Over the past 2 years, America and Cuba have struck unprecedented ground in restoring relations. Having been at odds since 1961, many politicians believed the two countries would not restore ties any time soon. The tumultuous U.S.-Cuba relationship is rooted in the Cold War. Following the Bay of Pigs invasion and the Cuban Missile Crisis, the U.S. levied an economic and diplomatic embargo which would last for the next 54 years. As recently as December 2014, the United States and Cuba agreed to restore full diplomatic relations. While loosening restriction may promote travel and tourism to Cuba, there is still much to be desired in terms of economic relations.
Historical Background Dating back to 1959, the U.S. and Cuba have been on ends. …show more content…
With travel restrictions being lifted, the tourism sector is set to benefit; however, there are more opportunities for growth. Estimates suggest that the embargo of the past 50 years costs the U.S. economy $1.2 billion per year in lost sales and exports. On the other hand, the Cuban government losses were estimated at $685 million per year. Opening economic relations presents a clear revenue generating opportunity for both countries.
As an economy, Cuba is a primary importer, running a perpetual trade deficit. Cuba’s main imports are machinery, food and fuel coming from Venezuela and the EU. With that being said, Cuba possesses and abundance of sugar, tobacco and pharmaceuticals. Unable to conduct trade with the U.S., Cuba primarily exports these products to the EU and Canada. Alleviating economic policies towards Cuba present an opportunity for lawful remittances, increased communication and stronger exports from the United …show more content…
Following restoration of travel between the two countries, online home rental service, Airbnb, has listed Cuban getaways on its platform. Tourism presents an exciting financial opportunity not only for both countries but individual companies. Besides lodging and vacationing, consumers in Cuba have started signing up for Netflix. Allowing these services to operate in Cuba, allow U.S. telecommunications companies the opportunity to implement better access to communication and internet services.
Bottom Line The road to diplomatic relations between the United States and Cuba has been long. In the 1960’s the two countries severed ties for what would be the next 50 years. Only in the past few years have diplomatic relations been alleviated. Raising travel restrictions is only a stepping stone to stimulate growth between the two countries. Further lifting sanctions towards Cuba will prove to be an attractive source of foreign investment for
Historical Background Dating back to 1959, the U.S. and Cuba have been on ends. …show more content…
With travel restrictions being lifted, the tourism sector is set to benefit; however, there are more opportunities for growth. Estimates suggest that the embargo of the past 50 years costs the U.S. economy $1.2 billion per year in lost sales and exports. On the other hand, the Cuban government losses were estimated at $685 million per year. Opening economic relations presents a clear revenue generating opportunity for both countries.
As an economy, Cuba is a primary importer, running a perpetual trade deficit. Cuba’s main imports are machinery, food and fuel coming from Venezuela and the EU. With that being said, Cuba possesses and abundance of sugar, tobacco and pharmaceuticals. Unable to conduct trade with the U.S., Cuba primarily exports these products to the EU and Canada. Alleviating economic policies towards Cuba present an opportunity for lawful remittances, increased communication and stronger exports from the United …show more content…
Following restoration of travel between the two countries, online home rental service, Airbnb, has listed Cuban getaways on its platform. Tourism presents an exciting financial opportunity not only for both countries but individual companies. Besides lodging and vacationing, consumers in Cuba have started signing up for Netflix. Allowing these services to operate in Cuba, allow U.S. telecommunications companies the opportunity to implement better access to communication and internet services.
Bottom Line The road to diplomatic relations between the United States and Cuba has been long. In the 1960’s the two countries severed ties for what would be the next 50 years. Only in the past few years have diplomatic relations been alleviated. Raising travel restrictions is only a stepping stone to stimulate growth between the two countries. Further lifting sanctions towards Cuba will prove to be an attractive source of foreign investment for