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IF2017-74E
Trump’s New Cuba Policy and Cuba’s Response
January 24th, 2018
SON Hye Hyun
Research Professor, Department of American Studies
President Donald Trump officially announced his new Cuba Policy rolling back some of President Obama’s
appeasement policy toward Cuba and strengthening economic sanctions on the island. Following the announcement, on Nov 8th 2017, the US Government announced specific sanctions measures and restrictions in furtherance of the Trump administration’s new policy toward Cuba. But given that the measures are limited to the restrictions on individual travel to the island and
financial transactions between US companies and Cuba's military and intelligence entities, the recent announcement is not about reversing the previous administration’s normalization of relations with Cuba. The list of the forbidden Cuban entities compiled by the Secretary of State include 180 companies tied to five major state-owned enterprises under the control of the Cuban military, intelligence or security services. Specifically, Trump's new Cuba policy will directly limit commerce with GAESA (Grupo de Administración
Empresarial S.A.) operating businesses like hotels, banks, car rentals, shopping malls and construction companies through 50 subsidiaries.
The Cuban state has carried out the country’s economic reform to an extent that it can control while tightening its control over the Cuban society, which has held the Cuban society back from opening up at a rapid pace. But the country’s blooming tourism industry and growing number of small business owners coupled with increasing internet access (even tough tightly controlled by the state) have fostered the growth of the private sector, providing opportunities for other countries to cooperate with the island's private sector. Korea, therefore, needs to diversify and increase its cooperation with Cuba in this area. To be more specific, Korea can seek cooperation in the industries supported by the Cuban government,
including tourism, telecommunication and energy industries. On top of that, Korea should search for
ways to help Cuba in its journey towards finding an economic development model that weans the country away from foreign capital and imports. On a last note, the Korean government can take advantage of the Korean pop culture wave ‘Hallyu’ making its way to Cuba to bring the two countries closer together, as the Cuban people tend to embrace and show high interest in foreign cultures.
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