NCPA - Daily Policy Digest - What Would The U.S. Gain From Ending The Cuban Embargo?

NATIONAL CENTER FOR POLICY ANALYSIS
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What Would The U.S. Gain From Ending The Cuban Embargo?

There has been little in-depth analysis of the economic impact on the U.S. of lifting the Cuban embargo. Some debaters claim substantial trade advantages for the U.S. -- particularly in agriculture. But that's far from certain, because "vibrant" is not the word that comes to mind in discussing Cuba and its economy.

With 11 million people, Cuba is about the size of Belgium.

But while Belgium's gross domestic product last year stood at $259 billion, Cuba's was just $19 billion.

Belgium imported $13 billion in goods from the U.S. last year, while Cuba's total imports were just $3.4 billion.

Some analysts claim that if the embargo were lifted, the U.S. could export $1 billion a year in foodstuffs to the island -- but that would represent less than 2 percent of overall U.S. food exports.

But whether it's agriculture or tourism, Cuba's future is on hold until the country restructures itself economically, experts say.

Source: Joseph Guinto, "End To Cuba Trade Embargo Won't Be Gold Mine For U.S.," Investor's Business Daily, May 22, 2002.

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