President Donald Trump’s announcement in Miami on Friday that he will roll back the Obama administration’s U.S.-Cuba trade policies has left many industry groups in a sour mood.
President Donald Trump on Friday announced he will roll back several of the Obama administration’s U.S.-Cuba trade policies, a move that has left many industry groups in a sour mood.
The American Soybean Association called the decision “troubling,” arguing that “as the farm economy continues to lag, we should be increasing our opportunities, not limiting them.”
“This decision has put in jeopardy the progress we’ve seen to date in Cuba, and stifles our future success in that market by limiting our ability to create normal business and trade relationships with importers in Cuba, just like we do with almost every other nation. These include normal banking, credit, and market development relationships,” John Heisdorffer, ASA’s vice president, said in a statement.
“For us to continue developing and expanding upcoming markets like Cuba, we need a progressive attitude from the White House on trade, not a knee-jerk reaction to what a previous administration has done,” he added.
Trump’s executive order essentially effects travel from the United States to Cuba and takes aim at business transactions with Cuban government-owned entities.
“The previous administration’s easing of restrictions on travel and trade does not help the Cuban people – they only enrich the Cuban regime,” Trump told a crowd in Miami. “The profits from investment and tourism flow directly to the military. The regime takes the money and owns the industry. The outcome of the last administration’s executive action has been only more repression and a move to crush the peaceful, democratic movement. Therefore, effective immediately, I am canceling the last administration’s completely one-sided deal with Cuba.”
U.S. industry groups said the Cuban regime in the long term will be forced to change politically, as well as economically, through continued business engagement with the Caribbean country.
“We are disappointed that the administration has decided to limit Americans’ ability to engage in Cuba,” said Richard Sawaya, USA*Engage vice president. “It should be the policy of our government to facilitate their engagement in Cuba to the maximum extent possible rather than limit their freedom.”
“Caterpillar believes that engagement with Cuba continues to represent a strong opportunity, not just for American businesses, but to serve as a powerful tool for change. We will continue to work closely with policymakers on the best way to accomplish these goals,” the earthmoving equipment manufacturer said in a statement.
On June 1, a coalition of business groups, economists and Cuba experts, known as Engage Cuba, released an economic impact analysis estimating that a reversal of Cuba policies would cost the U.S. economy $6.6 billion and affect 12,295 American jobs over the course of the first term of the Trump administration.
Since Dec. 17, 2014, the Obama administration issued six rounds of regulatory changes that eased travel and trade restrictions on Cuba.
According to Engage Cuba, U.S. travel to Cuba has “skyrocketed” since then. The report noted that seven U.S. airlines now fly direct to Cuba and three cruise lines have reached deals with the island nation as well. American travel giants like Airbnb, Expedia and TripAdvisor provide services in Cuba, but it’s still unclear how Trump’s executive order will affect the progress of these businesses in Cuba.
Trump’s changes to U.S.-Cuba relations roil industry
