Cuban Private Sector Faces More Regulations; 3 Years Since July 11th Protests, and A Potential Trump Cuba Policy 2.0
Wednesday, July 17, 2024 - Edition 778
Dear Friends,
Yesterday, Cuba’s Prime Minister Manuel Marrero announced additional—and potentially very impactful—restrictions on private business owners. Private businesses, Marrero announced, must soon pay for imports “from accounts in Cuban banks.” Notably, the government does not provide them with foreign currency, and there is no system in place for private companies to use the Cuban banking system to transfer foreign currency abroad.
This week marked the third anniversary of the July 11 protests in Cuba, underscoring the country's enduring and worsening economic crisis. The Cuban government vacillated in an important economic decision attempting to limit the inordinately high prices of basic foods and goods in the country. Initially, the government announced price caps to control runaway prices–then reversed the decision due to private sector outcry and fear of more shortages–then reversed again and enforced the new price caps. Prime Minister Manuel Marrero described the situation as a “war economy” in the most recent Council of Ministers meeting, explaining: “This is when we need planning the most, and when we need to exert control the most.”
In the United States, the political landscape is also shifting with potential implications for Cuba. A surge in momentum for the Republican presidential ticket puts former President Trump’s Cuba policy back on the radar. At the Republican National Convention this week, Florida State Senator Ileana García mentioned that amending Cuba policy would be on the agenda – while addressing the fears of Cubans in the United States without proper paperwork. The Republican platform currently includes the “largest deportation effort in American history,” a policy that could profoundly impact hundreds of thousands Cuban immigrants without legal documentation.
We remain committed to closely monitoring and reporting on these developments.
Team CEDA
In this week’s Cuba news:
- Anniversary of July 11 Protests
- On July 11, 2021, Cuba witnessed historic protests decrying economic hardships, shortages of essential goods, the government's handling of the COVID-19 pandemic, and calling for increased freedoms. Thousands of Cubans took to the streets in San Antonio de los Baños and soon protests spread across the island. Cuba’s government responded with a heavy-handed crackdown, arresting 1,584 people, using violence against protestors and temporarily shutting down internet access. While Cuba’s government initially admitted some failings and culpability in the economic struggles that contributed to the protests, it has continued to label dissent as U.S.-backed intervention and ostracize demonstrators and supporters of the protests.
- This month, on the third anniversary of the July 11 (J11) protests, 670 Cubans remain imprisoned, some with sentences exceeding 20 years, and Justicia 11J, which tracks the protesters’ status, reporting mistreatment and lack of medical care for prisoners. In statements earlier this month, the U.S. State Department and UK-based NGO Amnesty International both called for the immediate and unconditional release of all political prisoners, with the State Department lauding activists for “bravely [taking] to the streets to demand respect for their human rights and fundamental freedoms.” The Florida Democratic Party issued a statement denouncing “continued efforts to silence Cubans, intimidate protestors and detain political prisoners” and “reaffirm[ing] support for the people of Cuba in their struggle for freedom.” U.S. Representatives Mario Díaz-Balart (FL-26), María E. Salazar (FL-27), Carlos A. Giménez (FL-28), Michael McCaul (TX-10), Jenniffer Gonzalez-Colon (PR), Nicole Malliotakis (NY-11), Michael Waltz (FL-06), Kat Cammack (FL-03) and Alexander Mooney (WV-02) introduced a resolution commemorating J11, calling the protests “historic pro-democracy protests in Cuba” and expressing solidarity with “the Cuban people’s fight for freedom,” while calling on the Biden-Harris administration to increase sanctions on Cuba’s government. Meanwhile, Cuban American activists gathered in Miami to commemorate the protests through prayer, holding signs with photos of those imprisoned on J11, wearing shirts with the phrase “This March Would Get Me Killed in Cuba,” and holding sunflowers to represent growth in adverse conditions.
This Week’s Top Story:
Price caps in Cuba
- In a reversal, Cuban authorities impose price caps on food despite warning of shortages: On July 8, Cuba’s government announced it would impose price caps on imported food items, including chicken, powdered milk, sausages, pasta, cooking oil, and detergent sold by private businesses, despite earlier hesitations due to criticism from business owners who argued the caps were unsustainable and could cause shortages. These caps aim to control prices that exceed what most Cubans can afford, amidst economic challenges such as the U.S. embargo, Cuba’s government’s management of the state economy, and limited food production. Private entrepreneurs argue that high taxes on imports and other fees drive up prices, and they fear the caps will exacerbate food shortages during the summer. The government, while initially suspending the caps for further discussions (Miami Herald), eventually implemented them as part of broader efforts to manage a growing private sector and address economic issues through central planning and austerity measures.
U.S.-CUBA RELATIONS
- Foiled Plot to Traffick Arms to Cuba: The results of a seven month long investigation into a thwarted plot to smuggle arms and ammunition from the U.S. to Cuba have now been released. According to Cuba’s Ministry of Interior, Ardenys García, a Cuban man living in the U.S., arrived on the island by jet ski armed with weapons last December. According to the report, Mr. Garcia was part of a larger plan by a U.S.-based group called La Nueva Nación Cubana as well as 32 Cuban residents, to destabilize Cuba’s government. Cuba’s government accused the individuals involved of organizing violent activities to disrupt Cuba's internal order. Despite notifying U.S. authorities, Cuba alleges that the perpetrators continue to operate freely in the U.S., financing and supporting violent actions against Cuba. Representatives for The State Department told Reuters that the department is aware of the allegations and that "U.S. law enforcement prosecutes individuals based on U.S. law and does not take direction from foreign governments." Mr. García is currently detained in Cuba and is wanted on human trafficking charges in the U.S.
- Wayne S. Smith, a Leading Critic of the Embargo on Cuba, Dies at 91: Wayne S. Smith, a prominent Cuba expert and former State Department official, passed away on June 28 at the age of 91. Known for his pivotal role in U.S.-Cuba relations, Smith resigned from the State Department in 1982 in protest against the U.S. embargo on Cuba. He spent nearly four decades advocating for normalized relations between the two countries, leading private and congressional delegations to Cuba and publishing extensively on the topic. Despite his criticism of Cuba’s government, Smith believed in diplomacy over isolation, arguing that the embargo was counterproductive.
- Congressional hearing held on Cuban officials' visit to Miami International Airport: On July 9, House lawmakers questioned Transportation Security Administration (TSA) officials over a routine visit by members of Cuba’s government to Miami International Airport in May 2024, citing Cuba’s inclusion on the U.S. State Department’s State Sponsors of Terrorism list. This trip is the 6th trip of a delegation of Cuban officials to the U.S. since 2011, including a 2018 trip when they visited North Carolina to tour port facilities and met with the U.S. Coast Guard and U.S. Customs and Border Protection. The visit is a part of international norms and reciprocity. The U.S. has also made 22 routine visits to Cuba’s airports since 2011. The TSA acknowledged they “did not fully socialize” the May trip, however, and pledged to increase communication for future visits.
- Español: El tema Cuba estará en la agenda de Trump, según senadora republicana de la Florida: Florida State Senator Ileana García stated that Cuba policy will be on Donald Trump's agenda if he wins in November. García, a delegate at the Republican National Convention in Wisconsin, encouraged Cubans to have faith and believe that change must come from within. She addressed concerns of Cubans with I-220A statuses fearing deportation due to Trump's promise of a large-scale deportation, blaming the Biden administration's lax immigration policies for the current migrant surge. Jaime Flores, a spokesperson for Trump's campaign, outlined three conditions for normalizing U.S.-Cuba relations: immediate release of all political prisoners, free elections with international observation, and an end to the exportation of Cuba's revolution.
IN CUBA
- Cuba announces new measures for "war-time economy" amid growing crisis: Cuba's government, facing severe economic challenges exacerbated by factors like the COVID-19 pandemic and U.S. sanctions, has announced intensified measures to combat inflation and a ballooning fiscal deficit. These efforts include stricter price controls, crackdowns on tax evasion, and a move towards a "war-time economy" model. The aim is to stabilize the economy, bolster foreign exchange reserves, increase food production, and reform inefficient state-run enterprises. The government also plans to unify pricing policies across all economic sectors and centralize budget decision-making to align expenditures with revenue. These steps come amidst a significant economic and social crisis on the island, prompting drastic actions and leadership changes within Cuba's government.
CUBAN MIGRATION
GOING TO SEE THE VOLCANOS: After unprecedented protests swept Cuba, a huge wave of people fled. A journalist shares his saga of being smuggled to the U.S.-Mexico border: Cuban journalist Jesús Jank Curbelo left Cuba en route to Dallas, Texas, USA to live with his father following threats he received from Cuba’s State Security. Cuba’s government was cracking down on independent journalism at the time. Mr. Curbelo used coyotes, or people who smuggle migrants across the U.S.-Mexico border, to help him to get to the border, and spoke of the complexity and dangers of the journey, including exploitation and abuse of migrants, particularly women and children at the hands of state police and military. Mr. Curbelo also discusses current issues in Cuba including the country’s economic crisis, goods and electricity shortages, and resulting discontent and protests. He also discusses U.S. immigration policies for Cubans which allow Cubans to receive a green card after remaining in the U.S. for one year. Mr. Curbelo, like many migrants, was detained at the border before being released, and is now hopeful about his new beginning in the U.S.
CUBA’S FOREIGN POLICY
- A North Korean diplomat in Cuba defects to South Korea: South Korea’s National Intelligence Service confirmed on July 16 that Ri Il Gyu, a political affairs counselor at North Korea’s embassy in Cuba, defected to South Korea with his family in November 2023, making him the highest-level diplomat to defect in recent years. According to Mr. Gyu, he defected due to his “disillusionment with North Korea’s political system, an unfair job evaluation by Pyongyang's Foreign Ministry, and the ministry's disapproval of his hopes to visit Mexico to treat his neural damage” (NPR). North Korea and Cuba have maintained strong diplomatic relations since 1960, with Cuba’s current president Miguel Díaz-Canel visiting North Korea as recently as 2018. South Korea and Cuba established diplomatic relations in February, 2024.
- Mexico to employ 2,700 Cuban doctors but faces opposition: Mexico’s government announced on July 16 that Cuba will send the country 2,700 doctors to help mitigate shortages of healthcare specialists in Mexico (Reuters). Mexico currently has 950 Cuban doctors working in the country to help improve access to care in underserved areas. Mexico’s National Action Party criticized the announcement, claiming that there are over 50,000 unemployed Mexican doctors who should be offered employment before the country employs Cuban doctors. Mexico’s government disputes that there are an adequate number of Mexican doctors to fill needed positions. Cuba faces ongoing scrutiny over its practice of exporting doctors. The U.S. State Department and Spain-based NGO Prisoners Defenders both claim that Cuban doctors do not receive adequate compensation. The U.S. government has also raised concerns over forced labor and worker’s rights of Cuban doctors abroad. Cuba has previously sent doctors to Mexico, including during the early days of the COVID-19 pandemic.
Events
July 18 @ 1PM | Webinar | Cuban Migration and U.S. Policy: Implications and Options for the Biden Administration
Moderator: Manuel Ramirez, PhD Candidate in Sociology, University of Connecticut
Panelists: Rep. Pramila Jayapal, Chair, Congressional Progressive Caucus (D-WA), Maria José Espinosa, Executive Director, Center for Engagement and Advocacy in the Americas (CEDA), Rafael Bernal, Latino Politics Reporter, The Hill, José Pertierra, Immigration Attorney and Univisión commentator, Denisse Delgado Vázquez, PhD, University of Massachusetts Boston
Recommended Reading and Viewings:
Watch: AP: Gold medal winning canoeist who deserted Cuba to compete in Paris Games in refugee team: Cuban-born canoeist Fernando Dayán Jorge Enriquez will be participating in the Paris Olympics, his third Olympic Games, but his first after defecting from Cuba in March 2021. He previously competed on Cuba’s National team but will be competing on the Refugee Olympic Team in 2024.
The Guardian: ‘If the world explodes, the only survivors will be cockroaches and Cubans!’: the Guantánamo musicians defying the island’s crisis: In Guantánamo, Cuba, the Changüí Elio Revé Matos festival continues to celebrate the traditional music of changüí despite the island's economic hardships, including food shortages and power cuts. Led by bands like El Guajiro y su Changüí, the festival exemplifies resilience and community spirit, offering a defiant tribute to Cuban cultural heritage amidst challenging times.
CJR: Columbia Journalism Review: An exiled Cuban journalist finds threats now cross borders: Cuban journalist and former editor of El Toque, José Jasán Nieves Cárdenas, faces what he believes are threats from Cuba’s State Security following his relocation to Miami.
Reuters: Cuban beekeeper produces sweet honey of stingless bees: Cuban ballet dancer Dairon Darias, raises stingless melipona bees, a rare variety in Cuba known for their smooth honey. His honey brand, "Mieles de la Tierra," is distinctive due to the bees' pollination of native plants.
LitHub: “Tell It To Me Singing.” On Diaspora, Community and Cuban-American Stories: The new novel “Tell it to me singing” by Tita Ramirez, daughter of a Cuban exile, uses the Cuban American phrase "tell it to me singing” as a central motif to explore the bilingual and bicultural experiences of second-generation Cuban Americans, who navigate between English and Spanish while preserving connections to their heritage. The book exploring themes of identity, storytelling, and personal discovery through its characters' journeys.
The views and opinions expressed by authors are their own and articles do not necessarily reflect the views or positions of CEDA.
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