RESTRICTED
WORLD TRADE WT/L/142
4April 1996
ORGANIZATION(96-1247)
Original: Spanish
UNITED STATES -CUBAN LIBERTY AND DEMOCRATIC
SOLIDARITY ACT OF1996
Communication from Cuba
Thefollowing communication, dated 19March 1996 andaddressed totheDirector-General,
hasbeenreceived fromtheMinistry ofForeign Trade ofCuba, withtherequest thatitbecirculated
toMembers.
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Ishould like,inthefirstplace, tojoininyourstatement totheSingapore Press Club, when
yousaidthat"alltheMembers oftheWTO haveaclearinterest inmaking surethattheUruguay Round
commitments areproperly fulfilled".
Iamalsoconfidentofyoureffortstosecurefullrespectfortheprinciples,rulesandcommitments
oftheWorld Trade Organization, tomaintain itseffectiveness andtourgeMembers torefrain from
engaging incoercive andarbitrary acts.
Inthisrespect, andinconnection withtheadoption on12March bytheGovernment ofthe
United States ofAmerica oftheso-called Helms-Burton Act,which myGovernment regards as
inconsistent withtheprinciples anddisciplines oftheWTO, theMinistry ofForeign Trade ofthe
Republic ofCuba hasissued theattached official noteandasksyoutohaveitcirculated totheMembers
oftheOrganization.
Atthesame time, myGovernment reserves itsrights under GATT 1994 andintheWTO to
submit aclaim, when deemed advisable, under theprocedures oftheUnderstanding ontheSettlement
ofDisputes.WT/L/142
Page2
NOTE FROM THE MINISTRY OFFOREIGN TRADE OFTHE REPUBLIC OFCUBA
On12March, thePresident oftheUnited States ofAmerica signed the"Cuban Liberty and
Democratic Solidarity Act1996" or"Helms-Burton Act", which constitutes another action inthe
unilateral application bythatcountry ofthefinancial, economic, andtrade blockade ithasbeen
maintaining against Cuba formore than34years.
In1992, when theCuban Nation wassuffering themostfrom theimpact oftheinterruption
ofitseconomic andtrade relations withEastern Europe, theUnited States Government passed theso-
called "Cuban Democracy Act"or"Torricelli Act", conceived byitssupporters asafinalblowtothe
Cuban economy andtothehopes ofsuccess forourcountry 'spolitical, economic andsocial system.
Nonetheless, inthepasttwoyears, theenormous efforts made byourpeople andthecorrect
strategy chosen byourGovernment havesucceeded, ontheonehand, inpreserving order inallspheres
ofnational lifeand,ontheother, inhalting thedecline ineconomic performance. Asaresult, we
seethefirstsigns ofachange towards economic recovery, inwhich weareallpresently engaged.
Thesupport forCuba fromtheinternational community intheeconomic andcommercial sphere
hasbeen decisive, through theever-increasing participation ofbusinessmen intheprocess ofthe
opening-up oftheCuban economy inallitsforms, theestablishment ofmore than600offices offoreign
firms inourcountry andintheinvestment programme torevive thetourist, industrial andagricultural
infrastructures inCuba.
Thefactthattheveryinterests behind theTorricelli Actin1992arethose which nowsponsor
thisnewlegislation isample proof ofthefailure oftheirintentions.
Themost obvious objective oftheHelms-Burton Actistointimidate theworld business
community andprevent itfromparticipating intheever-widening economic opportunities forforeign
investment inCuba.
ThisActseeks todisregard thefactthattheexpropriation andnationalization process carried
outbytheCuban revolutionary Government strictly abided bytheestablished norms ofinternational
law.
Cuba hasprovided fullcompensation under agreements withtherespective Governments, with
thesoleexception oftheUnited States. Withrespect toUnited States property, Law851of6July1960
established theprocedure fornationalization andforcompensation payments based onCuban sugar
exports totheUSmarket; thisproved impossible owing tothearrogant attitude taken bytheUS
Government, which cancelled theCuban sugar quota andsubsequently enforced theblockade.
Withreference toactions regarding theproperty ofCuban nationals, thisisamatter overwhich
noforeign country hasjurisdiction nor,consequently, therighttolegislate. TheCuban Government
willnever allow suchaviolation ofitssovereignty.
Byignoring these facts, theUnited States triestocastdoubt ontheguarantees offered bythe
Cuban Government toforeign businessmen toengage ineconomic andcommercial activities inour
country, inaccordance withnormal international practice.
Cuba willmaintain itspolicy ofasserting theillegal character oftheHelms-Burton Act.
However, implementation ofthisActisnotfeasible formany reasons, including thesituation which
willoccur inUScourts oflawowing tothenumber oflawsuits thatcould befiled, thereaction ofWT/L/142
Page3
Governments because ofattempts tojudge theircitizens foractions thataretotally legitimate, such
asdoing business withathirdcountry, andthecostthateachandevery aspect ofthisActwillentail
fortheUnited States taxpayer.
ThisnewActviolates important principles ofinternational coexistence. Inparticular, it
challenges thesovereignty oftheRepublic ofCuba bytrying tolegislate oninternal matters which
arenottheconcern ofaforeign State and,stillworse, toinvolve thirdcountries inthispractice.
From atechnical pointofview, itconflicts withtheobjectives oftheWorld Trade Organization,
which aimsatasubstantial reduction inobstacles totradeandtheelimination ofdiscriminatory practices
ininternational traderelations. Furthermore, itcontravenes thepostulates oftheNorth American Free
Trade Agreement (NAFTA) andtheUnited Nations Conference onTrade andDevelopment (UNCTAD)
andother international forums.
TheHelms-Burton Actshould therefore berejected bytheinternational community initsdesire
topromote everfreertrade, stripped ofanymeasures ofcoercion, repression, andblackmail.
Lastyear,anumber ofcountries reactivated legislative instruments toimpede theextraterritorial
scope ofmeasures suchasthis. Even though wearefacing newobstacles thattrytohinder thecourse
ofourinternational relations, wehavefullconfidence inthelevelheadedness andgood judgement of
ourbusiness partners andtherelevant official authorities inthissphere tocontinue working withus
wherever wefindinterests ofmutual benefit.
Inthename oftheCuban Government andinthename ofoureconomic andtrade entities,
theMinistry ofForeign Trade reiterates thewillingness andability ofallCubans tocontinue tofurther
ourbusiness exchange withallthose insearch ofamutually respectful andbeneficial relationship.
Here again, asonprevious occasions, letCuba'smessage reach allthose officials and
businessmen whoareourcounterparts intheday-to-day activities offoreign trade, which Cuba holds
insuchhighesteem.