On the Horizon - Possible Changes to Cuban Embargo

By Judith A. Lee and Jason A. Monahan

This year for the first time, both the United States House of Representatives and Senate are considering legislation that would significantly relax the United States economic and trade embargo against the Republic of Cuba. See H.R. 5120 and S. 2740, the Treasury, Postal and General Government appropriations bill. The "Flake amendment" included in H.R. 5120, which effectively lifts the travel ban to Cuba, passed the House on July 24 by a 262-167 vote. S. 2740, with a similar provision, has been reported favorably out of the Senate Appropriations Committee.

In past years, the House has supported such language, only to see it die in the Senate. This year, however, the mood is changing in the upper chamber for a number of reasons. Most important, there is a concerted lobbying effort by business and agricultural interest groups to open up trade with Cuba. In addition, Senator Jesse Helms (R-NC), one of the leading opponents of such a move, has been sick and absent for much of the year and will retire at the end of this legislative session.

Technically, neither the House nor the Senate bill would directly relax any provision of the Cuban embargo, which are implemented primarily through presidential directives. Rather, both bills contain language that would bar the use of Treasury funds to enforce the travel ban against U.S. citizens who want to go to Cuba. In addition, the House bill would forbid the use of Treasury funds to enforce the ban on sending remittances to Cuban citizens, and would also forbid the use of Treasury funds to implement any sanctions on private commercial sales of agricultural commodities or medicine or medical supplies to Cuba.

If the Cuba provisions remain in the final bill they could provoke a presidential veto. Secretary of State Colin Powell and Treasury Secretary Paul O’Neill stated in a letter circulated on Capitol Hill on July 11 that they would urge the president to veto the bill if the Cuba provisions remain in the final language. To date, however, there has been no definitive statement on the President’s intentions.

The Cuba legislation creates an interesting political situation for the President. His brother, Governor Jeb Bush of Florida, is in a reelection fight this year, and the President is lending substantial political, financial, and moral support to the reelection effort. It is well known that U.S.-Cuban relations plays a major role in Florida’s politics, with south Florida’s community leaders very strongly opposed to any perceived weakening of the embargo. A veto threat on this issue may help strengthen both Bush brothers’ political standing in the state.