Evaluating the Future of the U.S.-Cuba Trade Embargo: Should It Be Permanently Lifted?
Due to the development of technology, transport networks, liberalization of trade and investment, and modern laws, international trade has become a powerful engine of economic development around the world. Even small companies are increasingly expanding their activities abroad, opening up new opportunities.
However, despite the numerous advantages of such activities, it also has dangers associated with the growing interconnection and dependence of the economies and companies of different countries on each other. The global business carries many serious risks, one of which is sanctions.
The growing interdependence of countries makes the need for collective responsibility for maintaining international peace and security all the more urgent. Sanctions are one of the tools to ensure such security, helping to deter the dangerous activities of those countries that violate international law and threaten other countries in economic, political, military, or other ways. They are the way of coercion to rehabilitation or change of conduct of that country.
One such example is the US sanctions and trade embargo against Cuba. These sanctions are controversial since, on the one hand, they are caused by an immediate threat and violation of international norms, and their goal is to achieve democratization and respect for human rights from the Cuban authorities.
On the other hand, they contradict the powers’ sovereignty (Schmidt, 2022). Sanctions alone, apart from other instruments, cannot be effective enough. Over the years, sanctions have only allowed restraining the economic development of Cuba but have not solved the key problem. Additional measures are needed to combat propaganda, provide informational support for the opposition and fighters for rights, and implement other measures to achieve the goal.
Joint Venture Decision: Capitalizing on Cuban Sugar Business Opportunities vs. Assessing Risk
If I were a sugar refinery manager in South Louisiana and I was offered the opportunity to form a joint venture with partners in Cuba, I would only take the opportunity if it was in the law. This carries serious risks for the company and can lead to fatal consequences for the business. However, trade in food products with Cuban enterprises is not contrary to sanctions (Crozet et al., 2021).
I would try to find legal ways of mutually beneficial cooperation that would not contradict US policy and, at the same time, allow supporting the people of Cuba. Isolating and denying people access to a tool to meet basic needs is ineffective in achieving the goals of sanctions. Each country has its laws that affect international trade, and to succeed, it is essential to work within the given framework.
References
Crozet, M., Hinz, J., Stammann, A., & Wanner, J. (2021). Worth the pain? Firms’ exporting behavior to countries under sanctions. European Economic Review, 134, 103683. Web.
Schmidt, J. (2022). The legality of unilateral extra-territorial sanctions under international law. Journal of Conflict and Security Law, 27(1), 53–81. Web.