Tag: Eric Jacobstein

U.S. Congressional Hearing About Cuban Private Sector

On June 27,  the U.S. House of Representatives Subcommittee on the Western Hemisphere of the Foreign Affairs Committee held a hearing regarding  “The Curse of Socialism in Central America and the Caribbean“ that focused on the Cuban private sector [1]

Testimony of Eric Jacobstein

The lead witness for this hearing was Eric Jacobstein, the Deputy Assistant Secretary for Western Hemisphere Affairs at the State Department.

He testified that the United States Government is committed to continuing to promote the growth of the private sector in Cuba and supporting the economic well-being of the people, in the face of strengthening Havana’s relations with Moscow and Beijing.”

“Today, more than a third of the Cuban workforce works in one of the more than 11,000 private companies on the Island. The Cuban people still see the United States as a preferred partner. Therefore, we cannot give space to Russia or China and we must continue to encourage private sector growth.”

“The private sector offers ordinary Cubans the opportunity for a better life.”

Testimony of Greg Howell

Also testifying was Greg Howell,  the deputy administrator for the Office for Latin America and the Caribbean of the United States Agency for International Development (USAID). He said this entity has provided for the training of hundreds of journalists, “whose work in major international media has countered the Cuban regime’s manipulation of information, documenting the difficult conditions on the island and highlighting human rights violations by the [Cuban] Government.”

“For nearly 30 years, across four U.S. administrations, U.S. assistance has helped the people of Cuba in the face of an oppressive government, supporting human rights, fundamental freedoms, and democratic values ​​by strengthening civil society and providing a better access to information.”

USAID, “responding to a request from Cuban authorities, . . provided personal protective equipment for [Cuban] firefighters in September 2022, more than a month after the fire that broke out on August 5 at the Matanzas Supertanker Base and caused the deaths of 17 people, mainly young people who were performing their mandatory military service.

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[1] The US is committed to ‘continuing to promote the growth of the private sector’ in Cuba, Diario de Cuba (June 28, 2024) ;

House of Representatives, Foreign Affairs Comm., Subcommittee Hearing Announcement: “The Curse of Socialism in Central America and the Caribbean (June 20, 2024)

House of Representatives, Foreign Affairs Comm., Subcommittee Hearing, “The Curse of Socialism in Central America and the Caribbean (June 27, 2024)

 

U.S. House Hearing on Cuban Private Enterprise  

On January 18, the U.S. House Foreign Affairs Subcommittee on Western Hemisphere Affairs held a hearing that opened with its chair, Rep. Maria Elvira Salazar (Rep., FL), delivering a speech entitled “The Myth of the New Cuban Entrepreneurs: An Analysis of the Biden Administration’s Cuba Policy.”[1]

Salazar said, “according to information she has, the growth of private enterprises in Cuba is a ‘scheme’ by the Cuban government to violate the U.S. embargo and that only the children of Cuban leaders have an easy path to own these businesses.” That comment was echoed by Rep. Mark Green, a Tennessee Republican, saying, “the Cuban military is embedded in every single business, so the concept of a private sector is almost non-existent in the country.”

At the end of the hearing, however, after hearing about the Biden Administration’s position discussed below, Salazar “seemed to have softened her initial stance, telling the State Department officials that Republicans are ‘on the same page.’ Apparently contradicting her early views, she asked, “How can we help this administration really help those small business owners in Cuba that have no contact or connection with the regime to open up a good store if they want or to own a privately owned business? What can we do together?”

The Biden Administration’s Position on Cuban Private Enterprise

Eric Jacobstein, deputy assistant secretary of state for Western Hemisphere Affairs, testified at the hearing, “In an acute twist of irony, the island’s communist government must now rely on private enterprise to provide food and basic services for its people. We believe the organic expansion of the private sector on the island – led by the Cuban people themselves and not by any foreign government – is an opportunity that should not be wasted. Above all, we must encourage the freedom of Cuban citizens to define their economic future. Failing to engage and support Cuba’s private sector would leave space for Russia and the [People’s Republic of China] to shape the direction of the Cuban economy. We must not allow this to happen.”

Jacobstein added, “We believe the organic expansion of the private sector on the island – led by the Cuban people themselves and not by any foreign government – is an opportunity that should not be wasted. Above all, we must encourage the freedom of Cuban citizens to define their economic future. Failing to engage and support Cuba’s private sector would leave space for Russia and the [People’s Republic of China] to shape the direction of the Cuban economy. We must not allow this to happen.” Moreover, “the private businesses give some young Cubans reasons to stay on the island despite the challenges. . . . In an acute twist of irony, the island’s communist government must now rely on private enterprise to provide food and basic services for its people,”

Enrique Roig, the deputy assistant secretary in the State Department’s Bureau of Democracy, Human Rights and Labor, said that “the Biden administration is not solely focused on supporting independent private entrepreneurs but also on improving the human-rights situation on the island. In particular, the administration has pushed for the release of about 1,000 political prisoners.”

Rep. Joaquin Castro (Dem, TX), the Ranking Member of the Subcommittee, said, the U.S. should support Cuban entrepreneurial efforts, not stifle them.” He added, “Our policies of the last 60 years have not resulted in the changes we would like to see; in some cases, they have even emboldened the Cuban government and strengthened their relationship with key adversaries like China and Russia. The United States can both recognize the threat that the Cuban regime poses to regional and national security while also engaging on key priorities and supporting the Cuban people’s efforts to further their own democratic aspirations.” This includes embracing “former President Barack Obama’s engagement policies, including removing Cuba from the list of countries that sponsor terrorism,” calling it ‘a baseless, extremely harmful designation.’

California Democrat Sydney Kamlager-Dove said that the denial that the Cuban private sector truly exists was a “conspiracy theory.”

Other Comments on Cuban Private Enterprises

Before the hearing, John Kavulich, the president of the U.S.-Cuba Trade and Economic Council, a Washington-based organization tracking business with Cuba, wrote in the Cubatrade blog, “The hearing premise is established on a falsehood” and that it is “wrong” to define those who have created and manage the private enterprises “as participants in a myth, as dupes of the government … rather than instruments of change. [The Cuban government] “does not embrace the re-emerging private sector. It’s tolerated. That should not mean the United States Congress should dismiss it. Or worse, work against it. “

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[1] Torres, Republicans and Democrats in Congress clash over the existence of the private sector in Cuba, Miami Herald (Jan. 18, 2024),

 

U.S. and Cuba Meet and Discuss Various Issues  

On October 10, the U.S. Deputy Undersecretary for Western Hemisphere Affairs, Eric Jacobstein, met with Johana Tablada de la Torre, [Cuba’s] Deputy Director General for the United States of the Cuban Ministry of Foreign Affairs, to discuss various issues. [1]

Jacobstein stressed that “the Cuban government [must release] the approximately 1,000 political prisoners unjustly detained” and allow “its citizens to exercise their fundamental freedoms. If the Cuban government seeks to improve relations with the United States, it is essential to achieve progress on these human rights issues.” Jacobstein added that U.S. policy toward Cuba “focuses on promoting accountability for human rights violations and abuses and, at the same time, increasing support for the Cuban people, including promoting safe and humane migration, and independent private sector in Cuba.”

Tablada said to media that the U.S. inclusion of Cuba on its list of state sponsors of terrorism “immediately triggered a disproportionate flow of migrants to the United States.”

The U.S. responded that “US law establishes specific legal criteria for rescinding a ‘country that sponsors terrorism’ designation, and that any review of Cuba’s status on the list would be based on the law and criteria established by the Congress.”

Moreover, the U.S. stated it has a primary objective of  “guaranteeing safe, orderly, humane and regular migration between Cuba and the United States.” To that end, “Over the past year, we have taken a number of steps to facilitate such migration, including the full resumption of immigrant visa services in Havana and the creation of a new parole program for certain nationalities, including Cuban citizens. We continue to urge Cubans to follow legal immigration pathways and not risk their lives through dangerous irregular migration.”

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[1] USA: If the Cuban regime seeks to ‘improve relations’ it has to advance human rights, Diario de Cuba (Oct. 24, 2023); Torres, Cuba has ‘urgent’ need for sanctions relief, island’s diplomat tells U.S. officials, Miami Herald (Oct. 19, 2023).