Why is cuba banned

Soon after he was elected, President Donald Trump said that he might roll back that agreement if Cuba did not agree to further concessions. As of the start of , no substantive action has been taken and the restrictions on travel and commerce remain largely in place.

For instance, at the end of , the administration ordered a halt to U. In July of , however, the Biden Administration imposed new sanctions on Cuba following the Cuban government crackdown on demonstrators in the streets in Cuba protesting the shortages in medicine and food resulting from the COVID pandemic. The reality is that Cuban products are already widely available in Europe and other parts of the world.

If and when the United States becomes a more active trading partner with Cuba, it is likely that the same European multinational corporations that distribute Cuban products to the rest of the world will control the distribution of those products in the U. To understand the potential opportunities for investors, it is helpful to know a bit of history and have some insight into how big business works in Cuba now.

Before Fidel Castro came to power in , an enormous percentage of the Cuban economy was under the control of U. They also controlled a significant portion of its natural resources, including its sugar, cattle, tobacco, timber, oil, mining, and farm industries. The British company Imperial Tobacco has exclusive rights to distribute Cuban cigars worldwide, though they can't be sold in the U.

Cuba's new communist government nationalized all of these assets, claiming them in the name of the Cuban people. The US retaliated by slapping a trade embargo in place in hopes of toppling the Cuban government.

After the passage of six decades that saw the collapse of the Soviet Union, the end of the Cold War, and the passing of the torch by Fidel Castro to his brother Raul, it is clear to all parties that the trade embargo did not achieve its purpose.

Today, many argue that the embargo makes no real sense and that ending it will not only make U. The Revolution may have freed the island from the dominance of U. Accordingly, the Castro government long ago entered into agreements with European-based multi-national firms to distribute Cuban products, including its famous cigars and rum. British company Imperial Tobacco, which trades on the London stock exchange under the ticker IMT, has exclusive rights to distribute Cuban cigars worldwide except in the U.

Habanos, as it is known in Cuba, controls its brand by entering into limited and carefully controlled distribution agreements in each country in which it does business. If you light up a Cuban cigar anywhere in the world, a portion of the profits flows back to Imperial Tobacco. Bacardi produces a rum with the same name in Puerto Rico, using a recipe from the Arechabala family, for sale only in the U. So, the opportunity for distributing the most familiar Cuban products in the U.

But that doesn't mean there aren't other opportunities, both in goods imported to the U. There's still one big hurdle if you're a stickler for following rules set in the dim past.

Reasonable estimates place the total value of U. On the tourism front, Americans were already making their way to Cuba via Canada, Mexico, Europe, and other countries that have flights headed to Havana long before President Barack Obama lifted the travel embargo in To this day, there are exceptions to the ban for university groups, academic research, journalism, and professional meetings. Travel to Cuba by performers and athletic competitors are okay, too. Family visits are permitted. Humanitarian visitors are allowed.

And while economic crises can lead to collective outrage, spontaneous protests against authoritarian regimes usually ends in renewed repression rather than regime change. Many experts believe that movements for social change are most effective when people and organisations gain the resources that are necessary for sustained political and social activism.

Loosening the economic vice grip on Cuba will help to empower its citizens and civil society to stand up to their government. The administration should be thoughtful about how it rethinks the embargo policy. It need not eliminate the policy all at once, nor should it relent on pressuring Cuba when it comes to democracy or human rights.

But being thoughtful should not be an excuse for inaction. For example, rather than dismissing the idea of renewing remittances to Cuba, Biden should seriously explore ways to allow Americans to securely transfer money to their Cuban relatives.

Relaxing the embargo will be a risky political move for the president. Biden lost Florida in the election after underperforming among Latino voters, and a radical change in policy towards Cuba could risk alienating parts of the Cuban American population in the state. Republicans will no doubt accuse the president of being soft on communism or caving in to progressive demands. But if Biden truly wants to put principles, and effectiveness, ahead of politics, he should make a bold choice and end six decades of US failure and Cuban suffering.

It also allowed the original owners of Cuban properties confiscated by Castro to sue in U. A subsequent U. Jason Poblete, a Washington, D. During the Obama years, restrictions were eased on U. After six decades, even some who support sanctions on Cuba say it's undeniable that the embargo has mainly been about domestic politics.

Carmen Sesin is a reporter based in Miami. IE 11 is not supported. For an optimal experience visit our site on another browser.

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