TRADE-CUBA: EU Maintains Carrot and Stick Approach

By Patricia Grogg Reprint | | Print |

Patricia Grogg

HAVANA, Jul 31 2001 (IPS) - Cuba’s political situation and human rights record have kept its relationship with the European Union (EU) – its principal economic and trade partner – on a tightrope.

The EU is a close ally of the United States in demanding that Havana make democratic changes, and in April repeated its vote in favour of a resolution of the United Nations Commission on Human Rights that condemned Cuba.

The Cuban government, which categorically rejects all accusations regarding human rights matters, has EU support, however, for its campaign against the US-imposed economic embargo that has been in place since the 1960s and was reinforced in 1996 by what is known as the Helms-Burton Act.

Officially known as the Cuban Liberty and Democratic Solidarity Act, it stipulates sanctions for third countries whose companies conduct business involving US property that was expropriated by the Fidel Castro-led revolution of 1959.

To date, Washington has suspended application of the related provisions of the law on 10 occasions. The legislation is subject to review every six months by the US government.

US President George W. Bush once again postponed the implementation of the legislation on Jul 16. The provisions, found in the law’s third chapter, would allow US citizens whose property was confiscated by the Cuban government to file lawsuits in US courts against companies of any country that engages in business involving such property.

The EU could resort to the World Trade Organisation if its interests in Cuba were to be affected by the US law, a European threat that seems to lie behind each new US decision to suspend enforcement of the controversial legislation.

Gunnar Wiegand, spokesman for the EU’s External Affairs Commissioner, Chris Patten, said the EU applauds Bush’s decision to maintain the suspension of the legislation, which occurred following “constructive” US-EU talks in mid-June.

Nevertheless, Wiegand stressed that the goal of the Europeans remains the same: to get this “extra-territorial and unilateral legislation” repealed.

Europe represents 46 percent if the socialist-run island’s foreign trade. Of the European total, 78 percent involves the EU’s 15 member countries. Analysts believe the EU sees Cuba as a potential axis for the bloc’s Caribbean trade.

In the area of foreign investment, Spain heads the list in the number of companies on the island, with 99, representing 25 percent of the total. It is followed by Canada with 74 (19 percent), Italy with 57 (14 percent), France with 18 (four percent) and Britain with 14 (three percent).

The European bloc says the US laws that unilaterally impose sanctions are a source of useless discrepancies, the effects of which could jeopardise the evolution of trans-Atlantic cooperation and compromise joint efforts against terrorism.

Bush, meanwhile, poured salt into the wound when he stated that “real differences” persist between his country and the EU about the best way to obtain political change in Cuba.

“We all want to encourage a transition toward a pluralist democracy, diverse political parties, respect for human and civil rights. The problem is how to achieve it,” a European diplomat told IPS.

Just months after Bill Clinton, Bush’s predecessor in the White House, put his signature on the controversial Helms-Burton Act in 1996, the European bloc agreed on its “common stance” on Cuba – which it maintains to this day.

Also subject to review every six months, the common position is an attempt to press the island’s socialist government to begin “a process of peaceful transition toward democratic pluralism.”

The European Council would welcome constructive dialogue with Cuba for a future Framework Cooperation Agreement “based on respect for democratic principles, human rights and the state of law,” said the EU in June when it issued its tenth common position of the last six years.

So far, the Castro government’s response to such invitations has been the rejection of what it calls “dialogues with conditions,” though officials have expressed the desire that some day Cuba will no longer be the only Latin American country without an EU Framework Agreement.

Felipe Pérez Roque, Cuba’s foreign minister, says the common stance “has been surpassed by time and a broader platform is now needed” for relations with the EU.

Pérez Roque travelled earlier this month to Belgium, which presides over the EU until the end of the year. There, he expressed Cuba’s willingness to move forward on negotiations to pave the way for a Framework Cooperation Agreement.

His Belgian counterpart, Louis Michel, seemed receptive to such aspirations, though requested “due caution” in efforts to promote “political dialogue.”

Nevertheless, political analysts say it is a difficult and complex road that must be followed from now until December, when the EU presidency will be taken over by Spain, Cuba’s top trade partner but also an outspoken critic of Havana.

A Framework Agreement with the 15 European countries would allow the island to benefit from all the aid tools provided by the bloc and would stimulate cooperation in a broad range of areas, including agro-industry, fishing, energy, health, science and technology.