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REPORT BY CUBA
On Resolution 67/4 of
the United
Nations General Assembly
entitled “Necessity
of ending the economic,
commercial and financial
blockade imposed by the
United States
of America against
Cuba.”
July
2013
INTRODUCTION
The economic,
commercial and
financial blockade
of the Government
of the United States
imposed since
the beginning
of the Cuban
Revolution
continues to
be, after more
than 50 years, and
despite protests by
the international
community,
the
main point
of reference
for United
States policy
towards
the small
Caribbean island
in its
obsession
to destroy
the Revolution
and restore
its hegemony
over Cuba.
The foregoing is clearly
seen in
the systematic
tightening
of the
policy of economic
suffocation
and the strengthening
and integration
of laws and
provisions that
govern
this
policy.
Because
of its
declared
purpose, the
political,
legal and administrative
framework
on which
the blockade
rests qualifies
as an act of
genocide
by virtue of the
Geneva Convention
of 1948 on the
Prevention
and Punishment
of the
Crime of
Genocide
and as an
act of
economic
warfare
as outlined
in the Declaration
Concerning
the Laws
of Naval
War
adopted
by the
London
Naval
Conference
of 1909. The blockade
against Cuba
is the most unjust, severe
and extended
system of unilateral
sanctions
ever enforced against
any country.
As a
result of
the strict
and aggressive
enforcement of
laws
and regulations
that typify the
blockade,
Cuba
is still unable
to freely
export
and import
products
and services to or
from
the United
States; it
cannot
use the
US dollar
for its
international
financial transactions
or hold
accounts
in that currency
in third-country
banks.
Nor
is Cuba
permitted
access to
loans
from
US banks
or their branches
in third
countries and from
international
financial
institutions
such as the World
Bank,
the International
Monetary Fund or
the Inter-American
Development Bank.
During
the period
discussed in
this Report,
the harassment
of Cuba’s
international
financial
transactions
has been
one of
the most significant
characteristics of the
enforcement of the blockade.
Besides
constituting the
main obstacle to
the economic
and social development
of Cuba,
the blockade
is the
most
important
obstacle for
greater expansion
of trade
relations
between Cuba
and the world
and it
severely impedes
international
cooperation
provided and
received
by Cuba.
The economic damage
caused to the
Cuban
people
as a
result of the
enforcement of
the economic,
commercial and
financial blockade
by the United
States against
Cuba,
as of April 2013,
and considering
the depreciation
of the
dollar in
terms of
the price
of gold in the
international
market, totals
USD 1,157,327,000,000.00.
The economic,
commercial
and
financial
blockade
of the
United
States against Cuba
is illegal
and immoral
and it must end.
CHAPTER
1. Continued
policy of economic,
commercial
and financial
blockade
against Cuba
The systematic demands by
the international
community
in favor
of a total lifting
of the
economic,
commercial
and financial blockade
against
Cuba, including
the growing opposition
to such
policy
from within
the United
States,
is still being
ignored
by the
government
of that
country,
which
has decided
to intensify
its actions
to suffocate the
island
economically,
particularly
those related to
the
monetary and
financial
sphere which have
an extraterritorial
impact.
The decision
made
by
President
Barack
Obama on
September
10,
2012 to extend
once more the
Trading
with the Enemy
Act shows the
determination
of
the
US Government
to fully
preserve
one of the
key elements
in the
entire legal
framework upon
which the blockade
policy against
Cuba rests.
In addition,
the new
inclusion
of Cuba
in the spurious
list of countries
sponsoring
terrorism
has
the sole
purpose of
justifying the
ferocious
harassment
of Cuba’s
financial transactions
and the tightening
of the
blockade.
This
action is intended
also
to meet the
interests
of an ever-dwindling
anti-Cuban
group in
the United
States, who
are trying
to shore up
a policy
lacking
any ethical
and legal
basis that
is being rejected
by the great majority
of the US population
and
the Cuban
emigrants
residing in that country.
The Cuban
territory has
never
been
used nor
shall it
be used
to harbor
terrorists
or to organize,
finance or
perpetrate
acts
of terrorism against
any country
in the world,
including
the United
States. On
the contrary, Cuba
has been
suffering
for decades
the consequences
of terrorist
acts organized,
funded and
carried
out from US
territory
with a
toll
of 3,478
people
dead
and 2,099 injured.
The Cuban
government
reiterates it does
not recognize
the US Government
as having any moral
authority to
pass judgment
on it.
1.1 Principal measures
taken by the US government
and proposals
made showing
the continuance
of
the blockade
and
the attempts to tighten
it
There are many varied
examples
ratifying the continuity
of the blockade.
According
to an
editorial
published
on March 3,
2013
by the Bloomberg
business and
finance
agency, between
2000
and
2006 the
United
States
government
opened
11,000 investigation
processes on presumed
violations of
the sanctions
regime
against Cuba.
The same source indicates
that 7,000
investigations about
other countries
were
carried
out. All
this is taking
place
in a context
where Cuba poses no threat
to US national
security, a fact admitted to
by the US
authorities themselves.
The irrational acts against
Cuba are also evidenced
by the following
examples:
- On May 9, 2013,
OFAC fined The American
Steamship Owners
Mutual
Protection
and Indemnity
Association,
Inc. for a
total of USD
348,000 for
violating
the bans
defined in the Regulations
for the Control of Cuban
Assets and other
sanction
regimes
against other
countries.
OFAC
alleged
that the company cleared
three claims in favor of
Cuba amounting to
USD 40,584.
- In
April,
2013,
Cuba
Solidarity
Campaign
(CSC),
a British NGO,
decided to
buy 100 copies
of the
book
The Economic
War against
Cuba.
A Historical
and Legal
Perspective
on the U.S.
Blockade,
by
Salim
Lamrani,
published
in March
2013 by the
Monthly Review
Press, a
New
York-based
publishing
house. However,
the transaction
between the NGO´s
bank,
the Cooperative,
and the account
of the Monthly
Review with
the Chase Bank could
not be completed because
OFAC blocked the funds
and demanded
explanations
from
CSC about
its relations
with Cuba.
CSC
director
Rob
Millar
expressed
his
amazement:
“They
are using an extraterritorial
legislation
on economic
sanctions
against
Cuba to
prevent the sale
in the United Kingdom
of a book
which
describes the
scope of
the blockade
against
Cuba
[…]. The ridiculousness
of the
US blockade
is illustrated
yet again
by this
case
in which
they try to
prevent British
readers
from
reading
a book
published by an American press”.
- On April
14, 2013,
the Trademark
Appeals
Bureau, attached
to the
US Trademark
and Patent
Office,
rejected
the petition of
the Cuban CUBATABACO
company
to cancel
registration
of the
Cohíba brand
name by
the GENERAL
CIGAR enterprise.
The decision
was
based entirely
on arguments
given
by US
Courts
ratifying
that
the Regulations
for
the Control of
Cuban Assets
prevent recognition
of the prestigious
Cuban
brand.
- On March
5, 2013,
OFAC
fined US
company
Eagle
Global Logistics
(EGL)
of Houston,
Texas,
associated
to British transnational
company CEVA LOGISTICS,
with USD
139,000
for
allowing
its subsidiaries
in other
countries to provide
cargo transport
services to and
from Cuba.
- On February
22, 2013,
OFAC imposed
a USD
43,
875
fine on the US
affiliate
of the Chinese enterprise
Tung Tai Group,
headquartered
in San
José.
California,
for signing
sales contracts
for Cuban
scrap.
- On July
25, 2012,
OFAC
fined US
citizen
Zachary
Sanders with USD
6,500 for traveling
to Cuba
in 1998
without a Treasury Department
permit.
- On July
10, 2012,
OFAC
announced
the imposition
of a
fine of
USD
1,347,750
on the
Great
Western Malting Co.
for facilitating
the sale to
Cuba
of malt
barley
not originated
in the US,
by one
of its
foreign
branches
between
August
of
2006 and
March of
2009.
- On June 29, 2012, Rep.
Ileana Ros-Lehtinen
(R-FL) presented Draft
Law H.R.6067,
“The Law
for Cooperation
for Security in the
Western Hemisphere” which,
among other
aspects,
amends
the Helms-Burton
Act to
prevent foreign
investment
in the Cuban
oil
sector. It
also
authorizes the
President to
impose sanctions on
any country
in the Western hemisphere
that has military
cooperation
with countries
sponsoring
terrorism.
- On June
26, 2012,
that
same US
House
Representative
presented Draft
Law H.R.6018,
“The Law
for Authorization
of Expenses
for Foreign
Relations”
that
would
prohibit
granting export
permits to Cuba
and other
countries for the transfer
of
commercial
satellites or
other components
or technologies
listed
as articles controlled
by the
Department
of Commerce.
1.2 Extraterritorial
enforcement of
the blockade
The strengthening
of the
extraterritorial
dimension
of the
blockade
is definitely
a feature of
the Obama Administration,
which has expanded
the scope
of
the Torricelli and
Helms-Burton
Acts; laws
which
violate
the regulations
established
in International
Public
and Private Law and
undermine
the sovereignty
of third countries
and the rights of natural
and legal
persons who
are not subject to
US legislation.
The extraterritoriality
of the
blockade goes beyond
and ignores borders.
The mechanisms in
place
for the
implementation
of such policy
also
violate
the principles
governing
international economic,
commercial,
monetary and financial relations,
as well as
numerous resolutions
of the United Nations
and other
international
bodies. They
also
violate the provisions
of regional integration
organizations and third-country
legislations,
including those
adopted after
the Helms-Burton
Act was passed in
1996.
The extraterritorial
dimension
of the
blockade
is still
affecting merchant vessels
from third countries
that dock in
Cuban
ports. Likewise,
the interests
of third-country
companies
having
any affiliation
with US
companies
are being
hurt, as are those of banking
entities that
carry out
financial
transactions
with
the island,
regardless
the currency
they may
be
using.
The following
entities are
still
being
held
hostage of
the extraterritoriality
of the
blockade in
third countries4:
e) Enterprises
marketing products of Cuban
origin or
whose manufacturing
includes
some Cuban component.
f) Enterprises
wanting
to sell
to
Cuba
goods
or services
whose technology
includes
over 10% of
US components,
even if their owners are nationals
of the
exporting
countries.
g) Banks
that, in the
exercise of their
rights, intend
to open
accounts in US dollars
for Cuban legal persons
or individuals
or carry
out
financial
transactions
in
that currency
with Cuban
entities or persons.
h) Businessmen
carrying out investments
or business with
Cuba.
There
are countless
recent cases
of commercial operations
by Cuba
with
third-
country enterprises that
are not under US
jurisdiction
which
have faced
obstacles or been
prevented due
to prohibitions,
threats and blackmailing
from Washington,
as illustrated by
the following
examples:
- On May
22-26, 2013,
the Sixth
General
Assembly
of the
Latin American Council
of Churches
(CLAI
in its
Spanish acronym)
was
held in
Havana
after being
postponed
for three months
because
the
funds for
the event
(USD 101,000)
were
being
blocked by the Treasury
Department
under the blockade
4
See
Document
A/67/118,
page 32
in the
Spanish version.
laws.
European
solidarity-minded
churches
provided the
resources to hold the
assembly while
a decision
on the fate of the CLAI
funds is still
pending.
- On April
16, 2013, Zürcher
Kantonalbank
(ZKB, Zurich Canton
Bank), a Swiss
bank, told
AFP through
its spokesperson
Evelyne
Broennimann
that, as of
May
1st,
it would
cancel all transfers
to Cuba
because
the entity
had to guarantee
to its
US bank
partners that its
activities
were
in line
with all
regulations
established by
OFAC, which may
take such actions
against banks
as freezing
of their funds.
- On December
12, 2012,
OFAC reported
the imposition
of a fine amounting
to USD
8,571,634 on
Bank of
Tokyo- Mitsubishi
UFJ
of Japan for
clearing financial
transfers involving
a group of countries, including
Cuba, based
on the argument that it was
violating
the economic
sanctions imposed by
the United
States.
- On October
11, 2012,
the embassy
of Cuba
in Namibia
received a letter
from
AON Namibia,
formerly
Glenrand MIB,
informing
the cancellation
of an
insurance
policy for
the embassy´s cars
and the
withholding
of the
annual
premium in compliance
with the blockade
regulations,
because Glenrand MIB
had been bought
out by AON, a US company.
- On June 19, 2012,
the Bostwana branch
of the AON multinational
insurance company informed
the Cuban Consulate
in that
country that
due to
“internal regulations”
it could
no longer
provide its services.
While
announcing
the measure, the
AON private accounts
chief executive
clarified it was
a decision
by the
head
office due to
the blockade
regulations.
- The Cardiology
and
Cardiovascular
Surgery
Institute has
not been
able
to repair
Schiller rehabilitation
service equipment
because
a Swiss
bank is
in fear
of possible reprisals
if it accepts transfers
from Cuba.
- For similar
reasons, the
Cuban
Cardiology
Society
has
not been able
to pay
its annual
membership
dues to
the World Heart
Federation.
- For two
consecutive
years,
the Cuban
Book Institute
(ICL
in its Spanish
acronym) has
not been able
to
pay its
annual membership
dues
to the UNESCO-sponsored
Regional Center
for the
Promotion of Books
in Latin America
and the Caribbean
(CERLALC)
because
the latter
is refusing to accept
transfers
from Cuba.
It cites
the US sanctions
regime as the main reason.
- Nor has ICL
been able to fulfill
its membership quota
obligations
with
ISBN, the
International Standard
Book
Number
System
for Books.
- The Institute for Scientific
and Technological
Information (IDICT
in its
Spanish
acronym) cannot
benefit
from
the sales of the scientific
literature publishing
company, Swets,
because, according
to the firm,
it would
be risking US economic
sanctions
if it
has normal
working
relations
with that
Cuban
entity.
1.3 Damages
of the
blockade
to international
cooperation,
including that
of multilateral
bodies
International cooperation
being provided and received
by the Cuban
people
is also
hit
by the results
of the blockade policy
against
Cuba. There
are numerous
cooperation projects
facing obstacles
due to the
aggressiveness
of the
United
States authorities.
The policy
against
Cuba
has gone
as far
as trying
to halt
some
of the actions
taking place
as part
of South-South
cooperation
programs and carried
out by Cuban specialists
in various countries in
sensitive spheres like
public health.
Likewise,
specialized
agencies,
funds and programs
and other entities of
the United
Nations
system
come up against
serious obstacles
to carry
out their
assistance programs
for the
country to help
in the
implementation
of national
development
priorities
and policies
and the
fulfillment of
internationally
agreed development
goals, including
the Millennium Development
Goals.
In an unprecedented
event for the work
of the
Office of
the World Health
Organization/Pan
American Health
Organization
in Cuba, a Canadian
bank
withheld
the funds to
buy flu vaccines
for an elderly
persons’ vaccination
program because
it did
not have
an OFAC permit.
The decision
by the
Zurich Canton
Bank
to suspend
operations
with
Cuba limited the rights of
Swiss citizens
who for
more than 20 years
and through
MediCuba-Suisse,
an
NGO, have been supporting
medical projects
in the areas
of infrastructure
and training
of personnel
to fight
cancer
and in pediatrics,
palliative
medicine,
psychotherapy and HIV/AIDS prevention
in different
regions of Cuba,
with approximately
300,000 Swiss francs
per year.
Likewise, various Cuban
specialists faced the
impossibility
of taking part
in a workshop
for the
normalization
of fresh
fruits
and produce in Costa
Rica
held
prior to
the Seventeenth
Meeting of the Committee
of CODEX
ALIMENTARIUS
(FAO)
on Fresh Fruits
and Produce in
September
2012
because it
was being
funded
by the US Secretary
of Agriculture.
Cuba was
the only
country in the
region
excluded
from
the regional
exchange
on good practices
in that field.
The South African
company Mohlaleng Health has not been able
to transfer
USD
148,500
to Cuba
as payment
for a
2012
invoicing
of
2,400 bottles of Vidatox
(manufactured
by the Cuban
company LABIOFAM),
fearing that the US authorities would
freeze the funds.
The Cuban
company LABIOFAM
was hit
by other sanctions
under the
blockade
policy
when
during
a routine
transfer
a US
bank expropriated
funds destined to
the building
of a biolarvicide
plant
to help
eradicate
malaria in the United
Republic
of Tanzania.
This action was
extraterritorial
in nature since
it was
a Tanzanian
government
project. The
Cuban enterprise
was merely
administrating
the funds
for the construction
of the plant.
The Institute for
Basic Research
in Tropical Agriculture
(INIFAT
in its Spanish
acronym) has not been able
to begin
the implementation
of a
project called
“Conservation
of Agricultural
Biodiversity
in Biosphere Reserves
in Cuba:
Connecting
Natural
Landscapes
and Agricultural
Landscapes
to attain
the Millennium
Development
Goals” due to
account processing
delays
caused by the
blockade.
With a USD 1,368 million
budget,
the project
is being
financed
by the
World Fund
for the
Environment
(headquartered
in Washington
D.C.) and implemented
by the United Nations Environment
Program (UNEP) and
Biodiversity
International. On
the other hand, the
imperative of using
euros in transferring
the financial
resources entails
the loss
of approximately
8%, or USD
109,456, of
the cooperation
project’s
budget.
In 2007,
the
Biological
Corridor
in the Caribbean
(CBC)
Three-
Nation Project
was launched
with the participation
of Cuba,
the Dominican Republic
and Haiti
and the essential goal
of aiding
Haiti.
The Project
is funded by UNEP
and the European
Union and has
a coordinating office
in the Dominican
Republic.
Restrictions
imposed by the blockade
policy prevented the
purchase of
a Mitsubishi vehicle
for the
CBC
Focal
Point
in Cuba and they
preclude the use of geographical
information
system (GIS)
platforms
patented in the
United States,
even by Cuban
technicians
working
in the Dominican
Republic.
The irrationality of that
policy
is
also
expressed in
the freezing
by a
US bank
of a month’s
salary,
paid
by PNUMA,
of one
of the
Cuban
technicians at
the Tri-nation Office.
Specialists
from the
National
Institute for
Oncology
and Radiobiology
(INOR in its
Spanish acronym)
in charge of that
center’s tumor bank
were
excluded from
participating in
the LabWare-LIMS
System workshop held in
Colombia in the first
week
of June 2013
under the
auspices
of the
Tumor Bank
Network
for the
Latin American
and Caribbean
Alliance under
the pretext
that the
US LabWare
company, the
sponsor
of the
event,
could
not have
ties
with Cuba by
virtue of the
blockade
laws.
CHAPTER 2.
Damages to
key social
sectors
2.1 Damages
to health
care and food
Public
Health
For the
May
2012-April
2013
period,
very
conservative
estimates put the
monetary
losses caused
by the blockade
to Cuban public health
at about USD
39 million as a
result of the purchasing
of medicines,
reagents, spare parts
for diagnostics
and treatment equipment,
instruments
and other consumables
in distant
markets, as
well
as of
the use
of intermediaries,
the combined
effect of which
increased expenses
in this sector.
The consequences
of the blockade for this
sector have a multiplying
negative
effect because
by affecting the
costs
of everyday products, the
purchase of such
products becomes difficult,
basic
social
services are
harmed and,
consequently,
so are the living
conditions of the
population.
The damages
recorded in
this
field
include
the following:
e) Servicios
Médicos Cubanos
S.A. faces
the impossibility
of developing
all
its potential
to market
different
forms of
health
services. The limitations
imposed by the
blockade have cut
back earnings by nearly
USD 9.6 million
USD.
f) Medicuba
S.A. has
been
considerably
hit
by the
increase
of budgetary
expenses
and foreign
currency expenditures
to buy medicines,
medical supplies,
lab test reagents, expendable
materials,
equipment
and consumables
used in dentistry,
as well
as other
equipment
and technologies
in distant markets. Additional
expenses
totaled USD
367,800 due to
price increases
and USD
11,304,600 for
operational
costs.
g) The training
of Cuban
medical professionals
in modern medical care
techniques
faces
serious
obstacles
due to the blockade.
Under
the present
circumstances, no
proper training
is being
given
to operate
Philips Positron
Emission Tomography (PET)
equipment,
which are essential
for diagnosing
cancer.
h) Most medical
imaging equipment
are controlled
or include
in their structure
computers running
on the 64-bit
Windows
XP operational
system that needs
to be
activated by Microsoft
within 30
days of
installation.
Activation
may be done
automatically on Internet
via a direct connection
from
the computer to
Microsoft
servers, or manually
by calling
on the telephone
any
of the
Microsoft offices
in the world.
Neither of
these two options
is available
to Cuba
since Microsoft
has no office
on the
island
and an automatic
activation is
rejected by
the
company’s
server because it
comes from
Cuba.
The National
Center
for Medical
Genetics has
not been
able
to acquire
a Genetic Analyzer
because it
is manufactured
only by US companies
such as Applied
Biosystems,
belonging
to Life
Technologies.
This equipment
allows to read DNA
sequencing bases,
a key tool for
studying genetic
diseases
such as hereditary
breast cancer, familial
adenomatous
polyposis,
hereditary
non- polyposic
colorectal
cancer and the von
Piel-Lindau
Syndrome.
The Institute of
Gastroenterology has
not been
able
to acquire
a bipolar
radiofrequency
equipment
for hepatic
tumor ablation because
it is manufactured in the
United States and
marketed by various companies
such as
Olympus
Latin America
Inc.
in different
geographical areas.
The William
Soler
Pediatric
Cardiology
Center is facing
serious
difficulties
in acquiring
nitric
oxide,
a gas
manufactured
by US and European
companies.
As it
cannot
be bought
in the
US,
it has
to be purchased from
more distant
suppliers, which
increases
costs because
this is a
substance that
must be transported
with
special care.
Nitric
oxide
is given
to patients
with
pulmonary hypertension
episodes
and severe pulmonary
distress.
It should
also
be administered
in health
care centers
to heart
and lung
transplant
patients as
well as to
newborns
with persistent
fetal circulation
and others.
The Nutrition and
Food Hygiene
Institute is facing
difficulties
with
the determination
of aflatoxins
(toxins
with cancerous
effects in foods contaminated
by fungi) since
the trial
has been stopped for
over a
year because
there is
not any
non-US
supplier to
provide the B2, G1 and
G2 aflatoxin pattern.
The Institute of Nephrology
faces difficulties
with
the availability
of kits for HLA
tissue typing made by the
American
company One Lambda,
which does
not authorize
its sale
to Cuba.
The technique
allows to
determine immunological
compatibility
levels
between
receivers and donors
under
the National
Kidney Transplant
Program; it
makes it
possible
to choose
the
right donor.
Around
1,500 patients
are listed
in the
receivers’
bank
and therefore
they
have
to be typed
immunologically.
Moreover,
Cuban
HIV/AIDS patients
cannot
be administered
antiretroviral combinations
that include
Tenofovir
made by the Gilead
Company.
Nor
has it
been
possible
to buy
antiviral
drugs like
kaletra,
nelfinavir,
ritonavir and children’s
80/20 mg Lopi/Rito
because
the
US companies
which
manufacture them
are not responding
to requests
from Cuban
companies
or are
saying
they cannot
do business with
Cuba.
Food
Due to
its nature,
this is one of
the most sensitive
sectors being
affected by
the blockade.
Whereas there is
the possibility
of importing agricultural
products and foods from
the United
States,
there are
still impediments
to normal trade
in this sphere between the two countries. Purchases
are still framed
within
strict
regulations
subject to
a complicated
mechanism
of permits that
operates
both for trips
by US business persons
as well
as for the
signing of contracts,
transportation
and payments for
the transactions
to be undertaken.
In addition,
OFAC reserves
itself the right
to cancel such
permits
without
any warning
or explicit argument.
ALIMPORT
company sustained,
as a result of the risk country notion,
losses
estimated at about
USD
45 million
as it did not have
direct access to US bank
funding.
Additionally,
the pressure applied
by the Government of the
United States on the
international
banking
and credit system
prompts third-country
creditors to
increase
financial
costs
to levels
between
8%
and 10% per annum,
even though
they tend to fluctuate
5-6%.
ALIMPORT
is facing further
adverse
effects estimated
at USD
20 million
due to the
impossibility
of using the US
dollar in
its transactions.
Cuban banks
must buy reimbursement
currencies and this
means
considerable
losses in terms
of exchange
risk, which
is compounded
also by
great financial
market volatility.
Another
USD
10 million
is lost
because
transfers
originating
in Cuba require
operations
through several
banks to
reach their destination.
Faced with
the impossibility
of exporting
Cuban products
to the US market and the
restrictions
preventing US vessels
from transporting
Cuban
cargo to other
destinations, the fleet
traveling
from
the US to
Cuba
returns
to US ports without
cargo and this
implies
higher
freight
charges. Damages
in this
sense amounted to
USD 28 million
in 2012.
Likewise,
exports
by the Cuban company
CARIBEX,
especially
lobster
tails and
shrimp,
could
have been
sent to
the
US market. As
a result
of the
blockade,
such exports
must pay high
tariffs in other
markets
(they are
tariff-free
in the
US market), face
high transportation
costs associated
with
the risks of long
voyages for such
products and
deal
with
onerous
exchange
rates due
to the ban
on using US
dollars in
transactions.
Additionally,
finding alternative
markets for importing
consumables
for the
Cuban foods industry,
such as raw materials
for making bottles and
packages
and the preservation of
products, fruit
pulps, sweeteners,
etc. has brought about losses
close to USD 3.4
million.
2.2 Education,
culture and
sports
Guaranteeing the right
of all
Cubans to education,
culture and sports
has been
a priority
of the
Cuban
State
since
the beginning
of the
Revolution.
However, the
blockade
being imposed on
the country generates
daily shortages
that
affect
development
in these sectors.
As a result
of the
implementation of
this policy,
Cuba continues
having
no
access to
the US
market to
buy school
consumables, raw
materials
and to scientific,
cultural and
sports information
exchanges.
Losses caused
by the
necessity
of importing
school materials provided
by distant
suppliers
mean less access by
Cuban
schools
to teaching
materials
which
are essential
for pre-school,
grammar and special
education.
The total of
USD
816 000
paid
in addition to the
regular
prices for the
purchase of school
materials is equivalent
to 1,723 Natural
Sciences
teaching modules.
As a result
of these additional
costs, only 100 teaching
modules
could be imported.
During the
period
discussed
in this Report,
measures designed
to prohibit
or condition normal academic
exchanges,
student/professor
trips,
the flow
of scientific
information
by various channels,
the dissemination
of and
adequate
payment for
performance
within
academia
and the purchase
of teaching
consumables, means and
instruments and research
and scientific work
in general
have had a considerable
impact.
Uncertainties
about
the granting of
permits
to
US academic
institutions
and universities
wishing
to start collaboration
programs and the imposition
of strict
conditions on
them lead
to the
loss
of many opportunities
and curb
potential
cooperation actions
between
academics and students
from both countries.
The University
of Holguín
could
not have
academic exchanges
with the Center
for Higher
Studies
of Granada
(CEGRI) in
Spain,
a center sponsored
by the
University
of Alcalá
(Madrid),
because students
from various European,
Asian and US
countries
are enrolled
there. Invariably,
CEGRI makes
payments to the universities
receiving the students.
Once it was learned
the receiving
university
was Cuban,
the exchange
was cancelled.
Computer equipment
at the University
of Havana
cannot be renewed
because of the
ban on the
importation
of
computers produced
by the
largest
manufacturers in
the
world
such
Hewlett
Packard,
Apple Macintosh,
or even firms
associated with
Japanese
manufacturers such
as Toshiba
or Sony
Vaio
The reason of
such restriction is
that most
of the
market is controlled
by processors
manufactured by
the US
firm Intel.
To
obtain
such equipment,
Cuba
has
to buy
it from
third countries
with price
increases
that can add up to
30% of the original
price.
The University
of Guantánamo
has 5
collaboration
projects whose
administration
is experiencing
serious limitations
due to problems
related to the importation
of laboratory consumables.
These projects include
the following:
c) “Training
in local coastal
management in southern Cuba,”
which
is being
carried out
with
the collaboration
of Canadian
institutions.
The arrival
of a
GPS piece
was
delayed
because
the Canadian
counterparts could
not acquire
it in
the US
after the destination
of the
equipment
was known.
d) Imports
of laboratory
instruments
for the
“Improving
Genetic Reserves”
project being
implemented
with
the cooperation
of Belgian institutions
were
also
delayed because
the contracted equipment
included
US-made components.
It was
necessary to
buy the instruments
in more distant
markets and at
higher
prices.
Members
of
two research
groups of the
Department
of
Animal
and Human Biology
at the University
of Havana (Invertebrates
and Bird Ecology)
could
not apply
for the
funds of
the “Conservation
Leadership
Program” conservation
program that provides
financing to
young people
in developing
countries
who work
in the
protection and
management
of natural
resources in
their countries
because
US organizations
Wildlife
Conservation
Society
and Conservation
International had been included
in the program’s
list
of donors. Previously,
other Cuban
youths had had
access
to that
program when
it was
being
sponsored
by British
NGOs British
Petroleum,
BirdLife International
and Fauna
& Flora
International.
The blockade
policy sets
up obstacles
and prevents
direct
and normal relations
with
international
sports institutions
and the participation
of athletes
in important
competitions
taking
place
in the US or
Cuba.
The extraterritorial
reach
of its
measures also
makes access to
external financing
more difficult
and slows
down the acquisition
of sports gear.
Among the chief
damages inflicted
on Cuban
sports is
an additional
expense
of USD
1,070,000
for importing
consumables
for sports
such as baseball,
track
and
field,
softball,
archery, diving,
swimming,
lawn
tennis,
jai-alai,
sailing,
polo, etc.
Also,
the National
Baseball
Team
is still waiting
for its
payment for
participating
in the Second
and Third
World Baseball
Classics (2009 and 2013)
totaling USD
2.3
million; these
payments
cannot be transferred
to Cuba because of the
blockade laws.
On June
26,
2012,
OFAC informed
the Insight
Cuba
travel agency,
which
had been
sponsoring
the participation
of US runners
in the Marabana
Marathon since 2011,
that the event
did not classify
as a “people-to-people”
program and
forbade
the participation
of 300
US athletes
in the popular
competition.
The Meeting of
the Executive
Committee
of the
International Amateur
Basketball
Federation
scheduled
to be
held in
Havana
on November
7-10, 2012
had to be
cancelled
when the
US authorities
refused to
grant travel
permits
to US and Puerto
Rican executives.
The blockade
prevents
the adequate
promotion,
dissemination
and marketing of Cuban
cultural talent,
reduces the
selling prices
for Cuba’s cultural
products to
very low
levels
and it
has restricted the
enjoyment of
our music
by international
audiences.
One of
the main reasons
is the
control
over the
market
by big
arts and music transnationals,
most of which
are American or
have a strong presence in
the United
States. Those
big companies
control promotion
and exhibition
circuits
for
artists
internationally.
Cuban institutions
did not earn USD 12.1 million
due to the adverse
effects of
the blockade
and the impossibility
of interacting
normally with US art
circuits.
In another example
of the extraterritorial
dimension
of the blockade, on August
21, 2012
Paypal,
the Internet payment company limited a Spanish
platform
account
which finances
Cuban cultural projects
under
an allegation
of noncompliance
with
OFAC regulations
on Cuba.
The Cuban Institute of
Music, through
its enterprises, was
carrying out 51
work
projects
in
the US territory
during
the period
discussed herein
with
the participation
of 365 musicians
and technicians.
However,
the
participants only
got
a per
diem
to meet
their daily
expenses
and were
not
allowed
to market
their
shows.
The Cuban
Institute for
Cinematographic
Arts and
Industry
(ICAIC in
its Spanish
acronym) has
no direct
access to
use the
technology developed
by US
enterprise Dolby
due to the
blockade
restrictions. Sound-track
processes in Cuban
cinema productions
must use that technology
without
said credit,
which
makes
their introduction
in the international
movie market practically
impossible.
The situation forces
Cuban
professionals
to
associate
themselves
with
foreign
co-producers in order
to get the
required
permits.
The digital music wholesale
distribution
service
Soy
Cubano, which
belongs to
the Cuban
ARTEX S.A.
enterprise, has no
direct
access to US
wholesale
distributors with
great bargaining
power
in the
world market.
Under such
circumstances, it has been
necessary to resort
to intermediary
enterprises, which
results
in lower
markups.
As for
the Empresa RTV
Comercial
(commercial
radio-television
enterprise) in
charge of
exporting
services
produced by
Cuban radio and
television,
it cannot
market its audio-visual
productions in the
US market
and others
in the
region
because
of the
control exercised
by US capital
abroad. This
results
in Cuban
productions being
sold
at prices lower
than those
for other
productions.
For Cuba,
they range between
USD 200 and
USD
300
per hour,
an amount lower
than
the
average prices
for audiovisual
productions of the
same type earning
approximately
USD 600 per
hour
in the international
market.
CHAPTER
3. Damages
to the
foreign
sector
of the economy
3.1 Damages
to foreign trade
Cuba’s island
and
development conditions
determine the high
impact of foreign trade
on access to cutting-edge
technologies,
mobilization
of foreign
capital,
granting of
loans,
promotion
of foreign investments
and international
cooperation.
Thus,
the foreign
sector of
the Cuban
economy is
one of
the main targets of the
blockade
policy against
the country.
During the
period
being
discussed,
the damages
done by
the blockade
to Cuban
foreign
trade
amount to
USD
3,921,725,790,
a figure 10% above
the previous
year’s. The
main damages
relate to unearned
income from
goods
and services
exports
accounting
for
78% of all
damages.
Higher
costs of
financing
due to
the risk
country factor
grew by
76% compared
to the
previous
period
as a
result of pressures
exercised
by US authorities on
third countries to
obstruct or prevent
financing to
Cuba.
Freight and
insurance costs resulting
from geographical
relocations
of trade
operations increased
by
24%.
Likewise,
the damages inflicted
on tourism, energy,
mining, agriculture and
industry
remain significant.
With Premium
cigars alone,
the Cuban
enterprise TABACUBA
could have
carried out
sales
worth
USD
121.5
million
in the
United States,
considering
the
characteristics of
the
US market for
these products.Another
example
of the
damages to
Cuban
foreign
trade
is the
case of the
Joint
Enterprise
Havana
Club International,
which
lost
around USD
73 million
as a
result of
the ban
on selling
its rum
in the United
States market. The
estimate is
based on the
positioning
of rum brands
the company places
in the international
market, where
the US
market accounts
for
almost
42% of
Premium
brand
destinations.
3.2 Damages
to foreign investments
In recent
years, foreign
investment
in Cuba
has been focusing
on projects of national
interest having a
significant economic
and social
impact.
The blockade imposed
by the government
of the
United States
continues obstructing
the foreign
investment
process in Cuba.
The consequences
of that
policy include
the following:
Access
to cutting-edge
technology
owned
by US
enterprises
is forbidden.
Exports
by Cuban
enterprises
are denied
access to
the
US
market.
Access to financing
coming from US banks
for the development
of direct
foreign
investments in the
country is forbidden.
Financing
that is obtained becomes
more expensive
because
it must
be denominated
in currencies
other than the
US dollar,
which
increases costs
and delays
investment
processes.
Higher
freight
and
maritime
transportation
costs.
Extraterritorial
sanctions are applied
and pressures are exerted
on foreign
companies, thereby
preventing the
incorporation
of joint
ventures in Cuba.
In the case of
the oil industry,
the blockade
makes contracts with
companies
which
own drilling
rigs more expensive
as the technologies
they use
must not
include
over 10%
of US parts.
This circumstance
means additional
investments for foreign
operators,
thus making
the use of rigs in Cuban
waters more costly.
3.3 Damages
to the
financial and
banking sectors
As indicated,
the increased
persecution,
harassment
and
hostility against
the Cuban banking
and financial
sectors by the Government
of the
United
States,
has without
a doubt
been
the distinctive
feature of
that
criminal policy
in the
period
discussed
by this Report.
There
has been
a heightened
harassment of
foreign financial
and banking
institutions
with the
aim of
limiting
operations
to and from
Cuban
banks. This
situation makes
the operations
by Cuban
banks
difficult
and also forces them to incur
in additional
financial
costs.
In this context,
there is an evident
and growing
trend
by foreign
financial
institutions
and banks
to limit
their operations
with
Cuba. Even
though damages are hard
to quantify,
the main difficulties
affecting operations
by Cuban
banking
institutions can be identified.
The general
damages
to banks
and financial
institutions
of the
Cuban
system were
identified as
follows:
a. As of
March
31, 2013,
Reuters
fully
suspended
its banking
and financial information
service for Cuban
banking institutions.
This
situation brings
about
many issues
by making it difficult
to get
professional
or official
market references
(information
on
exchange
rates, interest
rates and raw
material prices)
in order
to agree on
and follow
up on financial
operations
involving
national economy investments.
b. The
elimination
of these
services
also
has consequences
related to more expensive
treasury
operations as,
in all cases, they
must be carried
out by
telephone,
which
is more costly and
unsafe.
c. Exchange
risks in
monetary transactions
due
to exchange
rate differentials
as currencies
other than the
US dollar
must be used
to make payments.
d. Limited involvement
of foreign banks
in operations
with
Cuba
because
they are
occasionally
denied transfers
of funds or
participation
as sending
or advising
banks in operations
related to letters
of
credit
issued through
Cuban banks.
e. Limited access
to banking
services provided
by some foreign
banks, thereby making transactions
costlier
because operations
have to
be
processed
through third-country
banks.
f. Impossibility
of receiving transfers
coming
from Latin America, from
both natural and legal
persons,
in spite of the
existence of
many Cuban communities
in the region
and of many relatives
of Latin American
students
attending
courses in Cuba.
They are forced
to send
family
remittances
through channels
other than banks.
g. Cuban
enterprises cannot
find foreign
banks having
direct correspondence
with
Cuban
banks
through which
they
can be wired
payments directly
for their
exports.
h. Difficulties
for natural
persons to receive
transfers due to coverage
problems.
Increasing
numbers of
foreign
banks are
refusing to serve
as intermediaries
in operations where
Cuba
is the destination;
this is an aspect
that includes
not only private
clients of Cuban banks
but also
those from the corporate
sector.
i. The Banker’s
Almanac5
announced
to several
Cuban
banks that,
as of January
2013, it
would not be
renewing its registration
to continue
its consultancy
services due
to its merger
with
a US
firm
and the
restrictions
imposed by
the US Treasury
Department.
The consequences
of the announcement
include
the impossibility
of continuing
the work practice
of consultations
on certain
data required
to make
payments
and to give
updates to
shareholders,
correspondent
banks and others.
These are
important elements
to guarantee
that operations
are not processed through
high-risk institutions,
which
might lead to a
freezing
of funds.
Some of these
damages are illustrated
by the
following
examples:
- In 2012,
a European
banking
institution
notified
a Cuban bank
that due to
its entity’s
policy,
it was
not in a
position
to execute
a payment order
it had received.
Later it informed
it would
not process any
further operations
or money transfers
and stated it would
only continue
with the operations
ongoing
at that
moment.
At the
end of
that year,
there was
no choice
but to
close
the current
account in
said
bank, given
the restrictions
on its use.
- Also
in 2012,
a Cuban
bank
had
to redesign
an
operation with
a foreign bank.
Faced with
the impossibility
of keeping
USD
denominated
accounts for
Cuban
clients’ operations
through
foreign
banks
participating
in a given
loan,
the originally
USD-denominated
obligations
and reserve
account
had
to be re-denominated
to euros.
5
Primary
online
revision
tool, via
the internet, for
bank
status, referring
to relations
of
ownership
and position
in the
world
system,
executives
and for
corresponding
services.
Also
in this
case, the
forex
(currency exchange)
operation could
not be
done
directly
but by way
of a
transaction
using an account
in another
Cuban bank.
The resulting
damage is estimated at
USD 667,268.76.
- In 2010,
Cuba
was
notified
that,
as of
March 2012,
the National
Banking
System would
not be
able to
use the SWIFT NET
7.0 version of the product supplied
by S.W.I.F.T. called
Swift
Alliance
Access/Entry
(SAA)
for processing
inter-bank
messaging
over that
network
because it
contained
technology
and components
of US origin.
Until
that moment,
the annual
costs for
using
SAA
were
USD
141,722.50.
In 2012,
the implementation
of the contracted alternative
of the new GariGold (GG)
product
for the S.W.I.F.T. connection
continued,
payments for
its installation
were concluded
and the payment
for its
annual
maintenance
was also
made.
All of
this
implied
an additional
expense
of around USD 900,000.
Starting in 2013,
there
will be
an increase of
over USD
127,000 in
maintenance expenses
for the alternative system.
- In mid-October
2012,
a European
banking
institution told
a Cuban
bank
that, due to
a policy
adopted
by the
financial
group to
which
it belongs,
its account
had to
be closed
on the 30th
that same
month.
Other
entities of
the Cuban banking
system with
accounts
in that
bank, basically
for
the payment of
invoices
through
the
Society
for Worldwide
Interbank Financial
Telecommunication
(S.W.I.F.T.),
received the
same notification;
which resulted
in the
closing of those
accounts and
the need to
execute
such payments
through another European
bank.
- In December
of 2012,
the Office
of Foreign
Assets
Control
(OFAC)
fined
the London-headquartered
HSBC
Bank for
a
several countries,
including
Cuba. The bank
closed
its operations
with
the Havin Bank, with
which several
Cuban entities
are working in the United
Kingdom.
- In 2013,
a Latin
American
bank
refused a
payment in
euros through a European
bank saying
it would
not process operations
with
Cuba,
that the
beneficiary
in the operation
wasn’t its
client and, also,
that the amount
was high.
The operation
was
carried out
with
another
bank in
the
region,
which
agreed
to resume
its relations
with the
Cuban bank
via S.W.I.F.T. from
then onward.
This
situation caused
delays in the
opening
of a new
letter of credit.
- The Central
Bank of
Cuba
(BCC)
planned
the purchase
of bill sorting
machines for
its Minting
and Valuables
Department,
for which
purpose it contacted
DELARUE, a British enterprise
that showed
an interest
in the project.
DELARUE
sent its
sales
manager
to Cuba
and she filed
a technical proposal.
Nevertheless,
that company communicated
later
it could
not sell the
requested
equipment
on the
grounds
that it
could not
carry
out
the operation
because the
manufacturing
plant
was
located in
the United
States.
Consequently,
it was
necessary
to contact
a German
company
to buy
the equipment,
which implied
higher
prices and transportation
costs.
3.4 Section 211
of the Omnibus Consolidated
and Emergency
Supplemental
Appropriations
Act,
1999,
and other aggressions
concerning
patents and
trademarks
The theft
of Cuban
trademarks
and patents
continues
as before
through the enforcement
of Section 211 of the US
Omnibus
1999 and
other trademark
violations
despite
the ruling
of the WTO conflict
settlement
body
and the
way
in which
this usurping
policy is being
repudiated.6
The Havana
Club
trademark
has in effect been
stolen by the Bacardí
company.
On November
30, 2012,
OFAC informed
the US Patents
and Trademarks
Office (USPTO)
it was
not necessary
for it to issue
a permit to
cancel the
registration of
the Havana
Club
trademark
of Cuban
enterprise CUBAEXPORT.
When USPTO finally
makes its statement,
Cuba will be deprived
of the
prestigious
Havana
Club trademark
in the United
States
by way of
a gross and open
violation
of international
laws
and US obligations
under
international
agreements and
laws in
this
sphere.
In yet
another
serious example
of trademark
theft, on
March 14,
2013 the Trademark Appeals
Bureau, attached to USPTO,
rejected
the petition
from
the Cuban
enterprise
CUBATABACO
to cancel the
registration
of the
Cohíba trademark
in favor
of the
General Cigar Corporation
owned by Sweden´s Swedish
Match company. The
decision
was
based entirely
on US court
rulings
ratifying
that the Regulations
for the Control
of Cuban Assets prevent
recognition of the
prestigious Cuban
brand.
To this
day, the
intents
by some
plaintiffs
against
the Cuban
State in
the United
States to
seize Cuban
trademarks
and patents
as a form
of
compensation
continue,
on the
basis
of the
provisions
of the Terrorism Risk
Insurance Act, passed
in 2002
and which
will be in
force until
2014.
6
See
Document A/67/118,
pp. 44
and 45.
CHAPTER 4. Damages
of the blockade
to other sectors
of the Cuban economy
As indicated
in Cuba’s
previous
reports to the
Secretary
General, the legal
framework
typifying the
blockade
is affecting
all
the economic
activities
of the country.
In addition
to unearned
income,
higher
financial
costs associated
to the obstruction
of bank
transactions
and additional freight
and insurance
expenses
for Cuban
institutions, there
are also
costs to the
national
economy
as a
result of
idle inventories
and problems
stemming from limited access to state of the art technology.
The impact
may be broken down
by sectors as follows:
Ø
The construction
sector
sustained
damages
worth
USD
11.5 million
due to the impossibility
to access
more efficient
and lighter construction
technologies
that use less
basic materials
and energy.
Access
would
mean
saving
at least
6% in freely
convertible currency for
housing construction
plans.
Ø
The importing enterprise
COMIMPORT, in charge
of importing much-needed
products for the
population,
paid
an extra
USD 63.3
million
when
the importing
process faced the
hurdles of this
genocidal policy.
Ø
Cuba’s
tourism,
which is
vital for
the country’s
economy, continued
experiencing
severe
damages in
the spheres
of services and logistic
operations
and support, which
are key for its development.
Damages
to this
sector
are estimated
at USD
1,960.18 million,
mainly
in the
form of
unearned income
due to the existing
ban on
access
to Cuban
tourist
services for
Americans.
Another
good example is
that Cuban
hotels
can only use
the Amadeus
System for
marketing the
Cuban
tourism product.
It is one
of
the four major
international
Global
Distribution
Systems (GDS.)
The other three,
Sabre,
Galileo
and Worldspan,
are owned
by US corporations.
Many intermediaries
providing these services avoid
relations with
Cuban tourism
entities
for fear of
being
fined and
having
problems with
their sales in the US.
Moreover,
Cuban tourism
enterprises cannot
be advertised
over the
best Web services
such as Google,
Yahoo or
MSN because they
are US
corporations.
Ø
The Cuban
industrial sector
is estimating its damages
at USD 197.2 million
due to limitations
being imposed by the blockade
on the
light,
steel and
mechanics
and chemical industries.
Ø
The ACINOX Group,
which
manufactures corrugated
bars and electro-welded
meshes for construction,
welding
electrodes
and electrical
and telephone
cables
and wires,
refractory materials
and water-pumping
equipment,
among other
products, sustained
losses
in the order
of USD
38.3 million
due mainly to the need
to find other markets
to import consumables
for its operations.
With such amount, the
three-ply
line at the Eleka
Cable Factory could
acquire
the inputs
needed
to manufacture electrical
and telephone wiring
for
7 and a
half
months.
This would
entail a greater
certainty
as to the
productive employment of
company workers
and a greater
contribution to the country’s communications
and electricity
services.
Ø
Besides
ACINOX, the Capital
Goods (GBK),
Consumer Goods
(GBC)
and Refrigeration
and Boiler
Goods (RC)
industrial groups
and other
Cuban companies
are facing
technology
constraints since
they cannot
use programs like
VmWare which
are necessary
to virtualize
servers
in computer
networks.
Ø
Also,
Cuban
economic
and scientific
entities cannot
use the sourceforge.net
site, a free
software development
platform
acting as a source code repository
for
program downloads.
Ø
In the
communications
sector,
damages
are being
estimated at USD 44.2
million
as it is impossible
to buy US equipment
or others including US
components and to access
the US
market. The ban
on carrying
out operations
through US
banks,
among
other reasons, is
also damaging.
Moreover, Cuba
must allocate
important resources to protect
its radio-electronic
spectrum. Anti-Cuban
broadcasts over 30 radio
and TV frequencies
originated
in the United
States took a total of 2,400
hours
per week.
The aggression
against
Cuba in this
area violates,
among others,
the international
regulations
governing
the
use of
the radio-
electric
spectrum
in the
International Radiocommunications
Covenant,
of which
the
Government
of the
United
States
is a signatory.
Ø
Many damages are
reported
in the
area of
energy
and mining.
The ban
on exports
to the United
States of
any product containing
Cuban nickel
has forced
the creation of
more costly distribution
channels and
other palliative
measures for trading
Cuban nickel and
cobalt
products. Damages
to nickel exports
are estimated at USD
51.7 million.
Ø
The Cuban
oil
and gas
industry
is the
target of
measures designed
by the US Government to
prevent its development
and access
to cutting-edge
technologies,
oil
products
and the funding
required
for its
growth.
There
is an effort to
paralyze
the industry
and obstruct
modernization, technological
updating, access
to spare
parts and participation
in the innovation process.
The ban
on US companies
or affiliates
to provide oil
or oil
industry-related
services to
Cuba
is an
additional
pressure on
the national
industry.
Mergers, purchases and
procurements normally undertaken
between
international oil companies
often lead
to the
removal of
suppliers
from
the Cuban market.
Ø
The blockade
damaged all
spheres
in the transportation
sector
(maritime,
air
and land;
port and
airport
services; development
and maintenance
of roads
and highways.)
The inflicted
damages are estimated at USD
469.3 million.
Ø
Civil Aeronautics
of Cuba
alone
estimates the
economic damages
at
USD
274.2
million,
mainly as
unearned income
resulting from
the ban
on Cuban
airlines
to
operate
in the US market
and the impossibility
of providing
services to
US travelers
who visit
Cuba and
of acquiring
cutting-edge
technologies,
equipment
and other inputs.
Ø
In the
case of
the National
Hydraulic
Resources
Institute, the
CUBAHIDRÁULICA
importing company
has sustained losses
of USD
2.2 million
because it had to
find other markets
to import
from.
Ø
In the
area of
insurance, the
blockade’s
impact is
significant,
essentially
for the
process
of buying
reinsurance
protection for Cuban
insurance portfolios
done by ESICUBA
S.A.
The sugar
industry sector
continues
facing the
ban on
its access to
the US
market for
sugar exports
since the
Cuban sugar quota
was totally
suspended. The
CUBAZUCAR company,
which markets Cuban sugar, is estimating unearned
income at
USD 22
million.
CHAPTER 5. Opposition
to the genocidal
blockade
policy
against Cuba
5.1 Opposition
in the
United
States
Many US celebrities and
organizations
are increasingly
calling for a lifting
of the
blockade
against
Cuba, as illustrated
by the following examples:
On April
24, 2013,
Rep.
Kathy
Castor (D-FL)
sent a letter to President
Obama urging
the Administration
to change
its Cuba
policies, to remove Cuba
from the list
of States sponsoring
terrorism and to
create conditions
for the
normalization
of bilateral
relations
between
the two countries.
On April
6,
2013,
the Baptist
Alliance,
a religious
organization
headquartered in Greenville,
South Carolina,
published a declaration
calling for a
lifting
of the
blockade
against
Cuba
and removing the
island
from
the list
of countries sponsoring
terrorism. The petition
was published on the
http://www.lawg.org/
website.
On March
25, 2013,
the office
of Rep.
Sam
Farr (D-CA)
circulated
in the House
of Representatives
a letter
addressed
to President
Obama about the freedom
of traveling
to Cuba
so as to gain support
from congressmen towards
this issue. The text
urges President
Obama to
adopt
the necessary
measures so that trips
to Cuba by
US citizens
can be carried out under a general
license.
On March 22,
2013,
during
the “Getting
Closer
to Cuba:
Good for
Tampa, Good for Florida,
Good for the USA” Conference
organized
in Tampa by the Alliance
for a Responsible
Policy towards Cuba,
Rep.
Kathy
Castor
(D-FL)
stated that restrictions imposed
by the US
on trips and business
made no sense. She
also emphasized
there is no evidence that Cuba
is sponsoring
terrorism. On
February
27, 2013,
Rep.
Charles
Rangel,
a Democrat
from
New York,
presented three draft
legislations
aimed at changing
the policy
towards
Cuba:
H.R.871 Export
Freedom to
Cuba
Act of
2013,
H.R.872 Free
Trade
with
Cuba
Act, and H.R.873
Promoting American
Agricultural
and Medical Exports
to Cuba
Act of
2013. These
initiatives
proposed authorizing trips
by US citizens
to Cuba,
revoking the
blockade
laws,
removing
Cuba
from
the list
of States sponsoring
terrorism and
authorizing
direct
transfers
between
the banking
institutions
of both countries, among
other provisions.
On February
24, 2013,
during
an interview
on CNN’s
State of the Union,
Sen. Patrick
Leahy
(D-VT) stated the
convenience
of resolving
matters of interest
to both nations
such as
the
blockade and
freedom of travel.
On February
21, 2013, during
an interview on CNN’s
Starting Point,
Rep.
James McGovern (D-MA)
urged his
government
to formally and directly
negotiate with
Cuba on a wide range of
issues,
including
travel restrictions
and the “economic
embargo.”
On February
20, 2013,
the Cuban
Studies
Group
(CSG) published
a document
entitled
“Reestablishing
executive
authority on US policy
towards
Cuba” where
it described the Helms-Burton
Act as a “failed,
outmoded and counterproductive
policy.”
It proposes its repealing
and that of
all related
regulations.
The Group also
recommends
various actions
substantially
modifying
the blockade.
On January 24, 2013,
Peter Kornbluh,
head of the Documentation
on the Cuba
Program of the National
Security Archives published
an article
in The
Nation
magazine
with
recommendations
for President
Obama. These
included
the elimination
of the
blockade
and expanding
the categories
of US citizens
authorized to
visit Cuba under
a general license.
On January
17, 2013,
academic Ted
Piccone
of the
Brookings
Institution published
a “memorandum”
addressed to
President
Obama with
recommendations
to change
the policy
towards
Cuba,
including the
lifting of the “embargo.”
On January
16, 2013,
The Washington
Post
published in
its “Opinion”
column
a
commentary by
National
Council
for Foreign
Trade Vice President
Jake Colvin stating
that
the opinion of
former Senator
Check Hagel
in favor
of lifting
the blockade
against
Cuba is shared
by most Americans
who recognize
the failure
of the blockade
as a means
to change the Cuban
political system.
On January
9, 2013,
the religious
organization Church
World Service,
through its president
and Rev.
John L. McCullough,
urged the
Obama Government
to continue
facilitating trips
to Cuba
by religious
organizations,
to eliminate
all
obstacles for
US citizens and to
adopt policies and actions
that would lower
tensions between
both governments.
On October
25, 2012, The
Tampa
Bay Times
newspaper
published an editorial
criticizing
Sen.
Marco Rubio
for promoting
impediments
to “people-to-people”
contacts and it
urged the
US Government
to eliminate
the blockade,
ignore questionings
by the Miami
extremists,
eliminate
all obstacles
to trips
and reduce OFAC´s unchecked
power.
On October
18, 2012, The Los
Angeles Times
newspaper published
an editorial
calling on
the US
Government to
eliminate
“antiquated Cold
War policies”
such as the
“archaic” blockade
against
Cuba.
On September
6, 2012,
the AP
and DPA
press agencies
reported that former
President
James Carter
spoke at the
annual meeting
of the
Latin American
Development
Bank in
favor of
normalizing
relations
between Cuba
and the United
States and of lifting
the blockade
as it was
harming
the people
of Cuba
and
harming US credibility.
On September
5, 2012,
Rev.
and Dr. Joan Brown
Campbell
sent a letter
to President
Obama urging
for the
lifting
of the
blockade and the
release
of the
Cuban Five,
who are
being held in US
jails
for fighting
terrorism
carried out
from the US against
the island.
On August 31, 2012,
members of the executive
committees of the Cuban-Americans
for Exchanges
(C.A.F.E) organizations
and the Foundation
for Normalizing
US-Cuba
Relations sent
a letter
to the National
Republican and Democratic
Committees
urging
them to stop
treating
the Cuban
community as
a monolithic
block
favoring the blockade
since
most of
them are
supporting
the normalization
of relations
between
the two countries.
They stated their
support
to government
measures that have facilitated family
reunification,
trips
and the sending
of remittances
and expressed their
wish that
the US government allows
US citizens to visit Cuba
also.
On May 10, 2012,
participants
in an event at the Washington
D.C.- based
International
Policy
Center questioned
the effects
of the blockade
to the
oil
sector
and insisted on
the need
to establish
a cooperation
mechanism between
Cuba
and the
US which
allows for efficient
cooperation between
the two sides.
5.2 International
opposition
to
the
blockade
Opposition
to the
inhuman policy
against the
Cuban people
is overwhelming
in the international
context,
as shown
by the countless
forums that are
adopting
declarations
and special
communiqués
in
favor of a
cease of such
policy.
For the
period
covered
by this Report,
the following
examples
may be given:
Ø
At the
Twenty-First
Summit
of the
African Union
held
in Addis
Ababa
on
May 25-27, 2013,
the participating
Heads of
State and Government
adopted the
Assembly/AU//Res.1
(XXI) Resolution
making a
strong
call for
the lifting
of the
economic
and commercial
blockade
against
Cuba.
Ø
On May 16, 2013, the Central
Europe-Third
World organizations,
the International
Association
of Democratic
Lawyers
and the
American Jurist
Association
circulated
A/HRC/23/NGO/16,
a document
within
the framework
of the
twenty-third period
of sessions
of the Human Rights
Council that
contains
a joint
declaration
denouncing
the economic
blockade
against
Cuba
and they request
the Human
Rights
Council to
establish
a special
procedure
about
coercive unilateral
measures.
Ø
On May
1st,
2013,
during
the presentation
by Cuba
to the Human
Rights
Council’s
Universal Periodic
Review
Working Group,
22 delegations
criticized the US blockade
against
Cuba
and referred
to it as
an obstacle
for
realizing
human rights on the
Island.
Ø
The Declaration
adopted at the
Fifth
Summit
of Heads
of State and/or
Government of the Caribbean
States Association
held
in Pétion
Ville,
Haiti, on
April
23-26,
2013 called
for the end of
the economic,
commercial
and financial
blockade against
Cuba.
Ø
The Final
Declaration
of the
Tenth
Political
Council
of the Bolivarian
Alliance
for
the Peoples
of Our
America (ALBA-
TCP) held
in Caracas
on February
28, 2013 condemned
the continuation of
the US blockade
against Cuba.
Ø
The Third Summit
of Heads
of State and Government
of Africa and South
America (ASA) held
in Malabo,
Equatorial
Guinea,
on February
20-23, 2013
adopted the Malabo Declaration,
whose
Paragraph 27
calls
for the implementation
of Resolution
67/4 of the United
Nations
General Assembly entitled
“Necessity
of ending
the economic,
commercial
and financial
blockade imposed
by the
United
States against
Cuba.”
Ø
The First
Summit
of the
Community
of Latin
American and
Caribbean
States held
in Santiago
de Chile
on
January
28,
2013
adopted
a special
communiqué
strongly
condemning
the blockade policy against
Cuba.
Ø
The
First
CELAC-European
Union
Summit held
in Santiago
de Chile on
January
26-27,
2013 approved
the “Santiago
Declaration”
on the new CELAC-European
Union
dialogue. Paragraph
6 of
that document
rejects
coercive
unilateral
measures which are
contrary to international
law and reaffirms
the positions of both
blocs
on the extraterritorial
provisions
of the Helms-Burton
Act.
Ø
The Bolivarian
Alliance for the Peoples
of Our America (ALBA-TCP)
issued
a declaration
on the
occasion
of the Seventh
Anniversary
of the
Alliance,
held in Caracas
on December
15, 2012,
where its
member countries condemned the
criminal economic,
commercial and
financial blockade being
kept
in place by the United
States against the people
of Cuba.
Ø
The Seventh
Summit
of Heads
of State
and
Government of the
Asia-Caribbean-Pacific
(ACP) Group
held
in Equatorial
Guinea on
December
13-14,
2012
adopted the
Sipopo Declaration,
which
also condemned
coercive unilateral
measures contrary to international
law and rejected the
Helms-Burton
Act.
Ø
On November
26, 2012, the
Bolivarian
Alliance
for the Peoples
of Our America
(ALBA-TCP)
issued a Communiqué
rejecting the
inclusion
of Cuba
in the
list
of States
sponsoring
terrorism and also
condemned
the enforcement
of the blockade
against
Cuba.
Ø
The Twenty-Second
Ibero-American Summit
of Heads of
State and
Government held
in Cadiz
(Spain)
on November
16-17, 2012
passed a Special
Communiqué
on the necessity
of ending
the economic,
commercial and
financial
blockade imposed by
the Government
of the
United
States of
America on
Cuba,
including
the Helms-Burton
Act. It restates
“the strongest
rejection of
the enforcement
of laws
and measures contrary to
international
law
like the
Helms-Burton
Act and calls
upon the
US Government
to end
its enforcement.”
Said
communiqué
urges “the
Government
of the United
States to comply with
provisions
in 20
successive
resolutions
passed by the
United Nations
General Assembly
and to end the
economic,
commercial and
financial blockade
it is
keeping
in place against
Cuba.”
Ø
The United
Nations
General
Assembly,
the most
democratic and
representative body
of the international community,
during another
historic vote
on November
13, 2012
expressed itself unequivocally
against
the blockade
by approving,
188 votes for, 3
against
and 2 abstentions,
the resolution
entitled “Necessity
of ending
the economic,
commercial
and financial
blockade
imposed by the United
States against
Cuba.”
The debate
on the
subject
took place
with
19 delegations in
attendance, including
7 representatives from organizations, coordination
groups and
regional
and sub-regional
organizations:
the Group
of 77
plus
China,
the Non-Aligned
Movement, the
Community
of Latin American
and Caribbean
States (CELAC),
CARICOM, the African
Group, the Organization
of the Islamic Conference
and the Common
Market of
the
South (MERCOSUR.)
Another
17 delegations
explained
their positions
against
the blockade
after the resolution
was adopted.
Ø
The Thirty-Eighth
Ordinary
Meeting of
the Council
of the
Latin American Economic
System (SELA),
which
held a ministerial
session
in the Bolivarian
Republic
of Venezuela,
adopted on October
19, 2012
the Declaration
on “The
end of
the economic,
commercial and financial
blockade of
the United
States against Cuba.”
The text
states that the
economic, commercial and financial
blockade of
the United States against
Cuba violates
International Law and
is contrary to the purposes
and
principles
of the
United
Nations
Charter,
to the regulations
of the
international
trade
system and
to freedom
of navigation.
It also
strongly
condemns
the
enforcement
of any law or
measure contrary to International
Law such as the Helms-Burton
and Torricelli
Acts and calls
upon
the
US government
to end their
enforcement.
Ø
During
the general
debate
of the
Sixty-Seventh
Session
of the United
Nations
General Assembly
in September 2012,
the high-ranking
dignitaries and representatives
of 45 UN member states
explicitly
condemned the blockade
and called
for its end.
Ø
The Heads
of State
and Government
of the
African Union,
meeting in
Addis
Ababa
in Ethiopia
on July
15-19,
2012
in their Nineteenth
Ordinary
Session,
adopted
the Assembly/AU/Res.1
(XIX) resolution, by which
they express their support of
the Cuban Resolution
against the
blockade and
make a call
for
the
end of that policy.
CONCLUSIONS
In
2009,
after becoming
the leader
of the country,
a newly-
inaugurated
President
Obama announced
a new
beginning
with Cuba and stated
his conviction
that
the US-Cuba
relationship could take
another course.
However,
aside
from
what
he stated
then
and later
deceptive rhetoric,
the fact is
that the last
five years
have witnessed
a persistent tightening
of the
economic,
commercial and
financial blockade of the United
States Government
against
Cuba,
particularly
of its
extraterritorial
dimension,
despite
a strong
international
rejection
of such policy.
During this
period,
the persistent
harassment
and obstruction of Cuba’s
international
financial
transactions
has become
the priority
in the
policy
of economic
suffocation which
has been
kept in
place
against
the Cuban people
for over 50 years.
Cuba
reiterates
that maintaining
this policy
is a
massive, flagrant and
systematic
violation
of the
human rights
of an
entire people and
that it qualifies
as an act of genocide
by virtue of the Geneva Convention
of 1948 on the Prevention
and Punishment
of the Crime
of
Genocide;
at the same time,
it violates
the constitutional
rights of
the US
people
since
it detrimental
to their
freedom
of travel to
Cuba and violates
the sovereign
rights of many
other States because
of its extraterritorial
character.
The blockade against
Cuba, based on the failed
notion of
trying
to subdue
an entire
people
by famine,
is an act which
violates
international
law, contradicts
the aims
and principles
of the United Nations
Charter and is a transgression
of the
right to
peace,
development and safety by a
sovereign
State.
As already
stated, the
economic
damages inflicted
on the
Cuban people
since the
beginning
of the enforcement
of the
economic, commercial
and financial blockade
of the
United States
against
Cuba amount
to USD
1,157,327,000,000.00,
taking
into consideration
dollar
depreciation
to the
gold
in the international
market.
The blockade
continues to
be an
absurd,
obsolete,
illegal
and morally
unsustainable
policy which has
not fulfilled,
nor will
it ever fulfill,
the goal of subduing
the patriotic resolve of the Cuban
people
to preserve
their
sovereignty,
independence
and right
to self-determination.
The Government
of the United
States must
immediately
and unconditionally
lift
the blockade.
Cuba
again thanks the
growing backing
of the
international
community
and requests
its
support
so as to put
an end to this unjust,
illegal
and inhuman policy.
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