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Brooks Wilson's Economics Blog: Progess on Trade with Cuba

Saturday, April 4, 2009

Progess on Trade with Cuba

Laura Meckler, writing for the Wall Street Journal in "U.S to Lift Some Cuba Travel Curbs," notes that,
President Barack Obama plans to lift longstanding U.S. restrictions on Cuba, a senior administration official said, allowing Cuban-Americans to visit families there as often as they like and to send them unlimited funds.
The March 11, 2009 budget bill contained legislation for limited trade liberalization (see, "Obama on Trade: One Tiny Step Forward, Two Steps Back" and "Obama May Lift U.S. Travel Restrictions to Cuba, Official Says").  The administration is hanging tough on further liberalization. 
President Obama doesn't intend to call for lifting of the trade embargo against Cuba, which would require congressional action, nor is any specific diplomatic outreach contemplated, the official said.
There is some bipartisan belief that it is time to ease trade restrictions.  Doug Palmer, writing for Reuters in "U.S. senators move to end Cuba travel ban," reports that,
A bipartisan group of U.S. senators introduced a bill on Tuesday to allow U.S. citizens to travel freely to Cuba and predicted Congress would approve it as a step toward ending the five-decade-old U.S. embargo.

"I think there's sufficient votes in both the House (of Representatives) and the Senate to finally get it passed," Democratic Senator Byron Dorgan said at a news conference.

Dorgan... introduced the bill along with fellow Democratic Senator Christopher Dodd and Republican Senators Richard Lugar and Mike Enzi. Seventeen other senators also are sponsoring the measure. A companion bill introduced in the House earlier this year has 121 co-sponsors.
I support liberalization because it is humane to allow families to reunite, and because I believe that increased contact between the two countries will emphasize our prosperity, making it more difficult for the Castro regime to maintain power.  Unilaterally reducing trade barriers would probably do little to increase trade, Raul Castro understands its democratizing influence. 

5 comments:

  1. This will be a good thing for many families. I know a family that fled to the U.S. in the 60's. He was a doctor and they left with only the clothes on their back. Before Castro, these people have wonderful lives there. I know there are so many like them that should be able to see their families after so many years.
    Who knows, Cuba may become the next hot vacation spot!
    Louann Walker

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  2. Since the Trade Sanctions Reform and Export Enhancement Act of 2000, the US has been the largest food exporter and the 6th largest trading partner to Cuba, so it is only reasonable to allow the restrictions to be legitimately lifted. The Castro regime is on it's way out and it would behoove us to make concessions on our part and allow travel, at the very least, between families. The United Nations has declared the embargo to be a violation of international law and certainly at this time in our economy we need to show little good will. Cuba does have a few things to offer...even Kennedy imported 1200 of his favorite cigars before he signed the embargo....
    Lisa Huffhines

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  3. Sorry, that should be "a little good will". One little letter can change the whole meaning of a sentence....
    Lisa

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  4. While letting those who have families in cuba visit and send money sounds like a good thing at first it could bring on other problems. Such as lessening the control of the Federal Reserve on our money supply. this is because while we would be investing in cuba, but it would be very we would ever get any type investment from cuba in return.
    Maddie Harper

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  5. I think this would be pretty cool to trade with cuba and be able to travel between the countries. The more countries america is on good terms with the better. Its beneficial to have the benfits than to not.

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