...Introduction 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 report 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 report 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. The Cuban Democracy Act of 1992 stipulates that U.S. sanctions on Cuba will remain in place until specific moves toward democracy bring about a calibrated adjustment. The Cuban Liberty and Democratic Solidarity (Libertad) Act—or Helms-Burton bill—which Senators Helms, Dole et al. have introduced in the Senate, goes further in strengthening international sanctions, establishes a civil right of judicial action for U.S. citizens having ownership of or interest in expropriated properties—with reference either to fair market value or amounts certified by the U.S. Foreign Claims Settlement Commission. 1. What was the key issue that prompted the EU to take the Helms-Burton dispute to the...
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...issue that prompted the EU to take the Helms-Burton dispute to the WTO The 1963 U.S. embargo was reinforced in October 1992 by the Cuban Democracy Act (the "Torricelli Law") and in 1996 by the Cuban Liberty and Democracy Solidarity Act (known as the Helms-Burton Act) which penalizes foreign companies that do business in Cuba by preventing them from doing business in the U.S. Justification provided for these restrictions was that these companies were trafficking in stolen U.S. properties, and should, thus, be excluded from the United States (Longmire, 2009). According to the Department of State (2000), Helms-Burton Act is the latest incarnation of U.S. efforts to internationalize it embargo of Cuba. Both the 1992 Cuba Democracy Act and Helms-Burton target foreign investment in Cuba, seeking to undermine Cuba’s international access to capital. The European Union (EU), Canada and Mexico have taken steps to challenge the law in the WTO and under NAFTA, seeking the nullification of the law on the grounds that it violates international trade law. The EU resented the Helms Burton Act because it felt that the US was dictating how other nations ought to conduct their trade and challenged it on that basis. The EU eventually dropped its challenge in favor of negotiating a solution. Many nations have enacted antidote legislation that bars their nationals from complying with Helms-Burton, under the threat of fines. They also argue that Helms-Burton violates international trade laws and...
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...Case 5-11 Case 5-1 America’s Cuban Conundrum: The Assignment Tonisha Pearson Strayer University – MKT 505: International Marketing July 29, 2012 Dr. David Holness, Instructor 1. Analyze 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. The EU believed that there are measures in the Act that are divergent to the obligations of the United States of America in the WTO Agreements, particularly the GATS, Article 14 applying to trade and services, and GATT , Article 21 applying to trade in goods (Toledo, 2011). According to John H. Jackson, Andreas F. Lowenfeld, both Professors of Law, it is argued that the GAT and GATT contracts would provide a defense for the United States to many if not all of the United States Helms-Burton measures, even if some of these measures would otherwise be considered to be inconsistent with United States treaty obligations. These exceptions, however if given a broad interpretation could undermine the whole WTO treaty and impair the security and stability of the world trading system for which the WTO has been created. On the other hand, it is extremely important to all nations that national security to a requirement, and for an international...
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...Do you think governments should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position? Political arguments for government intervention into international trade cover a range of issues, including protecting jobs, protecting industries deemed important for national security, and retaliating against unfair foreign competition. Protecting jobs and industries from unfair competition is the most common political argument for government intervention. For example, the Japanese quotas on rice imports are aimed at protecting jobs in that country's agricultural sector. In terms of protecting industries deemed important for national security, countries sometimes argue that it is necessary to protect certain industries (like aerospace, steel, advanced electronics, etc.) because they are important for national security. Finally, with regard to retaliating against foreign competition, some people argue that governments should use the threat to intervene in trade policy as a bargaining tool to help open foreign markets and force trading partners to "play by the rules of the game." In addition to these, political arguments for government intervention might also be motivated by the desire of governments to protect consumers from unsafe products, further its foreign policy objectives, protect human rights in trade partner nations, and protect the environment from pollution and degradation arising...
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...Another layer to President Clinton’s concerns when it came to Cuba and Haiti was the immigration situations surrounding both countries. President Clinton felt and saw the potential for thousands of immigrants to make their way towards U.S. soil all at once if he and his administration did not act to deter this from happening. When looking at each country President Clinton had good reason to be cautious and somewhat fearful of a swell in immigration based off of his past experiences in office. Clinton, while concerned with the Cuban-American community, had greater concerns for a potential Mariel boat lift as the previous one is why he saw to be the main reason he was not reelected as the governor of Arkansas (Pastor). In 1980 the Mariel boatlift...
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... Second, mention the cons that the US has by lifting the embargo on Cuba, why it shouldn’t, and the problems that can cause. Finally, mention the pros that the US has by lifting embargo on Cuba, and why it should. II. Body A. The embargo consists of economic sanctions against Cuba and restrictions on Cuban travel and commerce for all people and companies under US jurisdiction. However, 1. Revolutionary Fidel Castro established Cuba as the first Communist state in the Western Hemisphere (1959) Therefore, 2. Cuban Democracy Act(1992): Maintaining sanctions on Cuba so long as the Cuban government continues to refuse to move toward "democratization and greater respect for human rights". Helms–Burton Act – 1996. However, B. The embargo enables the United States to apply pressure on the Cuban government to improve human rights. For example, 1. Will make the United States appear weak. 2. People say that lifting the sanctions would be an act of appeasement. The United States should not risk sending the message that it can be waited out or that seizing US property in foreign countries is ok. In contrast, C. Lifting the embargo will benefit the people of Cuba, the interest of the U.S and will harm Castro’s power. To illustrate, 1. The sanctions harm the US economy and Cuban citizens, and prevent opportunities 2. The Cuba Policy Foundation - US economy could be as high as $4.84 billion in agricultural exports. University of Texas - removing the restrictions on agricultural...
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...4: In the next phase of the project constructing the dam itself should HG employ someone whose main function is that of liaison between its corporate culture and the culture of its host country? If so, is Martin the right person for the job? Answer: Given the importance and the size of the project, as well as the many pitfalls that will surely be encountered along the way, it seems only logical to employ someone who is extremely well versed in the culture of Uganda to serve as a liaison with HG’s headquarters. Whether that person is Martin or someone else, however, HG must establish clear guidelines that reflect both U.S. law and corporate policy to guide the managers of their foreign operations. 4.IN HG’s NEXT PHASE, THE DAM CONSTRUCTION, SHOULD IT EMPLOY SOMEONE WHOSE MAIN FUNCTION IS TO BE A LIAISON BETWEEN HG’s CORPORATE CULTURE AND THE CULTURE OF UGANDA? IF SO, SHOULDMARTIN BE THE PERSON FOR THE JOB? The assignment taken up by Hydro Generations to construct a power plant in Uganda can be viewed in different phases. The first and initial phase can be listed as establishing an operating structure so that future work activities could be carried out smoothly and uninterrupted. The second phase consists of the construction of the dam. The final phase even though not mentioned in the case study could be assumed to be as the final construction of the power plant. Charles Martin’s initial assignment mainly dealt in the pre constructional phase where his duties were three...
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...lucrative Iranian oil and gas deals in which firms from other countries are engaging. Other sanction opponents wonder if a policy of offering “all stick and no carrot” is undermining social and political change in Iran because the offending regime goes largely unpunished while ordinary citizens suffer. What arguments would you present to the U.S. government for removing sanctions on Iran? Do you think that one country, acting alone, can bring about reforms through the use of economic sanctions or embargoes? 2. You are the president of a sugar company based in southern Florida. Your firm is struggling lately to meet demand because of poor harvests in the Caribbean Islands, where your firm sources much of its raw product. Because of the Helms–Burton Act and the U.S. embargo on Cuba, your firm is not allowed to trade with Cuba. If the embargo were dropped, your firm would have an excellent source of cheap sugar, and profits would improve significantly. A U.S. senator from your state of Florida serves on an influential committee in Washington, D.C., that is reviewing the status of the embargo on Cuba. What arguments would you provide your senator that could help eliminate this trade barrier? 3. You are a consultant advising the World Trade Organization (WTO)...
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...The embargo on the Cuba government has continuously seen Cuba grow poorer and poorer. This embargo has been enforced through six statutes namely (William & Peter, 2015): 1. The Trading with the Enemy Act of 1917: As of today, Cuba is the only country restricted under this act. According to this law, the U.S Federal law limits all trade deals with all countries hostile to the U.S or all enemies to the U.S in times of war. 2. The Foreign Assistance Act: it stipulates that the U.S government cannot provide any form of assistance to any other government that engages in any form of consistent gross of violation of human rights of its citizens. The actions of Cuban government have adversely affected the livelihoods of its citizens so far and hence the U.S has firmly held this act against the Cuba government. 3. The Cuban Assets Control Regulations: regulated by the U.S department of treasury to control and monitor U.S assets in Cuba under the trading with the enemy act of 1971. 4. The Cuban Democracy Act: this bill was passed to ensure that no foreign U.S subsidiary company transacts any trade deal with Cuba after Cuba nationalizing many U.S subsidiary companies in Cuba. Failure by Cuba to adhere to democratic participation of its citizens in its rule has seen the U.S reinforce this act on...
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...In 2000 alone, 70 countries, consisting of two-thirds of the world’s population were subject to United States imposed sanctions (Van den Berg, 228). Currently the U.S. has sanctions imposed on countries such as Burma, North Korea and Cuba. The Cuban sanctions date back to the 1960’s. Sanctions can be imposed by one or several countries and come in a variety of shapes and sizes. This paper will examine trade and economic sanctions, the effectiveness of sanctions, as well as evaluate the sanctions the United States has imposed upon Iraq, Cuba, and North Korea. Trade sanctions, according to International Economics A Heterodox Approach, are trade restrictions imposed by a country in order to punish or persuade another country to change objectionable policies or behavior. Sanctions can be imposed either unilaterally or by a group of countries, or an organization such as the League of Nations, or the World Trade Organization. Trade sanctions can range from mild, selectively concentrating on a certain aspect of the economy, to extreme, targeting a countries entire economy (Barber 368). Trade sanctions can be used when military action is considered too extreme, but diplomatic protest is too meager. Trade sanctions are not without cost, but they are much less costly than other alternatives. A “sender” country imposes a sanction on another country to restrict its imports and exports, or to impede the country’s finances. The discomfort from a trade sanction is usually felt by the target...
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...Case Study U.S.-Cuban Trade a cold war Strategy became a cold war relic? Case Facts- The U.S. Embargo of Cuba-a resilient foreign trade policy-which encompasses a variety of political leaders, economic events, and historical eras what is the meaning of ‘Embargo ’? A specific type of quota that prohibits all forms of trade Embargoes can be placed on either imports or exports, on whole categories of products regardless of origin, on specific products with specific countries or on all products with given countries. It is imposed in an effort to use economic means to achieve political goals. After the Revolution- After the Revolution: In the 1950, over 2/3 of Cuban foreign trade took place with the U.S. Fidel Castro- prime Minister Of Cuba from 1959-1976 and then president from1976-2008 overthrew Batista government in 1959 Castro is a controversial and highly divisive world figure, being lauded as a champion of anti-imperialism, but alternately his critics have accused him of being a dictator whose authoritarian administration has overseen multiple human rights abuses. Nonetheless, he has had a significant influence on the politics of a number of other world leaders, namely Nelson Mandela, Hugo Chavez and Evo Morales, and he is widely idolized by many leftists, socialists and anti-imperialists across the world In turn, U.S. –cancelled agreements to buy Cuban sugar Cuba retaliated by seizing U.S. oil Refineries Oil companies refused to supply Cuba with crude oil. The...
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...Multiple Choice 1. The term _____ refers to an individual’s personal beliefs about whether a decision, behavior, or action is right or wrong. a. value b. culture c. ethics d. religion e. expectations (c; easy; p. 119) 2. Fruit juice suppliers in South America rely heavily on _____. a. elderly employees b. child labor c. female workers d. illegal immigrant workers e. none of the above (b; moderate; p. 117) 3. What ethical abuses have independent contractors manufacturing shoes for Nike been accused of in past years? a. child labor abuse b. unsafe working conditions c. violations of local regulations d. all of the above (d; easy; p. 117) 4. Ethical beliefs are _____ in nature. a. societal b. regional c. familial d. individual e. cultural (d; difficult; p. 119) 5. Which of the following is not a factor that influences one’s ethics? a. family b. peers c. observation of others d. religious beliefs e. all of the above influence ethical beliefs (e; easy; p. 119) 6. Behavior that does not conform to generally accepted social norms is considered _____. a. ethical b. unethical c. illegal d. unregulated e. none of the above (b; easy; p. 119) 7. All of the following are ethical...
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...metals, or natural resources B. Effectiveness of Trade Sanctions - Opponents and Proponents w/no clear consensus - However, to be effective, sanctions need universal cooperation II. History of U.S. Export Laws A. The Rationale - U.S. concerns about technology and weaponry falling into enemy hands Therefore, it regulates the export of arms, technology, commodities with military applications, and other strategic commodities including technical data, component parts, and chemicals B. Development of the Legal Framework - American Revolution: Congress outlawed exports to Britain - Early 1900s: export controls in response to either war or emergency conditions - WWII: export controls were reintroduced - Export Control Act of 1949: reflected the archetypical battle between...
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...For over 50 years the United States of America and Cuba have had a negative relationship. In 1959, Fidel Castro and a group of revolutionists overthrew the Cuban government, changing it to a Communist country, which then created a strong relationship between Cuba and Soviet Union. During this time, the United States was at a stalemate war with the Soviet Union, now known as the Cold War. As Cuba’s relationship grew with the Soviet Union, their relationship with the United States quickly faded. As communism grew it began to ruin the United States’ idea of containment, which caused havoc within the economy. Cuba then became an enemy of the United States. Since that pivotal moment in history, the relationship between the United States and Cuba have experienced turmoil, which the current U.S. president Barack Obama, and the Cuban leader Raul Castro, have been trying to end the disorder between the two countries. In 1953 Fidel Castro and a group of 130 revolutionaries attempted to overthrow the dictatorship of Cuba but ended in a failure and later led to Castro’s imprisonment. The current dictator of Cuba, Fulgencio Batista, pardoned Castro, which was a major mistake. In 1956 Castro lead another revolt and promised the people of Cuba that he would replace Batista’s dictatorship with free elections and also promised that he would end the corruption in the Cuban government. (Dowling) Castro wanted to overthrow Batista because of his corruption and violence. Batista was known as a cruel...
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...Strategic management | Cuban Cigar industry | Professor Changwha Chung | Introduction Cuban cigars are known as the symbol of upper echelon class even for an uneducated cigar smoker. They are highly reputed for distinct taste and feel; also consider containing the world’s best tobacco. As a tropical region, Cuba’s land is possibly the ideal place to grow the finest tobacco and wrappers in the world. Even though cigars have been manufactured in other countries as well, Cuba’s cigars still hold the foremost choice of all cigar aficionados around the world. Cigar is mostly popular in United States as a symbol of class. This means that anyone would be tempted to invest in the cigar industry. However, the importation of the Cuban cigar to the United States is illegal. Due to the trade embargo imposed on Cuba by the Kennedy administration forty years ago, all economic trades between United States and Cuba are blocked. With the former U.S. president Jimmy Carter, the first U.S. president to visit Cuba following the embargo, there are speculations that the U.S. – Cuba relations would soften, leading to lifting the embargo restrictions. Obviously the potential slackening of the trade barrier would be an investor’s dream within this industry, but the reality of the situation is still very unpredictable. Forty years have passed since the embargo, and many cigar manufacturing industries have evolved around the world during this period, all contributing to U.S. cigar consumption...
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