Transcript theembargofinalpaperjessicagalanx

The United States
Embargo against Cuba
Jessica Galan
ID: 092SIS12
Introduction
1960
•Cuba Government enacted The Agrarian Reform Law which
nationalized all companies and lands property from U.S that were
located in the island.
1961
•Diplomatic Relationships between Cuba & U.S. were broken
1962
•Washington responded by imposign a commercial, economic and
financial embargo against Cuba that began on February 07, 1962
1972
• Cuba signed agreements with the USSR that guaranteed the
Soviet financial assistance, the commercial development between
both countries.
1979
•President Jimmy Carter removed the restriction for Americans to
travel to Cuba and some restrictions were diminished.
1982
•Ronald Reagan turned to tighten the measures against Cuba
90’s
•Collapse of the USSR, the aid and commercial subsidies from the
Soviet block to Cuba were finished .
•The U.S. tightened more the sanctions against Cuba including laws
such as the Torricelli Act and the Helms Burton Ac
Now with 47 years in effect, the embargo became the oldest in our era
Objective
 This analysis aims to focus on the
main barriers and arguments that
have led to worsening the embargo
against Cuba.
 With negotiation tools, it will be
examined the availability that both
countries
have
to
reach
an
agreement.
 Finally this paper will expose the
events that could help to suggest
how to achieve a better negotiation.
Positions
Cuba:
− Hard Position: Through the Agrarian Reform Act. The
State appropriated of lands and companies that belonged
to U.S. That’s why Castro’s position is to demonstrate
that the communist system is more powerful.
United States:
Hard Position: The U.S government deepens the embargo by
enacting 2 laws :
•"Torricelli Act" that imposes sanctions to discourage third
countries to have commercial and financial relationships with
Cuba.
• “Helms-Burton Act” That imposes sanctions to penalize
companies that have trading relations with other companies
located on the island.
Positions
The U.S. on having implemented
The "Torricelli Act” and “HelmsBurton Act” linking its position
with a Salami strategy as a form to
close the trade ways to Cuba with
the articles that this laws are
demanding. (Wiggins & Lowry, 2005, p.71)
Interests
Cuba:
− Little interest towards lifting the embargo. Castro is
interested in continuing at the helm of Cuba, to be against
of the capitalism and the liberalism, that’s why he has
not demonstrated a real interest in lifting the embargo.
United States:
- The Cuban government must legalize all the political activities,
ensure free elections, guarantee independent justice system, allow
private media and telecommunications companies, deliver up
lands and firms that belonged to the United States, respect the
human rights of the population and end dictatorship through the
democracy.
BATNA
Cuba:
- Keep the properties that belonged to US. Fidel Castro
can negotiate on the properties or deliver them, so that
US might lift the embargo.
United States:
-Torricelli and Helms-Burton laws. With both U.S. is based its
tactic on the power of legitimacy because if CUBA obeys the
conditions the U.S. can lift the embargo and probably they might
dissolve the laws.
Prisoner’s Dilemma Game
(Malaret, 2007, p. 78)
CUBA
Cooperate
No Cooperate
Win
Win
Cooperate
UNITED
STATES
Win
Lose
Lose
Lose
No Cooperate
Win
Lose
Source: (Malaret, 2007, p. 78)
I told you U.S.. I
don’t Want To play!
Jujitsu
Negotiation
Owing to both parties utilize a dominant
strategy, both parties do not want to play
because they want to maintain their
negative position.
United States through different laws are
punishing Cuba, and this country refuses
to cooperate by maintaining its actual
position in order to continue with its
economic system instead of allowing a
free market.
Me too… I don’t
want to play
How to achieve better
Negotiation ?
Benefits for the U.S. Economy to lift
the embargo against Cuba

A research conducted by the Cuba
Policy Foundation shows that U.S.
farmers lose $1.24 billion each year
due to the embargo. (Maness, 2003)

However if the embargo is lifted the
United
States
might
receipt
additionally $ 1.6 billion in U.S. GDP,
$ 2.8 billion in sales and 31,262 jobs.
(Maness, 2003)

The Trade Sanctions and Export
Reform Act of 2000 allow cash sales
on agricultural products in the United
States and during 2003 Cuba was
capable to purchased about $ 200
million in U.S. food and agricultural
products. (Maness, 2003)
Source: http://www.ncpa.org/pub/ba427/
Some Benefits to Cuba so as to lift
the embargo by cooperation with
U.S.
 Cuba might increase its exports to begin
selling its products with U.S. businessmen.
(Ministry of Foreign Trade, 1995, p.6)
• Cuba might obtain credit to pay for U.S.
imports. (Ministry of Foreign Trade, 1995, p. 7)
•
Cuba might get U.S. tourism which could help to receive foreign exchange
income for the development on its economy. (Ministry of Foreign Trade, 1995, p. 7)
•
Cuba might use the dollar currency to make transactions in the
international market, because at present its payments or chasings in this
currency are confiscated. (Ministry of Foreign Trade, 1995, p. 7)
•
Cuba might begin international trade with other countries.
Trade, 1995, p. 7)
(Ministry of Foreign
Integrative
Bargaining
(Wiggins & Lowry, 2005, p.107)

U.S step by step might go towards the softening of the
sanctions using an Integrative Bargaining that would
identify the main interests of each country and showing
different alternatives and mutual benefits for the
agreements.

U.S. might measure the results of Cuba commitments
and be yielding a little more.

U.S. might try to induce changes in Cuban behavior by
positive reinforcement.

U.S. within its strategy might incorporate the tactics of
“moving toward commitment gradually” since it will
allow to be improving the relations with Cuba based on
results and commitments.
Integrative Bargaining
(Wiggins & Lowry, 2005, p.107)


May be President Obama is
already giving the first positive
steps to modify the sanctions
because he has promised make
changes to the sanctions and to
facilitate conditions to do business
in agriculture and
telecommunications.
President Obama mentioned his good intention to be more
flexible regarding traveling between Cuba and the U.S.
 Only if U.S demonstrates its willingness to cooperate softening
the restrictions, Cuba might guarantee the respect to the human
rights in the island.
Conclusion
 A negotiation can be achieved only through
cooperation because each objectives and
interests of the parties can be satisfied
partially and I think that a change of a
regimen by the Cuban government perhaps
is not the best way to the cooperation, it
would be desirable to find other areas for
understanding otherwise the embargo would
remain in effect forever
I want my Cuba
free of the
embargo!!!