The following excerpt is from a piece posted on LinkedIn’s commentary page:
Whatever the reason, none of them good at this juncture because the Cubans are not ready for it, normalization of relations with Cuba will come at a price, a very steep price, for you and me. If you’re doing business in Cuba, or plan to do so, your compliance division will have a great deal more self-policing to do because when you do business pursuant to a general license, it comes with the territory. While the new regulations appear to make it easier to invest or trade with Cuba in select markets, it does not change the fact that transactions remain subject to the Trading with the Enemy Act, the Cuban Democracy Act, the Cuban Liberty and Democratic Solidarity Act, the Export Administration Act, the International Emergency Economic Powers Act, among many other important statutes, regulations, and executive orders. More on this in a future post.
Not only does this shotgun approach to the Cuba paradox come with a high economic cost, but it may foment exactly the opposite behavior sought in U.S. law and policy: helping the Cuban people with a peaceful transition to a more open society. I’ll have more to say on this latter issue in another post. The more pressing issue now, since Congress and the President are about to offer dueling budgets in the next few weeks, is the question of Cuban debt and how best to contain the damage that will result from executive overreach from certain regulations issued yesterday by the Treasury Department Office of Foreign Assets Control (OFAC) and the Bureau of Industry and Security of the Department of Commerce (BIS).
Read the rest at LinkedIn.