Case study 5-1 ; 6-1
Semester III (Sep 2 – Dec 17)
America’s Cuban Conundrum : The Assignment
1) What was the key issue that prompted the EU to take the Helms-Burton dispute to the WTO?
The key issue that prompted the EU to take the Helms-Burton dispute to the WTO is the theory that law argues against the governments’ authority and the principle of International Law. Another words, 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.
2) Who benefits the most from an embargo of this type? Who suffers?
The embargo only benefits the United States government to a limited extent. Because of the Act, American supplies only reach Cuba through non-United States distributors and even smugglers to the disadvantage of the American companies (Toledo, 2011). But on the other hand, Cuba is obliged to pay cash for all imported goods because of prohibition of credits.
3) In light of the overtures U.S. President Barack Obama has made to Raul Castro, what is likelihood that the U.S. and Cuba will resume diplomatic and trade relations during the Obama administration?
It seems that the best resolution to the trade situation between the United States and Cuba would be to end the embargo which would help the Cuban people and American profits. Cuba is a very poor country and repaying of loans is almost impossible. By being able to negotiate Cuba and the United States could come to an agreement that would benefit both countries.
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