UPSC Civil Services GK update – US approves first passenger ferry service to Cuba (6th May, 2015)
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In this article we are discussing the changing shifting US diplomatic strategy towards Cuba. The US Treasury Department has approved specific licenses for commercial passenger ferry service between the US and Cuba. For the first time in more than half a century, licenses were granted to four American companies to operate ferry services to Cuba.
This move has its strategic significance considering the past of the US & Castro-led Cuba government since the cold war. Before 1959 Cuban revolution there were daily flights and ferries between Key West, Florida and Cuba’a capital, Havana. However, in the 1960 the US government imposed a commercial, economic, and financial embargo in Cuba.
After the revolution, the Castro government came into power and facilitated new agrarian reforms and the nationalisation of US-owned industries. This conflict of interests led to various harsh countermeasures taken by then US government, resulting in prohibition of exports to Cuba. Further, during the cold war era, the relationship between the two countries deteriorated owing to the level of possible nuclear warfare.
Hence, the recent move from US has more to do with her future strategic aspirations regarding Cuba. Ongoing talks are directed toward US’s wish to reopen an embassy in Havana. The superpower also aims to ease banking restrictions, allow businesses to open-up financial accounts, unblock US accounts for Cuban emigrants, and loosen limits on remittances.
The prime question is why after 54 years the US wishes to shift its diplomatic position? The UN General Assembly for the 23rd time had voted condemning the decade-long economic embargo against Cuba. Around 188 countries out of the 193 member countries of the UN voted against the blockade. Nevertheless, the US continued this unpopular policy for years. The Obama government, however, has decided to grant unilateral concessions to Cuba in exchange for nothing.
Cuba has limited access to internet with very high hourly fees. It is still mostly unaware of the social networking revolution. It has undergone economic sanctions for more than 50 years, which has left most of the Cuban economy untapped by multinational companies. The US may be wishing to enter in exports with Cuba specifically for certain software applications and hardware products. This could be the beginning for US’s business opportunities in Cuba. Cuba will also provide various unexplored sites, which will increase tourism business.