U.S. Embargo on Cuba
In October 1960, the United States imposed an economic embargo on Cuba and in 1962 the embargo was extended and included both imports and exports to Cuba. It was enacted after the new revolutionary communistic government of Cuba started nationalizing American corporations and expropriating the properties of the US citizens.
The United States trade embargo against Cuba had a tremendous impact on the Cuban economy. In 1960, the U.S. was the largest trading partner of Cuba accounting for 67% of exports and 70% of Cuba’s imports. As the official trade between the countries was completely restricted, the Cuban economy was facing a great challenge.
According to the estimates of the Cuban government, the cumulative loss of the economy caused by the U.S. trade embargo is about $67 billion through 19981. It includes the decrease in earnings from exports and imports, and the U.S. sanctions on bilateral trade and capital flows. In the absence of the trade embargo, Cuba would have received $135 million to $420 million from tourism, telecommunication service payments and foreign direct investments made by the United States.
The U.S. embargo significantly harmed the health of the Cuban citizens and had many other negative effects. Prohibiting the sale of medicines, the embargo caused many deaths in Cuba. There was no adequate medical equipment for the doctors to perform surgeries, as well as there were no drugs for the patients.
The United States trade embargo against Cuba caused the Cuban isolation from the rest of the countries. Many Cuban families could not satisfy their basic needs2. There was a high rate of unemployment and many people were living in poverty.
The trade embargo had very negative effects on the lives of ordinary Cubans and a significant impact on the downturn of Cuban economy.
- “The Economic Impact of U.S. Sanctions With Respect to Cuba.” U.S. International Trade Commission. accessed February 6, 2014, http://www.usitc.gov/publications/332/PUB3398.pdf.
- “Denial of Food and Medicine: The Impact Of The U.S. Embargo On The Health And Nutrition In Cuba.” American Association for World Health. accessed February 6, 2014, http://www.cubasolidarity.net/aawh.html
