Cuban Entrepreneurs Express Frustration and Confidence

A recent study based on interviews of 80 Cuban entrepreneurs found seemingly contradictory results.[1]

There was frustration. As expressed by the Miami Herald, “Like entrepreneurs in any country, Cuban entrepreneurs want more access to resources and fewer bureaucratic obstacles to expand and reinvest in their businesses.”

There also was optimism. Said the author of the study, Cuban-born economist Carmelo Mesa Lago, there was a “very high level of reinvestment that the self-employed engage in. Most, including those renting apartments and houses, reinvest.” The study also found a “high degree of satisfaction expressed by those who have decided to start a private business in Cuba, which has allowed them to gain autonomy and live better than those who depend on state wages.”

With virtual unanimity, the entrepreneurs complained about “the level of state interference” or over-regulations plus high prices for supplies, the absence of a wholesale market and high taxes.

The study looked at four segments of the so-called “non-state sector” of the Cuban economy: (1) the self-employed; (2) farmers who use state-owned parcels; (3) corredores   (brokers) of home sales as well as buyers and sellers of private homes; and (4) workers of non-farm production and service cooperatives. Another sector–owners of private restaurants known as paladares—was not included because, says Lago, they do not want to attract attention to their business.

The study– oces del cambio en el sector no estatal cubano (Voices of Change in the Cuban Non-State Sector)—is published by the Ibero-American publishing house.

Conclusion

This study confirms the existence of a thriving non-state sector of the Cuban economy, contrary to the Senate testimony of the new U.S. Ambassador to the U.N., Nikki Haley, as mentioned in a recent post.

The study also confirms the unsurprising difficulties and challenges the Cuban government faces in creating a mixed economy. Indeed, as covered in an earlier post, Raúl Castro in his role as the leader of the Communist Party of Cuba at its Party Congress last year stressed those difficulties and challenges while also acknowledging the essential and important contributions of the non-state sector for the Cuban economy.

Finally the study confirms the need for the U.S. to support the further development and success of this sector by continuing and enhancing the U.S. normalizing of relations with Cuba, especially the enabling of U.S. remittances to those on the island and thereby constituting a major source of capital for this sector. This very point has been emphasized by Engage Cuba, a U.S. coalition, in its lobbying of the new Trump Administration.[2]

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[1] Gámez-Torres, Cuban entrepreneurs dream big, but the government gets in their way, Miami Herald (Jan. 26, 2017).

[2] U.S. and Cuba’s Efforts To Continue Normalization, dwkcommentaries.com (Dec. 9, 2016); Lobbying the Incoming Trump Administration To Continue Normalization with Cuba, dwkcommentaries.com (Jan. 18, 2017); Engage Cuba.

Lobbying the Incoming Trump Administration To Continue Normalization with Cuba  

Major supporters of U.S. normalization of relations with Cuba have been lobbying the incoming Trump administration to continue that policy. This includes Cuban entrepreneurs, as discussed in a prior post, and most recently U.S. agricultural and business groups.

Agricultural Groups[1]

On January 12 over 100 U.S. agricultural trade groups, including the American Farm Bureau and the American Feed Industry Association, sent a letter to President-Elect Trump. It said, ” we urge you to continue to show your support for American agriculture by advancing the relationship between the U.S. and Cuba and building on the progress that has already been made.”

The letter cited a recent deep dip in farm income to bolster their argument that U.S. farmers needed more trade. “Net farm income is down 46 percent from just three years ago, constituting the largest three-year drop since the start of the Great Depression.”

They also mentioned that under an exception to the U.S. trade embargo from the year 2000, Cuba may import agricultural products for cash, but this cash limitation limits the ability of U.S. agriculture to export to Cuba. Therefore, the letter calls on Trump to allow normal trade financing and credit so the sector can better compete for the Cuban market.

The letter concluded with these words: “As a broad cross-section of rural America, we urge you not to take steps to reverse progress made in normalizing relations with Cuba, and also solicit your support for the agricultural business sector to expand trade with Cuba to help American farmers and our associated industries. It’s time to put the 17 million American jobs associated with agriculture ahead of a few hardline politicians in Washington.”

Business Groups[2]

On January 17 the Cuban Study Group, an organization of Cuban-American business leaders, led a group of advocates for U.S.-Cuba normalization, in submitting to the President-elect a memorandum entitled “U.S. Policy Toward Cuba: the Case for Engagement.”

It argued that continued engagement with Cuba will create U.S. jobs and facilitate more positive change on the island. It states “constructive engagement — including the reduction of travel and commercial barriers — is the best strategy for supporting the Cuban people and boosting U.S. jobs and exports.” Indeed, further progress toward normalization stands the best chance of improving security just off U.S. shores, reducing irregular migration, enhancing the management of U.S. borders, and encouraging continued, positive evolution inside the island.” More specifically, continued engagement with Cuba should produce the following benefits to the U.S.:”

  • “U.S. Job Creation. Further engagement would allow the United States to regain lost market share in emerging Cuban markets from economic competitors such as China, Vietnam, and Brazil and employ thousands of U.S. workers in agribusiness, infrastructure, tech, and tourism.
  • Cuban-American support. Lifting restrictions on remittances and travel allows Cuban-Americans to support their families in Cuba and provide critical seed funding for the island’s nascent private sector.
  • Cuba’s burgeoning entrepreneurial sector. In just a few years, Cuba’s private sector has grown to account for 30% of the country’s workforce. U.S. travelers to Cuba have become the principal source of revenue for many small businesses.
  • Greater access to information. Internet access is growing, and continued engagement can further contribute to connectivity and the development of civil society in Cuba.”

Moreover, they say, “to reflexively reverse course could have pernicious consequences for U.S. economic and foreign policy interests and the prospects of evolutionary change in Cuba.”

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[1] Engage Cuba, Over 100 U.S. Agriculture Groups Urge Trump to Strengthen U.S.-Cuba Trade Relationship (Jan. 13, 2017); Reuters, U.S. Farmers Ask Trump to Stay the Course on Cuba, N.Y. Times (Jan. 12, 2017).

[2] Engage Cuba, Cuba Groups to Trump: Reversing Course Could Harm Cuban People and U.S. Interests (Jan. 17, 2017); Reuters, U.S.-Cuba Detente Supporters Make Last-ditch Effort to Sway Trump, N.Y. Times (Jan. 17, 2017).

The other signers of the memorandum are the American Society/Council of the Americas; the U.S.-Cuba Business Council; the Center for Democracy in the Americas; Ted Piccone, Senior Fellow, Brookings Institution; Richard E. Feinberg, Professor, UC San Diego and Senior Fellow (non-resident), Brookings Institution; William M. LeoGrande, Professor of Government, American University; Engage Cuba; Washington Office on Latin America (WOLA); Latin America Working Group; National Foreign Trade Council (NFTC); Christopher Sabatini, Executive Director, Global Americans and Lecturer, Columbia University’s School of International and Public Affairs; The National Cooperative Business Association CLUSA International (NCBA CLUSA) National Tour Association (NTA) United States Tour Operators Association (USTOA) TechFreedom The American Society of Travel Agents NAFSA: The Association of International Educators; the National Foreign Trade Council, the American Society of Travel Agents and the Association of International Educators; Christopher Sabatini, Executive Director, Global Americans and Lecturer, Columbia University’s School of International and Public Affairs; The National Cooperative Business Association CLUSA International (NCBA CLUSA); National Tour Association (NTA) United States Tour Operators Association (USTOA); TechFreedom; The American Society of Travel Agents; NAFSA: The Association of International Educators.

 

U.S. Ends Special Immigration Benefits for Cubans

On January 12, the U.S. announced that it is ending, effectively immediately, the “dry foot” immigration policy for Cubans and the Cuban Medical Professional Parole Policy. Below we will examine these cancelled policies, the U.S. announcement of the policy changes, Cuba’s announcement of the U.S. policy changes and reactions to the changes.

The Cancelled U.S. Policies[1]

The “dry feet” policy has allowed any Cuban who arrived on land (with “dry feet”) at a U.S. point of entry to come into the U.S. and, absent negative factors, qualify for U.S. permanent residency status after one year. This policy originated soon after the early years of the Cuban Revolution before the U.S. in 1967 had ratified the international treaty on refugees and before it had adopted in 1980 a statute implementing that treaty (the Refugee Act of 1980) and when the U.S. assumed that all Cubans arriving in the U.S. were fleeing persecution.

This policy originally included Cubans who were intercepted on the water by the U.S. Coast Guard. However, in response to the Cuban Government’s legitimate concerns about the personal safety of Cubans attempting to reach the U.S. on unsafe boats, the U.S. (Bill Clinton Administration) and Cuba on September 9, 1994, reached an agreement whereby the U.S. would return to Cuba its nationals who were intercepted at sea, i.e., who had “wet feet.”

The U.S. Cuban Medical Professional Parole Policy, which was adopted on August 11, 2006, allowed “Cuban medical personnel conscripted to study or work in a third country under the direction of the Cuban government to enter the U.S.” It was available to “health-care providers who are sent by the [Cuban government] to work or study in third countries and who . . . are often denied exit permission by the Cuban Government to come to the [U.S.] when they qualify under other established legal channels to migrate from Cuba. Doctors, nurses, paramedics, physical therapists, lab technicians and sports trainers are examples of groups that may qualify for the . . . program.”

U.S. Announcement of the Change[2]

 On January 12 President Obama announced that the U.S. “is ending the so-called “wet-foot/dry foot” policy, which was put in place more than twenty years ago and was designed for a different era.  Effective immediately, Cuban nationals who attempt to enter the [U.S.] illegally and do not qualify for humanitarian relief will be subject to removal, consistent with U.S. law and enforcement priorities.  By taking this step, we are treating Cuban migrants the same way we treat migrants from other countries. The Cuban government has agreed to accept the return of Cuban nationals who have been ordered removed, just as it has been accepting the return of migrants interdicted at sea.”

The President also said the U.S. is “ending the Cuban Medical Professional Parole Program. The [U.S.] and Cuba are working together to combat diseases that endanger the health and lives of our people. By providing preferential treatment to Cuban medical personnel, the medical parole program contradicts those efforts, and risks harming the Cuban people.  Cuban medical personnel will now be eligible to apply for asylum at U.S. embassies and consulates around the world, consistent with the procedures for all foreign nationals.”[3]

This termination follows months of negotiations with the Cuban government over the latter’s agreeing to accept returning Cubans.

Nearly simultaneously with the President, Jeh Johnson, the Secretary of the U.S. Department of Homeland Security (DHS), which includes the U.S. Immigration and Customs Enforcement (ICE), issued a statement: “To the extent permitted by the current laws of our two countries, the [U.S.] will now treat Cuban migrants in a manner consistent with how it treats others; unauthorized migrants can expect to be removed unless they qualify for humanitarian relief under our laws.”  The Department also released a Fact Sheet and the Joint Statement of the two governments about the change. Johnson pointed out that Cuba will take back citizens as long as less than four years have passed between the time the migrant left Cuba and the start of the U.S. deportation proceedings.

These changes do not affect U.S. law regarding “refugees” fleeing persecution in their home countries. Thus, if a Cuban fears “persecution” upon returning to the island, then the individual may apply for asylum in the U.S. as a “refugee” under international and U.S. law if the individual can establish that he or she has a “well-founded fear” of “persecution” in Cuba “due to” his or her “political opinion, race, religion, nationality or membership in a particular social group.” (Statutory words are in quotes.) They may do so in the U.S. or at an U.S. embassy or consulate in another country.[4]

Cuban Announcement of the Change[5]

Welcoming this change, the Cuban Government stated, “After nearly a year of negotiation and encouraged by the restoration of diplomatic relations on July 20, 2015, based on mutual respect and political will to strengthen these links and establish new understandings on various issues of common interest, [the two] governments were able to concretize this commitment that should contribute to the normalization of migration relations. . . .”

The U.S. “wet foot-dry foot” policy gave Cubans “preferential and unique treatment not received by citizens of other countries, so it was also an incitement to illegal departures. Its implementation and that of other policies led to migratory crises, kidnapping of ships and aircraft and the commission of crimes, such as trafficking in migrants, trafficking in persons, immigration fraud and the use of violence with a destabilizing extraterritorial impact on other countries of the region [that were] used [for] transit to arrive at American territory.”

This change will meant that the U.S., “consistent with its laws and international norms, shall return to the Republic of Cuba, and the Republic of Cuba, consistent with its Laws and international norms, will receive all Cuban citizens, who . . . are detected by the competent authorities of the [U.S.] when they tried to enter or stay irregularly in that country, violating its laws.”

The U.S. “Parole Program for Cuban Medical Professionals, which was part of the arsenal to deprive the country of doctors, nurses and other professionals of the sector, . . . and an attack against Cuba’s humanitarian and solidarity medical missions in Third World countries that need it so much. This policy prompted Cuban health personnel working in third countries to abandon their missions and emigrate to the [U.S.], becoming a reprehensible practice that damaged Cuba’s international medical cooperation programs.”

It “will also be necessary for the U.S. Congress to repeal the Cuban Adjustment Act of 1966.”

Unaffected are prior agreements “to prevent illegal departures by sea and to return to Cuba all persons who are intercepted in those acts or who enter the Guantánamo Naval Base. The Government of the United States will continue to guarantee regular migration from Cuba with a minimum of 20,000 people per year.”

“Both governments agreed to apply their migration laws in a non-selective manner and in accordance with their international obligations. They also undertook to prevent risky exits that endanger human life, to prevent irregular migration and to combat violence associated with such manifestations, such as trafficking and trafficking in persons.” In addition, “the parties will promote effective bilateral cooperation to prevent and prosecute those involved in trafficking in persons, as well as crimes associated with migratory movements, which endanger their national security, including the hijacking of aircraft and vessels.”

“In keeping with its international obligations and its legislation, the Government of the Republic of Cuba ratifies its commitment to guarantee regular, safe and orderly migration, as well as to fully comply with this new agreement for which the corresponding measures have been taken internally. It will continue to guarantee the right to travel and emigrate to Cuban citizens and to return to the country, in accordance with the requirements of immigration law.”

The Cuban Government also published the Joint Statement of the two governments as had DHS in the U.S.

At a press conference on January 12 Josefina Vidal, the Cuban Foreign Ministry official responsible for relations with the U.S., said that the joint “agreement recognizes the need to facilitate regular migration for the benefit of both countries, to prevent irregular migration and to prevent risky exits that endanger human life and to combat violence associated with this phenomenon and related offenses, such as trafficking in persons and trafficking in persons.”

Vidal was joined by Gustavo Machin, the Deputy Director of the United States Department of the Cuban Foreign Ministry, who summarized the joint agreement. He added that “Cuba will accept that persons who were included in the list of 2,746 Cuban citizens who migrated by the port of Mariel in 1980 [“the Mariel boat lift”] and were considered ineligible to remain in the [U.S.], . . and [those] who cannot now be returned will be replaced by other persons and returned to Cuba. Cuba will also consider receiving other Cuban citizens who are currently in the [U.S.], who violated [U.S.] laws and whom U.S. authorities have determined cannot remain in its territory.”

 Reactions to the Change[6] 

As to be expected, U.S. congressional response was mixed.

Senator Patrick Leahy (Dem, VT) said, “This is a welcome step in reforming an illogical and discriminatory policy that contrasted starkly with the treatment of deserving refugees from other countries.” Senator Jeff Flake (Rep., AZ) stated that eliminating the policy “is in our national interest. It is a win for taxpayers, border security, and our allies in the Western Hemisphere. It’s a move that brings our Cuba policy into the modern era while allowing the United States to continue its generous approach to those individuals and refugees with a legitimate claim for asylum.”

Representative Kathy Castor (Dem., FL) and co-author of a bill to end the embargo (H.R.-442), https://dwkcommentaries.com/2017/01/12/representatives-emmer-and-castor-introduce-bill-to-end-embargo-of-cuba/ said, ““The end of the “wet foot/dry foot” policy should be followed by congressional action to lift the outdated economic embargo and improve economic conditions for everyday Cubans. . . . I have witnessed how the ‘wet foot, dry foot’ policy created an uneven playing field for immigrants from other Caribbean nations who are also seeking the opportunity to pursue the American dream.    I have also seen Cubans who try to come here for short term visits to see family members negatively affected by ‘wet foot/dry foot.’  The change in policy today will help ensure that we can have safer and more orderly migration with all of our Caribbean neighbors.”

Senator Marco Rubio (Rep., FL) said that the incoming Trump administration should reverse the part of the executive order ending the medical parole system and that there should be assurances that Cubans “who arrive here to escape political persecution are not summarily returned to the regime [but] . . . are given a fair opportunity to apply for and receive political asylum.”

Representative Illeana Ros-Lehtinen, a Florida Republican who emigrated from Cuba as a child, decried the elimination of the medical parole programs, calling it a “foolhardy concession to a regime that sends its doctors to foreign nations in a modern-day indentured servitude.”

According the Senator Robert Menendez (Dem., NJ), “Today’s announcement will only serve to tighten the noose the Castro regime continues to have around the neck of its own people.” He added, “The Obama administration seeks to pursue engagement with the Castro regime at the cost of ignoring the present state of torture and oppression, and its systematic curtailment of freedom.”

A positive view of the change was taken by Peter Kornbluh, a co-author of “Back Channel to Cuba,” which recounts the secret negotiations between the United States and Cuban governments that forged the policy of engagement. He said, “The exceptionalism of the ‘wet foot, dry foot’ policy toward Cuba is a relic of the Cold War, and this decision by the administration is really its final effort to normalize an area of interaction between Cuba and the United States, migration, that is clearly in need of normalization.”

James Williams, the President of Engage Cuba, the leading coalition of private companies and organizations working to end the travel and trade embargo on Cuba, said these changes are “a logical, responsible, and important step towards further normalizing relations with Cuba. The ‘wet foot, dry foot’ policy has been an enduring problem that decades of hostility and isolation failed to solve. This change, which has long had strong bipartisan support, would not have been possible without the re-establishment of diplomatic relations with Cuba.”

Phil Peters, president of the Cuba Research Center, said that the number of Cubans entering the United States is actually much higher because tens of thousands more overstay their visitor visas and still others migrate legally. “This is a favor to Trump because it’s a tough measure to take, but it’s the right measure to take,” Mr. Peters said. “These are economic migrants coming here that, unlike any other nationality, get a big package of government benefits without any justification.”

Kevin Appleby of the Center for Migration Studies of New York praised the specific change, while questioning the broader rules covering asylum. “The good news is that it ensures equal treatment between Cubans and asylum-seekers from other nations,” he said. “The bad news is that our asylum system is broken and does not afford adequate due process and protection to those who need it.”

Support for this change of policy also was voiced by Pedro Freyre, the chair of the international practice group of the Washington, D.C. office of law firm Akerman LLP. He observed, “This partially closes Cuba’s escape valve and will put pressure on Cubans to move forward more rapidly with reforms.” For years, he said, the last resort for Cubans frustrated with the lack of opportunity on the island has been to hire a “lanchero,” or people smuggler and attempt to reach the U.S. “Now they will have to look inward to see what they can do to fix Cuba.” The same opinion was offered by Jorge Mas, president of the Cuban American National Foundation, who welcomed the change and said it would pressure the Cuban government to improve conditions on the island.

Average Cubans and opponents of the island’s communist leaders said they expected pressure for reform to increase with the elimination of a mechanism that siphoned off the island’s most dissatisfied citizens and turned them into sources of remittances supporting relatives who remained on the island. This point was emphasized by Benjamin Rhodes, White House Deputy National Security Advisor and a principal negotiator of the rapprochement, saying, “It’s important that Cuba continue to have a young, dynamic population that are clearly serving as agents of change.”

Last year thousands of Cubans who were seeking to reach the U.S. border with Mexico and to come into the U.S. with “dry feet” created major logistical and financial problems for Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama and to a lesser extent Colombia and Ecuador. This naturally upset the governments of those countries, especially when their citizens were not eligible for these U.S. immigration policies.

Therefore, these governments welcome the U.S. terminating the policies. El Salvador’s foreign ministry said, “There cannot be migrants of different categories.” Honduras said it would wait to see if the flow of Cubans actually declined.

Cubans who had left their homeland and were now trying to reach U.S. soil when the decision was announced lamented the policy change. “It has fallen on us like a bucket of water because were never thought that at this point and with so little time before Obama leaves office that his government would make this horrible decision,” said Eugenia Diaz Hernandez, a 55-year-old Cuban in Panama whose voyage with her daughter and granddaughter had taken her through Guyana, Brazil, Peru, Ecuador and Colombia. “We are adrift.” Another Cuban, Jose Enrique Manreza, who ran a soda warehouse in Havana, is now stranded in Mexico, after selling his house and belongings in Cuba to raise $10,000 for his journey to reach the U.S. “Imagine how I feel, after I spent six days and six nights running through rivers and jungles in the humidity.”

Conclusion

This policy change, in my opinion, was long overdue. I pray and hope that the incoming Trump Administration will not reverse this change.

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[1] U.S. Dep’t of State, Cuban Medical Professional Parole Program (Jan. 26, 2009)  See generally posts listed in the “Cuba Migration to U.S.” and “Cuban Medical Personnel & U.S.” sections of List of Posts to dwkcommentaries.com—Topical: Cuba.

[2] White House, Statement by the President on Cuba Policy Changes (Jan. 12, 2017); Dep’t Homeland Security, Statement by Secretary Johnson on the Continued Normalization of Our Migration Relationship with Cuba (Jan. 12, 2017); Dep’t Homeland Security, Fact Sheet: Changes to Parole and Expedited Removal Policies Affecting Cuban Nationals (Jan. 12, 2017); Dep’t Homeland Security, Joint Statement [of U.S. and Cuba regarding changes in U.S. immigration policies] (Jan. 12, 2017); Reuters, Obama Administration Ends Special Immigration Policy for Cubans, N.Y. Times (Jan. 12, 2017); Assoc. Press, Obama Ends Visa-Free Path for Cubans Who Make It to U.S. Soil, N.Y. Times (Jan. 12, 2017); Caldwell & Pace (AP), Obama making change to Cuban immigration policy, Wash. Post (Jan. 12, 2017); DeYoung, Obama ending ‘wet-foot, dry foot’ policy allowing Cubans reaching U.S. soil to stay and receive residency, Wash. Post (Jan. 12, 2017); Davis & Robles, Obama Ends Exemption for Cubans Who Arrive Without Visas, N.Y. Times (Jan. 12, 2017); Lee, Schwartz & Córdoba, U.S. Ends ‘No-Visa’ Era for Cuban Emigrés, W.S. J. (Jan. 12, 2017).

[3] See posts listed in the “Cuban Medical Personnel & U.S.” section of List of Posts to dwkcommentaries.com—Topical: CUBA.

[4] Convention Relating to the Status of Refugees, Art. I (A); 8 U.S.C. §1101(a)(42)See generally the following dwkcommentaries.com blog posts: Refugee and Asylum Law: Modern Era (July 9, 2011); Refugee and Asylum Law: Office of U.N. High Commissioner for Refugees (July 10, 2011); Becoming a Pro Bono Asylum Lawyer (May 24, 2011);Teaching the International Human Rights Course (July 1, 2011).

[5] Cuba Foreign Ministry, Declaration of Revolutionary Government (Jan. 12, 2017); Cuba Foreign Ministry, Joint Declaration Cuba-United States (Jan. 12, 2017); Cuba ratifies its commitment to regular, safe and orderly migration, Granma (Jan. 12, 2017); Assoc. Press, Havana Hails End to Special US Immigration Policy for Cubans, N.Y. Times (Jan. 13, 2017).

[6] Flake Statement on Elimination of Wet Foot, Dry Foot Policy (Jan. 12, 2017); Menendez Statement on Latest Cuba Policy Changes (Jan. 12, 2017); Rubio Comments on Obama Administration Changes to Cuba Policy (Jan. 12, 2017);Castor, Statement on Ending “Wet Foot/DryFoot” (Jan. 12, 2017); Engage Cuba Statement on Administration ‘Wet Foot, Dry Foot’ Policy Announcement (Jan. 12, 2017);Ben Rhodes: ‘There is bipartisan support’ for Congress to repeal the Adjustment Act, Diario de Cuba (Jan. 13, 2017); Wheaton, Obama’s shift on Cuban immigrants could put Trump in a bind, Politico (Jan. 12, 2017); Reuters, Cubans on Road to U.S. Distraught About Newly Closed Border, N.Y. Times (Jan. 13, 2017).

 

 

 

U.S. and Cuba’s Efforts To Continue Normalization

With the impending arrival of the Trump Administration and twitterings that it might derail efforts at normalizing U.S.-Cuba relations, the Obama Administration, its U.S. allies and Cuba are continuing their efforts at that normalization. Let us examine these efforts by the latest U.S.-Cuba Bilateral Commission meeting, U.S. Senators and Representatives, Cuban entrepreneurs and a U.S. business coalition (Engage Cuba).

Latest Bilateral Commission Meeting[1]

On December 7 in Havana the U.S. and Cuba held another Bilateral Commission meeting to review the achievements of the Bilateral Commission since diplomatic relations were re-established in July 2015. It has prioritized and sequenced a number of bilateral initiatives. The U.S. and Cuba have established dialogues on law enforcement, claims, human rights, and economic and regulatory issues, and have continued biannual Migration Talks. The Bilateral Commission has provided a framework to address trafficking in persons and the return of fugitives, as well as to schedule technical exchanges on law enforcement and environmental issues.

In the last 18 months, the U.S. and Cuba have concluded 11 non-binding agreements, including Memoranda of Understanding on health, cancer research, agriculture, environmental cooperation, hydrography, marine protected areas, counter-narcotics, federal air marshals, civil aviation, and direct transportation of mail. In the coming weeks, the U.S. and Cuba expect to sign additional agreements formalizing cooperation on law enforcement, conservation, seismology, meteorology, search and rescue, and oil-spill response protocols.

The U.S. and Cuba have coordinated a number of high-level visits, including that of President Obama in March 2016, seven cabinet-level officials, and Dr. Jill Biden. U.S. governors from New York, Louisiana, Arkansas, Texas, Virginia, Missouri, and West Virginia have led trade delegations to Cuba since April 2015. More than 80 Members of Congress, both Democrats and Republicans, have visited Cuba in the last two years, many for the first time.

Purposeful travel by Americans to Cuba increased by approximately 75 percent from 2014 to 2015. Ten U.S. airlines now provide scheduled service between U.S. and Cuban cities, and Carnival cruises are docking in several Cuban cities, further connecting the U.S. and Cuban people.

Under the Bilateral Commission, the United States and Cuba expanded educational and cultural exchanges. The number of Cubans studying in the United States increased 63 percent in academic year 2015-16. More than 2,000 U.S. students visited Cuba as part of their academic program in academic year 2014-15. The U.S. welcomed the first Cuban Hubert H. Humphrey Fellow to the U.S.

Four U.S. cellular providers offer roaming service in Cuba, further connecting Cuba and the U.S.

The delegations agreed the Bilateral Commission has provided a framework for discussion of a wide range of issues. Where U.S. and Cuban interests align, including on counter-narcotics, health, and environmental issues, the U.S. and Cuba have made important strides for the benefit of both peoples. Where the two countries have disagreements, including on human rights, the U.S. and Cuba have articulated those differences in a clear, productive, and respectful manner. The dialogues and working groups that fall under the Bilateral Commission framework have allowed the U.S. and Cuba to establish working relationships with counterparts, which are essential to continued bilateral cooperation, advancement of U.S. interests, and progress toward normalization.

The Cuban delegation insisted that the U.S. blockade (embargo) has prevented significant results in economic and trade relations and that this measure must be ended before the two countries could have normal relations. Other conditions for normalization for Cuba are the U.S. returning to Cuba the territory allegedly illegally occupied by the U.S. Naval Base in Guantanamo and the U.S. elimination of other political interventions harmful to Cuban sovereignty.

The U.S. looks forward to hosting the next Bilateral Commission Meeting in Washington, DC at the earliest opportunity.

Acting Assistant Secretary of State for Western Hemisphere Affairs Mari Carmen Aponte led the U.S. delegation. Other members were U.S. Charge d’Affaires in Havana, Jeffrey DeLaurentis, and Deputy Assistant Secretary John Creamer. Josefina Vidal, the Foreign Ministry’s Director General for U.S. Affairs, led the Cuban delegation.

At a subsequent press conference Josefina Vidal said Cuba hopes “the new U.S. government takes into account the results we have achieved… that are backed by the majority of the Cuban population (and) U.S. citizens.”

U.S. Senators and Representatives[2]

On December 7 Minnesota’s U.S. Senator Amy Klobuchar (Dem.) and Representative Tom Emmer (Rep.) and four Cuban women entrepreneurs held a press conference on Capitol Hill to urge President-elect Donald Trump to keep Obama administration initiatives relaxing trade and travel restrictions for Americans wanting to travel to and work with Cuba and to end the U.S. embargo of the island.

Klobuchar said, “For far too long, U.S.-Cuba policy has been defined by the conflicts of the past instead of the realities of today and the possibilities for the future. I’ve spoken with business owners in Cuba and in Minnesota who look forward to the new economic opportunities that would come with lifting the embargo. We need to turn the page on the failed policy of isolation and build on the progress we have made to open up engagement with Cuba by ending the embargo once and for all.”

Emmer added, “Over the past two years there have been important changes on the island just 90 miles off our coast. The private-sector economy in Cuba continues to grow and today, we heard from four incredible young women who have excelled as entrepreneurs and are eager for the ability to grow, expand and continue their success. I look forward to working with President-elect Trump and the 115th Congress to make their success a reality and provide new opportunities for both Cubans and Americans alike.”

One of the Cuban women, Marla Recio Carbajal, founder and president of Havana Reverie, an upscale event and wedding planning company that caters primarily to U.S. travelers and companies, said Havana businesses are bustling, thanks in part to the relaxation on restrictions and that her business was doing well because of American interest in the country.

Separately Emmer as the Chair of the U.S. House of Representatives’ Cuba Working Group [3] and 16 Republican and Democratic members of that Group recently sent a letter to President-elect Trump urging the new administration’s support for the restoration of U.S. engagement with Cuba.  The letter stated the following:

  • “Americans support the easing of commercial restrictions in Cuba because it will result in increased jobs, economic growth and productivity gains for the United States economy.  In fact, the U.S. International Trade Commission (USITC) released a report earlier this year that found if U.S. restrictions on Cuba were lifted, U.S. exports of selected agricultural and manufactured goods could increase to a total of roughly $2.2 billion, up from a mere $180 million in 2015.  Policies that improve commercial relations could potentially create thousands of jobs here in the United States and open valuable new markets for our exports. The restrictions the U.S. government imposes on American business activity in Cuba have not only stymied America’s economic potential, they have provided the repressive Cuban regime with an excuse on which to place blame for their own economic woes.  Additionally, there is little credible evidence that sanctions have improved the human rights situation in Cuba, a top priority of the CWG.”
  • “The recent death of Fidel Castro represents a dawn of a new era in Cuban leadership and America must use this opportunity to help chart a new course for Cuba’s future.  We believe America’s greatest ambassadors – the American people and the U.S. private sector – will always be the most effective conduit for the spread of American influence. Continued engagement by our citizens and businesses will help to empower the Cuban people, facilitate economic reforms, and promote the expansion of civil and religious liberties.”
  • “{I]mproving our relationship with Cuba would also align the U.S. government with the will of the American people and improve our standing with our regional allies.  Recent polling from the Pew Research Center show that 73 percent of voters supported renewed diplomatic relations and 72 percent support ending the embargo. In addition, a recent poll out of Florida International University showed that 63 percent of Cuban-Americans in Miami want to see the embargo lifted.  Global support for the normalization of our relations also remains overwhelming, particularly among some of our most important economic and security partners in Latin America.”

As mentioned in other posts, Klobuchar and Emmer are the authors of bills in the current session of Congress to end the embargo. Klobuchar’s is the Freedom to Export to Cuba Act, which currently has 25 Senate cosponsors. Emmer’s is the Cuba Trade Act.[4]

Cuban Entrepreneurs and Engage Cuba[5]

On December 7 Engage Cuba, a national advocacy organization dedicated to dismantling the U.S. embargo on Cuba, released a letter to President-elect Trump from 83 Cuban entrepreneurs that said they “have experienced a great deal of change over the last several years. Changes by our government allow for increased private sector activity and we’ve seen significant growth in small businesses in our country. Over a half of million people now work in the private sector, earning considerably more money than state jobs and offering more autonomy in business decisions. We’re hopeful that our government will make additional changes to the legal framework and market conditions in the future.”

Moreover, the Cuban entrepreneurs said U.S. government reforms “to allow for increased travel, telecom services and banking have helped substantially as we attempt to grow our businesses. . . . Increased interaction and business dealings with U.S. travelers and U.S. companies [have] had important economic benefits, the exchanges of ideas and knowledge, and offered much hope for the future. . . . Additional measures to increase travel, trade and investment, including working with the U.S. Congress to lift the embargo, will benefit our companies, the Cuban people and U.S. national interests. We look forward to taking advantage of any openings that your administration makes to the Cuban private sector and the Cuban economy as a whole.”

That same day, the President of Engage Cuba, James Williams, said he remains hopeful that Trump, a businessman, will not reverse the work already done. “There is no business in the world that would continue a strategy that has failed for 55 years. We see no reason why he would do the same with the U.S. government,” he said. “We’re hopeful that he will continue to build on the progress of the last two years that has helped U.S. businesses and created positive changes for the Cuban people.”

Conclusion

Thanks to Senator Klobuchar, Representative Emmer, the House of Representatives Cuba Working Group, Cuban entrepreneurs and Engage Cuba for continuing their efforts at U.S.-Cuba normalization and urging the future Trump Administration to do the same.

All U.S. citizens who believe that this normalization should continue should thank the above people for their efforts and urge other elected officials to join the fight.

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 [1] State Dept, Daily Press Briefing (Dec. 6, 2016); Cuba Foreign Ministry, Cuba and the United States will hold the fifth Bilateral Commission Meeting (Dec. 6, 2016); Cuba Foreign Ministry, Press Release of the Cuban Delegation to the Fifth Meeting of the Cuba-U.S. Bilateral Commission. Havana, December 7, 2016; Peraza, Cuba reaffirms willingness to continue working to improve relations with the United States, Granma (Dec. 7, 2016); State Dep’t, Press Release: United States and Cuba Hold Fifth Bilateral Commission Meeting in Havana, Cuba (Dec. 7, 2016); Reuters, Cuba Wants to Sign Accords With US Before Obama Exit: Officials (Dec. 8, 2016).

[2] Sherry, Klobuchar, Emmer urge Trump to keep Obama’s Cuba policies, StarTribune (Dec. 8, 2016); Emmer, Klobuchar, Emmer and Bipartisan Congressional Coalition Highlight the Need for Congress to Lift the Trade Embargo with Cuba (Dec. 7, 2016); Emmer, Bipartisan Cuba Working Group Encourages President-elect Trump to Continue U.S. Engagement Efforts with Cuba (Dec. 8, 2016).

[3] The U.S. House of Representatives’ Cuba Working Group was established to promote increased trade, travel and investment in Cuba, open new markets, create jobs in both countries, promote human rights and improve the security posture of the United States. Two other Minnesota members of the Group signed the above letter: Representatives Betty McCollum and Rick Nolan.

[4] Klobuchar and Emmer’s bills were discussed in earlier posts.

[5] Engage Cuba, Cuban Entrepreneurs Announce Letter to President-elect Donald Trump (Dec. 7, 2016).

Another U.N. Condemnation of the U.S. Embargo of Cuba

                                                                                       O

U.N. General Assembly
U.N. General Assembly

On October 26, the United Nations General Assembly voted, 191 to 0 (with two abstentions), to adopt a resolution proposed by Cuba to condemn the United States embargo of Cuba. For the first time in the 25-year history of the annual vote on such resolutions, the U.S, rather than opposing the text, cast an abstention, prompting Israel to do likewise.[1]

This post will examine the resolution’s text, its presentation by Cuba, its support by other countries and the arguments for abstention offered by the U.S. and Israel. This post will then conclude with a brief discussion of reaction to the abstention in the U.S. Prior posts discussed the similar General Assembly resolutions against the embargo that were adopted in 2011, 2014 and 2015.

The Actual Resolution

The actual resolution, “Necessity of ending the economic, commercial and financial embargo imposed by the United States of America against Cuba” (A/RES/71/5 and A/71/L.3) had two principal operative paragraphs.

It reiterated “its call upon all States to refrain from promulgating and applying laws and measures [like the U.S. embargo against Cuba] . . . in conformity with their obligations under the Charter of the United Nations and international law, which, inter alia, reaffirm the freedom of trade and navigation (¶ 2). It also urged “States that have and continue to apply such laws and measures to take the steps necessary to repeal or invalidate them as soon as possible in accordance with their legal regime (¶ 3).

The resolution’s preamble reaffirmed “the sovereign equality of States, non-intervention and non-interference in their internal affairs and freedom of international trade and navigation, which are also enshrined in many international legal instruments” and recited the previous General Assembly resolutions against the embargo. It then welcomed “the progress in the relations between the Governments of Cuba and the [U.S.] and, in that context, the visit of the President of the [U.S.], Barack Obama, to Cuba in March 2016” while also recognizing “the reiterated will of the President of the [U.S.] to work for the elimination of the economic, commercial and financial embargo against Cuba” and “the steps taken by the [U.S.] Administration towards modifying some aspects of the implementation of the embargo, which, although positive, are still limited in scope.”

Cuba’s Presentation of the Resolution

Bruno Rodriguez
Bruno Rodriguez

Speaking last in the debate, Cuba’s Foreign Minister Bruno Rodriguez Parrilla, presented arguments for adopting the resolution. Here are extracts of that speech:

“[T]here has been progress [between Cuba and the U.S. since December 2014] in the dialogue and cooperation on issues of common interest and a dozen agreements were signed [and] reciprocal benefits reported. Now just announced the vote of the US abstention on this draft resolution.”

“The [U.S.] president and other top officials have described [the embargo/blockade] as obsolete, useless to advance American’s interests, meaningless, unworkable, being a burden for [U.S.] citizens, . . . [harming] the Cuban people and [causing]. . . isolation to the [U.S.] and [have] called [for the embargo/blockade] to be lifted.”

“We recognize that executive measures [to reduce the scope of the embargo] adopted by the government of the [U.S.] are positive steps, but [have] very limited effect and scope. However, most of the executive regulations and laws establishing the blockade remain in force and are applied rigorously to this minute by U.S. government agencies.”

“Meanwhile, the U.S. Congress has not approved any of the 20 amendments or legislative initiatives, with bipartisan support, . . . [for] eliminating some restrictions of the blockade or even all of this policy. [Moreover,] there have been more than 50 legislative initiatives that threaten to reinforce key aspects of the blockade, preventing the President [from] approving new executive or implementing measures already adopted.”

“It cannot be underestimated in any way the powerful political and ethical message that [action by this Assembly] . . . sends to the peoples of the world. The truth always [finds] its way. Ends of justice prevail. The abstention vote announced surely is a positive step in the future of improved relations between the[U.S.] and Cuba. I appreciate the words and the efforts of Ambassador Samantha Power.”

“[There] are incalculable human damages caused by the blockade. [There is no] Cuban family or industry in the country that does not suffer its effects on health, education, food, services, prices of goods, wages and pensions.” For example, the “imposition of discriminatory and onerous conditions attached to the deterrent effects of the blockade restrict food purchases and the acquisition in the U.S. market for drugs, reagents, spare parts for medical equipment and instruments and others.”

“The [embargo/] blockade also [adversely] affects the interests of American citizens themselves, who could benefit from various services in Cuba, including health [services].”

“The [embargo/] blockade remains a massive, flagrant and systematic violation of human rights of all Cubans and qualifies as an act of genocide under the Convention on the Prevention and Punishment of the Crime of Genocide of 1948. It is an obstacle to cooperation [in] international humanitarian areas.”

“The blockade is the main obstacle to economic and social development of our people. It constitutes a flagrant violation to international law, the United Nations Charter and the Proclamation of Latin America and the Caribbean as a Zone of Peace. Its extraterritorial application adds further to its violation of international law nature of magnitude.”

“Other causes, in addition to [the blockade/embargo] . . . , determine our economic difficulties: the unjust international economic order; the global crisis; the historical distortions and structural weaknesses caused by underdevelopment; high dependence on energy and food imports; the effects of climate change and natural disasters; and also . . . our own mistakes.”

“Between April 2015 and March 2016, the direct economic damage to Cuba by the blockade amounted to $4.68 billion at current prices, calculated rigorously and prudently and conservatively. The damages accumulated over nearly six decades reach the figure of $753 billion, taking into account depreciation of gold. At current prices, [that is] equivalent to just over $125 billion.”

“On 16 April 2016 President Raul Castro Ruz said, ‘We are willing to develop a respectful dialogue and build a new relationship with the [U.S.], as that has never existed between the two countries, because we are convinced that this alone . . . [will provide] mutual benefits.’ And last September 17, he said ‘I reaffirm the will to sustain relations of civilized coexistence with the [U.S.], but Cuba will not give up one of its principles, or make concessions inherent in its sovereignty and independence.’”

“The government of the [U.S.] first proposed the annexation of Cuba and, failing that, to exercise their domination over it. The triumph of the Cuban Revolution . . . [prompted the U.S. adoption of the embargo whose purpose] was ‘to cause disappointment and discouragement through economic dissatisfaction and hardship … to deny Cuba money and supplies, in order to reduce nominal and real wages, with the aim of causing hunger, desperation and overthrow of government. ‘”

“The [new U.S.] Presidential Policy Directive [states] that the Government of the [U.S.] recognizes ‘the sovereignty and self-determination of Cuba’ and [the right of] the Cuban people to make their own decisions about their future.’” It also states “the U.S. will not seek a ‘change of regime in Cuba.’”[2]

But the Directive also says “’the [U.S.] will support the emerging civil society in Cuba and encourage partners and non-governmental actors to join us in advocating in favor of reforms. While the United States remain committed to supporting democratic activists, [we] also [will] participate with community leaders, bloggers, activists and other leaders on social issues that can contribute to the internal dialogue in Cuba on civic participation.’ The Directive goes on to say: “The [U.S.] will maintain our democracy programs and broadcasting, while we will protect our interests and values, such as Guantanamo Naval Base … The government of the United States has no intention of modifying the existing lease agreement and other related provisions.’”

The Directive also asserts that Cuba “remains indebted to the [U.S.] regarding bilateral debts before the Cuban Revolution.”

The U.S. needs to “recognize that change is a sovereign matter for Cubans alone and that Cuba is a truly independent country. It gained its independence by itself and has known and will know how to defend [its] greatest sacrifices and risks. We are proud of our history and our culture that are the most precious treasure. We never forget the past because it is the way never to return to it. And we decided our path to the future and we know that is long and difficult, but we will not deviate from it by ingenuity, by siren songs, or by mistake. No force in the world can force us to it. We will strive to build a sovereign, independent, socialist, democratic, prosperous and sustainable nation. We will not return to capitalism.”

Other Countries’ Statements of Support[3]

During the debate the following 40 countries expressed their support of the resolution:

  • Latin America: Argentina, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic (for Commonwealth of Latin American and Caribbean States (CELAC)), Ecuador, El Salvador, Jamaica (for Caribbean Community (CARICOM)), Mexico, Nicaragua, Saint Vincent and Grenadines, Uruguay and Venezuela (for Non-Aligned Movement (NAM)).
  • Africa: Algeria, Angola, Libya, Mozambique, Namibia, Niger (for African States), South Africa, Sudan and Tonga.
  • Middle East: Egypt, Kuwait (for Organization of Islamic Conference (OIC)) and Syria.
  • Asia: Belarus, China, Democratic People’s Republic of Korea [North Korea], India, Indonesia, Iran, Lao People’s Democratic Republic, Malaysia, Myanmar, Russian Federation, Singapore (for Association of Southeast Asian Nations (ASEAN)), Thailand (for Group of 77 and China) and Viet Nam.
  • Europe: Slovakia (for European Union (EU)).

U.S. Abstention[4]

Samantha Power
Samantha Power

The U.S. Ambassador and Permanent Representative to the United Nations, Samantha Power, announced the U.S. abstention before the debate and voting on the resolution. Here are extracts of her speech about that vote.

“For more than 50 years, the [U.S.] had a policy aimed at isolating the government of Cuba. For roughly half of those years, U.N. Member States have voted overwhelmingly for a General Assembly resolution that condemns the U.S. embargo and calls for it to be ended. The [U.S.] has always voted against this resolution. Today the [U.S.] will abstain.”

“In December 2014, President Obama made clear his opposition to the embargo and called on our Congress to take action to lift it. Yet while the Obama Administration agrees that the U.S. embargo on Cuba should be lifted, . . . we don’t support the shift for the reason stated in this resolution. All actions of the [U.S.] with regard to Cuba have been and are fully in conformity with the U.N. Charter and international law, including applicable trade law and the customary law of the sea. We categorically reject the statements in the resolution that suggest otherwise.”

“But [today’s] resolution . . . is a perfect example of why the U.S. policy of isolation toward Cuba was not working – or worse, how it was actually undermining the very goals it set out to achieve. Instead of isolating Cuba, . . . our policy isolated the [U.S.], including right here at the [U.N.].”

“Under President Obama, we have adopted a new approach: rather than try to close off Cuba from the rest of the world, we want the world of opportunities and ideas open to the people of Cuba. After 50-plus years of pursuing the path of isolation, we have chosen to take the path of engagement. Because, as President Obama said in Havana, we recognize that the future of the island lies in the hands of the Cuban people.”[5]

“Abstaining on this resolution does not mean that the [U.S.] agrees with all of the policies and practices of the Cuban government. We do not. We are profoundly concerned by the serious human rights violations that the Cuban government continues to commit with impunity against its own people – including arbitrarily detaining those who criticize the government; threatening, intimidating, and, at times, physically assaulting citizens who take part in peaceful marches and meetings; and severely restricting the access that people on the island have to outside information.”

“We [,however,] recognize the areas in which the Cuban government has made significant progress in advancing the welfare of its people, from significantly reducing its child mortality rate, to ensuring that girls have the same access to primary and secondary school as boys.”

“But none of this should mean that we stay silent when the rights of Cuban people are violated, as Member States here at the [U.N.] have too often done. That is why the [U.S.] raised these concerns directly with the Cuban government during our [recent] historic dialogue on human rights . . ., which shows that, while our governments continue to disagree on fundamental questions of human rights, we have found a way to discuss these issues in a respectful and reciprocal manner.[6] We urge other Member States to speak up about these issues as well.”

“As President Obama made clear when he traveled to Havana, we believe that the Cuban people – like all people – are entitled to basic human rights, such as the right to speak their minds without fear, and the right to assemble, organize, and protest peacefully. Not because these reflect a U.S.-centric conception of rights, but rather because they are universal human rights – enshrined in the U.N. Charter and in the Universal Declaration of Human Rights – which all of our 193 Member States are supposed to respect and defend. Rights that are essential for the dignity of men, women, and children regardless of where they live or what kind of government they have.”

The U.S. concedes that it “has work to do in fulfilling these rights for our own citizens. And we know that at times in our history, U.S. leaders and citizens used the pretext of promoting democracy and human rights in the region to justify actions that have left a deep legacy of mistrust. We recognize that our history, in which there is so much that makes us proud, also gives us ample reason to be humble.”

“The [U.S.] believes that there is a great deal we can do together with Cuba to tackle global challenges. That includes here at the [U.N.], where the decades-long enmity between our nations has at best been a distraction – and at worst, an obstacle – to carrying out some of the most important work of this institution and helping the world’s most vulnerable people.”

U.S. Reactions[7]

Engage Cuba, a U.S. national coalition of private companies, organizations and state and local leaders working to lift the embargo, said, “Year after year, the international community has condemned our failed unilateral sanctions that have caused great economic hardship for the people of Cuba and continue to put American businesses at a competitive disadvantage. The fact that the Administration and Israel abstained from voting for the first time ever demonstrates the growing recognition that the U.S. embargo on Cuba is a failed, obsolete policy that has no place in today’s international affairs.”

Senator Marco Rubio (Rep., FL), on the other hand, blasted the abstention, saying the Obama administration had failed to honor and defend U.S. laws in an international forum. Similar negative reactions were registered by Senators Ted Cruz (Rep., FL) and Robert Menendez (Dem., NJ), Republican Representatives from Florida, Ileana Ros-Lehtinen and Mario Diaz-Balart, and the U.S.-Cuba Democracy PAC.

As an U.S. citizen-advocate for ending the embargo as soon as possible, I am pleased with the U.S. abstention and agree with Ambassador Power that this vote does not mean the U.S. agrees with the resolution’s stated reasons.

Moreover, too many in the U.S. believe the Cuban damages claim from the embargo is just a crazy Cuban dream, but I disagree. Given the amount of the claim, Cuba will not someday tell the U.S. to forget it. A prior post, therefore, suggested that the two countries agree to submit this and any other damage claims by both countries for resolution by an independent international arbitration panel such as those provided by the Permanent Court of Arbitration at the Hague in the Netherlands.

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[1] U.N. Press Release, U.S. abstains for first time in annual UN vote on ending embargo against Cuba (Oct. 26, 2016).

[2] A prior post replicated the Presidential Policy Directive while another post provided reactions thereto.

[3] U.N. Press Release, General Assembly Plenary (Oct. 26, 2016); The defeat of the blockade is the world’s largest moral and political victory for the people of Cuba against the empire, Granma (Oct. 26, 2016) (Venezuela’s statement); Today not only do we vote against the blockade, we voted for hope, Granma (Oct. 26, 2016) (Bolivia’s statement).

[4] Ambassador Power, Remarks at a UN General Assembly Meeting on the Cuban Embargo (Oct. 26, 2016).  Israel, which also abstained, merely said that it welcomed the improved U.S.-Cuba relations and hoped it would lead to a new era in the region.

[5] A prior post reviewed President Obama’s eloquent speech in Havana to the Cuban people.

[6] A prior post reviewed the limited public information about the recent human rights dialogue.

[7] Ordońez, For 1st time, U.S. changes its position on U.N. resolution blasting Cuba trade embargo, InCubaToday (Oct. 26, 2016); Engage Cuba, Press Release: Engage Cuba Praises First Ever Unanimous Passage of United Nations Resolution Condemning the Cuban Embargo (Oct. 26, 2016); Lederer & Lee, US abstains in UN vote on Cuba embargo for the first time, Wash. Post (Oct. 26, 2016); Rubio, Rubio: Obama Admin Ignoring U.S. Law on Cuba Embargo, Giving More Concessions to Castro Regime at U.N. (Oct. 26, 2016).

Recommended Obama Administrative Actions To Promote U.S.-Cuba Reconciliation         

On August 29, a U.S. coalition made important recommendations for the Obama Administration to promote further U.S.-Cuba reconciliation by taking administrative actions that did not need congressional authorization.[1] Here is a summary of these recommendations:

  1. Facilitate Greater Financial Engagement and Expand Commercial Transactions.”

These recommendations included (a) authorizing, “by general license, or a general policy of approval, participation by U.S. investors in business arrangements in Cuba, including with state-owned firms, cooperatives, or private sector firms, when the goods or services produced benefit the Cuban people;” and (b) authorizing “by a general policy of approval, the import and sale in the United States of Cuban agricultural products made by the private and cooperative sectors, including transactions that pass through Cuban state export agencies.”

  1. Expand Health-Related Engagement.”

These recommendations included (a) eliminating “barriers which deny U.S. citizens access to clinically proven Cuban-developed drugs; (b) authorizing “U.S. pharmaceutical and medical equipment companies to include Cuban hospitals and health centers in their clinical trials;” and (c) authorizing “U.S. entities (universities, research centers, and private firms) by general license to collaborate in medical and health-related research and development projects in Cuba, including commercial projects.”

  1. Strengthen Security Cooperation where there are U.S. Interests at Stake.”

These recommendations included (a) deepening and extending “counter-terrorism and counter-narcotics cooperation;” and (b) building “gradually on military–to-military contacts.”

  1. Eliminate or Suspend Programs that Fail to . . . Promote Democratic Opening.”

These recommendations were (a) suspending or redirecting “the ‘democracy promotion’ programs now funded through the National Endowment for Democracy (NED), the State Department’s Bureau of Democracy, Human Rights, and Labor (DRL), and USAID, while conducting a review of existing programs to ensure they are consistent with the President’s policies of normalization of relations with Cuba;” and (b) ensuring that “any program or policy that is carried out under this rubric should be conducted openly, transparently, and with the goal of expanding contacts between the people of the US and Cuba without interfering in Cuba’s internal affairs.”

Amen! This blog repeatedly has called for just such action. (See posts listed in “U.S. Democracy Promotion in Cuba” in List of Posts to dwkcommentaries—Topical: Cuba.)

  1. Normalize Migration.”

These recommendations were (a) increasing “the number of visas [the U.S.] issues for Cubans to obtain legal residence;” (b) ending “preferential treatment for Cuban migrants arriving at U.S. borders;” and (c) ending “the Cuban Medical Professionals Parole Program, which offers incentives to Cuban doctors working abroad to leave their country and immigrate to the [U.S.].”

Amen again! This blog repeatedly has called for just such action. (See posts listed in “Cuban Medical Personnel & U.S.” and “Cuban Migration to U.S., 2015-2016” in List of Posts to dwkcommentaries—Topical: Cuba.)

Conclusion

The coalition’s letter also supported Congress’ enacting measures to end the U.S. embargo of Cuba; to give U.S. farmers better access to the Cuban market, by permitting private financing for U.S. agricultural sales; to provide full staffing for the U.S. Embassy in Havana to protect American citizens and provide visas to qualified Cuban applicants; to better manage irregular migration from Cuba; and to take steps to level the playing field for U.S. businesses interested in the Cuban market, relative to foreign competitors.

The coalition consisted of Geoff Thale (Program Director, Washington Office on Latin America); Ted Piccone (Senior Fellow, Brookings Institution); William LeoGrande (Professor, American University); Fulton Armstrong (Senior Faculty Fellow, American University); Alana Tummino (Senior Director of Policy, Americas Society/Council of the Americas); Sarah Stephens (Executive Director, Center for Democracy in the Americas); Mavis Anderson (Senior Associate, Latin America Working Group); Tomas Bilbao (Managing Director, Avila Strategies); Mario Bronfman (Private consultant); and James Williams (President, Engage Cuba).

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[1] Letter, Coalition to President Obama (Aug. 29, 2016). This blogger assumes that the coalition independently researched and concluded that the Obama Administration has the legal authority to take such administrative actions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conference on “Prospects for United States Cuba Normalization, Commerce and Investment”

On February 18, 2016, the Cuba Consortium hosted its first annual Washington Conference: “Prospects for United-States Cuba Normalization, Commerce and Investment.” [1]

The speakers at the Conference included Penny Pritzker, U.S. Secretary of Commerce; Rodrigo Malmierca, Cuban Minister of Foreign Trade and Investment; Tom Vilsack, U.S. Secretary of Agriculture; Benjamin Rhodes, Assistant to the President and Deputy National Security Advisor for Strategic Communications and Speechwriting; and Andrea Gacki, Assistant Director, Compliance and Enforcement, Office of Foreign Asset Control, U.S. Department of Treasury. Here is a summary of their remarks.

Secretary Pritzker

Secretary Pritzker
Secretary Pritzker

In her speech, Pritzker said that she and the U.S. delegation on their visit to Cuba last October learned more about how the Cuban economy works, including the rules and regulations that govern the import, export, and distribution of goods across the island. This information helped to guide the most recent (January 2016) U.S. regulatory changes regarding Cuba.

Those new U.S. regulations created a general policy of approval of exports for purposes such as: disaster preparedness and relief, education, agricultural production, artistic endeavors, food processing, public transportation, Cuban civil society, enhanced communications on the island, and civil aviation safety.

Those new regulations also provided that the Commerce Department’s Bureau of Industry and Security will now review on a case-by-case basis proposed exports from U.S. companies to Cuban state-owned enterprises and government entities to determine if the export will meet the needs of the Cuban people. We had learned in our visit that in Cuba – as in many of our other trading partners around the world – it is necessary to work with state-owned enterprises in order to support the local private sector.

The corresponding new regulations from the U.S. Department of the Treasury permit financing for most authorized exports and travel authorizations.

In sum, whether environmental goods, telecommunications equipment, or products that private sector entrepreneurs need, the U.S. government’s regulatory changes permit a wide variety of trade and commercial activities.

However, if the U.S. is to truly maximize the benefits of our regulatory changes for the Cuban people, the Cuban government needs to make it easier for Cuban citizens to start their own businesses, purchase goods through wholesale markets, engage in external trade, secure credit, and access information online. These steps include making Cuban economic and business regulations publicly available; providing clear public guidance on the relevant government units and officials that are empowered to make decisions on potential transactions; and authorizing Cuban imports of U.S. products that are now allowed by U.S. regulations.

The bilateral civil aviation agreement signed on February 16 is an example of what we have accomplished together.

“The U.S. embargo continues to be a roadblock to increasing engagement between our countries. As President Obama reaffirmed during his State of the Union address, our Administration strongly supports lifting the embargo, and we will continue to call on Congress to repeal it immediately.”

Minister Malmierca

Minister Malmierca
Minister Malmierca

Malmierca asserted that President Obama has the legal authority to adopt additional regulations that would permit Cuba to use the U.S. Dollar in international financial transactions, authorize Cuban exports to the U.S. and allow U.S. companies to invest in other Cuban sectors besides telecommunications.

The U.S. regulatory changes to date are positive, but they are not enough. For example, he said, since the December 2014 joint U.S.-Cuba announcement of normalization, six financial institutions have been fined nearly two billion dollars for trading with Cuba. These fines and the ban on the use of the U.S. Dollar have had serious negative effects on Cuba.

The previous day (February 17), Malmierca led a Cuban delegation at a meeting with Secretary Pritzker and other officials of the U.S. Department of Commerce. [2] On that occasion he made many of the same points just mentioned. He also pointed out that Cuba does not apply any coercive measures against U.S. companies or businesspeople and, in fact, welcomes them to do business on the island.

At that prior meeting in response to a question by Secretary Pritzker, Malmierca said that the next meeting of the Congress of the Communist Party of Cuba will seek to define the priority economic sectors for long-term development. “The most complex issue is that Cuba wants all these changes to be implemented without affecting the population; we do not want to apply shock measures or measures that may have a negative effect.”

This upcoming Congress will address the role of the market in the Cuban economy and the role of foreign investment in its economic development. This will seek to further consolidate changes adopted by Cuba before December 17, 2014, which are irreversible. “All the measures we are adopting, and which were sovereignly chosen long before December 17, 2014, . . . will also contribute to making the decisions we are making together more feasible,” he concluded.

Secretary Vilsack

Secretary Vilsack
Secretary Vilsack

Secretary Vilsack also criticized the U.S. embargo (blockade), noting that it restricts opportunities for trade between Cuba and the U.S. One area of such negative impact was the U.S. helping Cuba’s organic and urban farming practices.

The U.S. Agriculture Department is looking to identify business opportunities through a fund to which several U.S. agricultural companies voluntarily contribute. This fund, however, cannot use federal resources to explore business opportunities with the island, as is common practice, thus obstructing U.S. companies’ access to the Cuban market.

Although a U.S. law in 2000 authorized sales of agricultural products to Cuba, it required Cuba to pay in cash in advance, which has had a severe negative impact on such U.S. exports.

Associate Director Gacki

Associate Director Gacki
Associate Director Gacki

Gacki was unable to identify the specific law which prohibits Cuba’s use of the U.S. Dollar in international transactions, but said the Treasury Department currently was investigating whether there were other executive measures President Obama could adopt to reduce the adverse impacts on Cuba of restrictions on its use of the U.S. Dollar.

Assistant to the President Rhodes

Assistant to President Rhodes
Assistant to President Rhodes

Rhodes confirmed that Obama still has broad executive powers to make further and more substantial modifications to the U.S. embargo (blockade) policy.

Rhodes said that while the embargo policy may have had relevance in the past, the island is changing as are opinions of some Cuban-Americans. In addition, the increased numbers of Americans visiting Cuba are seeing why the embargo should be ended.

The Obama Administration, he added, is reviewing other potential regulatory changes that could be made within the existing legal framework.Thus, he believed it is possible to do more before the end of this administration to generate the necessary momentum to definitively end the embargo.

Conference Background

The Cuba Consortium is an assembly of companies, non-profit organizations, investors, academics, and entrepreneurs organized to track and examine the normalization process in both countries and to inform and prepare its members for opportunities to engage Cuba. They are complemented by foreign policy, political, economic, international development, legal, and cultural experts who have specialized knowledge of the diplomacy, politics, and economics of the normalization process.

The Consortium’s Advisory Board is co-chaired by Senators Nancy Kassebaum Baker and Tom Daschle and includes Dr. Michael Adams, Lon Augustenborg, Richard Blum, Sheila Burke, Tomas Diaz de la Rubia, Senator Byron Dorgan, Rodney Ferguson, Senator Bill Frist, Dr. Helene Gayle, Maurice Greenberg, Senator Bob Kerrey, Linda Klein, Fred Malek, Janet Napolitano, Thomas Ross, Senator Olympia Snowe, The Honorable Ellen Tauscher, Bill Weldon, and Rob Wilder.

The Consortium was organized by the Howard Baker Forum, which was founded by former Senator Howard Baker to provide a platform for examining specific, immediate, critical issues affecting the nation’s progress at home and its relations abroad under a philosophy of reasoned consensus, founded upon an agreed set of facts.

Conclusion

The Consortium and its conference join the U.S. Agricultural Coalition for Cuba and Engage Cuba as important bipartisan U.S. efforts to promote U.S.-Cuba reconciliation. I applaud all of their efforts.

On the same day of this conference, the White House announced that President Obama and Michelle Obama will be visiting Cuba on March 21 and 22. The White House Press Secretary said, “In Cuba, the President will work to build on the progress we have made toward normalization of relations with Cuba – advancing commercial and people-to-people ties that can improve the well-being of the Cuban people, and expressing our support for human rights. In addition to holding a bilateral meeting with Cuban President Raul Castro, President Obama will engage with members of civil society, entrepreneurs and Cubans from different walks of life.”

The previously mentioned Benjamin Rhodes also issued a similar statement that also reviewed the various steps towards normalization since December 17, 2014.

Before President Obama’s trip, I anticipate and hope that the U.S. will announce additional steps in the process of normalization, including:

  • issue new regulations allowing or expanding Cuba’s ability to use the U.S. Dollar in international transactions, authorize Cuban exports to the U.S. and allow U.S. companies to invest in other Cuban sectors besides telecommunications;
  • announce the ending of special U.S. immigration benefits for Cubans, including the policy of allowing entry without visas into the U.S. of Cubans arriving by land (the dry feet policy); and
  • announce further steps in the process of resolving U.S. claims against Cuba for expropriation of property owned by U.S. persons without compensation.

In addition, it is hoped that before President Obama’s trip Cuba will make Cuban economic and business regulations publicly available; provide clear public guidance on the relevant government units and officials that are empowered to make decisions on potential transactions; and authorize Cuban imports of U.S. products that are now allowed by U.S. regulations. In addition, some improvement in Cuban human rights would be helpful, an objective apparently to be pursued in Havana next week by Secretary of State John Kerry. ==========================================

[1] Gomez, Rapprochement moving forward, Granma (Feb. 22, 2016). Amazingly a 2/23/16 Google search of “Cuba Consortium” did not reveal any U.S. media coverage of this Conference. Secretary Pritzker’s speech was on the website of the U.S. Treasury Department.

[2] Gomez, Malmierca: Obama has support to continue dismantling the blockade, Granma (Feb. 18, 2016).