Cuba says US sanctions undercut the economic reforms Washington long demanded

Cuba's ambassador to the United Nations has challenged the United States to explain why it continues to escalate sanctions against the island even as Havana implements the kind of sweeping economic reforms Washington has long demanded. Ambassador Ernesto Soberón Guzmán, in an interview this week with The Associated Press, directed his question at Secretary of State Marco Rubio: "What are you afraid of? If you are so convinced that the Cuban government is an incompetent government, why do you need to implement almost every two weeks new sanctions?"mymotherlode+1

The remarks came as the Treasury and State departments on Thursday announced new penalties against nine state-owned mining, metal and construction companies, along with the leadership of the Cuban Institute of Friendship with the Peoples. The State Department, responding to a request for comment, cited Rubio as saying sanctions would continue to be announced every couple of weeks to close off "escape valves that they're trying to create in every mechanism."wral+2

A Contradiction in Policy

The reforms announced by Cuban President Miguel Díaz-Canel in June marked the most far-reaching economic opening since the 1959 revolution, including space for private businesses, authorization for private banks, imports and exports without the state as intermediary, investment by Cubans abroad, and opportunities for foreign fast-food chains. John Kavulich, president of the U.S.-Cuba Trade and Economic Council, said Cuba "in the last eight months made more commercial, economic and financial changes to the country than they have as a group since the revolution."apnews+1

Yet Soberón said the sanctions remain the main obstacle to attracting investors. Electricity shortages and lack of fuel have discouraged both foreign capital and tourists, a major source of income. Spanish hotel chain Meliá has already pulled out, citing "significant operational, legal, economic and financial difficulties."mymotherlode+1

Experts See Irony

William LeoGrande, a professor at American University, said the administration's true aim is "not just to open up Cuba economically but to overthrow the Cuban government." Christopher Hernandez-Roy of the Center for Strategic and International Studies noted the irony that U.S. pressure "is helping push the Cubans toward greater economic liberalization out of necessity, while simultaneously limiting the resources and access necessary for those reforms to actually improve the economy."mymotherlode+1

Rubio last month dismissed the reforms, calling Cuba "a failed state" with leaders who "don't know how to fix their economy." Soberón disclosed that talks between Washington and Havana are underway, calling them "very sensitive conversations," but added: "Even when Cuba is changing a lot, the U.S. government keeps the same policy of aggression towards the Cuban people."wsls+1