Almost everyone in America knows of the embargo against the Cuban government in no small part due to inability of citizens to get pseudo-legendary cigars from the island nation. However, few people know the true reason behind the decades long trade hiatus; the unpaid claims to US companies and families resulting from the mass nationalization of all private property in the 1950’s. Under the Helms-Burton Act, the trade embargo cannot be lifted until the claims against the Cuban government are resolved between the individual claimants or with the little known Office of Foreign Asset Control. As a result, a potentially significant roadblock exist especially since there is a number of venture investors who have bought up claims and might draw a hard line in any potential settlement negotiation. And it is not just investors with a stake, a number of family claims have been passed down through the generations which means multiple heirs might have to consulted when reaching a deal. But there is a catch, the US government has the right to settle the claims unilaterally and distribute the settled amount to the claimants which would equate, under the law, to full payment. Due to increasing desire by American business to start doing business on the island, it is only a matter of time before this situation is resolved. But it the situation will be resolved to the satisfaction of the claims holders only time will tell.
See Seth Stevenson, Claimed, Slate, November 29, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
