President Donald Trump on May 1 issued an executive order imposing yet another round of new sanctions again Cuba. This latest set of restrictions apply to foreign persons and entities, including financial institutions, not only to Cuba or its government officials. The introduction to Trump’s order states that Cuba constitutes “an unusual and extraordinary threat, which has its source in whole or substantial part outside the United States.”
Those targeted by the sanctions will lose “all property and interests in property that are in the United States” and will not be allowed to enter the U.S. The sanctions apply also to persons or entities who themselves “provide support for or are in contact with” the directly-sanctioned parties. No one will receive advance notice when sanctions on the way.
One significance of these new U.S. sanctions lies in the fear that is unleashed, including fear engulfing persons or entities accused only of associating with only the directly-targeted persons or entities. Of prime importance is the extraterritorial application of these sanctions—meaning extension to countries other than Cuba and the U.S.
The executive order hits at:
- Those who “have operated in the energy, defense and related materiel, metals and mining, financial services, or security sector of the Cuban economy.”
- Parties “owned, controlled, or directed by, or to have acted or purported to act for or on behalf of, directly or indirectly, the Government of Cuba.”
- Those who have “materially assisted” or provided “support for, or goods or services to…the Government of Cuba.”
- Those who have served Cuba’s government in a leadership capacity, or are implicated in “serious human rights abuse in Cuba,” or are “engaged in corruption…related to Cuba,” or are “an adult family member” of someone who is sanctioned.
The new regimen also prohibits foreign financial institutions from transferring funds to a U.S. bank account serving activities and interests in Cuba.
The U.S. State Department on May 7 announced implementation of the sanctions and named Canada’s Sherritt Corporation as an offender for its nickel and cobalt mining facilities operated as a joint venture with Cuba’s government in Moa, in eastern Cuba.
According to a statement from Sherritt issued in response, “The mere issuance of the executive order itself creates conditions that materially alter the corporation’s ability to operate in the ordinary course.” Three directors of the company resigned, and stock market shares fell 30%.
The State Department announcement also indicated that the umbrella business group known as GAESA (from its Spanish language initials) had been sanctioned. The large conglomerate controlled by Cuba’s army operates in the tourist, financial, and import-export sectors of Cuba’s economy. The State Department accused GAESA of financial corruption and specifically sanctioned Ania Guillermina Lastres, the GAESA executive president.
Cuban observer Luis Enrique Pérez on May 5 warned of “an immediate impact on the daily lives of Cubans by limiting access to basic resources.” He indicated “these measures could prevent everything from reaching Cuba—from a part for a thermoelectric plant or a solar panel to a life-saving medication for a child.”
He highlighted the danger of isolation:
“Through intimidation, third countries, banks, and international companies avoid any relationship with the island.… For the first time, measures are being applied against third countries, companies, or individuals with ties to Cuba that have no connection to the U.S. economy.… Third-country banks that do business with Cuban entities risk losing access to the U.S. financial system.… [The sanctions] threaten not only Cuba but the sovereignty of all states.
The policy is meant to force the international community to make a choice between its relationship with Cuba and access to the U.S. market and financial system.
As noted by the Canadian newspaper People’s Voice, the Canadian Network on Cuba took Canada’s government to task for its silence on the U.S. sanctions against Sherritt Corporation.
The government “must take immediate and decisive action in defense of Canadian sovereignty, international law, and the right of Canadian companies to conduct lawful business free from foreign coercion and intimidation.… Canada must choose whether it will defend its sovereignty and uphold international law, or whether it will permit itself to be subordinated to the extraterritorial dictates of a foreign power.”
Additionally, the government must reaffirm “Canada’s longstanding opposition to the US blockade and demand its complete and unconditional end.”
Cuba’s Foreign Affairs Ministry issued a statement reading in part:
“This is an explicit, blatant, and direct attack on the sovereign right of all states that have or wish to maintain economic, commercial, and financial relations with Cuba.” It said that the U.S.’ move will “only achieve its intended destructive effect if sovereign and independent nations allow themselves to be intimidated and cowed.”
The new sanctions are part of the U.S. president’s stepped-up attacks on Cuba. He indicated in late April that a U.S. aircraft carrier may “come in, stop about 100 yards offshore, and they’ll say: ‘Thank you very much. We give up.’”
Nevertheless, Cubans are standing firm. Over two weeks in April, they joined in on a campaign for national sovereignty and opposition to the blockade. Over 80% of the adult population offered “my signature for the country” (Mi Firma por la Patria), and some five million Cubans, half the population, marched on May 1, International Workers’ Day.
We hope you appreciated this article. At People’s World, we believe news and information should be free and accessible to all, but we need your help. Our journalism is free of corporate influence and paywalls because we are totally reader-supported. Only you, our readers and supporters, make this possible. If you enjoy reading People’s World and the stories we bring you, please support our work by donating or becoming a monthly sustainer today. Thank you!
CONTRIBUTOR
