In the early 1990s, the Soviet Union was dissolved. This left Cuba as one of the last remaining communist governments. Cuba is a small island nation located 90 miles south of Florida. It has a population of 11 million. Until 1899, Cuba was a colony of Spain. After two wars, it achieved independence. The United States was involved in Cuba's second war. After the war, the U.S. occupied Cuba, helping it rebuild from the destruction caused by the wars. During this time, the U.S. built a naval base at Guantanamo Bay, Cuba. From 1902 to 1958 Cuba had a capitalistic government. This system was very corrupt. There was great economic inequality among the Cuban people. A few individuals were rich, while the rest of the citizens lived in poverty.

In 1958 Fidel Castro, a communist revolutionary, seized power of the government. He changed the nation's political structure to communism. This change aligned Cuba with the Soviet Union. It also severed ties with the United States. Castro nationalized billions of dollars' worth of American property. In other words, he took property owned by the U.S. and made it property of Cuba. President Dwight Eisenhower retaliated by placing an embargo (trade restriction) on Cuba. It became illegal for U.S. companies to trade with Cuba. The embargo cost the island nation billions of dollars in revenue. Cuba was also isolated politically, making trade with other nations difficult.

The embargo was tightened after the famous Cuban Missile Crisis of 1962. The crisis occurred when the Soviet Union began installing nuclear missile bases in Cuba. The U.S. was concerned that Cuba and the Soviet Union were preparing to launch nuclear weapons against it. After two weeks, the Soviet Union agreed to dismantle the weapons if the U.S. agreed not to invade Cuba. The embargo has been in place for over 40 years. It has had a drastic effect on both the Cuban economy and the standard of living for Cuban citizens.

CS Question #1: What caused the United States to place an embargo against Cuba?

Embargoes are placed against nations for political reasons. They are designed to prevent trade with another nation. Some embargoes restrict a portion of trade. Others prevent any trading from taking place. Embargoes make it illegal, not just expensive, to import goods and services from a foreign nation. They can have a drastic effect on the economy. A poor economy affects all of the people within a nation. When a nation's economy fails, usually there is much civil unrest. The government is often blamed and removed from power, either by force or in an election.

The U.S. has placed embargoes against many nations. These include South Africa, the Soviet Union, Iraq and Serbia. The United States imposes trade embargoes for many reasons. For example, it has used embargoes against nations that violate the human rights of their citizens. On other occasions, the U.S. has used embargoes against aggressive nations that invaded their neighbors. The embargo is a way to place pressure on a nation without having to risk military action. Often, the United States stipulates that a certain leader must be out of power before it will drop the embargo it has imposed against the nation. The U.S. embargo on Cuba was an act against Fidel Castro and his government.

CS Question #2: What is a trade embargo? How can it affect a nation's government and leaders?

The U.S. embargo on Cuba has had many negative effects on that nation. Cuba has become increasingly isolated from the rest of the world. After the Soviet Union collapsed in 1992, Cuba lost $6 billion in Soviet economic aid. Most Cuban citizens live in complete poverty. Cuba cannot trade with the United States. Nor can it attract a lot of foreign investment because of the embargo. The Cuban economic infrastructure has fallen into disrepair. Cuban citizens are unable to meet basic needs for their homes and families. Many people are unemployed. Cuban citizens often risk their lives, crossing the 90 miles of ocean between the United States and Cuba on rafts. They do this because they hope to build a better future in the United States.

CS Question #3: How has the embargo affected the Cuban economy and the citizens of Cuba?

While the United States bans domestic companies from trading with Cuba, other nations do not. Canada and France both actively trade with Cuba. They are indifferent to the position of the United States. When the Soviet Union collapsed and cut aid to Cuba, the U.S. government saw a chance to finally push Castro from power. In 1992 Congress passed the Cuban Democracy Act. This expanded the embargo by prohibiting foreign subsidiaries of U.S. companies from trading with Cuba. In 1996 the Helms-Burton Law was passed. This law allowed U.S. citizens to sue foreign investors who used any of the U.S. property seized as a result of Castro's revolution in 1959.

These increasingly tight sanctions are unpopular in the international community. The embargo is also unpopular with the business community in the United States. U.S. companies are eager to invest in Cuba. They know that other nations are investing and benefiting from partnerships with Cuba.

Cigars are one of Cuba's major exports. Because of the embargo, the cigars cannot be sold in the United States. In Canada, Cuban cigars are widely available at specialty shops. In fact, many U.S. citizens travel to Canada to purchase the cigars. The embargo also affects the world trade market. It has made the availability of Cuban cigars relatively scarce. The scarcity has made Cuban cigars very expensive in the international market. It has also created a large black market trade in mostly counterfeit cigars.

The U.S. embargo has isolated Cuba and severely damaged its economy. However, it has not ended Castro's 40-year rule of the island nation. Nor has it gained international support.

CS Question #4: How has the U.S. embargo affected the international market for cigars?

Further Thought:

1. Do you think the embargo has a worse effect on the government or on the citizens of Cuba?
2. Can the embargo achieve its goal without the support of other nations?
3. During the Cold War with the Soviet Union, the United States viewed Cuba as a security threat. Fidel Castro instituted a communist government and formed a close alliance with the Soviets. This resulted in the Cuban Missile Crisis. Now that the Cold War has ended, do you think Cuba is still a security threat?