Trade Embargo Research Paper

The embargo is estimated to have cost Cuba $1.126 trillion in lost revenue over the last 50 years. The embargo obviously restricts Cuba from buying a lot in the United States, but not everything. Cuba is only allowed to purchase certain things from the United States if they pay in cash. The United States can't buy anything from Cuba though. Due to the restrictions of purchasing things from the United States, Cuba mostly has automobiles from the 1950’s or 1960’s.

The Cuba Policy came into effect to end all relations between the United States and Cuba. The U.S. policy toward Cuba is controlled by the embargo, which contains economic agreements and restrictions on travel to Cuba. The effect of this policy is to minimize commercial, political and resident relations between the United States and Cuba. The State Department indicated that the purpose of the embargo was to have a nonviolent transition to a secure, democratic form of government and respect for human rights in Cuba.

American international relations with Cuba have almost always been tense. The cold war solidified the growing negative relations, and the embargo embodied it. But now that the cold war is over, as is the Cuban missile crisis, we’re left to wonder if the embargo is really necessary. Should the United States lift the embargo of Cuba? All of the evidence, be it economic, diplomatic, or social, points to yes. We should lift the embargo.

Cuba’s colorful history can be documented to before the days of the American Revolution in 1776, but today, American policy directly affects many Cubans’ lifestyles because of a nearly 45-year-old trade embargo that has been placed on the island nation. It is crucial to analyze the development of Cuba and its neighboring island nations in order to discern the reasons for Cuba’s current political situation with the United States. The following paper will discuss the events that shaped Cuba and larger Caribbean nations like Haiti, the Dominican Republic and Jamaica; next, a detailed description of Cuba’s turbulent history will help in explaining the Cuban transformation into a

across 6 states, allowing the nation to be tied together and to be utilized for internal commerce. Later in Jefferson’s term he set a law that potentially was one of the worst notions during his presidency. In 1807 the Embargo Act was placed with the purpose of attempting to prevent foreign tension with France and Britain by not allowing American ships to any foreign ports and eliminated international trade. “The embargo, however, backfired and brought greater economic hardship to the United States than Britain” (Newman and Schmalbach. 136). While Jefferson’s attempt to preserve the economy failed once he passed the Embargo Act, he later at least recognized his doings during his presidency that it must be repealed. The embargo eventually got repealed in 1809, during James Madison’s term.

The Cuban people have been under the harsh dictatorship of both Felgenico Batista and Fidel Castro. They both had very strict policies and gave the Cuban people limited or no freedom at all. Batista and Castro were similar but yet different. One major difference that they had was that Batista was friendly with the United States and he had respect for American interest. On the other hand Fidel Castro hasn’t been as friendly with the United States, so the U.S has a trade embargo that restricts and American company to do business with Cuba and also U.S citizens are prohibited from traveling to Cuba unless for special circumstances.

“Raw sugar accounts for one quarter of Cuba’s export less than half a billion dollars” (The Economic Impact of Better US-Cuba Relations, 2015). Ending the embargo “Cuban exports can go from $0 to 5.8 billion” (US Cuba Embargo Pros and Cons: Renewed Relations Sets Caps and Limited Success for Businesses). Both economics can benefit massively from lifting the trade embargo this is because one of the most imperative exports of the Cuban economy is nickel. Nickel a mineral used in many industrial processes such as the creation of stainless steel, it can be a major use to the United States economy because it imports around 43% of nickel from the rest of the world therefore Cuba could benefit by entering the United States market. Cuba’s major import is refined petroleum which the United States is one of the largest producers of, the Cuban economy also imports wheat corn, meat, milk and soybeans which the United States also produces. Additionally, Cuba also exports rum and tobacco(cigars) which are said to be legendary in the United States. With the lifting of the embargo these products can be exported to the United States because Americans loves these clichés also, these exports can lead to a major enhancement in the Cuban economy because trade increases sales and profits, strengthen local competitiveness and diversification. Together the countries will be able to trade mutually and exchange

U.S. wanted Cuba to meet special requirements in order for the embargo to go into effect, including rules such as: transition to a democracy, demand Havana support small businesses in exchange for sheathing restrictions on remittances, denounce presence of either Fidel or Raul Castro in Cuban government, better living conditions for all Cuban citizens, absolutely no travel to Cuba, and promote human rights. Cuba has not yet met all requirements, but is currently working on them. Obama reversed some of these polices, such as, allowing U.S. citizens to send remittances to non-family members in Cuba and travel under license of religious or educational purposes. As of today United States citizens may travel to Cuba with only special reasons like religious or

The United States and Cuba officially cut diplomatic ties in the 1960’s. After the relationship between the two nations deteriorated as a result of the Cold War, the United States enforced an embargo that restricted trade to the Caribbean island (Rothman, Why Did the U.S. and Cuba Sever Diplomatic Ties in the First Place?). Eventually, traveling to Cuba was also prohibited by the United States, which further affected the island’s economy in which American tourism decreased. However, after months of negotiations, the United States and Cuba have finally decided to restore their diplomatic relations. The reestablishing of the Cuban embassy and probable embargo lift will promote Cuba’s economic growth due

Cuba and the Affects of the Embargo The island nation of Cuba, located just ninety miles off the coast of Florida, is home to 11 million people and has one of the few remaining communist regimes in the world. Cuba’s leader, Fidel Castro, came to power in 1959 and immediately instituted a communist program of sweeping economic and social changes. Castro allied his government with the Soviet Union and seized and nationalized billions of dollars of American property. U.S. relations with Cuba have been strained ever since. A trade embargo against Cuba that was imposed in 1960 is still in place today. Despite severe economic suffering and increasing isolation from the world community, Castro remains committed to communism. (Close Up

According to the U.S. Department of Treasury Office of Foreign Assets Control (OFAC), the department has issued 12 general license categories that authorize travel. In order to travel to the country of Cuba your trip must fall within one of the twelve categories approved by the US Government: family visits; official business of the US government; foreign government and certain intergovernmental organization; journalistic activity; professional research; educational activities; religious activities; public performances; clinics; workshops; athletics; competition and exhibitions, support for the Cuban people; humanitarian projects, activities of private foundations or research or education institutes. If you do not meet any of the 12 categories, you may wish to contact the OFAC office to inquire as to whether or not

As a way to diversify their economy, the Cuban government has become more lenient with their strict regime. They’ve launched a tourist campaign to attract more revenue through the tourism industry. With the U.S. Embargo still in place it has been difficult, but Cuba’s efforts is showing though the growing numbers of tourist from Canada,

appear weak. Lifting the embargo before the Cuban government has met the requirements set forth by the U.S. government would send a message that the U.S. is weak in it enforcing its laws as, “according to U.S. law, Cuba must legalize all political activity, release political prisoners, commit to free and fair elections, grant freedom of the press, and allow labor unions.” (Meyers) The Cuban government has not responded positively to any of these guidelines and has reacted with aggression when the United States showed signs of easing the embargo. In 2014 the United States reopened its embassy in Cuba, and “since the United States agreed to reopen the U.S. embassy in Cuba, the Cuban government has continued to persecute and arrest its own citizens. There were 630 political arrests in June 2015 alone. One protester claimed, “the Cuban government has grown even bolder as result of the normalized relations.” (“Cuba Embargo”) Discontinuing the embargo would make the United States appear weak to international powers and provoke Cuban

The embargo has constrained the crossing of the borders for Cuban citizens, the exiles of Cuba and the businesses, its subsidiary to not be able to do their business in Cuba without facing penalties. This embargo has forbid the Cuban citizens’ contact to consumer goods that the United States presented. Cuba’s expansion of its infrastructure has also been limited therefore the country continues to be a poor country.

Adam Smith outlined that the price mechanism in international trade is like an ‘invisible hand’ that coordinates the consumption and production decisions in a well-functioning market economy (Kerr and Gaisford 2007). However, there is need for the government to intervene in free market economies in order to implement trade regulations and avoid market failure that is associated with negative externalities. International trade is affected by government’s interventions that include direct participation in supply and purchase of essential goods and services, through regulation, taxation and other indirect participation influences. The free markets enhance market efficiency through ensuring that prices are determined by the