US-Cuban Trade
-
Upload
deepti-tripathi -
Category
Documents
-
view
104 -
download
1
description
Transcript of US-Cuban Trade
Case study u.s.-cuban trade : when does a cold war strategy become a cold war relic
Presented by:Ankur Gupta
Aishwarya Singh
Honey Shukla
Deepti Tripathi
Case facts
The U.S. Embargo of Cuba is the longest and harshest embargo
by one state against another in modern history
Following Castro’s overthrow of the Batista government in
1959 and threats to incite revolutions in Latin America, U.S.
cancelled its trade agreement to buy Cuban sugar.
Spurred by the collapse of communism more than thirty years
later, Congress passed the Cuban Democracy Act in 1992 and
the Helms-Burton Act in 1996, both of which tightened the
noose for firms that attempted to do business with a Castro
government.
Although many countries had initially supported the embargo,
by 2001 some 150 nations had normal trade relations with
Cuba
While many people feel that repealing the embargo would
help many U.S. industries and firms, others maintain that
Cuban market opportunities are extremely limited. Others feel
that the Cuban embargo is an unfortunate cold war relic and
question the politics of U.S. policy.
QUESTION -1
Should the U.S. seek to tighten its economic
grip on Cuba? If so, why?
Answer-1
Now, The US govt. should not seek to tighten the economic
grip on Cuba because business with Cuba will help many US
companies to generate revenue.
Lifting the embargo will give approx $1.2 million per year
from agricultural exports.
Potential gains for tourism & transportation companies
Moreover, It is the longest embargo on Cuba by US Which is
not relevant in today’s time.
In addition, Cuba’s expropriation of American property
without compensation is internationally recognized as
unacceptable behavior; thus, retaliation can be seen as an
appropriate response.
QUESTION -2
Should the U.S. normalize business relations
with Cuba? If so, should the U.S. stipulate any
conditions?
Answer-2
Yes, U.S. should normalize business relations with Cuba.
Reasons:
Cuba has long military threat, and there is hope that closer
political relations with the United States (and the rest of the
free world) will lead to greater democracy in Cuba.
Cuban trade sanctions are far tougher than those levied by the
United States against Iran, Iraq, Libya, and North Korea.
Economically, U.S. firms are losing out on opportunities to sell
their products in Cuba to competitors from other countries.
U.S. should stipulate following conditions:
While progress in the area of human rights may be slow,
experience in other countries suggests that imposing some
human rights conditions may be effective in the long-run.
In addition, the U.S. government may wish to facilitate the
return to Cuba of U.S. companies whose properties were
expropriated, even though any remaining assets are likely in a
state of serious disrepair.
QUESTION -3
Assume you are Fidel Castro. What kind of trade
relationship with the United States would be in your
best interest? What type would you be willing to
accept?
Answer-3
Being a leader i would want a trade relationship that would
contribute to the economic development of the economy.
Initial overtures from the U.S. government could help to
improve the political position and would be welcomed as a
way to begin negotiations.
Economic development assistance could come in the form of
foreign direct investment
QUESTION -4
How do the structure and relationships of the
American political system influence the existence and
specification of the trade embargo?
Answer-4
The structure and relationships of the American political
system serve to reinforce the existence and specification of the
Cuban trade embargo.
Pro-embargo supporters relentlessly lobby the U.S. Congress
and presidential administration to tighten the embargo in order
to spur the collapse of Cuban communism.
Although recently diminished, the pro-embargo viewpoint is
supported by key people in key positions throughout the
government.