Encouraged by this month’s easing of sanctions on Cuba, US exporters are hoping that a normalisation of trade finance arrangements between the two countries will follow soon.
Specifically, exporters are hoping President Barak Obama’s administration will go beyond the easing of sanctions announced this month and look at lifting the ban on US banks issuing letters of credit (L/Cs) for exports to Cuba.
So far, Washington has eased sanctions on Cuba to the extent that an embassy in Havana is reopening and some restrictions on travel and commerce have been lifted.
But the impact on imports and exports between the US and Cuba is limited for now by the trade embargo that remains federal law.
This means that US exports remain substantially prevented from reaching Cuba because exporters have to go to third-country banks for L/C issuance.
If Washington decides to loosen or lift its restrictions on trade and trade finance, this would most likely benefit US agricultural producers, telecommunications firms and construction companies.
Categories: Trade Based Financial crimes News