America's Cuban Conundrum



America's Cuban Conundrum

Analysis of key issue that caused EU to take Helms-Burton dispute to WTO

The move of the U.S. government which aroused a lot of anger was regarding imposition of its views on economies of other countries, and specifically, it was the Cuban Liberty and Democratic Solidarity Act of 1996, which was also called the Helms-Burton Act (Jackson, 1997). This act was signed and made into effect by law in the year 1996, when two light planes were downed by the Cuban Air Force, as they were being flown by anti-Castro organization's members from the United States.

There was a need to take the Helms-Burton issue to WTO because it did several things. It froze the 35 embargo which was imposed by United States against investing in and trading with Cuba, which applied not just to the firms in the U.S. but also to firms overseas which were owned by people based in U.S (Jackson, 1997). It also initiated trafficking of third country companies in properties of Cuba which were previously owned by people from U.S., to suits that resulted in damages that were worth the trade value of property which was previously in the possession of plaintiffs. Whereas the damages were supposed to be equal to the value of trade which was conducted by the defendants. Moreover, the shareholders and their families that were from companies which were trafficked in property previously owned by Americans, were supposed to leave the United States.

Before the bill was accepted, the Canadian, European and Mexican Officials had placed emphasis on the fact that the United States was trying to exercise its jurisdiction unlawfully extraterritorially, and it was proving to be a threat for punishing activities that were lawful, such as investment, trade and tourism, which was carried out by residents of other countries such as Great Britain or Canada with Cuba which was an independent country (Jackson, 1997). Then, the provision of Helms-Burton was suspended for six months as it was authorized suits against the traffickers that were in the United States, by the previous owners. However, the Europeans felt that the suspension was not good. To them, the threat of such kind of suits was like a sword that created a disincentive when it came to relationships related to long-term trading or investments. Therefore the European Union decided to take the case to the World Trade Organization for the ...