Economic Coercion and the Limits of Sovereignty: Cuba’s Embargo Claims Against the United States

51 Pages Posted: 22 Mar 2019 Last revised: 26 Mar 2019

See all articles by José Gabilondo

José Gabilondo

Florida International University (FIU) - College of Law

Date Written: March 22, 2019

Abstract

While scholars and journalists have written exhaustively about the property claims against Cuba certified by the U.S. Foreign Claims Settlement Commission, little attention has been paid to Cuba’s public international law claim against the United States for embargo losses caused by its unilateral sanctions. As a result of the normalization process between the two countries that began in 2014, resolving both the property claims and the embargo claim has become a diplomatic priority. While conceding the doctrinal limitations under existing authorities, this paper critically evaluates Cuba’s claim and presents strong legal support for it.

Public international law provides no exact precedent for damages caused by unilateral economic sanctions, but the distinctive circumstances in the case of Cuba may justify a new precedent. In particular, three aspects of these sanctions weigh in favor of liability on the part of the United States: (i) its Cuba sanctions do not comply with public international norms about economic sanctions; (ii) these sanctions have consistently demonstrated an intent to manipulate and to harm Cuba’s civilian population; and (iii) these sanctions have handicapped Cuba’s sovereign prerogative to adapt to a changed global trading system, one built on relational value chains. The paper concludes by arguing for a consolidated claims settlement process that nets Cuba’s embargo claim against the certified property claims of the United States. Doing so would provide the liquidity needed to clear away some of the political risk that currently cripples the Cuban economy.

Keywords: sanctions, political risk, embargo loss, Cuba, U.S. certified property claims, expropriation

Suggested Citation

Gabilondo, Jose M., Economic Coercion and the Limits of Sovereignty: Cuba’s Embargo Claims Against the United States (March 22, 2019). 20 Harv. Latinx L. Rev. 51, 100 (2017); Florida International University Legal Studies Research Paper No. 19-03. Available at SSRN: https://ssrn.com/abstract=3358406

Jose M. Gabilondo (Contact Author)

Florida International University (FIU) - College of Law ( email )

11200 SW 8th St.
RDB Hall 1097
Miami, FL 33199
United States

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