Officials Attempt to Normalize Cuban-American Trade Relations as ITC Investigation Continues

September 9, 2015

           On September 3, 2015, the U.S. International Trade Commission (ITC) extended the scope for the ongoing trade review between Cuba and the United States. The review, entitled an “Overview of Cuban Imports of Goods and Services and Effects of U.S. Restrictions,” opened in February. The ITC is considering the impacts of Cuba’s trade restrictions on the economy and the potential limitations that these constraints have on American business prospects. 
         Although the investigation began early this year, President Obama and several officials have previously spoken out about the economic potential that could come from stabilizing Cuban-U.S. trade relations. In December of 2014, President Obama moved to open normal diplomatic and commercial relations with Cuba. The President used an array of administrative actions to remove restrictions involving areas, such as interstate money exchange, travel, trade, telecommunications, and third-country financial transactions. This served as the catalyst that led to the initiation of the investigation by the former Senate Finance Committee Chairman, Ron Wyden (D-OR). 
        Wyden requested an in-depth report on the impacts of the Cold-War era trade limitations as a way to better understand how U.S. exports would be affected if the restrictions were lifted.  The report would also include an overview of Cuba’s imports of goods and services and an estimate of U.S. exports to Cuba. The current Chairman of the Senate Finance Committee, Orrin Hatch (R-UT), has additionally requested an analysis of Cuban nontariff measures and other barriers, such as custom duties and procedures, protection of intellectual property rights, and infrastructure factors. The expanded investigation is now set to include these supplementary measures. 
        There is no hearing scheduled, currently. However, written submissions for the investigation are due October 23rd, while the ITC’s final report is expected on March 17, 2016.

For more information, please continue to visit www.barnesrichardson.com.