Embargo's impact slight, report says
Cuba's trade seen as limited by own politics
BY KEN GUGGENHEIM
Associated Press
WASHINGTON -- U.S. sanctions on Cuba have cost Americans less
than $1
billion a year in exports and have had a similarly minimal impact
on the
communist island, according to the most comprehensive federal
study ever of the
embargo's impact.
The International Trade Commission report, sent Thursday to the
House Ways
and Means Committee but not released publicly, could provide
fodder to those on
both sides of the debate over lifting the 39-year-old trade embargo.
An executive
summary was obtained by the Associated Press.
Supporters of the embargo can say the report boosts their argument
that U.S.
businesses are losing relatively few trade opportunities because
of the sanctions
and that lifting the sanctions would do little to boost Cuba's
weak economy and
poor living conditions.
``U.S. economic sanctions with respect to Cuba generally had a
minimal overall
historical impact'' on the Cuban and U.S. economies, it said.
Even without sanctions, Cuba's own policies would limit trade, the analysts said.
``Cuba . . . tends to select its trade and investment partners
based on political
considerations -- the desire to maintain economic ties with existing
partners and
to avoid becoming economically dependent on a single country
-- rather than
economic cost factors,'' the report said.
But opponents can point to specific instances where the sanctions
have cost the
United States trade opportunities -- most notably rice, where
U.S. export losses
have been ``significant.''
RICE IMPORTS
The sanctions cost U.S. rice growers what had been their leading
market from
1955-58. Without sanctions, U.S. rice imports could have increased
by 3 percent
to 5 percent a year, the report said.
And the study noted that an estimated 1 million U.S. tourists
would visit Cuba
each year if the sanctions were lifted -- which could benefit
U.S. travel businesses
that book the trips, along with the Cuban economy.
Overall, the report estimates the United States would have gained
$652 million to
$990 million a year in exports if the sanctions had been lifted.
Cuba would have
gained $84 million to $167 million a year.
In contrast, U.S. companies export more than four times that amount
with the
Dominican Republic, a smaller Caribbean country.
EXILE REACTION
``I think the ITC basically established what we've been saying
all along, which is
that there's a minimal impact on U.S. business of the sanctions,''
said Dennis
Hays, executive vice president of the Cuban-American National
Foundation.
The study by the independent, nonpartisan agency is believed to
be the first
objective attempt by the U.S. government to study the economic
effects of
sanctions imposed by President John F. Kennedy to pressure democratic
changes in Fidel Castro's communist Cuba.
Pressure has slowly grown in Congress to lift the sanctions, with
some farm-state
Republicans joining liberal Democrats in arguing that sanctions
are ineffective and
have hurt both Cubans and Americans. But President Bush has said
he favors
maintaining the sanctions.
TOOK NO SIDES
The study did not make a recommendation about whether the embargo
should be
continued.
Sen. Max Baucus, D-Mont., who last year unsuccessfully proposed
easing the
sanctions, plans to offer a similar proposal again this year.
``U.S. policy-makers need to take a long hard look at our policy
-- one that is
more than 10 years out of date,'' Baucus spokesman Michael Siegel
said. ``It only
serves to hurt the Cuban people and punish U.S. businesses and
it should be
repealed.''
John Kavulich, president of the U.S.-Cuba Trade and Economic Council,
said the
study's conclusions on the embargo's impact can be viewed from
different
perspectives: from those who looking at the sanctions' effect
on the two nations'
economies and those who consider how individual businesses may
be affected.
``For some it's not significant. For others it will be and they'll
both have a
legitimate point,'' he said.