Analyze the key issue that prompted the EU to take the Helms-Burton dispute to the WTO
The World Trade Organization (WTO) is a foundation that is responsible for handling issues of trade between nations, for instance, rules and regulations. This is aimed at ensuring that there is a smooth flow of trade activities among nations. The organization does this by trying to solve any trade conflict that may arise between trading nations. Various issues are associated with the European Union’s step of taking the Helms-Burton dispute to the WTO. The major one is, however, the fact that the concepts contained in the Helms-Burton dispute and Act are very controversial with different individuals, groups, and nations having different views.
The controversy made the European Union to consider taking a step further in consulting the world trade organization to seek better answers to the problems of trade between the United States and Cuba to avoid taking sides. Another notable key issue is the fact that some nations undermined the authority of the European Union stating that it had no powers over them and hence the EU found it necessary to forward the issue to the WTO so that it would determine whether the Helms-Burton had in any case gone against any international trade laws and regulations. This was aimed at ensuring that necessary steps were taken to keep all the parties involved at ease (Jackson, 1997).
Decide who benefits and who suffers from an embargo of this type and explain your rationale
Every aspect is associated with some benefits and drawbacks depending on the situation and the elements involved. Regarding the trade embargo imposed by the then president, Kennedy, and the consequences contained therein, there are individuals, groups of people, agencies and nations that benefited as well as those who suffered.
Cuba and its people seem to have benefited very little from the trade embargo more as compared to other nations, for instance, the United States. This is so because although the issue started to its benefit, for instance, the taking over of most private companies, the embargo was against them. Cuban people in the United States have benefited much and they uplift the standards of their home people through sending some income to them although to a small extent. Cuba also has some negative issues that need to be dealt with.
This involves the need for more investments and the U.S dollar to compensate for the losses incurred after the departure of the Soviet Union. There also reached a point where some impositions were placed on the Cuban people in the United States and they could not carry out processes like sending money to people in their country or even making visits. Although the US benefited to some extent from the trade embargo, it suffered initially as most of its properties were expropriated.
The fact that the United States is not viewed as a superpower and has to compete equally with others, for instance, Canada, Italy, Spain, and Mexico is also a negative aspect. To make the situation worse, most U.S companies that violated any trade embargo suffer from heavy fines hence reducing their net profits and minimizing its opportunities. It is evident that an embargo of this kind is not a good one as it leaves either party to suffer in one way or the other and the best thing is, therefore, to look into all possible strategies that are aimed at loosening or doing away with these embargoes and restrictions for the better of all the parties involved (Morley & McGillion, 2002).
Compose a resolution to the trade situation between the U.S. and Cuba
Most agreements and relations usually encounter some problems and conflicts in the course of carrying out their practices and activities. The trade situation between the United States of America and Cuba is not an exception and there have been some persistent struggles to make it run smoothly but in vain. For this reason, there is a necessity to come up with strategic plans and actions to ensure that the situation is handled appropriately to help in resuming the trade relations between the United States of America and Cuba so that mutual benefits could be achieved between the two nations and that other affected nations may also prosper through fair trade.
A very relevant step that ought to be taken regarding the trade situation that prevails between the U.S and Cuba is strategic dialogue among all the responsible bodies that are involved including the governments to set up plans to eradicate the problem once and for all bearing in mind that all parties are suffering in one way or the other and that the best thing would be to have a smooth relationship that is free from obstacles and restrictions like the embargoes. After America imposing various restrictions, for instance, the Cuban embargo, it finally sees the need to do away with it and step down and instead search for peace and unity that is aimed at smoothly making trade flow between the nations. This is so because avoiding some of these obstacles increases the profit margin to a great deal which is one of the major objectives of any business (Graham, 2000).
Given that trade relations resume between the U.S. and Cuba, determine what type of economic barriers would have to be overcome by a U.S. firm to conduct business successfully in Cuba
In the event of there being good trade relations between the United States of America and Cuba, it is expected that things will work out smoothly between the two nations. However, this is not the case and there still could be some other related barriers for instance economic barriers. For example, firms in the United States of America are likely to suffer from various economic barriers and to conduct business successfully in Cuba; the barriers have to be overcome. Some of the economic barriers include difficulties in supplies.
This is because significant supplies have to pass through the Cuban government which may cause delays. Another economic barrier is poor environment like instances of theft which may lead to low productivity and poor customer service which in turn contributes negatively to businesses. The utility and transportation costs may also not reduce immediately after the trade conflicts are settled. Red tape is also another barrier that ought to be overcome. We find that there is a lot of bureaucracy in the Cuban government which deals with various trade operations and it could take much longer to cut it off (Strawson, 2002).
Reference List
Graham, M.E. (2000). Fighting the Wrong Enemy: Antiglobal Activists and Multinational Enterprises. New York: Peterson Institute.
Jackson, H.J. (1997). “Helms-Burton, the U.S., and the WTO.” American Society of International Law. Web.
Morley, H.M & McGillion, C. (2002). Unfinished business: America and Cuba after the Cold War, 1989-2001. Cambridge: Cambridge University Press.
Strawson, J. (2002). Law after Ground Zero. New York: Routledge.