Former Democratic Congressman Joe García has revealed that a friend of his, who is a member of the U.S. Congress, is "considering" a legislative proposal to exempt all Cuban small and medium-sized enterprises (SMEs) from the embargo. In an interview with CiberCuba, García, also a lawyer, explained that the bill aims to remove all restrictions negatively impacting Cuban entrepreneurs, such as monetary and financial limitations. He added that the measure would provide greater security to the 12,000 small businesses registered on the island since 2021.
García acknowledged the difficulty of advancing such a measure. "It's easier said than done," he remarked at the end of a conversation in which he expressed satisfaction with new measures approved by the U.S. Department of the Treasury this week that benefit SMEs. These measures include lifting the ban on opening bank accounts in the United States, authorizing U-turn transactions (through third countries), expanding access to internet services and software, and creating a category for independent private sector entrepreneurs, which includes SMEs and not just self-employed individuals.
These measures were introduced days after the Biden Administration took the first step to remove Cuba from the list of state sponsors of terrorism, by taking the regime of Díaz-Canel off the list of countries that do not cooperate with the United States in counter-terrorism efforts. They also come a month after migration talks between the two countries in April, during which the Cuban government complained about the embargo.
When asked if the Treasury Department's decision to ease restrictions affecting SMEs was an attempt by President Joe Biden to curb the migration wave from the island, García dismissed the idea but acknowledged it as a "good argument." "If that's happening, I'm not part of it. I don't think that's the case. These are measures that had been discussed and decided upon," he said, clarifying that they were not adopted earlier due to votes related to the war in Ukraine and other tightly contested issues in Congress.
García did not hide his satisfaction with the new measures approved by the Treasury Department. "I think it's good and will have an impact in Cuba and Spain because it is the financial center for many SMEs, and now you even find banks financing some of the purchases made by companies," he said. Additionally, he noted that these measures would lower the cost of many transactions and applauded the fact that Cuban entrepreneurs can legally open bank accounts in the United States, something that had been done illicitly and will now be regularized.
Despite recognizing that it is not the embargo but the Cuban regime itself that limits the creation of SMEs by not opening the door to productive forces, García believes that measures like those adopted by the Treasury Department confirm that the United States is willing to help. "What cannot remain on our part," he pointed out.
He also acknowledged that the Cuban government missed the opportunity provided by Obama during the thaw years, but defended that lifting restrictions on SMEs creates civil society. "Unfortunately, Cuba has not given the necessary opening and now claims to have enough of this. I don't know what there is enough of in Cuba that the government needs to regulate, but well, let's give the bureaucrat something to do."
Although there are very few SMEs (12,000), they represent almost 20% of Cuba's GDP, including self-employed workers, cooperatives, and SMEs, and employ more than a million people. "They should open 700 (SMEs) a day because everything in Cuba needs to be done and everything is stagnant."
García denies that these measures are giving oxygen to the Cuban regime. "When you give food to someone, you are not giving oxygen to the government," he insisted.
When asked by CiberCuba if he understood the anger of Cuban activists regarding the U.S. measures, García said yes and recalled that he was the executive director of the Cuban American Foundation. "I am the creator of the architecture surrounding this. I have heard many people speak, and upon hearing them, one thinks, 'They were so brave in Havana,' but they did nothing there," he ironized.
"These fake heroes who say my father must starve in Cuba to liberate Cuba are worse than the people they pursue," García concluded.
Frequently Asked Questions about Potential Legislation Exempting Cuban SMEs from the Embargo
Here are some frequently asked questions regarding the potential legislation to exempt Cuban small and medium-sized enterprises (SMEs) from the U.S. embargo, as discussed by former Congressman Joe García.
What is the proposed legislation seeking to achieve?
The proposed legislation aims to remove all restrictions that negatively impact Cuban entrepreneurs, including monetary and financial limitations, thereby providing greater security to small businesses registered in Cuba.
Why is it challenging to advance this measure?
Advancing such a measure is difficult due to the complex political landscape and tight votes in Congress related to other significant issues, such as the war in Ukraine.
How will the new Treasury Department measures benefit Cuban SMEs?
The measures will allow Cuban entrepreneurs to open bank accounts in the U.S., authorize U-turn transactions, expand access to internet services and software, and create a category for independent private sector entrepreneurs, which includes SMEs.
Do these measures give support to the Cuban regime?
No, Joe García insists that providing support to Cuban entrepreneurs does not equate to giving oxygen to the Cuban regime. Instead, it helps build civil society by empowering small businesses.