Trade Restrictions and its impact
Cuba has traditionally had many trade restrictions and trade barriers. There is some restructuring in state sector since 2010, but there are heavy regulations and tight state controls in the private sector. There are no open-market policies to improve growth in trade and investment, and the lack of competition continues to throttle dynamic economic expansion. Only government enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. Most of the means of production are owned by the government. Its planned economy discourages foreign trade and investment. The financial sector remains heavily controlled, and access to credit for entrepreneurial activity is seriously obstructed by the shallowness of the financial market. The government maintains strict exchange and capital controls.
Import Regulations - Cuba
Cuba’s tariff system is defined in Law 124. This law sets out the operation and functions of the customs system. These laws and their regulations define requirements for import permits, establish import tariffs, and set out procedures for customs clearance.
Import Permits
Only government entities and joint ventures holding permits for the specific goods in question can import goods into Cuba. Agents and intermediaries can handle goods on consignment for licensed importers, but they cannot import on their own account and they cannot conduct distribution operations. Joint ventures with foreign participation require Cuban partners. They can obtain the import permits through their Cuban partners and later include the rights to import in the joint venture agreement contract.
Import Duties
Cuban importer generally pays the import duties. T...
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...ts. They cannot distribute, import, sell or resell goods. Only their Cuban partners can do that.
Non-Tariff Barriers - Foreign Exchange Controls
Cuba does not have any foreign exchange controls. However, changes are often made to the regulation. In 2004, the Cuban Government adjusted the laws relating to foreign exchange controls. Shops and other businesses are no longer allowed to accept US dollars. Also foreigners holding US dollars are required to pay a 10 percent fee for convertible pesos. Previously the convertible pesos were used interchangeably with US dollars. However, this is no longer the case.
References
http://www.heritage.org/index/country/cuba http://www.heritage.org/index/country/cuba http://www.tradecommissioner.gc.ca/eng/document.jsp?did=41224&cid=613&oid=121
http://www.carib-export.com/login/wp-content/uploads/2009/08/doing_business_with_cuba.pdf
Whether it 's for the music, people or food, Cuba is a popular and interesting place to visit. Cuba is located between the Caribbean Sea and the North Atlantic Ocean. At 42,426 square miles, Cuba is the largest island in the Caribbean and the 105th largest country in the world. Cuba has a population of 11.1 million. Out of that 11.1 million, Havana is home to 2.1 million (Nation Facts). The official language of Cuba is Spanish, but English and French are spoken throughout the country. The most practiced religion of Cuba is Roman Catholicism, but a large number of people follow the Afro-Cuban and Protestant religions. The president of Cuba is currently Raúl Castro, which is Fidel Castro 's brother. The currency of Cuba is the Cuban peso (Cuba).
The naval blockade of Cuba was retaliation from John F Kennedy finding out about the Soviet Union creating secret nuclear missiles on Cuba. The time is October 22, 1962; the State of Union is not at peace. The United States and Soviet Union are in what is known as The Cold War, which lasted from 1945-91. The war leads to international crisis with alliances, naval battles and the Soviet Union, our biggest threat.
Is the Cuban Embargo a cruel reminder of the Cold war, or is it an important factor of American Democracy fighting the spread of Communism? The Cuban Embargo was a declaration issued by American President John Fitzgerald Kennedy. The embargo was issued because of the threat that the Communist government of Cuba, led by Fidel Castro in 1959, had on American security, assets and democracy at the height of the Cold War. Some 1.8 billion worth of industrial assets were lost with Cuban communist nationalization. (Mr. D’Angelo personal interview) In support, constant influence of the Soviet Union during the early 1960s, particularly the time between 1961 and 1962, led to the creation of the embargo. In addition, the Soviet Union had planned to build a missile base on the island, which drove the Cold War to its height and made nuclear destruction a real possibility. Consequently, The Embargo called for total economic sanctions for Cuba and the institution of a blockade around the island, as shown by the seven-day stand off that followed the embargo with the USSR. Unfortunately, this blockade completely restricted any trade to foreign countries and even restricted travel to and from the island. The shattering of The USSR, or Soviet Union, should have called for the end of the embargo, but instead the federal government, in 1992, further restricted the embargo with the 1992 Cuba Democracy Act and the 1996 Helms-Burton Act. The Cuban Democracy Act was a bill presented by U.S. Congressman Robert Torricelli and passed in 1992, which prohibited foreign-based subsidiaries of U.S. companies from trading with Cuba, travel to Cuba by U.S citizens, and family remittances to Cuba (Lee). Most importantly, the Helms-Burton Act extended the territoria...
Cuba’s unpredictable shift toward socialism and its growing dependence on the Soviet Union divided both the leadership and the country at large. With a relationship dating back to before Fidel Castro’s installment into power, Russia and Cuba have both played major roles in the development and regression of each other’s economies and societies.
The history of immigration between Cuba and the United States is distinct from other cultural and socio-cultural groups. Unlike other Hispanic immigrants, Cubans are welcome in the United States under the Cuban Adjustment Act of 1966.
The United States embargo of Cuba has its roots planted in 1960, 53 years ago, when “the United States Congress authorized President Eisenhower to cut off the yearly quota of sugar to be imported from Cuba under the Sugar act of 1948… by 95 percent” (Hass 1998, 37). This was done in response to a growing number of anti-American developments during the height of the cold war, including the “expropriation of United States-owned properties on the island… [and] the Soviet Union [agreeing] to purchase sugar from Cuba and to supply Cuba with crude oil” (Hass 1998, 37). Bad sentiments continued to pile up as Cuba imposed restrictions on the United States Embassy and especially when, after the United States “officially broke off diplomatic ties with Cuba, and travel by United States citizens to Cuba was forbidden ... Castro openly proclaimed his revolution to be ‘socialist’” (Hass 1998, 38). The day after this, the Bay of Pigs invasion occurred, but it failed in its job to topple Castro (Hass 1998, 38). Left with no diplomatic options and a failed military attempt, the United States decided that the only way to end Castro’s socialist regime was to sever all ties, and from 1961 to 1996, a series of acts were passed prohibiting the majority of trade and interaction with Cuba. (Hass 1998, 38).
That all Acts of the United States in Cuba during its military occupancy thereof are ratified and validated, and all lawful rights acquired there under shall be maintained and protected. V. That the government of Cuba will execute, and as far as necessary extend, the plans already devised or other plans to be mutually agreed upon, for the sanitation of the cities of the island, to the end that a recurrence of epidemic and infectious diseases may be prevented, thereby assuring protection to the people and commerce of Cuba, as well as to the commerce of the southern ports of the United States and the people residing therein. VI. That the Isle of Pines shall be omitted from the proposed constitutional boundaries of Cuba, the title thereto being left to future adjustment by treaty. VII. That to enable the United States to maintain the independence of Cuba, and to protect the people thereof, as well as for its own defense, the government of Cuba will sell or lease to the United States lands necessary for coaling or naval stations at certain specified points to be agreed upon with the President of the United States. VIII. That by way of further assurance the government of Cuba will embody the foregoing provisions in a permanent treaty with the United
... the majority of which sought refuge in the United States. With the fall of the Soviet Union, Cuba now stands at a crossroads. The battle cry has changed from “ Socialism or death to Resist, struggle and win” (Castro’s Cuba II). Hopefully, Castro and/or Cuba will not be forced into a market-based economy and all the materialistic commodities that go along with capitalism. In my opinion, Castro should hold out for as long as possible griping to the former battle cry “Socialism or death”. Only time will tell what the fate of Castro’s Cuba will be. Trade might once again flourish the economy, tourism might open up new economic opportunities and foreign investments from Italy, France and Spain could possibly dig Cuba out the current economic hole it’s in. Until then however, the battle against capitalism must not lose any of its vigor.
...on of the other , imports from other countries are also in the way . The Oxfam , under the belief policy of the United States the current , and that exacerbated the crisis of Cuba , is promoting legislation actively to exclude the sale of food and medicine from the embargo . It is two efforts for female children act of the Senate Cuba Cuba and democratization trade laws that have been proposed in the House of Representatives , loosen a ban on the sale of food and medicine in the United States against Cuba .
The Cuban Embargo, also known as “el bloqueo” to Cuban citizens, was declared by the United States in 1960 to eliminate imports of Cuban goods. When the embargo was first set, it was only to eliminate food and medicine, but then on Feb. 7th, 1962 the embargo was extended to all exports. President Kennedy announced the embargo citing, “the subversive offensive of Sino-Soviet communism with which the government of Cuba is publicly aligned” (Galeano). “We have a hemispheric commitment to freedom and democracy and respect for human rights”, said Jose Cardenas, a former National Security Council staffer on Cuba. With only 90 miles of sea between the U.S. and Cuba the embargo chokes off Cuba’s number one trade partner and tourism of the island.
During this crisis, it was clear that the United States had a lot more principles than practices. Cuba is recovering from the Bay of Pigs invasion. They held off the American forces and were able to avoid the invasion. They weren’t sure if the United States would attack again. Cuba’s dictator Castro wanted to convert Cuba into communism.
However the US played a much larger role in Cuba’s past and present than the building of casinos and the introduction of the first taints of corruption. In the past, even before Batista, Americans were resented by Cubans because the Americans made a lot of Cuba’s decisions. Under Batista, 80% of Cuban imports came from the US, and the US controlled at least 50% of sugar, utilities, phones and railroads. If Cuba was a business in the stock markets, then the US would have been close to owning 50% of its shares. When combined with a long history of US-backe...
The Cuban government requires non-Cuban businesses to hire and pay workers only through the government because the government could benefit from that. It could really be a benefit since they had already lost a lot of money through their trades. Also Cuba is a communist country, so they consider any business a part of the country. Since Cuba controls its people and everything that they do, they could even control how much they make a year. It is not surprising that Cuba did that because it is known as a greedy country. Most businesses don’t care about that, all they care about is how they are really going to benefit from their agreement. If these businesses do not care about how their workers are being treated or how little they are paid, then how do they expect their products to be good. Businesses act like it’s ethical that the government gets to keep a lot of the money from their citizens and they keep making business with Cuba. If they have to send someone to Cuba because Cuba’s government keeps changing the way that it runs its business, wouldn’t they have to start rethinking their decision. If companies want their company to be at Cuba then they should make sure that the workers get treated right and that they don’t get over worked.
Cuba is in the mouth of the Gulf of Mexico, and is an island nation surrounded by neighboring island nations. Its nearest neighbors are Hati to the East, Mexico to the West, Florida to the North and Jamaica to the South. Cuba’s relationship with its neighbors played a large role in its history from the nineteenth century on, leading to a revolution and a change in economic options.
Cuba had a rapidly changing law system starting in 1959 and settling into the current law traditions around the 1990 's with the dissolving of the Soviet Union, one of its strongest allies. Cuba follows a civil law tradition, in which the laws that must be followed are from already established codes. Garcia, Iran and Maria Olivas. (N.d). Cuba also has an "inquisitorial system" that it follows for criminal procedure that shares similarities to other nations such as France and Spain. The courts in Cuba also has a separation on the criminal courts and the prosecutors.