maintaining the embargo, 65% of those aged 18 to 44 were in favor of ending the embargo.

During a visit to Cuba in January 2018, EU foreign affairs representative Federica Mogherini condemned Washington’s economic blockade on the Caribbean island.

See also

Web links

Individual evidence

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