International Negotiation November 25, 2017

Noreen Anne Dimapilis Sir Jumel G. Estranero

AB Foreign Service- FS401

A Study on the lifted Cuba-U.S. trade embargo

Introduction

The conflict of the United States and Cuba started during the Cold War when
Fidel Castro along with a group of revolutionaries seized power in Havana to
overthrow Fulgencio Bautistas U.S.-backed government on 1959. Then, Castros
regime had increased trade with the Soviet Union, nationalized U.S.-owned
properties, and hiked taxes on U.S. imports, the United States responded
with rapidly increasing economic penalties. Washington instituted a ban on
almost all U.S. exports to Cuba, which President John F. Kennedy
lengthened into a full economic embargo that included strict travel restrictions
after decreasing Cuban sugar imports.
The United States cut diplomatic ties with Cuba and began pursuing
undercover operations to overthrow the Castro administration. The Bay of
Pigs invasion backed by the Central Intelligence Agency, which is an
unsuccessful attempt intended to overthrow the increasingly communist
government of Fidel Castro, has triggered Cuban distrust and nationalism, and
pushed Havana to allow the Soviet Union to install nuclear missile sites on
the island in secret to prevent possible attacks. U.S. surveillance aircraft
exposed the installations in 1962, setting off a thirteen-day showdown
between the U.S. and Cuba administration that intimidate to worsen into a
nuclear war. Eventually, the Soviet removed the missiles in an exchange with
the U.S. not to attack Cuba and to remove U.S. nuclear missiles from Turkey.
After fifty years that followed, successive U.S. administrations pursued
policies intended to isolate Cuba economically and diplomatically. Cuba is the
only country that the U.S. has sanctioned with that length of fifty years.

Felter C., Renwick D. (2017) U.S.-Cuba Relations, Council on Foreign Relations

https://www.cfr.org/backgrounder/us-cuba-relations (access: September 29, 2017)
http://www.opinionglobal.cl/u-s-cuba-relations-2/
 However, the two countries started to reconcile the conflict after five decades.
During Obamas regime, he pursued a direct diplomacy with Cuba. He
started the 2008 U.S. election, Barack Obama said that it was time for the
United States to pursue direct diplomacy with Cuba. After taking the
presidential office, the Obama administration eased restrictions on
remittances and travel, allowing Cuban Americans to send limitless funds into
Cuba and allowing U.S. citizens to travel to Cuba for religious and
educational purposes Obama sustained modest loosening of boundaries in
these areas.

In late 2014, Obama and Castro declared that their governments would
reestablish full diplomatic ties and begin to ease more than fifty years of
bilateral tensions. The historic moment marked the finale of eighteen months
of secret diplomacy brokered by Pope Francis in which the parties agreed to
an exchange of prisoners, including intelligence officers and a U.S. Agency
for International Development (USAID) contractor, among other concessions.

President Trump announced during a visit to Miami in June 2017 that he would
reinstate some restrictions on travel and trade that had been eased by the
Obama administration, but would not break diplomatic relations. Trump said that
the outcome of the last administrations executive actions has been only more
repression and issued a memorandum directing the U.S. Treasury and
Commerce Departments to begin implementing the new regulations within a
month. Those include reinstating the ban on individual travel by Americans to
Cuba; halting economic transactions involving GAESA, a military-run
conglomerate; and regularly reporting on human rights progress in Cuba. Trump
said U.S. sanctions will not be lifted until Cuba frees all political prisoners and
holds free and fair elections, among other rights-related conditions.

2: Statement of the Problem

This study aims to determine and explore the issue behind the U.S trade embargo
against Cuba.
Specifically, this study will seek to answer the following specific questions:

1. Between the U.S. and Cuba, who would benefit more if the trade embargo
will be lifted?
2. Should the U.S. lift the trade embargo against Cuba?
3. Does Cuba meet the conditions to lift the embargo?

2 Felter C., Renwick D. (2017) U.S.-Cuba Relations, Council on Foreign Relations

https://www.cfr.org/backgrounder/us-cuba-relations (access: September 29, 2017) http://www.opinionglobal.cl/u-s-
cuba-relations-2/
B: Methodology

This study used historical methodology to discover the issues and decisions made that
lead to the conflict. The researcher used information from readily available secondary
sources obtained from various related literatures and studies such as news articles
(mostly from web), journals, dissertations, thesis and other internets sources to critically
asses the scenario and create a essential conclusion with a knowledgeable foundation.

III: Review of Related Literature

This chapter presents a number of studies and researches related to the present
topic. This provides a clear understanding and reliable source of information for the reader.

Foreign Literature

According to Franks (2012), since 1962, the embargo has done $108 billion in damage
to the Cuba economy, but it also violated the constitutional rights of Americans and
made a market of 11 million people off limits to U.S. companies as said by Bruno
Rodriguez, a Foreign Minister. In addition to that, he also stated that lifting the embargo
would improve the image of the United States around the world, not only that, but it
would also end a massive, flagrant and systematic violation of human rights, which
includes restrictions on U.S. travel to Cuba and banned many U.S. companies doing
business in Cuba. During a moment of crisis, ending the blockade would contribute the
U.S. a total of new market of eleven million people.

It means both countries may benefit if the blockade would be lifted. Its not just Cuba
who would gain benefits but, the United States as well. The possible opening of new
market would generate employment and end the situation in which American companies
cannot compete in Cuba.

Franks J. (2012) Cuba says ending U.S. embargo would help both countries Retrieved from:
https://www.reuters.com/article/us-cuba-usa-embargo/cuba-says-ending-u-s-embargo-would-help-both-countries-
idUSBRE88J15G20120920
According to Hear my voice (2016), the U.S. loses an estimated $1.2 billion in earnings
every year because of the trade embargo against Cuba. It has also been destructive to
Cubas economy. Lifting the trade embargo would benefit both countries, cooperatively
sharing advances in agriculture, technology, medicine and enterprise. The United
Nations has continually encouraged the U.S. to lift the ban, citing an influx of people and
commerce would encourage an entry of ideas that will habitually improve Cubans
quality of life.

Meaning, the trade embargo has caused damages to both countries in terms of their
economy. If the trade embargo would somehow be lifted, and the two countries
cooperate with each other, theres no doubt that there would be different outcomes but
great benefits for both countries.

According to ProCon (2017), proponents of the embargo argue that Cuba has not met
the US conditions for lifting the embargo, including transitioning to democracy and
improving human rights. They say that only the Cuban elite would benefit from open
trade, backing down without getting concessions from the Castro regime will make the
United States appear weak while the opponents of the Cuba embargo argue that it
should be lifted because the failed policy is a Cold War relic and has clearly not
achieved its goals. They say the sanctions harm the US economy and Cuban citizens,
and prevent opportunities to promote change and democracy in Cuba. They say the
embargo hurts international opinion of the United States.

There has been different opinions about this matter, but it explains that both opponents
and proponents of the embargo doesnt see any advantage for the United States if it
would lift the trade embargo since it would only appear weak and will harm its citizens.

According to LeoGrande (2017), the embargos original purpose was to make the
Cuban economy suffer, to use Cubas economic dependence on the United States to
plunge it into a severe crisis to the point that the Cuban people would rise up and
overthrow Fidel Castros revolutionary government. Congressman Robert Torricelli
sponsored the Cuban Democracy Act to tighten the embargo in order to cause chaos on
that island. But regime change remained beyond the horizon of the possible, leaving
punishment for punishments sake as the only real basis for the embargo.
1. Franks J. (2012) Cuba says ending U.S. embargo would help both countries Retrieved from:
https://www.reuters.com/article/us-cuba-usa-embargo/cuba-says-ending-u-s-embargo-would-help-both-countries-
idUSBRE88J15G20120920
2. Hear my voice (2017) Should the U.S. lift its trade embargo from Cuba Retrieved from:
https://hearmyvoice.com/issues/77-should-the-us-lift-its-trade-embargo-on-cuba
3. ProCon (2017) Should the United States maintain its embargo on Cuba Retrieved from: https://cuba-
embargo.procon.org/
4. LeoGrande W. Stop Punishing Cubas people Lift the embargo Retrieved from:
https://www.huffingtonpost.com/william-m-leogrande/stop-punishing-cubas-peop_b_7993120.html
Even after the change of the administration, the embargo only made the Cubans
economy to suffer. Lifting the embargo would also give hope to the economic crisis on
Cuba.

According to Benitez (2014), ending the embargo on the Castro regime would be a
setback not only to American wallets, but also to American values. The American
people want free trade with free people, not manipulated trade that strengthens an
authoritarian governments oppression of its people. The Castro regime is on its last few
breaths and the Cuban Spring will soon come to millions who will remember that for
decades the U.S. chose solidarity with the Cuban people instead of business
partnerships with the dictator in Havana

This article claims that embargo would only cause setback to the America. Any
economic partnerships with authoritarian regimes are morally suspect, but making deals
with the Castro government is pouring billions of dollars down the drain.

Local Literature

According to Lee (2015), the Obama administration officially removed Cuba from a U.S.
terrorism blacklist as part of the process of normalizing relations between the Cold War
opponents. The step comes as officials from the two countries continue to discuss
details of restoring full diplomatic relations, including opening embassies in Washington
and Havana and returning ambassadors to the two countries for the first time since the
U.S. cut diplomatic relations with the island in 1961. The removal of Cuba from the
terrorism list had been a key Cuban demand.

The removal of Cuba has from the terrorism list is a great benefit for the island country,
it would give them great opportunity, although many people criticizing the decision, it is
no doubt that it has great benefits for Cuba, it could be a small first step in allowing
congress to lift the embargo.

Benitez J. (2014) Lining a dictators pocket Retrieved from: https://www.usnews.com/opinion/blogs/world-

report/2014/02/27/lifting-the-us-embargo-on-castros-cuba-would-be-a-mistake

Lee M (2015) Cuba removed from US terror list Retrieved from: http://www.philstar.com/world/2015/05/30/1460378/cuba-
removed-us-terror-list
According to PhilStar (2016), the Cuban government blames the half-century-old US
trade embargo on Cuba for strangling the island's economy. Cuba's new class of
entrepreneurs say the embargo is a major obstacle but also lodges frequent, bitter
complaints about the difficulties of running a business in a system that does not officially
recognize them. Low-level officials often engage in crackdowns on successful
businesses for supposed violations of the arcane rules on self-employment. And the
government maintains a monopoly on imports and export that funnels badly needed
products exclusively to state-run enterprises.

Due to its dilapidated state-run economy, Cuba imports most of what it consumes, from
rice to air conditioners. Most private businesses are forced to buy scarce supplies from
state retail stores or on the black market, increasing the scarcity of basic goods and
driving up prices for ordinary Cubans. Many entrepreneurs pay networks of "mules" to
import goods in checked airline baggage, adding huge costs and delays.The latest
change will almost certainly take months to become law. Such reforms typically require
formal approval by Cuba's National Assembly, which meets only twice a year.

According to Garcia (2015), France will do everything it can to aid the process of
opening Cuba and help get rid of measures that have so seriously damaged Cuba's
development. He announced plans to increase academic exchanges with Cuba and
mutually recognize the other country's university degrees

Even France wanted the U.S to end the embargo since they wanted to help Cuba
because the embargo has damaged its economic development. Top diplomats have
visited the island in recent months in bids to stake out or maintain ties with an island
that suddenly looks like a brighter economic prospect amid warming U.S.-Cuba
relations.

PhilStar (2016) Cuba to legalize small and medium-sized private business Retrieved from:
http://www.philstar.com/world/2016/05/25/1586837/cuba-legalize-small-and-medium-sized-private-businesses
Garcia A. (2015) French President calls for end to US embargo on Cuba retrieved from:
http://www.philstar.com:8080/world/2015/05/12/1453937/french-president-calls-end-us-embargo-cuba
According to an associated press (2015), the United States on Tuesday voted against a
UN resolution condemning its embargo on Cuba, even though President Barack Obama
has called on Congress to lift the trade restrictions. The vote was the first since the US
and Cuban leaders agreed to restore diplomatic ties last December, and the US had
considered taking the unprecedented step of abstaining.

The General Assembly voted 191-2 to condemn the commercial, economic and
financial embargo against Cuba, the highest number of votes ever for the measure.
Only Israel joined the United States in opposing the resolution, and when the vote lit up
on the screen many diplomats jumped to their feet in a standing ovation.
Cuba has introduced draft resolutions against the embargo for the past 23 years, and
theyve been adopted with increasingly overwhelming and embarrassing margins. Last
years vote was 188-2, with only Israel siding with the US. This year, Obama
administration officials have indicated that the US might take the unprecedented step of
abstaining instead. But spokesmen have declined to comment until the text was final.
There was no immediate comment Friday.

IV. Presentation, Interpretation & Analysis or PAID (Pres, Analysis, &

Interpretation of the Data)

Half a century ago, the United States implemented an embargo against Cuba, which is
an embargo that consists of economic sanctions against Cuba and all people and
companies that are under the jurisdiction of U.S., are restricted on business and
travelling to Cuba.

But on 2016, Obama administration declared that some embargo restrictions on Cuba
would be lifted, which will allow people to travel easier to Cuba and commerce between

the countries will increase. However, beside for that two embargo restrictions that was
lifted by the U.S. administration, other embargo restrictions still remains.

Many agreed that the trade embargo should be completely lifted as it would benefit both
countries in terms of economic gain. However, there are people who still oppose the
possible embargo lift.

Inquirer (2015) retrieved from: http://newsinfo.inquirer.net/734944/un-overwhelmingly-condemns-us-embargo-on-cuba-us-

votes-no
Inquirer (2015), Cuba submits latest draft UN resolution against US embargo retrieved from:
http://newsinfo.inquirer.net/729670/cuba-submits-latest-draft-un-resolution-against-us-embargo#ixzz4zMUQCYgK
V. Summary, Conclusion & Recommendation

The secondary resources claim that lifting the embargo on Cuba would benefit both
countries. It claims that there would be a Win-Win situation.

It has stated that the Obama-Castro relation has made things easier. There are some of
the things that have become easier because of Obama-Castro relationship in 2016,
such as:

Cuban products would be easier to buy. Since Obama administration

authorized travelers that Cuban goods can now be purchased legally.

Cuba has been removed from the list of countries that sponsors terrorism.
They are on the list since 1982 because of supporting Colombian Rebels. It could
also be one of the steps towards completely lifting the embargo. Not only that,
but it could also improve the confidence of the Cuban people out of shame
because they are being labeled as a country that supports terrorism.

There would be more business opportunities for American companies to be

established on Cuba.

Sending E-mail between the two countries is now possible.

There are also claims that the embargo has failed. Therefore, the U.S. should lift it.
Some of the ff. reasons are:

The embargo is not hurting the Castros but the average Cuban people.
The embargo prevents communication and is isolating the Cubans and restricting
them to gain information.
The embargo only made the Cuba to create propaganda against the U.S.
Leadership in Cuba has changed since Raul Castro took power.

Scull J. (2016) Should the Embargo on Cuba be Lifted. Retrieved from: https://medium.com/@jules000120/an-
important-read-on-whether-the-u-s-should-lift-the-embargo-on-cuba-8815c44697a6
Petrosyan S. (2013) 5 Reasons why the U.S. should lift the embargo on Cuba. Retrieved from:
http://www.neontommy.com/news/2013/10/5-reasons-why-us-should-lift-embargo-cuba
VI. References

1. Telesur, 2015 Cubas Removal from terror lists helps everyone Retrieved from:
https://www.telesurtv.net/english/news/Cubas-Removal-from-Terror-List-Helps-
Everyone-Experts-Say-20150530-0010.html

2. Felter C., Renwick D (2017)Retrieved from:

https://www.cfr.org/backgrounder/us-cuba-relations
3. Retrieved from: http://www.opinionglobal.cl/u-s-cuba-relations-2/

4. Franks J. (2012) Cuba says ending U.S. embargo would help both countries
Retrieved from: https://www.reuters.com/article/us-cuba-usa-embargo/cuba-says-
ending-u-s-embargo-would-help-both-countries-idUSBRE88J15G20120920

5. Hear my voice (2017) Should the U.S. lift its trade embargo from Cuba Retrieved
from: https://hearmyvoice.com/issues/77-should-the-us-lift-its-trade-embargo-on-
cuba

6. ProCon (2017) Should the United States maintain its embargo on Cuba Retrieved
from: https://cuba-embargo.procon.org/

7. LeoGrande W. Stop Punishing Cubas people Lift the embargo Retrieved from:
https://www.huffingtonpost.com/william-m-leogrande/stop-punishing-cubas-
peop_b_7993120.html

8. Benitez J. (2014) Lining a dictators pocket Retrieved from:

https://www.usnews.com/opinion/blogs/world-report/2014/02/27/lifting-the-us-
embargo-on-castros-cuba-would-be-a-mistake

9. Lee M (2015) Cuba removed from US terror list Retrieved from:

http://www.philstar.com/world/2015/05/30/1460378/cuba-removed-us-terror-list
10. PhilStar (2016) Cuba to legalize small and medium-sized private business
Retrieved from: http://www.philstar.com/world/2016/05/25/1586837/cuba-legalize-
small-and-medium-sized-private-businesses

11. Scull J. (2016) Should the Embargo on Cuba be Lifted. Retrieved from:
https://medium.com/@jules000120/an-important-read-on-whether-the-u-s-should-
lift-the-embargo-on-cuba-8815c44697a6

12. Petrosyan S. (2013) 5 Reasons why the U.S. should lift the embargo on Cuba.
Retrieved from: http://www.neontommy.com/news/2013/10/5-reasons-why-us-
should-lift-embargo-cuba

13. Inquirer (2015) retrieved from: http://newsinfo.inquirer.net/734944/un-

overwhelmingly-condemns-us-embargo-on-cuba-us-votes-no

14. Inquirer (2015), Cuba submits latest draft un resolution against US embargo
retrieved from: http://newsinfo.inquirer.net/729670/cuba-submits-latest-draft-un-
resolution-against-us-embargo#ixzz4zMUQCYgK

15. Garcia A. (2015) French President calls for end to US embargo on Cuba retrieved
from: http://www.philstar.com:8080/world/2015/05/12/1453937/french-president-
calls-end-us-embargo-cuba