CUBA SANCTIONS COST U.S. INDUSTRY UP TO $1 BILLION IN TRADE ANNUALLY

CUBA SANCTIONS COST U.S. INDUSTRY UP TO $1 BILLION IN TRADE ANNUALLY    A recent study by the International Trade Commission found that sanctions against Cuba cost U.S. industry $1 billion a year in lost export sales.
   The study, The Economic Impact of U.S. Sanctions with Respect to Cuba, was prepared by the ITC for the House Ways and Means Committee. It provides a comprehensive overview of the impact of U.S. sanctions against Cuba, the Cuban economy, and trade and investments in Cuba. Thirty-four U.S. and Cuban economic sectors were considered in the report, such as maritime and air transport, banking, insurance, and agricultural and manufactured products.
   “U.S. economic sanctions with respect to Cuba generally had a minimal overall historical impact on the Cuban economy,” the ITC said. “Cuba adjusted quickly to U.S. economic sanctions through political and economic alliance with the Soviet bloc countries.”
   However, the Cuban economy suffered after 1990 when the Soviet Union collapsed. “The loss of Soviet assistance eventually forced Cuba to introduce economic reforms to attract foreign investment and selective economic liberalization to stimulate domestic production,” the ITC said. “Currently, sanctions force Cuba to source some products that could be supplied by the United States from distant trading partners at higher transportation costs.”
   The ITC said that some U.S. industries, such as rice and wheat, could benefit from increased exports to Cuba if the sanctions are dropped. The agency also found that some U.S. industries, such as citrus and winter vegetables, may face increased competition from imports from Cuba.
   The report (Inv. No. 332-413, USITC Publication No. 3398, February 2001) may be viewed on the agency’s Web site: https://www.usitc.gov.