Whilst the embargo is often understood to be the sanctioning of trade between the US and Cuba, its effects are in fact far broader and more punishing for the island nation. As they are written, the sanctions not only prevent individual instances of trade between the US and Cuba, but also have consequences for third parties engaging in trade with Cuba. The US enforces their embargo extraterritorially, whereby states or companies with assets in the US will have those assets seized or frozen if they engage in trade with Cuba. Moreover, cargo traffic that has stopped in Cuba is barred from entering US territory for 6 months, and companies with investments in the country have found their executives banned from the US entirely. Parent companies of smaller subsidiaries are also subject to sanctions, and alleged exemptions for medical equipment and aid are conditional and generally unused due to the excess bureaucracy companies are required to deal with.
The consequences of the embargo are felt in the systemic underinvestment in the island’s constricted economy, and in the scale of the country’s humanitarian crisis. Food and energy shortages are notoriously prevalent on the island, and the embargo severely restricts its ability to import the supplies it needs to satisfy its domestic demands. Furthermore, Cuba’s colonial legacy as a monoculture has limited its capacity for self-sufficiency, its economy first dominated by sugar plantations under the Spanish and later gambling and prostitution for the US. Whilst the Cuban government has attempted to diversify its economy, the embargo prevents the necessary equipment and training that non-sanctioned countries are afforded, whilst also disincentivising collaboration or investment from potential foreign partners.
Despite hopes that the Biden presidency would ameliorate US-Cuban relations similar to what was seen under Obama, his policy has instead showed continuity from his predecessor, reproducing the false narratives of the Trump administration and channelling money into “democracy promotion” programs designed to topple the Cuban government. Whilst Biden is unlikely to make any changes in the remainder of his term, Trump’s return to the White House and his subsequent policy towards Cuba should be closely examined, particularly if he chooses to escalate further.