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Benefits of lifting the Cuban embargo
Economics editor Chris Farrell
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TEXT OF INTERVIEW
Steve Chiotakis: President Obama heads to Trinidad and Tobago tomorrow for this year's
Summit of the Americas. And one conversation that will keep coming up down there is Cuba. Our economics correspondent, Chris Farrell, joins us now to talk about the president's cracking open of the Cuban door. Chris, is this more of a beginning or an end?
Chris Farrell: Well, depends on which country that you're in, but I think that is the beginning of fundamental change in U.S. policy toward Cuba -- at least when it comes toward trade and investment. And for Cuba, I think it's the end of the embargo. Now, that's a dramatic statement, the embargo has been on there for over four decades. But I do think we are starting to see the beginning of increased trade between Cuba and the U.S.
Chiotakis: I guess you could look at the impact on Cuba and say it's positive. But what about for the economy in South Florida, where a lot of Cubans and Cuban-Americans live?
Farrell: Well South Florida, as you know, is in a depression. If you're in the camp that believes, in general, that freer trade is good for an economy, I think this can only benefit the South Florida economy, to have more commerce between the two nations. Now, Cuba is very poor, so it's not that this is going to turn around the South Florida economy, but increased trade flows between the countries, the opportunities for entrepreneurs to develop businesses, net-net, it's a good thing for South Florida and it's a good thing for Cuba. You know most of the time, trade is a win-win situation.
Chiotakis: What kind of lessons have we learned from this trade embargo over the past, gosh, four decades or more?
Farrell: I think the real lesson that you take from this is that trade is revolutionary, commerce is revolutionary. And trade is not just money and entrepreneurial opportunities. It also means exposing an economy to different ideas, and ideas that are an anathema to a bureaucracy that is in power. And we have a very good counter-example. Remember in the 1990's, the Clinton administration came under a lot of pressure to set up trade embargoes with China because a lot of the human rights violations. And I'm not minimizing, by the way -- I am not minimizing human rights violations in China, I am not minimizing human rights violations in Cuba. But the administration continued the trade with China, and it was the right move -- China is now more integrated into the global economy, there's a lot more information in that economy, it's moving in the right direction. And so that's what I want to see trade with Cuba. I think that's the real lesson to take here.
Chiotakis: Our economics correspondent, Chris Farrell, joining us this morning. Chris, thank you.
Farrell: Thanks a lot.
About the author
Steve Chiotakis was the host of Marketplace Morning Report until January 2012.
In spite of these facts (and they are facts), we still have South Florida members of Congress who hang on (for dear life) with the old rules of this nonsensical game that's lasted almost 50 years. And others, like U.S. Rep. Kendrick Meek, so terrified of political consequences while receiving hefty campaign contributions from the hard-liners, and although a Democrat and Obama-backer, still comes out against any change in policy. For starters, Meek should be ashamed of himself. In a city like Miami where there is so much need... If he really cared he'd realize that lifting of the embargo would represent a plus for the Miami economy -- studies indicate about 30,000 new jobs and a billion dollars a year to the economy.
Mr Chiotakis did not mention that Cuba is already buying US products...moving from ZERO purchases to America's 29th leading trade partner in 2008 out of 227 other countries. (FYI...More products are made, grown or processed in Alabama and sold to Cuba than any other state...creating a 525 million economic impact to our state in 2008)
Also, the embargo issue has moved beyond DC and Florida. The attitudes and perceptions of other states and regions of the country have not been taken into account. That is why most states (all in the south except Florida) have urged Congress and the President to end the embargo now as the embargo only insulates America rather than isolating Cuba. The rest of the world is laughing at us all the way to the bank.
