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Subject
Rapprochement and reform efforts.
Significance
On October 14, US President Barack Obama announced further moves to ease sanctions on Cuba, lifting the 100-dollar limit on bringing Cuban cigars and rum into the United States. While this will give Cuba a boost, its economic situation remains dire. New debt and trade deals with Japan, China and the CAF development bank are insufficient to offset the deadlock in domestic policy, which has reforms moving into reverse.
Impacts
US demand for Cuban cigars will increase pressure to lift sanctions.
Cuban energy cuts will affect the output of state companies, dragging the economy down.
Hurricane damage to eastern Cuba will exacerbate the gap between the impoverished east and more dynamic west.
Keywords:
Cuba,
LA/C,
United States,
Venezuela,
economy,
industry,
international relations,
politics,
foreign investment,
government,
infrastructure,
investment,
monetary,
policy,
private sector,
public sector,
shipping,
tobacco,
tourism,
hard commodities,
natural disasters,
oil,
poverty,
wages,
welfare
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2016
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