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by refurb 4196 days ago
The one thing I don't understand is how the US embargo is to blame for the lackluster Cuban economy. Cuba is free to trade with most Western countries including the EU and Canada.

How much of the economic misery is due to the Castro government and how much is due to the US embargo?

3 comments

The Helms–Burton Act dictates that any firm that does trade with Cuba can't trade with the US. So no trade for Cuba, then.
Presidents Clinton and Bush both waived that part law, and Canada, Mexico, and the EU all don't recognize it. So I'm not sure it has had any real impact other than antagonizing US allies, and generating some private lawsuits.
> Presidents Clinton and Bush both waived that part law

Part of the issue with Helms-Burton is that the retaliatory provisions include a private cause of action for any expatriates whose (former) property is impacted, so that it is impossible for the executive branch to control the application of the law.

> and Canada, Mexico, and the EU all don't recognize it.

Whether foreign countries recognize it has no impact on a anyone subject to it if they have assets that become subject to the jurisdiction of US courts.

> So I'm not sure it has had any real impact other than antagonizing US allies, and generating some private lawsuits.

Those private lawsuits are an additional risk, which is taken into account when firms decide whether or not to do business in or with Cuba -- and which are a negative factor in those decisions. Which illustrates how the embargo's impacts extend beyond just US-Cuba trade.

Yes, I agree there is private lawsuit risk, and noted it. I was responding to the parent saying "So no trade for Cuba, then." There is trade, there are some lawsuits, and the US Govt. policy is to ignore the law.

> Whether foreign countries recognize it has no impact on a anyone subject to it if they have assets that become subject to the jurisdiction of US courts.

I disagree, but regardless, the fear of private lawsuits hasn't kept large European, canadian, and Mexican companies from doing business and trading with Cuba.

http://www.cubatrade.org/nonus.html

Some parts of it, like agriculture and medicine, have been relaxed, but most of it still stands. And what does it matter if the EU doesn't recognize it? E.g. Volkswagen better recognize it or Volkswagen will lose all sales in the US.

Is it plausible that Cubans would really be driving oldsmobiles if they had access to European or Asian cars? That's the only evidence you really need to understand that the embargo is, in practice, global.

Is it plausible that Cubans would really be driving oldsmobiles if they had access to European or Asian cars?

It sounds like the restrictions on cars comes from the Cuban gov't, not the embargo.

Until a few weeks ago, there was no way to legally transfer ownership of a vehicle like this. The only cars that could be freely bought and sold were those built before 1959, when Fidel Castro came to power. That's why there are still nearly 60,000 classic cars on Cuba's streets, but few late-model Hondas. Bringing in a new car requires special government permission and a 100 percent import tax...[1]

[1]http://www.npr.org/2011/10/31/141858419/in-cuba-a-used-car-i...

The US embargo -- and the palpable external target it presents -- is a major source of the longevity of the Castro regime (and the longevity of the regime itself motivates the maintenance of the embargo), so in a very real sense all of the misery resulting from the regime also can be blamed on the embargo, and vice versa. They aren't independent factors.
I don't disagree. The Castros have been helped plenty by the embargo by keeping public distain focused on the US rather than their own government's policies.
An american embargo on Mexico will effect Mexico in spades even if it can trade with others. I am not glorifying Castro, but we have hardly hurt Castro, the idea behind the embargo is to make it unbearable for Cubans and make them revolt against Castro - that did not happen in 50 years and so its about time to change the tactics. US is the giant that can infuse a boat load money via tourism, or capital or through access to new technology and services. US can influence Cuba more if its economy is coupled with America's. That how we tackled Communist Chinese, remember.