The 1960 Cuba trade embargo paper

1960 Cuba trade embargo

In 1960, a senior state official sent a memo that led to the U.S. trade embargo of Cuba. The trade embargo resulted in major inroads that denied supplies and money to Cuba that minimized the actual wages and monetary that brought about hunger, economic desperation and overthrow of the government that was headed by Castro. From the 1959 revolution, there has been a scarcity of food and rooms that laid a major impact on the tourism industry. The embargo covered all U.S. exports to Cuba except medicine and some food varieties that posed a major impact in different industries and the entire economy (LeoGrande, 2015).
Just prior to the imposition of the embargo by the U.S, Cuba initiated another jab at the Yankee imperialists where the government of Cuba nationalized 382 businesses. The organizations nationalized included 105 sugar mills, 13 department stores, 61 textile manufacturers, 18 distilleries, every bank, and 8 railways. The private sector was totally damaged by the strategic embargo where the U.S. government did not worry. The tourism industry was the most affected by the ban on travel to Cuba. The American to Cuba travel was outlawed where it prohibited transactions in air tickets, hotel bookings and purchase of food. Later in 1992 president George H. Bush officially banned travel to Cuba and outlawed citizens from sending remittances to Cuba (Jones, 2018).

Effects of the embargo

Different sectors have been affected by the embargo in both countries from the provision of services, agriculture sector, intermediate and manufactured goods. Among the services provision sector, several industries have been affected such as air transport, maritime transport, banking and insurance, construction, tourism, and telecommunication. The airports would benefit from high revenues if the embargo could not have been imposed since the airlines could have regularly scheduled flights to Cuba and fro. The Cuban merchant and fleets could also benefit from maximized shipping if the embargo was not present. The embargo though did not have a direct vital impact on banking and insurance since Cuba is a small financial market and the U.S. financial services could not make a significant impact on Cuba. The U.S. construction firms took part in a broad range of infrastructure projects in Cuba before the embargo. The embargo posed a major impact on the Cuban telecommunication industry that has a poor local infrastructure that the U.S. could have facilitated better in the absence of the embargo (Jones, 2018). A huge number of tourists from the U.S. could visit Cuba annually that could have much boosted the economy.

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The sectors affected

In the agricultural sector, there are several industries affected such as meat and dairy, wheat, feed grains, rice, animal feeds, fats and oils, cotton, winter vegetables, tropical fruit, cigars, seafood, sugar, and distilled spirits. The Cuban dairy and meat production is not competitive globally and makes less impact after the embargo. For wheat, rice and the feed grain would increase the number of exports of the value of rice in the U.S. most of the Cuban fats and oils were imported from the U.S. and the embargo made a great impact. Intermediate and manufactured goods such as fertilizers and pesticides and imports and of the products would increase in the absence of the sanction (LeoGrande, 2015). Other industries such as pharmaceuticals, textile and apparel, machinery and electronic goods would also be exported much from the U.S. to Cuba in absentia of the embargo.
Lately, in the Obama era, the president noticed that the embargo is doing more harm than good to the bilateral relationships of the two countries and impoverishing Cubans for more than fifty years. They established bilateral relationships with the Raul Castro where Cuban can now host Cuban visitors and trade between the two countries.

References

LeoGrande, W. M. (2015). A policy long past its expiration date: US economic sanctions against Cuba. Social Research: An International Quarterly, 82(4), 939-966.
Jones, K. (2018). Cuba, Trade Dependency and the GATT/WTO System. International Advances in Economic Research, 24(4), 325-338.


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