U.S.-Cuba Policy: A Boon for Cuban-American Entrepreneurs - Saul Landau

[flamingdem]

The time has come and almost gone for Washington to repair its broken relations with Cuba. For 53 years the White House has maintained a punishing embargo on trade with Cuba. Its proponents, with the goal of removing Cuba's revolutionary government, still plead: "Give it time."

In 2001 President George W. Bush allowed for an exception permitting U.S. companies to sell agricultural products to Cuba for immediate payment, although imports from Cuba remained off limits. Other economic sectors received no benefits.

Cuban-Americans, particularly from south Florida, now export goods and remittances to relatives and friends while importing profits from sales made to fellow Cubans in Cuba, giving them an advantage denied to the rest of the country.

Washington pundits attribute superhuman strength to the anti-Castro lobby; thus no President would attempt to lift the trade and travel embargoes on the island. Yet Cuban-Americans trade with and travel to Cuba freely on a daily basis. The "embargo" applies to everyone except Cuban-Americans.

This growing international trade, disguised as sending goods to needy family members in Cuba, now includes filling the hulls on 10 or more daily charter flights from U.S. cities to Cuba. Cuban Americans send goods, often with "mules," to provide family members in Cuba, needing supplies for their businesses. The "mules" return with cash, derived from sales of these goods. Some of the new Cuban stores and restaurants supplied by Miami-based Cubans make substantial profits, some of which get spent in Cuba, and ends up in Cuba's central bank.

http://www.huffingtonpost.com/saul-landau/cuban-american-entrepreneurs_b_2559965.html

[Judi Lynn]

1. Outstanding article from Saul Landau and Nelson P. Valdes. Gotta keep this link.

When CNN had a US/Cuba relations message board in 2000, a Canadian poster there told us she had met Cuban "exiles" IN Havana who were running black market businesses there at that time!

She said that one woman told her they do shopping at cheap discount stores in S. Florida, get big loads together, take them to Cuba and sell they at a fantastic profit. That story stuck with me immediately. She said that they employ additional people in Cuba to make this possible.

This reality is wonderfully explained by your article. Thank you, so much.

[flamingdem]

2. This really drives La Loba and Marco Rubio nuts!

They want to restrict Cubans from returning and especially from making profit but I think they are afraid to really end the Adjustment Act. They're in a pickle!

I did think later after posting that this must be a very small market. There just isn't that much money in Havana to go around for US small business at this point.

And I guess it was always inevitable that the Cubans would try to keep the profits generated and the control to themselves.

[Bacchus4.0]

4. small market indeed. I assume Cuba has custom officials who check incoming packages and cargo

I imagine much of the merchandise is clothes and toiletries and such that can be justified as gifts to family and then resold on the black market.

[Bacchus4.0]

3. wow!!!!! Imagine that. People buying goods in the US and selling them in Latin America

for a profit. You only see evidence of that on every single flight to latin america.

[Judi Lynn]

5. The point seems to elude you that this refers to Cuba.The rest of Latin America isn't embargoed. n/t

[Bacchus4.0]

6. commercial merchandise is technically subject to taxes by customs

wherever one may be. I see nothing at all surprising about that this is occurs in Cuba just as in any other country in latin america.

[naaman fletcher]

7. One wonders

Why the hated miami mafia making money at the expense of loyal cubans is a good thing.

[Bacchus4.0]

8. I can't make heads or tails of the "point" frankly

Costs of quality merchandise in L.A. is often prohibitive due to tariffs placed on products. Selling a bit of extra merchandise in your luggage is a good idea and helps people pocket a few extra bucks. It also is sold at a cheaper price than the same product at a retail store, so this benefits the consumer. In Cuba's case I imagine quality products are both expensive and scarce.

It would also seem that there couldn't be too much profit in Cuba since the money simply isn't there.