Automobile sales are another possible opportunity. Shipping companies would make money and generate jobs, particularly in the southern portion of the U. In addition, large and mid-sized businesses and entrepreneurs both on and off the island are likely to identify profitable niche opportunities for everything from seafood to suntan lotion if renewed relations create opportunities.
Just when will all sanctions be lifted and trade relations normalized? Economic ties can be slow to develop, the politics relating to Cuba are complex, and businesses may be cautious about entering into relationships with a country known for nationalizing assets, however long ago.
In the meantime, Cuba's forbidden fruit will continue to tantalize its northern neighbors. International Markets. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.
I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Economics Macroeconomics. Key Takeaways The Cuban embargo remains largely in place six decades after the revolution. The travel ban is riddled with exceptions that permit Americans to visit Cuba. Many international firms do business in Cuba but can't sell those products in the U.
Compare Accounts. Cuba introduced cryptocurrencies to the island to build its economy in currencies untouched by the embargo. The embargo has no control over e-money. No centralized bank controls cryptocurrencies and the U. Therefore, international trade and exports are possible with the use of cryptocurrency.
The Cuban government introduced a resolution that will regulate cryptocurrency use in Cuba. With the implementation of the resolution, Cubans will be able to circumvent the embargo with cryptocurrency legally and in a regulated manner.
Cryptocurrency usage in Cuba re-introduces the potential for foreign trade and easing the burden of paying for imports on which Cuba depends. Cryptocurrencies are excluded from the United States embargo, unlike its peso, and present opportunities to increase trade, re-value Cuban currencies and lessen Cuban poverty. And while economic crises can lead to collective outrage, spontaneous protests against authoritarian regimes usually ends in renewed repression rather than regime change.
Many experts believe that movements for social change are most effective when people and organisations gain the resources that are necessary for sustained political and social activism. Loosening the economic vice grip on Cuba will help to empower its citizens and civil society to stand up to their government.
The administration should be thoughtful about how it rethinks the embargo policy. It need not eliminate the policy all at once, nor should it relent on pressuring Cuba when it comes to democracy or human rights. But being thoughtful should not be an excuse for inaction. For example, rather than dismissing the idea of renewing remittances to Cuba, Biden should seriously explore ways to allow Americans to securely transfer money to their Cuban relatives.
The Kennedy administration imposed the embargo in , three years after Fidel Castro's regime deposed a U. The embargo effectively restricted all trade between the two nations.
After the Castro regime formally aligned itself with the Soviet Union, the U. In , the body voted to require all member nations to impose political and economic sanctions on Cuba. Mexico was the only country that resisted. The OAS lifted those sanctions in , after which countries closely aligned with the U.
As of , Spain, China and Italy were among Cuba's top trading partners. Even some American companies, including Marriott and United Airlines, have done business in Cuba over the past few years, although the Trump administration unraveled several components of the detente pursued by the Obama administration. More: As protests roil Cuba, Biden faces pressure to keep Trump policies despite campaign pledge. But experts say it may have a chilling effect.
In , after the collapse of the Soviet Union, the U.
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