MKT 505 – International Marketing
February 02, 2013
The Helms-Burton Act has become one of the most controversial and widely discussed international legislation in decades. The resistance from the Cuban government about the features of the Helms-Burton legislation is a clear affirmation of the legitimacy of property claims irrespective of the passage of time. This paper will address the issues with the America’s Cuban Conundrum. It will analyze the key issue that prompted the EU to take the Helms-Burton Dispute to the WTO, determine who benefits and who suffers from an embargo of this type of economic barriers. This paper would also constitute a resolution to the trade condition between U.S and Cuba, and determine what type of economic barriers would have to be overcome by a U.S. Firm to conduct business successfully in Cuba.
1. Analyze the key issue that prompted the EU to take the Helms-Burton dispute to the WTO.
The key issue that prompted EU to take the Helms-Burton dispute to the WTO was because EU interpreted the law as a grave violation of international conventions, centering on the issue of extraterritoriality. They argued that the Helms-Burton law disrespects other governing party’s attitude toward sovereignty. Therefore, in a environment where EU and US had reach advanced stages of economic development, any practice or policy that restrains free trade (in theory) should be consider illegal. However US argued that Helms-Burton legislation objective is to promote “democracy” discouraging foreign investment in Cuba through the threat of lawsuits and the imposition of travel restrictions. According to Roy, (1999) the US law seeks to generate a deeper economic deterioration in order to accelerate the fall of the current Cuban regime.
2. Decide who benefits and who suffers from an embargo of this type and explain your rationale.
In this law the potential claimants against "traffickers" of confiscated...
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