On February 12, 2015, Minnesota’s U.S. Senator Amy Klobuchar introduced S.491: Freedom to Export to Cuba Act. Its five cosponsors are Senators Richard Durbin (Dem., IL). Mike Enzi (Rep., WY), Jeff Flake (Rep., AZ), Patrick Leahy (Dem., VT) and Debbie Stabenow (Dem, MI). The bill was referred to the Senate’s (a) Banking, Housing and Urban Affairs and (b) Foreign Relations Committees.
Comments on S.491
Senator Klobuchar’s press release said the bill would eliminate the legal barriers to Americans doing business in Cuba and thereby pave the way for new economic opportunities for American businesses and farmers by boosting U.S. exports and allowing Cubans greater access to American goods. The legislation repeals key provisions of previous laws that block Americans from doing business in Cuba, but does not repeal portions of law that address human rights or property claims against the Cuban government. [1]
This press release also stated, “It’s time to the turn the page on our Cuba policy. Fifty years of the embargo have not secured our interests in Cuba and have disadvantaged American businesses by restricting commerce with a market of 11 million people just 90 miles from our shores. There are many issues in our relationship with Cuba that must be addressed, but this legislation to lift the embargo will begin to open up new opportunities for American companies, boost job creation and exports, and help improve the quality of life for the Cuban people.” [2]
She subsequently told a Minnesota newspaper, “There’s been a sea change in terms of how people are thinking about Cuba. I think it’s really important to get people from the Midwest involved. Our interests are different than some of the other people traditionally involved in this issue. … We come at it from a production perspective, from the perspective of wanting to sell things there.” [3]
Klobuchar’s bill was endorsed by the United States Agricultural Coalition for Cuba. Its Chair, Devry Boughner Vorwerk of Cargill Incorporated, said, “We appreciate Sen. Klobuchar’s leadership to advance this bipartisan bill, modernize U.S. policy toward Cuba and boost opportunities for American agriculture. Ending the embargo will enable our agriculture sector to work in partnership with Cuba and the Cuban people, develop a meaningful trading relationship and create jobs across many sectors of our own economy.”
Internal Senate Political Concerns
As previously mentioned S.491 was referred to two committees: the Senate Banking, Housing and Urban Affairs Committee and the Foreign Relations Committee, each of which presents problems for successful passage of the bill. [4]
The Banking Committee has 12 Republican and 10 Democratic members. Its Chair is Richard Shelby (Rep., AL) while its Ranking Member is Sherrod Brown (Dem., OH). With two and maybe three exceptions, my initial impression is that the Republican majority will be opposed to the bill while the Democrats will support the bill. The two exceptions are Republican Jerry Moran (KS), who supports ending the embargo, and Democrat Robert Menendez (NJ), who opposes such action. The other possible exception is Republican Bob Corker (TN), who chairs the Senate Foreign Relations Committee and who issued a noncommittal statement about the December 17th rapprochement.[5]
The Foreign Relations Committee has 10 Republican and nine Democratic members. Its Chair is the previously mentioned Bob Corker (Rep., TN) and its Ranking Member is Robert Menendez (Dem., NJ). With three and maybe four exceptions, my initial impression is that the Republican majority, including Marco Rubio (FL), a Cuban-American who strongly and repeatedly opposes reconciliation, will oppose the bill while the Democratic minority will support the measure. The exceptions are Republicans Jeff Flake (AZ) and Rand Paul (KY), who have supported ending the embargo, and Democrat Menendez, a Cuban-American who vehemently opposes reconciliation with Cuba, including ending the embargo. The possible exception is Chair Corker, who has issued a noncommittal statement on the rapprochement. Thus, it is conceivable that there could be a 10-9 (or even a 11-8) vote approving the bill in committee. But if it does not also get out of the Banking Committee, that probably means very little.
These internal Senate political considerations prompted Klobuchar to acknowledge to the Minnesota newspaper that the Foreign Relations Committee’s obstacles for the bill “are clearly something to be reckoned with … but it doesn’t mean that two people [Senators Rubio and Menendez] can stop the whole thing.” She added that the legislation could come up through the Banking. Housing and Urban Affairs Committee or be passed in piecemeal fashion through other bills.
Minnesota Representative Collin Peterson, who is a cosponsor of a companion bill (H.R.403) in the House of Representatives, also talked to the Minnesota newspaper about the political difficulties of passing such measures. Indeed, he called the odds of lifting the embargo this year as “thin” due to the political sway of the older generation of Cuban-Americans in certain congressional districts.
Peterson thought the elimination of the embargo will “help [Minnesota farmers] a little bit” by increasing demand and, therefore, farm prices, “but it’s marginal in the whole scheme of things.”
Conclusion
I thank and congratulate Senator Klobuchar for introducing this important bill and the six other senators for cosponsoring the bill.
I conclude by adding the following three reasons for ending the embargo that I have not seen elsewhere:
1. Without the embargo, the U.S. would not face the annual fall nearly unanimous condemnation of the embargo by the U.N. General Assembly.
2. The elimination of the embargo might assist the U.S. in combatting the increasing Chinese and Russian influence in Latin America.
3. Cuba repeatedly has claimed that the embargo has caused damage to its economy, and at last Fall’s U.N. General Assembly meeting Cuba asserted the total damages were $1.1 trillion. That obviously is a very large amount of money. I am confident that in any litigation or arbitration over such a claim the U.S. would mount a thorough critique and arguments to rebut the claim, including evidence and argument that any alleged damages were caused by Cuban ineptitude and that the major premise of the argument (the illegality of the embargo under international law) was unfounded. Nevertheless, as is true in any disputed claim like this, there can be no 100% guarantee that the claim will be rejected in its entirety. Thus, this damage claim must be recognized as a contingent liability of the U.S., and ending the embargo will minimize the amount of that liability.
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[1] On January 15th the Congressional Research Service issued CRS Report 4388: “Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations” In a 15-page table it “lists the various provisions of laws comprising economic sanctions on Cuba, including key laws that are the statutory basis of the embargo, and provides —on the authority to lift or waive these restrictions.”
[2] Similar press releases were issued by Senators Durbin and Leahy.
[3] Sherry, Sen. Klobuchar leads effort in U.S. Senate to life Cuba trade embargo, StarTribune (Feb. 13, 2015).
[4] The THOMAS legislative service of the Library of Congress late on February 12th said the bill was referred to both of these committees, but on February 13th it said it was only referred to the Banking Committee. Since the embargo clearly relates to foreign relations, I assume the latter THOMAS version is incorrect.
[5] Research-backed comments and corrections on the positions regarding Cuba by the members of these committees are solicited and welcome.
