AN ANALYSIS OF US-CUBA TRADING RELATIONS
Last year, Obama gave the announcement of easing sanctions against Cuba, particularly in terms of travel and trade, much to the locals' delight especially business owners. However, with the upcoming change of rulers following the triumph of Trump, this agreement might be cut short, as the presumptive chief threatens to scale back on the agreement unless they yield to additional adjustments.
If in case the embargo is completely lifted and the exchange of products becomes more active among the two nations, there is a high probability that European corporations may take charge of dispersing these trades since they already have a wide access over the items even before. To comprehend more about this, a brief history of economic connection would be helpful to have an idea of how major businesses operate in the state.
When the late Fidel Castro took office, a big chunk of the economy is under the control of US firms--from infrastructure to natural resources. Upon assuming his position, Castro worked to nationalize this assets so that they will be able to take hold of their assets. As a form of retaliation, the US imposed a ban on all Cuban products in an effort to overthrow the government. However, the attempt was unsuccessful, and arguments regarding the purpose of the embargo started to surface, plus suggestions of removing it began to rise as doing this will be beneficial to consumers and increase freedom within the island country.
Under Castro, several deals were closed, especially with Europe to allow distribution of their items in the region, specifically cigarettes and rum. Some tobacco companies have special rights to offer their products worldwide through a network of corporate entities including the regime's tobacco firm, which handles their business by making carefully arranged transactions with several states. When it comes to rum, the process is the same as well.
Tourism is another bright spot in Cuba, as travelers are usually able to enter via other countries. Visitors, especially from the US, would be jackpot since it would definitely generate profit given that cruises and hotels would gladly accommodate their requests. In fact, this sector has risen the moment Obama declared his plan of lessening restrictions.
Other enterprises are projected to rise as well such as food, clothing, and agricultural offerings despite its infrastructure division lagging behind. Even real estate is expected to profit as retirees prefer to settle in sunnier parts of the world. Aside from this, although Cuba’s inability to have their goods made available to US because of existing conditions, they still have a chance since the US holdings they have seized amounts to $7M, wherein they have been required to pay. It is unlikely that Cuba will agree to compensate for this, and their refusal may pave the way for additional negotiations to take place.
Currently, experts conclude that normalization of ties among the nations are still far away, given that diplomatic connections take time to develop, and political atmosphere are complex as of present.
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