Tuesday, November 20, 2012

CUBA - Easing Embargo?

"Easing of Restraints in Cuba Renews Debate on U.S. Embargo" by DAMIEN CAVE, New York Times 11/19/2012

Excerpt

“If I could just get a lift,” said Francisco López, imagining the addition of a hydraulic elevator as he stood by a rusted Russian sedan in his mechanic’s workshop here. All he needed was an investment from his brother in Miami or from a Cuban friend there who already sneaks in brake pads and other parts for him.

The problem: Washington’s 50-year-old trade embargo, which prohibits even the most basic business dealings across the 90 miles separating Cuba from the United States. Indeed, every time Mr. López’s friend in Florida accepts payment for a car part destined for Cuba, he puts himself at risk of a fine of up to $65,000.

With Cuba cautiously introducing free-market changes that have legalized hundreds of thousands of small private businesses over the past two years, new economic bonds between Cuba and the United States have formed, creating new challenges, new possibilities — and a more complicated debate over the embargo.

The longstanding logic has been that broad sanctions are necessary to suffocate the totalitarian government of Fidel and Raúl Castro. Now, especially for many Cubans who had previously stayed on the sidelines in the battle over Cuba policy, a new argument against the embargo is gaining currency — that the tentative move toward capitalism by the Cuban government could be sped up with more assistance from Americans.

Even as defenders of the embargo warn against providing the Cuban government with “economic lifelines,” some Cubans and exiles are advocating a fresh approach. The Obama administration already showed an openness to engagement with Cuba in 2009 by removing restrictions on travel and remittances for Cuban Americans. But with Fidel Castro, 86, retired and President Raúl Castro, 81, leading a bureaucracy that is divided on the pace and scope of change, many have begun urging President Obama to go further and update American policy by putting a priority on assistance for Cubans seeking more economic independence from the government.

“Maintaining this embargo, maintaining this hostility, all it does is strengthen and embolden the hard-liners,” said Carlos Saladrigas, a Cuban exile and co-chairman of the Cuba Study Group in Washington, which advocates engagement with Cuba. “What we should be doing is helping the reformers.”

Any easing would be a gamble. Free enterprise may not necessarily lead to the embargo’s goal of free elections, especially because Cuba has said it wants to replicate the paths of Vietnam and China, where the loosening of economic restrictions has not led to political change. Indeed, Cuban officials have become adept at using previous American efforts to soften the embargo to their advantage, taking a cut of dollars converted into pesos and marking up the prices at state-owned stores.

And Cuba has a long history of tossing ice on warming relations. The latest example is the jailing of Alan Gross, a State Department contractor who has spent nearly three years behind bars for distributing satellite telephone equipment to Jewish groups in Havana.

In Washington, Mr. Gross is seen as the main impediment to an easing of the embargo, but there are also limits to what the president could do without Congressional action. The 1992 Cuban Democracy Act conditioned the waiving of sanctions on the introduction of democratic changes inside Cuba. The 1996 Helms-Burton Act also requires that the embargo remain until Cuba has a transitional or democratically elected government.

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