Case study u.s.

-cuban trade : when does a cold war strategy become a cold war relic
Presented by: Ankur Gupta Aishwarya Singh Honey Shukla Deepti Tripathi

Case facts
The U.S. Embargo of Cuba is the longest and harshest embargo by one state against another in modern history Following Castros overthrow of the Batista government in 1959 and threats to incite revolutions in Latin America, U.S.

cancelled its trade agreement to buy Cuban sugar.

Spurred by the collapse of communism more than thirty years later, Congress passed the Cuban Democracy Act in 1992 and the Helms-Burton Act in 1996, both of which tightened the noose for firms that attempted to do business with a Castro

government.

 Although many countries had initially supported the embargo, by 2001 some 150 nations had normal trade relations with

Cuba
While many people feel that repealing the embargo would help many U.S. industries and firms, others maintain that Cuban market opportunities are extremely limited. Others feel that the Cuban embargo is an unfortunate cold war relic and

question the politics of U.S. policy.

QUESTION -1

Should the U.S. seek to tighten its economic

grip on Cuba? If so, why?

Answer-1
Now, The US govt. should not seek to tighten the economic grip on Cuba because business with Cuba will help many US companies to generate revenue. Lifting the embargo will give approx $1.2 million per year

from agricultural exports.

Potential gains for tourism & transportation companies Moreover, It is the longest embargo on Cuba by US Which is not relevant in todays time.

 In addition, Cubas expropriation of American property without compensation is internationally recognized as unacceptable behavior; thus, retaliation can be seen as an appropriate response.

QUESTION -2
Should the U.S. normalize business relations with Cuba? If so, should the U.S. stipulate any conditions?

Answer-2
Yes, U.S. should normalize business relations with Cuba. Reasons: Cuba has long military threat, and there is hope that closer political relations with the United States (and the rest of the

free world) will lead to greater democracy in Cuba.

Cuban trade sanctions are far tougher than those levied by the United States against Iran, Iraq, Libya, and North Korea. Economically, U.S. firms are losing out on opportunities to sell their products in Cuba to competitors from other countries.

U.S. should stipulate following conditions:

While progress in the area of human rights may be slow, experience in other countries suggests that imposing some human rights conditions may be effective in the long-run.

In addition, the U.S. government may wish to facilitate the

return to Cuba of U.S. companies whose properties were expropriated, even though any remaining assets are likely in a

state of serious disrepair.

QUESTION -3
Assume you are Fidel Castro. What kind of trade relationship with the United States would be in your best interest? What type would you be willing to

accept?

Answer-3
Being a leader i would want a trade relationship that would

contribute to the economic development of the economy.

Initial overtures from the U.S. government could help to improve the political position and would be welcomed as a way to begin negotiations. Economic development assistance could come in the form of

foreign direct investment

QUESTION -4
How do the structure and relationships of the American political system influence the existence and specification of the trade embargo?

Answer-4
The structure and relationships of the American political system serve to reinforce the existence and specification of the Cuban trade embargo. Pro-embargo supporters relentlessly lobby the U.S. Congress and presidential administration to tighten the embargo in order to spur the collapse of Cuban communism. Although recently diminished, the pro-embargo viewpoint is

supported by key people in key positions throughout the

government.