Cuban President Raul Castro Says US Embargo Is ‘Main Obstacle’ To Cuba’s Development

Cuban President Raul Castro Says US Embargo Is 'Main Obstacle' To Cuba's
Development
By Angelo Young @angeloyoung_ a.young@ibtimes.com on September 26 2015
4:47 PM EDT

Cuban President Raul Castro took a swing Saturday at the 55-year-old
American economic blockade of his country, saying it's the "main
obstacle" to his nation's development. While Castro indicated the recent
warming of the diplomatic relations between Havana and Washington is a
welcome step, he said the halting of the embargo would be vital to the
future development of the Caribbean country.

"Such a policy is rejected by 188 United Nations member-states that
demand its removal," Castro said in a speech at a U.N. development
summit in New York. He also will address the U.N. General Assembly
Monday, a few hours after U.S. President Barack Obama delivers his own
speech.

The U.N. General Assembly has approved a resolution calling on the U.S.
to lift its crippling commercial, economic and financial embargo on Cuba
for 32 consecutive years. Despite this widespread international
consensus, Congress has voted on several occasions to strengthen the
embargo put in place in 1960 after Cuba's Communist government
appropriated American-owned assets such as crude-oil refineries in the
wake of the Cuban Revolution.

Cuba claims the embargo has cost the country about $121 billion in
economic damages.

During Castro's speech Saturday, he called on developed countries to do
more to accept responsibilities for the debt issues faced by many
developing nations.

Most of Cuba's economic activity is hobbled by the U.S. embargo, which
can only be scrapped with Congress' backing. Under the embargo, the U.S.
can under certain circumstances punish foreign companies doing business
in Cuba that also have American investments. Because so many global
firms have significant U.S.-based assets, they fear retaliation over
doing business in Cuba.

Politically, U.S. lawmakers have been emboldened by Cuban exiles in
Florida, a key swing state, to take a hard stance against Havana. In
1996, Democratic President Bill Clinton signed the Republican-sponsored
Helms-Burton Act, which strengthened the embargo.

Late last year, however, Obama began carrying out a series of executive
actions to boost ties between the American and Cuban governments. These
actions have encompassed reopening Washington's embassy in Havana and,
more recently, doing away with restrictions on some business activity,
economic transactions and travel. Obama's strategy is aimed at forcing
Cuba to accept reforms, such as allowing U.S. technology companies to
invest in the country now that it's legal, and at urging Congress to
lift the embargo.

The death of the embargo would spark a rapid chain of events. Cuba would
act to reform its monetary system -- the country has two currencies, one
pegged to the U.S. dollar and another that isn't -- so it could approach
the International Monetary Fund and World Bank for access to development
loans to build much-needed infrastructure.

Cuba's tourism industry would see immense investments, and the country
would expand its already established medical-device and pharmaceutical
industries. It also would see profound changes in its agricultural
sector by spurring investment and exports.

Source: Cuban President Raul Castro Says US Embargo Is 'Main Obstacle'
To Cuba's Development -
http://www.ibtimes.com/cuban-president-raul-castro-says-us-embargo-main-obstacle-cubas-development-2115600