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Cuba says US sanctions are blocking its efforts to open the economy to private investment

UNITED NATIONS (AP) 鈥 The United States has demanded that Cuba open up to private investment, and Cuba has passed to encourage just that. So Cuba鈥檚 U.N. ambassador says he wants to know why Washington keeps piling on sanctions that stymie the very economic opening it has sought for decades.

Ambassador Ernesto Sober贸n Guzm谩n, in an interview this week with The Associated Press, directed his question to U.S. Secretary of State Marco Rubio, the main architect of the Trump administration鈥檚 Cuba policy:

鈥淲hat are you afraid of? If you are so convinced that the Cuban government is an incompetent government, why do you need to implement almost every two weeks new sanctions?鈥

The U.S. State Department responded to a request for comment with a quote from Rubio saying new sanctions will continue to be announced every couple of weeks to close off 鈥渆scape valves that they’re trying to create in every mechanism.鈥

Then on Thursday, the U.S. on Cuban industries, targeting state-owned mining, metal and construction companies.

Cuba has been pushed to the brink by an oil blockade imposed by the United States in January on top of a decades-old embargo, coupled with the escalating sanctions. The moves by President Donald Trump’s administration, meant to put pressure on the government by depriving it of funding, have worsened already , cut workers off from public transport, crippled infrastructure and deepened shortages in medicine and food in the Caribbean island nation.

Guzm谩n said the sanctions are the main obstacle to Cuba opening up its economy. He said the impact of the U.S. measures 鈥 specifically the shortage of electricity and lack of fuel to run a business or travel 鈥 has turned off investors and tourists, a major source of Cuba鈥檚 income.

Some companies have pulled out of Cuba, including , which relied on tourist revenue and cited 鈥渟ignificant operational, legal, economic and financial difficulties” in explaining its decision to leave.

鈥滾iterally, the United States has done everything imaginable to try to prevent foreign investors,” said William LeoGrande, a professor at American University and a leading expert on U.S.-Cuba relations. 鈥漌hen they say, `Well, we want to see Cuba open up to foreign investment,鈥 they鈥檙e being disingenuous. … It’s not possible for them to succeed without some kind of sanctions relief.鈥

The goal of Trump’s Republican administration, he said, is “not just to open up Cuba economically but to overthrow the Cuban government 鈥 to change the nature of the Cuban political system.鈥

Cuba announces major economic shift

John Kavulich, president of the U.S.-Cuba Trade and Economic Council, said Cuba had to make changes when it lost its economic lifeline with the U.S. ouster in January of Venezuelan leader .

鈥淭he result is the Cuban government in the last eight months made more commercial, economic and financial changes to the country than they have as a group since the revolution,鈥 he said.

Nonetheless, the Trump administration keeps ratcheting up sanctions, putting more pressure on Cuba, which is responding by making more changes, Kavulich said.

鈥淏ut from our standpoint, there are two parts missing: One is Cuba implementing by regulation everything that it鈥檚 announced, and secondly, the Trump administration allowing U.S. companies to have more access to the Cuban marketplace while these changes are underway,鈥 he said.

by Cuban President Miguel D铆az-Canel in June aim to significantly shift Cuba鈥檚 economy and industry, which have been strictly controlled by the socialist government since the 1959 revolution.

They include more space for private businesses, imports and exports without the state as an intermediary, free hiring of personnel, authorization for private banks, investment by Cubans abroad and opportunities for fast-food chains to establish themselves on the island.

Guzm谩n said there are opportunities for investments in real estate, solar farms and energy to help ease the country鈥檚 electricity shortage, as well as in marinas and the tourism industry.

Christopher Hernandez-Roy, acting director of the Americas program at the Center for Strategic and International Studies, recalled that the last economic opening under President Barack Obama’s Democratic administration 鈥渨as later throttled by the Cubans themselves, who feared that the opening went too far and appeared to threaten political control.鈥

Today, he said, it appears the Cubans really do want economic reforms and outside investment. D铆az-Canel鈥檚 economic reforms are not impossible, but U.S. sanctions 鈥渟ignificantly constrain their prospects for success,” Hernandez-Roy said.

He noted the irony that U.S. pressure 鈥漣s helping push the Cubans toward greater economic liberalization out of necessity, while simultaneously limiting the resources and access necessary for those reforms to actually improve the economy.鈥

Rubio says Cuba’s leaders 鈥榙on鈥檛 know what they’re doing’

In late June, after the reforms were announced, the U.S. slapped , three linked to a business conglomerate run by Cuba鈥檚 Revolutionary Armed Forces. Best known as GAESA, it is believed to command nearly 40% of Cuba’s gross domestic product.

Rubio, a former U.S. senator from Florida whose parents , did not appear to be impressed by the newly announced economic changes. He last month called Cuba 鈥渁 failed state鈥 with 鈥渁 bad economic model.鈥 He said Cuba鈥檚 leaders 鈥渄on鈥檛 know what they鈥檙e doing鈥 and 鈥渄on鈥檛 know how to fix their economy.鈥

鈥淚 think the challenge that Cuba has faced for the last 15 years is they want to somewhat improve their economy, but they鈥檙e afraid that if they improve it too much they鈥檒l lose political control over people,鈥 he said.

The United States is prepared 鈥渢o do what we can do to effectuate a positive change in Cuba because it directly impacts our national security鈥 since it is only 90 miles (145 kilometers) from the U.S. mainland, Rubio said. 鈥淎nd we want Cuba to be prosperous. We want Cuba to be free.鈥

The Cuban ambassador said implementing the economic changes would be far easier without the sanctions, if American companies were involved in Cuba and if trade between the two countries was possible.

He said the good news is that talks are taking place between the United States and Cuba. He declined to give details of what he called 鈥渧ery sensitive conversations.鈥

鈥淏ut the point here is that even when Cuba is changing a lot,” Guzm谩n said, 鈥渢he U.S. government keeps the same policy of aggression towards the Cuban people.鈥

___

Follow the AP’s coverage of Cuba at .

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