Stopping the Trade Embargo on Cuba - Essay Example

Stopping the Trade Embargo on Cuba There are different issues that require change in the present society. The trade embargo on Cuba imposed by the United States is the main focus of the paper. Specifically, the objective of the paper is to present points and reasons to stop the embargo. This is important primarily on the Cuban population and the people of Cuban descent due to the detrimental effects the issue had brought to their country. On a personal view, being a person in Cuban descent triggers an advocacy to stop the embargo on Cuba. The History of the Cuban Embargo The Cuban embargo was set by the United States as an instant response to the communist revolution in Cuba in 1959 when the capitalist Batista regime was overthrown by Fidel Castro’s communist system. The event damaged the trade relationship between Cuba and the U.S. and became the onset of the trade between Cuba and the Soviet Union. The trade relationship was further tested when in 1960 Cuba had a large shipment of crude oil from Soviet Union in exchange for sugar and U.S. commanded the country to refuse refining the crude oil on the basis of the U.S. refineries and other businesses within Cuba. Cuba’s response then was the confiscation and nationalization of the refineries that prohibited the processing of the oil. Through the year 1960, the two countries took turns in worsening the trade relationship that they once had. The process led to the legislation that indicated reduction of sugar quota in Cuba. The embargo on Cuba is still a problem until now since additional laws and sanctions had been made by the U.S. government (Williams 457-8). The embargo is an evidence of the capacity of the United States to impose economic restrictions to other countries through commercial and trade embargoes on the basis of national security threat (Williams 456). From the action imposed by President Eisenhower, President John F. Kennedy declared the formal economic embargo which ceased trade with Cuba under the Trading with the Enemy Act of 1917 (TWEA) (Gootnick 19, Williams 458). Based on the TWEA, the President has a power to impose embargoes on the basis of national emergencies such as war but the necessity of the embargo was expressed by President Kennedy as a threat in national security due to the relationship of Cuba with the Soviet Union and the contradiction of Cuban action on the objectives of the Inter-American system. This became the onset of the longest embargo in history (William 458). There are subsequent policies that supported and strengthened the embargo in Cuba. One is the Foreign Assistance Act (FAA) of 1961, which prevented any U.S assistance to the government of Cuba and hindered trade and right to quota. Another is the Food Security Act of 1985 which prohibited other countries to re-export of Cuban products to U.S. In relation, sanctions to be imposed for countries assisting Cuba were under the Cuban Democracy Act (CDA) of 1992 (Goodnick 19). Through the years ever since the start of the embargo there was a continuous policy changes that constantly reaffirm the embargo. The most controversial legal basis of the embargo is the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD), which is also referred to as “Helms-Burton” (Haney and Vanderbush 1). The said law was a combined restrictions of embargo in terms of trade and transactions authorized by the Cuban Assets Control Regulations (CACR) which included section 620 (a) of FAA, section 5b of TWEA, CDA and different sections of the Food Security Act. The increased civil penalties under TWEA were related to the violations of licenses, orders, rules, or regulations related to embargo (Goodnick 21; Reinisch 546). The embargo on Cuba is still ongoing and presently being criticized due to perceived detrimental effects on both countries involved. The discussion of the effects of the said embargo not only in Cuba but also in the U.S. is important on the basis of the stopping the said embargo. This can be attributed to the fact that the embargo is significantly destructive to both sides and especially to Cuba. Effects of the Cuban Embargo Since the implementation of the Cuban embargo, the effects were felt not only in the country but also in the U.S. and other countries with trade relationship to Cuba. In Cuba, the most destructive effects can be perceived in the economic aspect. Since the onset of the embargo, the effects on trade and commerce had been worsening. In the first few years, the majority of the trading activities had been undertaken with the Soviet Union which cushioned the paralyzing effects of the embargo on Cuba’s economy. In addition, other socialist trading partners also contributed, thus, lessening the void that was caused by the embargo. Since 75 percent of the trading activities of Cuba were with the United Stated before the embargo, there is a large space that needed to be filled by other traders to be able to achieve stability (Williams 460). The detrimental effects on the economy of Cuba even worsened due to the disintegration of the Soviet Union which occurred between 1989 and 1990 (William 460). This resulted to the decrease of the gross national product (GNP) of Cuba from 32.5 billion US dollars in 1989 to 18.6 billion US dollars in 1994. In addition, the export which is mainly composed of sugar dropped from 5.4 million US dollars to 1.7 billion US dollars. This can be attributed to the resigned support of the other socialist partners in addition to the Soviet Union’s breakup (p.461). The halting of the relationship with Soviet Union and other socialist countries resulted to effects that extended from economic factors such as the shortage in energy and gasoline. The electrical infrastructure is also another problem since it is highly defective (p.461). The embargo in Cuba also affected the United States. It can be considered that even if the US imposed the embargo, the country experienced the negative effects of the embargo. The farmers and the agricultural business sector is one of the primary groups affected by the embargo. From 1960 to 1987, approximately 30 billion dollars had been the cost of the embargo to the United States. Between 1965 and 1986, the embargo resulted to a liability that approximately cost 2 billion dollars on the export sales from products such as corn, cotton, potatoes, rice, wheat, flour, dry milk, and poultry (Williams 461). Reasons to Stop and Lift the Embargo on Cuba The Cuban embargo affected and will continue to affect both countries involved. For that matter, there are different reasons that can be sited that support the lifting the embargo on Cuba. One of the reasons for the support for lifting the embargo is the market that can be explored in Cuba. Based on the study, Cuba imports less than one billion dollars of food on a yearly basis from Canada, Europe and Latin America. This can be considered as a missed chance for the exporters and traders in the United States. The food producers in the US expressed the need for lifting the embargo due to the significant effect of the embargo on the profits of the farmers. Due to the crisis in the world economy, the agricultural sector is primarily affected, thus, the US farmers needed all the trading partners that they can have (Williams 461). Another reason that can be sited to support the lifting of the embargo is the “lack of meaning in the present political and economic situations” (Williams 467). The situations in the society during the onset of the embargo can be considered different from the present situation. For that matter, there are certain provisions and rules that do not apply and are needed to be undertaken. Increasing number of groups and individuals specifically the agricultural and the business groups in the United States are asking for the embargo to be lifted (Williams 467-8). The proximity of Cuba to the United States is another reason that supports the lifting and stopping of the embargo. In comparison to the other countries that are trading with the U.S., Cuba is only 90 miles south of US. Thus, costs of transportation can be significantly lessened if agricultural products can be exported to Cuba (Williams 468). Basically, new economic opportunities can be achieved by the United States when the trading relationships with Cuba can be renewed (Williams 468). The said reason is an important inspiration that can be perceived by the U.S. in stopping the embargo. To benefit the Cuba on the other hand, lifting the embargo can save the continuously degrading economy of the country. For humanitarian purposes, the United States can consider the said point to be able to help Cuba but political issues are hindering positive developments on the embargo (Williams 467-9). Even the technological improvement of the country is hindered due to the restrictions of software and online services (Baker 546). Another observed point is that the fact that other countries are taking advantage of the Cuban market regardless of the sanctions set by the embargo. For that matter, when the embargo is lifted, the American traders can have their share of the one billion dollar market in Cuba. Through the perspective of the American agricultural sector, the Cuban market can be considered as a new possibility to explore. On the other hand, the Cuban society needs the lifting of the embargo to achieve new products from other countries (Williams 469). Another important point needed to be considered is related to the criticisms on U.S. unilateralism. This can be attributed to the one sided privilege to impose international restrictions on the domestic laws of countries such as Cuba. Even in cases wherein the rules can be considered unfair or prejudice, the influence of the US can be considered dominating. In addition, the embargo affected even the economy of the United States since the unilateral trade embargo is an “overly costly method” considered as a liability to the country’s economy. In general, the said cost of imposing the embargo cannot be justified since it had been ineffective in certain points (Reinisch 558). The embargo on Cuba is a continuous subject of criticisms from different groups. The U.S. government and other political groups are continuously expressing enthusiasm for the embargo. On the other hand, the different social groups and different countries are gradually decreasing the support on the embargo. Academic researchers are expressing contradictions on the trade sanctions due to being illogical. This view is due to the fact that there are more negative effects rather than positive for both U.S. and Cuba. This is considered “dumb” since U.S. should achieve only positive results from imposing the embargo. In addition, there are consequences of the embargo that are unintended. One example that can be viewed is the presence of human rights violations in Cuba due to the hostility between the socialist government and the United States. Such events commonly affect the people of Cuba primarily (Baker 546; Schwab 1). The Change Needed and the Hindrances The primary change needed to be undertaken is to lift the embargo and to overwrite and amend the laws that legalized the embargo. When these trade sanctions have been lifted, the situation in Cuba can improve. Although there are challenges that can be perceived since the embargo can be considered as seriously linked to the political aspect. One of the main hindrances then that can be observed related to the embargo on Cuba is the political and social groups that are forcing the U.S. government to continue the embargo. One of the said groups is composed of the exiles from Cuba known to have grudges on the Cuban Government (Gootnick 19). Another hindrance of lifting the embargo is the socialist government of Fidel Castro which is one of the main reasons for the onset of the embargo (Schwab 163). Advantages of Stopping the Embargo Lifting the embargo then can lead to positive changes in the Cuban society. The effects can give the country new chances of improvement even in the socialist form of government. The country will be open to new technologies, thus, new chance for the progress of the different sectors. The social issues related to the embargo such as human rights problems can be lessened. The American traders and agricultural producers can also be positively affected by lifting the embargo. This is based on the fact that the Cuban market can be considered as a new and important market to explore. Conclusion Stopping and lifting the embargo and trade sanctions on Cuba can generally be considered advantageous on both sides. The advantages cover all the aspects such as social and the economic facets. Thus, for the good of the groups involved, the lifting of the embargo is needed to be undertaken. Work Cited Baker, Lee. “The Unintended Consequences of U.S. Export Restrictions on Software and Online Services for American Foreign Policy and Human Rights.” Harvard Journal of Law & Technology 23.2 (2010): 537-66. Gootnick, David. U.S. Embargo on Cuba: Recent Regulatory Changes and Potential Presidential or Congressional Actions. DIANE Publishing, 2009. Haney, Patrick Jude and Walt Vanderbush. The Cuban Embargo: The Domestic Politics of an American Foreign Policy. University of Pittsburgh Press, 2005. Huddleston, Vicki and Carlos Pascual. Learning to Salsa: New Steps in U.S.-Cuba Relations. Brookings Institution Press, 2010. Reinisch, August. “Widening the US Embargo Against Cuba Extraterritorially.” EJIL (1996): 545-62. Schwab, Peter. Cuba: Confronting the U.S. Embargo. Palgrave Macmillan, 1999. Williams III, Alexander. “More Assistance Please: Lifting the Cuban Embargo May Help Revive American Farms.” Drake Journal of Agricultural Law 455 (2000): 454-71. Read More