E.U. lifts blockade against Cuba

Published : Nov 21, 2008 00:00 IST

Cuban President Raul Castro (right) with European Union Commissioner Louis Michel in Havana on October 24. Michel is in Cuba after Europe lifted its last remaining sanctions on the country.-RAUL ABREU/ AFP Cuban President Raul Castro (right) with European Union Commissioner Louis Michel in Havana on October 24. Michel is in Cuba after Europe lifted its last remaining sanctions on the country.

Cuban President Raul Castro (right) with European Union Commissioner Louis Michel in Havana on October 24. Michel is in Cuba after Europe lifted its last remaining sanctions on the country.-RAUL ABREU/ AFP Cuban President Raul Castro (right) with European Union Commissioner Louis Michel in Havana on October 24. Michel is in Cuba after Europe lifted its last remaining sanctions on the country.

THE United Nations General Assembly resolution condemning the United States economic blockade of Cuba, in the last week of October, reinforces the international communitys long-held views on the issue. This is the 17th consecutive resolution condemning the blockade. A week before it was passed, the European Union decided to restore full diplomatic relations with Cuba.

In marked contrast to the U.S., the E.U. also announced on October 22 the resumption of aid and a special relief package for the victims of a recent hurricane in Cuba. There was a slight rupture in relations between Havana and Brussels in 2003 after the Cuban government arrested a handful of so-called dissidents who were working in coordination with the U.S. Interest Section in Havana.

The E.U. Commissioner for Development and Humanitarian Aid, who was in Havana to sign the new agreement on E.U.-Cuba cooperation, said it was a turning point and that the E.U. would invest 20-25 million euros in joint projects. The E.U. has already given two million euros to help the victims of the recent hurricanes. Cuban Foreign Minister Felipe Perez Roque said, more cautiously, that there had been an important advance in relations but that there were still things to do and rectify. He emphasised that the bilateral dialogue should be conducted on the basis of mutual respect.

The George W. Bush administration remained unmoved after Hurricane Gustav left a trail of destruction in Cuba, though Cuba was among the first countries to offer help after Hurricane Katrina struck New Orleans in 2005. According to Fidel Castro, the devastation the recent hurricanes caused in Cuba was akin to that caused by a nuclear blast.

Cuba called on the U.S. to allow the sale to Cuba of those materials considered indispensable for disaster relief and temporarily suspend the restrictions that prevent U.S. companies from selling food. Washingtons response was to tighten the blockade though politicians like Barack Obama called for a 90-day suspension of curbs on visits, remittances and gifts to people in Cuba.

The economic blockade, which has lasted more than 50 years, has inflicted untold harm on the island nation of 12 million whose only crime was to follow an independent path of development. Bush, who owes his office to the machinations of the influential right-wing Cuban American groups in Florida, tried to repay his debt by tightening the sanctions. Under him, the U.S. took ever more draconian measures against businessmen and banks doing business with Cuba. On October 25, 2007, a few days after the General Assembly passed a resolution calling on the U.S. to lift its economic blockade, he made a provocative speech calling for the overthrow of the Cuban government. Since then, the U.S. has worked overtime to destabilise Cuba.

The U.S. Treasury Department is keeping a hawks eye on the banking and financial institutions of other countries in order to dissuade third countries from trading or establishing strong business links with Cuba. U.S. subsidiaries in third countries are barred from dealing with Cuba. Foreign companies are prohibited from exporting to the U.S. any product with a Cuban component.

The U.S. has banned companies operating in third countries from exporting to Cuba goods or services if more than 10 per cent of their components are of U.S. origin. Businessmen from third countries are routinely penalised for investing or doing business in Cuba. Banks in third countries are prohibited from opening accounts in U.S. dollars for Cuban individuals and companies.

The main target of the blockade is Cubas food and farm sector. The Cuban government estimates that this year alone it has incurred a loss of $174 million. Cuban companies have to go through intermediaries to get equipment and technology. This entails huge extra expenditures.

Coracan, a Cuban-Canadian joint venture, was affected when a Brazilian company supplying sugar to Cuba was listed on the New York Stock Exchange and consequently banned from trading with Cuba. Cubans from all walks of life have felt the impact of the blockade first hand. For instance, children in need of medical aid have been among the worst to suffer as the U.S. prohibits the export of catheters.

The Cuban government estimates a loss of more than $93 billion to its economy as a result of the blockade. The spokesperson for the G-77 and China in the U.N. has described the U.S. sanctions against Cuba as a means of political and economic coercion that violates the sovereign equality of states, international human rights laws and the U.N. charter.

John Cherian
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