Effects of the US Blockade on Foreign Trade Policy of Strangulation with Third Party Damage

October 13th, 2010



Raking through the rubbish to get something out of it is not a practice exclusive to scavengers. To feed meanness with deceits and selfishness on manipulations is a repeated vice among the kings of the evolutionary chain, who often use the faculty of reason forged by centuries of history to satisfy their darkest and most primitive ambitions.

one of the enterprises most hit by the us blockade is CONSUMIMPORT, which this year suffered a 1 900 000 Dollar loss, LIMITAtions that have a bearing on sectors as significant as sports, health and educatioN.

Thus, those who brandish against the system chosen by Cubans the argument of an underdeveloped economy with limitations and obstacles to finally be able to embark on the longed-for path of continuous growth, don’t say nothing about the tripping up of the US on Cuba on its road to well-being.

In terms of foreign trade only, from April 2009 to March 2010 there were losses worth 155 500 000 dollars at a business level, derived from the economic, commercial and financial blockade imposed on the island for over five decades now.

Part of these losses is related to the impossibility of accessing the US market directly. This forces the country to look for intermediaries or to weigh up offers of faraway markets, which entails a logical increase in prices.

For this reason, the CONSUMIMPORT enterprise, the imports of which are destined to the health, education and sports sectors, registered a loss of 1 900 000 dollars, since it was left no alternative but to purchase through third markets or intermediaries.

Previously, the entity had made a list of US subsidiary companies producing electrical, sports and office goods, to which it sent purchasing requests without receiving any answer -the Cooper Wiring Devices, Office Furniture USA and UCS INC. among them.

Also, for not having access to the New York preferential and futures market, Cuba had no participation in the sugar imports made by the United States, which, according to the Economic Research Service of that country’s Agriculture Ministry, reached 3 082 000 metric tons in the period under analysis. Taking into account current production and export volumes, we had a loss of 49 000 000 dollars.

In the same way the Union of Beverages and Drinks had to purchase rum-aging barrels in European markets, for which it had to pay 284 700 additional dollars.

Due to the impossibility of taking Cuban beverages to the US market, particularly the Havana Club leader brand, at least 2 200 000 cases of rum could not be sold, which represents approximately an 87 300 000 dollar loss.

The need of resorting to other currencies for commercial exchange as a result of the prohibition of using dollars also causes an increase in costs, due to exchange rates and their variations.

Among the many negative effects of the US blockade on the external sector of Cuban economy we also find the increase of financing costs, due to the so-called “risk country.”

For this concept, and because of bank and financial costs and forms of payment, the food importing enterprise ALIMPORT registered a loss of 102 900 000 dollars.

Such amount would have made it possible to purchase, at 2008 average prices, 337 000 tons of wheat, 451 000 of corn or 109 000 of chicken.

The US measures, aimed at obstructing the island’s insertion in international markets and at hindering its purchasing negotiations, affect not only Cuban interests.

To limit Cuba’s exchanges with other economies of the world also infringes the sovereign right of every nation to market with whoever it estimates; it bans, despotically, the opportunity to find in Cuba consuming or supplying enterprises that could be of interest.

The US attacks against the island in the field of foreign trade are hardly one section of the policy of strangulation against the Cuban Revolution, which in 50 years hasn’t been able to achieve its top objective: crushing our spirit.

Granma Daily


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