US preparing new rules to weaken Cuba embargo

[El Presidente]

REUTERS

Fri Sep 18th

Asia One

http://news.asiaone.com/news/world/us-preparing-new-rules-weaken-cuba-embargo-sources

HAVANA/WASHINGTON - The White House is drafting sweeping regulations to further weaken the US trade embargo on Cuba that would ease restrictions on US companies and make it safer for Americans to travel there, US government sources said on Thursday.

The regulations could be announced as soon as Friday.

US companies would be allowed to establish offices in Cuba for the first time in more than half a century, according to a draft of the new rules seen by Reuters.

The regulations make it easier for airlines and cruise ships to import parts and technology to improve safety in Cuba; loosen restrictions on software exports; and allow authorised companies to establish subsidiaries with Cuba, possibly via joint ventures with Cuban firms such as state telecommunications monopoly Etecsa.

However, they do not authorise private financing of trade nor change current rules on who can travel to Cuba, though it is possible regulations could still be modified by other agencies or updated later in the year, according to people familiar with the White House's thinking on Cuba policy.

There was no immediate comment from President Barack Obama's administration.

"These are the most comprehensive expansion in US trade and investment regulations with Cuba in decades," said John Kavulich, head of the US-Cuba Trade and Economic Council, who is familiar with the new rules.

"The result will be an exponential increase in interest towards Cuba by US companies and pressure upon Cuba by those same companies to permit access to the marketplace," Kavulich said.

The regulations expand on others that Obama announced in January to ease the 53-year-old embargo of the Communist-ruled island.

Those rules were an initial gesture after Obama and Cuban President Raul Castro announced on Dec. 17 they would move toward normal relations between the former Cold War foes for the first time in more than half a century.

Although legislation seeking to promote commercial ties between the two countries has support from Democrats and some Republicans, efforts to pass bills that would ease trade and travel restrictions have been stymied by opposition from Republican congressional leaders.

Given the resistance from Congress, Obama is using executive powers to ease the trade barriers.

The administration was preparing the new regulations as Jose Cabanas, a veteran diplomat, on Thursday became Cuba's first ambassador to the United States in 54 years.

Washington has yet to name an ambassador to Cuba.

Cuba is also preparing for a three-night visit from Pope Francis starting on Saturday.

One advocate of US engagement with Cuba who has been briefed on the matter said administration officials first discussed the regulations with supporters of Obama's Cuba policy in July.

"The focus is on ease of doing business, and (the regulations) have been in hopper to be released for a couple of weeks. Interesting that they're choosing it to coincide with the pope's visit," said Felice Gorordo, co-founder of the Cuban-American group Roots of Hope.

[JohnS]

We know it's coming, but (political/social/cultural) change like this takes time, doesn't it?

[leftimatic]

We know it's coming, but (political/social/cultural) change like this takes time, doesn't it?

Not anymore it seems. Especially not in this instant gratification world we seem to be living in. But really why not rush it through. I am sure everyone involved has done their homework. What could possibly go wrong?

[bigben]

The only thing I have read about this whole easing the embargo thing is about the US being able to help the Cuban people. Not a single word about the US buying Cuban goods.

[JohnInCleveland]

I'm going in 2 weeks. I hope they ease restrictions on messing with me at the Cuban/American border because I'm semi-nervous. I know it's irrational but I'm (relatively) law-abiding.

[ralphie48]

Does anyone not think it's possible that this is going to happen sooner than later? I am of the opinion that either obama is going to get it done or it's going to take quite a bit of time if he doesn't. I don't think there's an In between. But he's pushing it heavily. I think he wants to leave that legacy behind . If he doesn't get this in motion it's not going to happen until well after another president is elected. I am hopeful that it doesn't happen that quick I am in no rush

[Fosgate]

I'm going in 2 weeks. I hope they ease restrictions on messing with me at the Cuban/American border because I'm semi-nervous. I know it's irrational but I'm (relatively) law-abiding.

Just make sure you tell the custom agents that and "I just asked them for $100 worth of cigars." as they are looking at the 10 boxes of cigars stuffed in your suitcase.

[Orion21]

Unless Obama finds some illegal way to do it by executive orders, only an act of Congress that's ratified by the Senate and finally signed by the President can lift the Embargo. All of this is merely the President cementing his legacy by agree to the Nuclear deal with Iran, passing mandatory healthcare and now this drive to lift the Cuban embargo. See a trend? I don't see any way it's done by this President or whoever is next. If it's Joe Biden, maybe it gets done, but he would still need a democratic house and senate. If it's a Republican President it won't happen.

When do I see it happening? When the Castros die and the regime frees it's people from the dictatorship. Then American politicians will be free to engage in substantive talks. Until the Castros are gone I don't see this happening.

[Sophistic]

Well, the Donald might do it if habanos makes a deal with him and starts to produce a trump marca.

[CaptainQuintero]

Unless Obama finds some illegal way to do it by executive orders, only an act of Congress that's ratified by the Senate and finally signed by the President can lift the Embargo.  All of this is merely the President cementing his legacy by agree to the Nuclear deal with Iran, passing mandatory healthcare and now this drive to lift the Cuban embargo.  See a trend? I don't see any way it's done by this President or whoever is next.  If it's Joe Biden, maybe it gets done, but he would still need a democratic house and senate.  If it's a Republican President it won't happen.  

 

When do I see it happening?  When the Castros die and the regime frees it's people from the dictatorship.  Then American politicians will be free to engage in substantive talks.  Until the Castros are gone I don't see this happening.  

He can't lift it but he can legally change it or make new trade/social/freedom bills by executive action which would bypass it in the guise of supporting democracy in Cuba/cuban people which would all but render the embargo useless but still but still be on the books in name, right?

[wabashcr]

He can't lift it but he can legally change it or make new trade/social/freedom bills by executive action which would bypass it in the guise of supporting democracy in Cuba/cuban people which would all but render the embargo useless but still but still be on the books in name, right?

Exactly, although it's debatable how far he can legally go. Executive Orders get murky when they overlap or impose on congressional authority or existing law. It's funny, because even though lifting the embargo has a lot of support, senior congressional Republicans can certainly block any formal measure to remove it under the terms of the Helms-Burton Act. But I'm not sure how much wherewithal those same Republican leaders have to stop Obama from continuing to effectively neuter the embargo via Executive Order. He's going to keep pushing in his final year, and so far, nobody is pushing back with any real consequence.

[Orion21]

Exactly, although it's debatable how far he can legally go. Executive Orders get murky when they overlap or impose on congressional authority or existing law. It's funny, because even though lifting the embargo has a lot of support, senior congressional Republicans can certainly block any formal measure to remove it under the terms of the Helms-Burton Act. But I'm not sure how much wherewithal those same Republican leaders have to stop Obama from continuing to effectively neuter the embargo via Executive Order. He's going to keep pushing in his final year, and so far, nobody is pushing back with any real consequence.

Obama's last year in office will be no cakewalk now that Republican leadership is being shaken up. With a Presidential election looming it will be in the Republican best interest to oppose and challenge everything he does to force Democratic nominees to support or denounce him. I don't think the rest of the world realizes just how unpopular the President is right now. This country has a real underemployment issue compared to past economies, wages are stagnant, the healthcare law has forced health insurance premiums to skyrocket and the stock market is sputtering. The Republicans added to their seats in the house and took back the senate during the last mid-term election because Obama and his policies are so unpopular. The Republicans just ran the leader of the house out of his position and the senate majority leader may be on the same boat for NOT challenging the President on issues just like this one because love him or hate him this President is brilliant. He has executed his plan to fundamentally change the USA. We now have government run healthcare exchanges (Obamacare, the text of which was not made available until after the bill was passed), insurance companies who can profit no more than 15% on their business, a negotiated nuclear arms agreement with Iran (a country who routinely chants death to us and to our allies), foreign policy that created ISIS, executive order amnesty and now a proposed lifting of the Cuban embargo via executive orders. Those that come into replace the ousted Republican leadership will challenge Obama on every single issue he puts forth, especially illegal executive orders that neuter Congressional powers precisely because he was able to do all of the above. It's going to be a nasty year and a half in American politics. I expect the President to try and create some way for him to basically bypass the embargo and then I fully expect it to get really ugly on Capital Hill.

[kuma]

from what I have just read on the net Cuba is not working fast enough for Obama's liking. seems Cubans are

dragging their feet in many areas. They are in no rush. Obama wants to put another history notch on this

pistol before he leaves office. Many, many sticking points from banking, tel comm., law, etc, etc,

can't see it happening anytime soon. Obama wants it done before the new year but don't think that

is going to happen. It will happen when the Cubans are ready. Not sure they trust the states

and the "hurley burley" pace they set. Afraid of being over run by crooney capitalism and the

lose of their culture. states don't care about culture, if they want culture they just go to Europe /

Asia / Russia, etc, etc,.

[mgravito]

I've said it before and I'll say it again, if this doesn't happen under president Obama, this will happen regardless of who wins the presidency shortly after. The moves to end the embargo have everything to do with their current state of relations with Russia. As the relationship continues to ice, the US wants nothing to do with having Russia's sphere of influence right on their doorstep. Now is the time to address before the relations get worse.

[MPS]

Cuba will do everything they can to mess things up. They need the excuse of the embargo. Hopefully the US looks past it and just gets it done with already.

Sent from my iPhone using Tapatalk

[wabashcr]

I've said it before and I'll say it again, if this doesn't happen under president Obama, this will happen regardless of who wins the presidency shortly after. The moves to end the embargo have everything to do with their current state of relations with Russia. As the relationship continues to ice, the US wants nothing to do with having Russia's sphere of influence right on their doorstep. Now is the time to address before the relations get worse.

This is an interesting angle, and one that I think is underestimated in media coverage and analysis. I'd hope Cuba isn't yet again being played as a pawn in the US/Russia struggle, but the cynic in me knows this is probably the case, at least to some extent.

[Lotusguy]

LCDH NYC is 24 months away at the outside.

How much are you willing to bet on this?

[Habana Mike]

LCDH NYC is 24 months away at the outside.

Shudder to think the prices with all the New York taxes. Probably be more expensive than Canada or the UK!

[bigfunkyg]

Came across this today courtesy of the CPA (Chartered Professional Accountants Canada).

Cuban investment play

Yan Barcelo

October 1, 2015

The new US stance toward Cuba has some investors thinking it’s time to cash in. Others aren’t so sure.

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With the US flag recently raised in front of the country’s embassy in Havana, some investors think it is time to look for opportunities in Cuba, reports The Fiscal Times.

An investment fund, the Herzfeld Caribbean Basin Fund, is already profiting on the upside. It holds 60 stocks from companies operating outside of Cuba that could gain from the new diplomatic overtures. Since its launch in 1994, the fund has grown by only 52.17%, but since December 16, 2014, the day before President Obama announced the new US stance toward Cuba, it has shot up by 31.94%.

There is also a website called Havana Cuba Business that carries the tagline, “preparing for post-embargo, post-Castro opportunities in Cuba.” It highlights US, Canadian and European corporations that are publicly traded and involved in or expected to be involved in Cuba-related business ventures.

Gregory Biniowsky, founder of Havanada Consulting, thinks Cuba presents many opportunities for growth. First of all, the lifting of the US travel ban and economic embargo should lead to a boom in tourism and in the economy at large. Cuba also boasts the best educated population in Latin America and it has low levels of crime and political corruption.

Not everyone is joining the Cuban investment fiesta. John Kavulich, president of the US Cuba Trade and Economic Council Inc. in New York, says US citizens “should be leaving their money in their US bank. It’s investment by romance. People are reacting in an aspirational way -- ‘Cuba is crumbling, it needs everything’ … We’re trying to sober people up.”

About the Author Yan Barcelo

Yan Barcelo is a journalist in Montreal.

I like the line about "It’s investment by romance. People are reacting in an aspirational way -- ‘Cuba is crumbling, it needs everything’ … We’re trying to sober people up.”" Probably very true. Unless there is serious reform it hard to imagine investors flocking to put money into an economy where people make $15 a month, unless its in tourist based industries.