October 19, 2004

Thanks, Mr. Clinton, you dumbass.

U.S. Embargo of Cuba Fades Away

The full scale U.S. embargo of Cuba has ended. With no fanfare or "fall of the Berlin Wall" celebration, a mighty flow of American goods is streaming into Cuban stores and kitchens.

In 2000, Cuba ranked dead last among all 180 nations in terms of agricultural purchases from the United States according to U.S. government figures. In 2001, Cuba's ranking rose to 138. This year Cuba is poised to finish at 45th. Next year, Cuba will likely buy $260 million in agricultural goods and be 33rd on the list. Not bad considering the two countries haven't had diplomatic relations for over 40 years.

In September, over 150 U.S. companies, organizations and state offices will participate in a huge U.S. Food and Agriculture Exhibition in Havana. The event, authorized by the U.S. Treasury Department, will feature over 1000 brand name, American products including cheese, ice cream, beer, pet foods, cotton, tobacco, lumber, vitamins, and many others. For the first time in 43 years American buffalo, beef cattle, dairy cows, hogs, and chickens will be shipped to Cuba as part of the show.

As recently as last May, President Bush vowed not to ease the trade ban on Cuba. He said, "Well-intentioned ideas about trade will merely prop up this dictator, enrich his cronies and enhance the totalitarian regime."

Yet Cuba is buying more food from the United States than Denmark, Portugal, Greece, Hungary, Austria, and over 100 other countries. How is this possible? Do Congress and the White House know about this?

In 1961, President John Kennedy cut diplomatic relations with Cuba, imposed an embargo against trade with Cuba, and effectively banned most American travel to Cuba.

In October of 2000, the U.S. Congress passed--and President Clinton signed--the Trade Sanctions Reform and Export Enhancement Act (TSRA). The law said Cuba could begin buying U.S. food products for any purpose, but the Cuban government was irked by restrictions the legislation included. Specifically, TSRA requires that all purchases by Cuba must be made with cash...no financing is allowed. Cuba said thanks but no thanks, and U.S.-Cuban relations continued as they had in the past.

Then Cuba was hit hard by Hurricane Michelle in November of 2001. To recover, Cuba made what it said was a one-time exception to buy American corn under the TSRA rules. They bought 30,000 metric tons of corn from Archer Daniel Midlands.

That corn came from nine different U.S. states. And Cuba kept buying.

Since then they have bought peas, barley, soybeans, condiments, soup, pasta, carbonated beverages, onions, chicken, turkey, apples, eggs, and many other items. These purchases represent Cuban trade with 30 states.

Because of the TSRA rules, Cuba has been devoting much of its small cash reserves to U.S. trade. In fact, some suppliers in other countries are not being paid on time as Cuba uses its cash to build a financial constituency in the United States.

With 30 states involved, 60 U.S. senators and a majority of the U.S. House now have an economic incentive to keep this breach of the embargo open and perhaps expand it further. And the U.S. embargo of Cuba will end not with a breaking news bulletin on CNN but with a few statistical lines in a U.S. Department of Agriculture report.

I need to mull this over a bit before deciding how I feel about it.

Posted by Val Prieto at October 19, 2004 08:43 AM



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Comments

Should a Man, sitting at an abundant table, deny his hungry Brother food, to spite his despicable Uncle?

If the Uncle eats half the food, should you cut the Uncle off and starve your Brother?

Posted by: Guest at October 19, 2004 04:14 PM

Yes. I would. Because my brother should know better than to let someone steal his food.

Posted by: Val Prieto at October 19, 2004 04:35 PM

Val, there is a delicious irony in this story:

"Because of the TSRA rules, Cuba has been devoting much of its small cash reserves to U.S. trade. In fact, some suppliers in other countries are not being paid on time as Cuba uses its cash to build a financial constituency in the United States."

Could this be because the capitalist yanquis can provide it more cheaply and reliably than the socialist twits in Europe?

Posted by: Robert at October 19, 2004 05:34 PM

Ill do you one irony better, Robert. What the worse thing you could do to a person needing your goods who is strapped for cash?

Make him pay in cash.

Posted by: Val Prieto at October 19, 2004 06:25 PM

" my brother should know better than to let someone steal his food."
To run from your powerful uncle and harden your heart to your brother is the stuff of tragedy.

Posted by: absalom at October 19, 2004 09:11 PM

Posted by: NotImportant at October 20, 2004 05:11 AM

what the fidel really wants and the american farmers as well is for the american goverment to eventually guarantee loans to the cuban government for the products sold to cuba. if that happens, you will know that all has been lost.

tony

Posted by: tony at October 25, 2004 07:42 PM