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The U.S. trade blockade against Cuba effective since February of 1962 is touted as the most enduring trade embargo in modern international trade history. Initially proposed as a stand against the ideology of communism espoused by the Cuban nation and Fidel Castro, the trade blockade had become a political tool. However, developments in international trade and US agribusiness saw Cuba as a potential market with untapped sources. Many propositions to relax the trade blockade were submitted, including the Trade Sanctions Reform and Export Enhancement Act. This was approved by the Congress in October 2000 and signed by President Bill Clinton. The Act was spurred by humanitarian reason to give aid to Cuban residents in terms of medicine and food supply. Inevitably, since 2001, trade relations between U.S. and Cuba gained the semblance of civility. But this peace was interrupted when the Bush government branded Cuba as an "outpost of tyranny" and enforced stricter embargo restrictions. These restrictions faced tough political hurdles, one of which was the veto threat by President Bush. But the agricultural block and administrators of agribusiness are not to be deterred by the President's strong stand against lifting the international trade blockade against Cuba. The reform proposed by Rep. Moran is touted to be the only reform from the House that can possibly weaken the blockade against Cuba. Should the Moran reform be approved, it will boost private farming and the States's export and manufacturing sector. Consequently, its main supporters are constituents from the farming industry because agriculture and food products comprise about 94% of exported products to Cuba allowed by current Treasury Department policies. Propositions under the Moran reform include overturning the trade policies imposed in February of last year by the State Treasury. These restrictions staggered international trade opportunities with Cuba because these required Cuban importers to pay prior to the product shipments. The reform aims to decrease difficulties for U.S. exporters by accelerating transactions between U.S. manufacturers and Cuba. This is possible through a provision, which overrides the treasury restrictions. This provision entitles Cuban importers extended deadline payments for the imported goods. The Moran reform was approved with a significant margin with the majority of House votes and enjoys popular support from the U.S. Senate. The only problem political analysts see is President Bush's sustained ban on Cuban products. This is the strength of the Treasury regulations. The initial victory of the Moran reform is largely attributed to the lobbying efforts of the agriculture industry and business sectors that opposed barriers to profitable international trade opportunities with Cuba. US agriculture and manufacturing industries can raise their profits by a considerable margin if the reform proposed by Rep. Moran gains the approval of the Senate. However, it must be noted that such advantages are directed only for the benefits of the American economy. Its allies like Mexico and the Philippines, who both have discreet ties with Cuba (political or economic), are silent about the issue. But still, they stand to lose much when the US finally trades openly with Cuba. Like a true capitalist, the US economy is seeking out other markets that its allies cannot satisfy. In opening or relaxing economic ties with Cuba, the US may gain a new market. But the Mexico and the Philippines may gain another competitor in exporting raw materials to the US mainland -- a considerable decline in their economic value to the US. Should the Moran reform succeed, it is a big boost for the arena of international trade not only for US businesses. To sustain their economies after the entry of a new competitor, US allies can openly do business with Cuba without worrying about negative reaction. In general, the US, and the international trade market will benefit with the approval of the Moran reform.
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