WORLD TRADE  
ORGANIZATION  TN/MA/W/71 
15 May 2006 
 (06-2362) 
Negotiating Group on Market Access Original:   English/ 
 Spanish 
 
 
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Non-Tariff Barriers Imposed by the United States  
Impeding and Prohibiting Cuba's Trade  
 
Communication from Cuba 
 
  The following communication, dated 10 May 2006, is being circulated at the request of the 
delegation of Cuba. 
 
_______________ 
 
 
I. INTRODUCTION 
1.1 The economic, commercial and financial blockade imposed on Cuba by the United States is 
the longest-lasting and cruellest known to date, and is an essential element in its policy of hostility 
and aggression directed against the Cuban people.  Its aim, made explicit on 6 April 1960, is to 
destroy the Cuban Revolution: "(…) through disillusionment and discouragement based on 
dissatisfaction and economic difficulties (…) withholdi ng funds and supplies from Cuba, in order to 
decrease real and monetary salar ies so as to cause hunger, desperation and the overthrow of the 
government (…)".
1 
 1.2 Likewise, the blockade is a fundamental co mponent of the policy of State terrorism which 
silently and systematically, bit by bit, in an inhuman and pitiless manner, affects the entire Cuban 
population, regardless of age, sex, race, religious belie f, or social status.  Moreover, it qualifies as a 
genocidal act under Article 2(c) of the Geneva C onvention on the Prevention and Punishment of the 
Crime of Genocide of 9 December 1948, and is  therefore a crime under international law. 
 1.3 The blockade against Cuba is also an act  of economic warfare.  There is nothing in 
international law that can justify it in times of peace. 
 
1.4 Nor can the United States blockade of Cuba  be justified under WTO rules.  None of the 
situations listed in Article XXI (Security Exceptions ) apply between the two nations, and yet this has 
been the only argument adduced to ju stify such violation.  Cuba and the United States are not at war, 
nor is there any question of ser ious international tension. 
 
1.5 The blockade is a complex set of measur es, based solely on political criteria, which 
significantly disrupts economic, commercial, financia l, scientific, cultural, diplomatic and other 
activities, as well as all sectors of the country's social  life.  The fact that the document contains a set 
                                                     
 
1 Secret report by I.D. Mallory, a State Department  official, declassified in 1991.  In Department of 
State:  Foreign Relations of United States, volume VI, 1991, p. 886. TN/MA/W/71 
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  of government provisions and regulations that ar e presented as non-tariff barriers (NTB) cannot be 
construed to mean that the blockade is restricted excl usively to such measures.  This is due only to the 
nature of the Negotiating Group on Market Access for Non-Agricultural Products.  Thus, we shall 
provide below some examples that may not refer strictly to non-agricultural products,  but because of 
their systematic impact on Cuba's economy and on the multilateral trading system, and because they 
deviate so sharply from the minimum standards of re spect for the international instruments governing 
relations between nations, we must point them out.  1.6 Cuba and the United States are founding members of the General Agreement on Tariffs and Trade (GATT) 1947.  Both nations formalized thei r entry into the WTO immediately after the signing 
of the Marrakesh Agreement, accepting its provisions in full. 
 1.7 In the Marrakesh Agreement,  as in many other WTO agreements, the parties recognize that 
all their trade and economic activities must raise "sta ndards of living … that it is necessary to make 
positive efforts designed to ensure that the devel oping countries … secure a share in the growth in 
international trade commensurate with the needs of  their economic development", and that they are 
"determined to preserve the basic principles and further the objectives underlying [the] multilateral trading system." 
 
1.8 In Article II, paragraph 2, the Agreement stat es that "[t]he agreements and associated legal 
instruments included in Annexes 1, 2 and 3 (h ereinafter referred to as 'Multilateral Trade 
Agreements') are integral parts of this Agreement, binding on all Members."  
 
1.9 The non-application of any trade agreement in Annexes 1 and 2 is regulated in paragraph 1 of 
Article XIII of the Marrakesh Agre ement, which states that the Ma rrakesh Agreement and the trade 
agreements "shall not apply as between any Member and any other Member if either of the Members, 
at the time either becomes a Member, does not consen t to such application."  It adds, moreover, that 
original members may invoke this paragra ph where Article XXXV of the GATT 1947 had been 
invoked earlier and was effective as be tween the two parties at the time of entry into force for them of 
the Marrakesh Agreement.  This is not the case fo r Cuba and the United States, and consequently, the 
United States is in violation of WTO agreements  when it refuses to accept that Cuba has the right to 
the same treatment as other Me mbers under those agreements. 
 
1.10 The Doha Declaration of November 2001  and the mandate of the Negotiating Group on 
Market Access for Non-Agricultural Products provide fo r the elimination of non-tariff barriers.  Even 
though Cuba considers that the blockade imposed by the United States and steadily and unilaterally 
intensified over a period of more than 40 years has systematic implications and connotations for the 
multilateral trading system and the WTO that go be yond the subjects being dealt with by this Group, 
it is notifying all Members and providing them with  information that will demonstrate the negative 
impact of these measures on the Cuban economy and tr ade and show that these measures also affect 
the other Members of this Organization.  The blockade is inconsistent with WTO rules and 
obligations, and violates not only Cuba's rights, but also those of other Members interested in maintaining normal trade relations with Cuba. 
 
1.11 Consequently, the continuing invocation by the United States of GATT Article XXI on 
Security Exceptions is unfounded.  It has been s hown time and again in documents issued by various 
agencies in the US intelligence comm unity that Cuba does not represent any threat to the security of 
the United States.  Indeed, Cuba was never a threat  to the United States in the past, much less now.  
Moreover, the precedents for invocation of this artic le reveal that a Member may not apply measures 
under the circumstances permitted by Article XXI wh ere such measures affect other Members.  The 
United States blockade is not justified by the firs t of these criteria, nor does it fulfil conditions for the 
second.   TN/MA/W/71 
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  II. ECONOMIC EFFECTS 
2.1 The economic, commercial and financial blocka de by the United States against Cuba includes 
a set of laws that prohibit, among other things, all goods of Cuban origin from being imported into 
US territory.  These laws also have an impact on Cuba's trade with third countries, and on the WTO's trade disciplines, so that the damage and prejudice to the Cuban economy go beyond the mere export 
and import prohibition itself, directly and seriously  affecting areas of the economy such as foreign 
investment, transportation and finance, and indeed, a ll of the social areas.  Almost all the sectors and 
branches of the economy as well as the most important  services offered to the population are seriously 
affected.  
2.2 In 2004, the damage to Cuban foreign trade as a result of the blockade is expected to reach an 
estimated 822.6 million dollars, 57.2 million more than in 2003.  2.3 While most of the damage was found to r esult from the application of extraterritorial 
regulations (an estimated 380 million dollars), denial of access to the potential US market continues to 
be a major factor.  In 2004, the loss amounted to 30 5.2 million dollars, with Cuba forced to resort to 
third countries for its trading activities, causing insu rance and freight costs to increase and resulting in 
less favourable pricing conditions.  2.4 From a financial point of view, the blockade has had a decisive role in earning Cuba its high 
country risk rating.  Given the strict conditions for access to external financing, this rating has cost the 
economy an estimated 72.2 million dollars. 
 2.5 The fact that the current US administration has no objection to the sale of certain food products to Cuba must not be construed as an easing of the blockade policy.  On the contrary, the 
numerous obstacles and stringent restrictions imposed  reveal the depth and scope of this illegal policy 
of unilateral sanctions.  These purchases are subject to  a licence issued under strict conditions by the 
Department of the Treasury;  payment must be made up front and in cash, with no financing whatsoever, not even private, and transportation is only possible using US or third country ships, but not Cuban ships.  In other words, these purchase s are still subject to the blockade's numerous 
restrictions.  
2.6 To dispel any remaining doubts, both State De partment officials and the US President himself 
made a point of immediately confirming that the bl ockade remained in place, entirely unchanged, and 
that, on the contrary, Cuban policy would be reviewed in the light of the declared objective of tightening the current measures of  economic coercion and sanctions. 
 III. THE EXTRATERRITORIAL NATURE OF THE BLOCKADE 
3.1 "The United States considers the embargo to  be a bilateral matter which should not be 
brought before the General Assembly.  Clearly, it is  not a blockade since we do not interfere with 
Cuba's trade with other nations."  This quote h as been repeated many times by US Government 
representatives, and was included in some conve rsation points concerning the Cuban Resolution 
entitled "The necessity of ending the US economic,  commercial and financia l blockade of Cuba", 
circulated by Cuba to all other delegations on 18 October 2004 at UN Headquarters in New York. 
 3.2 For 14 consecutive years, Cuba has submitted this Resolution to the UN General Assembly;  
and the international community has repeated virtua lly unanimously that this genocidal policy must 
end, that it openly violates the principles of the UN Charter and of international law, and that it also 
violates freedom of trade and navigation, thus demons trating that this is not an embargo, but a policy 
that has extraterritorial implications affecting  the in terests of Cuba and of third countries.  In the most TN/MA/W/71 
Page 4  
 
  recent vote last year, the Resolution was approved by 182 nations – only the United States and three 
other members opposed it.  3.3 The US Government does not recognize the extrat erritorial scope of this policy and rejects the 
accusations to the effect that it has implicati ons for third countries.  However, the ferocious 
persecution of any foreign company or commercial or banking institution which establishes or seeks 
to establish economic, commercial or  financial relations with Cuba n institutions shows that the 
opposite is true, taking its toll in all spheres of life in the country.  We  need only cite a few irrefutable 
examples, which we include in annex to this docum ent.  They clearly show how many countries are 
being affected by this policy. 
 
IV. THE LAWS OF THE BLOCKADE AND WTO RULES 
4.1 The blockade rests on a number of different laws .  Without providing an exhaustive list of the 
instruments by which the United States regulates its blockade policy against Cuba, we shall offer a 
few examples that demonstrate – although not exhaus tively – the inconsistency of the blockade with 
WTO rules, which constitute obligations for the United  States.  A detailed explanation of the laws and 
the relevant WTO provisions is  provided in Annex 1 hereto. 
 
V. REQUEST TO THE GOVERNMENT OF THE UNITED STATES 
5.1 Cuba asks the Government of the United States to revoke, immediately and unconditionally, 
all of the legislation currently in force enacte d with a view to establishing, maintaining and 
reinforcing the economic, commerc ial and financial bl ockade against the country, not only the 
legislation specially drafted for that purpose, but also the provisions introduced in the form of 
appendices to other laws.  This is the only po ssible way to eliminate the inconsistency of 
US legislation in this area with WTO rules, and woul d put an end to the most flagrant and long-lasting 
violation by any Member of the principles of the GATT and the multilateral trading system. 
 
5.2 Cuba repeats that it reserves the right, as a WTO Member, to raise the issue of the blockade in 
the relevant WTO bodies at any time it sees fit.  Even if these measures – which, according to 
preliminary conservative estimates, have cost the country more than 82 billion dollars and 
considerably hampered its economic and social grow th – continue to be ille gally applied, Cuba will 
not give up its independence, its s overeignty, and its right to self-de termination, and will continue to 
work in a spirit of optimism, fully confident that no blockade will be able to alter its determination to 
achieve greater economic prosperity and social justice for the Cuban people.  TN/MA/W/71 
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  ANNEX 1 
 
1. Foreign Assistance Act of 1961.  (Sec. 620 of  Pub. L. 87-195, pt. III, Sec. 620, Sept. 4, 
1961, 75 Stat. 444 (22 USC Sec. 2370)). 
Effect of the Act : 
 
 It authorizes the President of the United States to establish and maintain a total embargo on all trade between the United States and Cuba.  Accordingly, Presidential Proclamation 3447 was 
issued, imposing a blockade on trade with Cuba in 1962.  
Relevant WTO provisions
: 
  Article XI of the GATT:  "No prohibitions or restrictions other than duties, taxes or other 
charges, whether made effective through quotas, impo rt or export licences or other measures, shall be 
instituted or maintained by any contracting party on the importation of any product of the territory of 
any other contracting party or the exportation or sale for export of any product destined for the 
territory of any other contracting party."   Article XIII of the GATT:  "No prohibition or r estriction shall be applied by any contracting 
party on the importation of any product of the te rritory of any other contracting party or on the 
exportation of any product destined for the territo ry of any other contracting party, unless the 
importation of the like product of all third countries or the exportation of the like product to all third 
countries is similarly prohibited or restricted."  
2. Tariff Classification Act of 1962.  (Sec. 401. of Pub. L. 87-456, title IV, May 24, 1962, 76 
Stat. 78 (19 USC 1351 Notes)). 
Effect of the Act
: 
  This law denied Cuba Most Favoured Nation status.   Under the title of "Tariff Treatment of Cuban Products" it is stipulated that: 
 "(a) Cuba
, is hereby declared to be a nation  described in section 5 of the Trade Agreements 
Extension Act of 1951, as amended (19 U.S.C.  1362, relating to imports from nations and 
areas dominated or controlled by the foreign government or foreign or ganization controlling 
the world Communist movement );  and 
 It is established that articles which are: 1. The growth, produce or manufacture of Cuba, and 
2. imported on or after the date of enactment of  this Act (May 24,1962), shall be denied the 
benefits of concessions contained in any trade agreement entered into under the authority of 
section 350 of the Tariff Act of 1930 , as amended (19 U.S.C. 1951). 
Relevant WTO provisions : 
Article I of the GATT 1994  
 The US suggestion in 1962 that Cuba was a nation dominated or controlled by a foreign 
power or the world communist movement was without foundation then and remains without TN/MA/W/71 
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  foundation.  According to the US itself, the Cold War ended in 1989 and the country which they 
claimed controlled Cuba disappeared  in 1991;  communism was considered to have been defeated as a 
philosophy and a form of government in the world.  How, then, is it possible to maintain these 
sanctions against Cuba on grounds that no longer exist? 
 Section 350 of the 1930 Act allows for the pref erences mentioned in Article I.2 (c) of the 
GATT in 1994, but not for the rest of the conce ssions granted to Cuba by the United States under 
Article I.1 of the GATT.  Consequently, the Ta riff Classification Act of 1962 cannot justify the 
withdrawal of MFN treatment following the creation of the WTO.  
3. Trading With the Enemy Act Section 5 (b) (Title 50 of the U.C.C. - War and National 
Defence.) 
Effect of the Law
: 
 This grants the President war-time powers to investigate, regulate, or prohibit any 
transactions, transfers, etc. through the federal ag ency appointed by him and in accordance with such 
rules and regulations as he establishes.  It provid es a basis for the President to impose the remaining 
laws contributing to the blockade of Cuba. 
 Cuban Assets Control Regulations, 1963 (part 515 of heading 31 of the Federal 
Regulations Code, supported by the Trading With the Enemy Act) .  Establishes the rules 
applicable to all financial and commercial operati ons relating to Cuba and freezes Cuban assets in the 
United States;  makes it impossible to use the US dollar for commercial transactions;  prohibits US 
citizens from carrying out transactions involving a list of specially designated Cuban nationals. 
 Cuba and the United States are not at war.  Ne ver has there been a declaration of war between 
the two countries;  on the contrary, numerous stat ements by public figures and reports by military 
institutions and agencies have confirmed that C uba DOES NOT pose a military threat to the United 
States.  Consequently, none of the meas ures taken under this Act are justified. 
Relevant WTO Provisions : 
 Article XI of the GATT .  "No prohibitions or restrictions other than duties, taxes or other 
charges, whether made effective through quotas, impo rt or export licences or other measures, shall be 
instituted or maintained by any contracting party on the importation of any product of the territory of 
any other contracting party or the exportation or sale for export of any product destined for the 
territory of any other contracting party." 
 Article XIII of the GATT .  "No prohibition or restriction sh all be applied by any contracting 
party on the importation of any product of the te rritory of any other contracting party or on the 
exportation of any product destined for the territo ry of any other contracting party, unless the 
importation of the like product of all third countries or the exportation of the like product to all third 
countries is similarly prohibited or restricted."  4. Omnibus Trade and Competitiveness Act of 1988, reinforces the restrictions on imports 
from Cuba.  "Reinforcement of Restrictions on Imports from Cuba". 
 The Omnibus Trade and Competitiveness Act of 1988 stipulates that the US trade 
representative shall ask all major agencies to  prepare appropriate recommendations for strengthening 
the restrictions  on imports of Cuban goods.  The underlined  phrase may appear familiar, since WTO 
commitments seek to strengthen  market access while at the same time strengthening  disciplines in 
order to avoid discriminatory treatment and trade distortion and to seek to eliminate restrictions –   TN/MA/W/71 
 Page 7 
 
 
  quite the opposite of the objectives and regulations  developed by the United States and applied 
unilaterally to Cuba. 
Effect of the Act : 
 It establishes that the US trade representa tive shall ask all major agencies to prepare 
appropriate recommendations for strengthening the restrictions on imports of Cuban goods.  These 
recommendations shall include, but not be limited to, appropriate measures to prevent indirect 
shipments or other evasive measures. 
 Theoretically, the only imports allowed from Cuba to the US market are informational 
materials (cultural products), but not without consider able restrictions.  The regulations of the Office 
of Foreign Assets Control (OFAC) stipulate with re ference to Cuba (31 CFR 515) that the importation 
of such products to the United States is authorized only subject to the condition that they have been 
created or published prior to the transaction.  In other words, in the case of Cuba, any substantial 
transformations or adjustments to such products are prohibited, as is the production or creation of new 
materials by persons under US jurisdiction.  
Relevant WTO provisions : 
 
 This provision reinforcing trade restrictions is contrary, inter alia , to the following 
agreements: 
 The Marrakesh Agreement Establishing the WTO whose preamble reads:  "… contributing to 
these objectives by entering into reciprocal and mutu ally advantageous arrangements directed to the 
substantial reduction of tariffs a nd other barriers to trade and to the elimination of discriminatory 
treatment in international trade relations …" 
 The GATT 1994, whose preamble reads:  "… contributing to these objectives by entering into 
reciprocal and mutually advantageous arrangements di rected to the substantial reduction of tariffs and 
other barriers to trade, and to the elimination of discriminatory treatment in international commerce." 
 The Agreement on Agriculture, whose preamble reads:  "… developed country Members take 
fully into account the particular needs and conditions of developing country Members by providing 
for a greater improvement of opportunities and term s of access for agricultural products of particular 
interest to these Members …" 
 The Agreement on Import Licensing Procedures, w hose preamble reads:  "… to ensure that 
import licensing procedures are not utilized in a manner contrary to the principles and obligations of GATT 1994." 
 
5. Cuban Democracy Act of 1962, Title XVII, Pub.  L. No. 102-484, Section 1701 et seq.; 
106 Stat. 2575 (known as the Torricelli Act.) 
Effect of the Act
: 
 
 Section 1706 (b) - Prohibitions on vessels :  imposes a prohibition on all vessels involved in 
trade with Cuba.  To that end the Act stipulates, inter alia , that: 
"(1) Vessels engaging in trade.  [A] vessel which enters a port or place in Cuba to engage in the 
trade of goods or services may not, within 180 days after departure from such port or place in Cuba, load or unload any freight at any place in  the United States, except pursuant to a licence 
issued by the Secretary of the Treasury." TN/MA/W/71 
Page 8  
 
   We note that the policy being applie d here is the denial of licences. 
"(2) Vessels carrying goods or passengers to or from Cuba.  Except as specifically authorized by 
the Secretary of the Treasury, a vessel carrying goods or passengers to or from Cuba or carrying goods in which Cuba or a Cuban nati onal has any interest may not enter a United 
States port." 
 Trade with Cuba by US subsidiaries located in third countries is prohibited. 
 The Act stipulates that the President of the United States should encourage other countries 
to restrict their trade and credit relations with Cuba. 
Relevant WTO provisions
: 
 Article V.2 of the GATT .  "There shall be freedom of transit through the territory of each 
contracting party, via the routes most convenient for in ternational transit, for traffic in transit to or 
from the territory of other contracting parties.  No di stinction shall be made which is based on the flag 
of the vessels, the place of origin, departure, entr y, exit or destination, or on any circumstances 
relating to the ownership of goods, of vessels or other means of transport." 
 See Article VIII, 1(c) and 4(c) .  Specific licensing 
 
6. Helms-Burton Act or Freedom in Cuba Act of 1996. 
Effect of the Law : 
 This Act codifies all the rules, regulations, laws and presidential or ders relating to the 
blockade adopted since 1962.  The Sections of th e Act or parts thereof reproduced below provide the 
best illustration of the extent of the measures,  disciplines and areas that make up the economic, 
commercial and financial blockade against Cuba, and the blockade's direct and indirect impact on 
Cuba's foreign trade, violating elementary pr inciples of international law and specific WTO 
provisions. 
Sec. 102. ENFORCEMENT OF THE ECONOMIC EMBARGO OF CUBA 
 (a) Policy 
 
(i) Restrictions by other countries
. 
 The Congress hereby reaffirms section 1704(a) of the Cuban Democracy Act of 1992, 
which states that the President should encourage foreign countries to restrict 
trade and credit relations with Cuba in a manner consistent with the purposes of 
that Act . 
(ii) Sanctions on other countries . 
 The Congress further urges the President to take  immediate steps to apply the 
sanctions described in section 1704(b)(1) of the Act against countries assisting  
Cuba . 
(b) Diplomatic Efforts 
 The Secretary of State should ensure that United States diplomatic personnel abroad 
understand  and, in their contacts with foreign official s, are communicating the reasons for the United  TN/MA/W/71 
 Page 9 
 
 
  States economic embargo of Cuba, and are urging  foreign government s to cooperate more effectively 
with the embargo . 
(c) Existing Regulations 
 The President shall instruct the Secretary of the Treasury and the Attorney General to enforce 
fully the Cuban Assets Control Regulations set fo rth in part 515 of title  31, Code of Federal 
Regulations. 
(d) Trading with the Enemy Act 
(i) Civil penalties.-Subsection (b) of section 16 of the Trading with the Enemy Act 
(50 U.S.C. App.16 (b)), as added by Pub lic Law 202-484, is amended to read as 
follows: 
"(b)(1)  A civil penalty of not to exceed $50 ,000 may be imposed by the Secretary of 
the Treasury on any person who violates any li cense, order, rule, or regulation issued 
in compliance with the provisions of this Act." 
(h) Codification of Economic Embargo  The economic embargo of Cuba, as in effect on March, 1 1996, including all restrictions 
under part 515 of title 31, Code of Federal Regulations, shall be in e ffect upon the enactment of this 
Act, and shall remain in effect, subject to section 204 of this Act. 
Sec. 104. UNITED STATES OPPOSITI ON TO CUBAN MEMBERSHIP IN 
INTERNATIONAL FINANCIAL INSTITUTIONS 
(b) Reduction in United States Payments to International Financial Institutions 
 If any international financial institution approves a loan or other assistance to the 
Cuban Government over the opposition of the Unit ed States, then the Secretary of the Treasury 
shall withhold from payment to such institution an amount equal to the amount of the loan or 
other assistance , with respect to either of the following types of payment: 
 
(i) The paid-in portion of the increase in  capital stock of the institution. 
(ii) The callable portion of the increase in  the capital stock of the institution. 
Sec. 108. REPORTS ON COMMERCE WITH , AND ASSISTANCE TO, CUBA FROM 
OTHER FOREIGN COUNTRIES 
(a) Reports Required 
 Not later than 90 days after the date of the en actment of this Act, and by January, 1 of each 
year thereafter until the President submits a determination under section 203(c)(1), the President 
shall submit a report to the appropriate congressional committees on commerce with, and 
assistance to, Cuba from other foreign co untries during the preceding 12-month period . TN/MA/W/71 
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  (b) Contents of Reports 
 Each report required by subsection (a) shall, fo r the period covered by the report, contain the 
following, to the extent such  information is available: 
(1) A description of all bilateral assistance provi ded to Cuba by other foreign countries, 
including humanitarian assistance. 
(2) A description of Cuba's commerce with fore ign countries, including an identification 
of Cuba's trading partners and the extent of such trade. 
(3) A description of the joint ventures comple ted, or under consideration, by foreign 
nationals and business firms involving fac ilities in Cuba, including an identification 
of the location of the facilities involved and a description of the terms of agreement of 
the joint ventures and the names of the parties that are involved. 
(4) A determination as to whether or not any of  the facilities described in paragraph (3) is 
the subject of a claim against Cuba by a United States national. 
(5) A determination of the amount of debt of  the Cuban Government that is owed to each 
foreign country, including: 
(A) The amount of debt exchanged, forgiven, or reduced under the terms of each 
investment or operation in Cuba involving foreign nationals;  and 
(B) the amount of debt owed the foreign country that has been exchanged, 
forgiven, or reduced in return for a grant by the Cuban Government of an 
equity interest in a property, investment, or operation of the Cuban Government or of a Cuban national. 
(6) A description of the steps taken to assu re that raw materials and semifinished or 
finished goods produced by facilities in Cuba involving foreign nationals do not 
enter the United States market, either directly or through third countries or 
parties . 
 Section 110 (Importation Safeguard against Ce rtain Cuban Products) states the following: 
(a) Prohibition on Import of and Dealings in Cuban Products. -The Congress notes that 
section 515.204 of title 31, Code of Federal Regulations, prohibits the entry of, and dealings outside 
the United States in, merchandise that: 
(1) Is of Cuban origin; 
(2) is or has been located in or transported from or through Cuba;  or (3) is made or derived in whole or in part of any article which is the growth, produce, or 
manufacture of Cuba.  TN/MA/W/71 
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  (b) Effect of NAFTA.-The Congress notes that  the United States accession to the North 
American Free Trade Agreement does not modify or alter the United States sanctions against Cuba.  The statement of administrative action accompanyi ng that trade agreement specifically states the 
following: 
(1) "The NAFTA rules of origin will not in any way diminish the Cuban sanctions 
programme … Nothing in the NAFTA would operate to override this prohibition.". 
(2) "Article 309(3) [of the NAFTA] permits the United States to ensure that Cuban 
products or goods made from Cuban materials are not imported into the United States 
from Mexico or Canada and that United States products are not exported to Cuba 
through those countries.". 
(c) Restrictions of Sugar Imports. -The Congress notes that section 902(c) of the Food Security 
Act of 1985 (Public Law 99-198) requires the President not to allocate any of the sugar import quota to a country that is a net importer of sugar unless a ppropriate officials of that country verify to the 
President that the country does not import for reexport to the United States any sugar produced in Cuba. 
(d) Assurances Regarding Sugar Products. -Protecti on of essential security interests of the United 
States requires assurances that sugar products that  are entered, or withdrawn from warehouse for 
consumption, into the customs territory of  the United States are not products of Cuba. 
Relevant WTO provisions
: 
 This section, "Prohibitions of Imports of and Dealings in Cuban Products", violates: 
 Article XI of the GATT   "No prohibitions or restrictions other than duties, taxes or other 
charges, whether made effective through quotas, impo rt or export licences or other measures, shall be 
instituted or maintained by any contracting party on the importation of any product of the territory of 
any other contracting party or the exportation or sale for export of any product destined for the 
territory of any other contracting party. " 
 Article XIII of the GATT   "No prohibition or restriction sh all be applied by any contracting 
party on the importation of any product of the te rritory of any other contracting party or on the 
exportation of any product destined for the territo ry of any other contracting party, unless the 
importation of the like product of all third countries or the exportation of the like product to all third 
countries is similarly prohibited or restricted." 
 Article V.2 of the GATT   "There shall be freedom of transit through the territory of each 
contracting party, via the routes most convenient for in ternational transit, for traffic in transit to or 
from the territory of other contracting parties.  No di stinction shall be made which is based on the flag 
of the vessels, the place of origin, departure, entr y, exit or destination, or on any circumstances 
relating to the ownership of goods, of ve ssels or other means of transport."  
 Article XXIV.4 of the GATT   Regarding administrative action accompanying NAFTA, there 
is clearly a violation of this article, which states that "… the purpose of … a free trade area should be 
to facilitate trade between constituent territories a nd not to raise barriers to the trade of other 
contracting parties with such territories." 
 Agreement on Technical Barriers to Trade   The regulation of the prohibition on imports of 
merchandise that is made or derived in whole or in part of any article that is the growth, produce, or manufacture of Cuba, coupled with the requirement to present certificates of non-Cuban origin, is a TN/MA/W/71 
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  violation of the Agreement on Technical Barriers to Trade.  Even if the Code of Federal Regulations 
was not issued by the recognized institution for the drafting of technical regulations or standards in 
the United States, the definition is made very cl ear in Annex 1 of the WTO Agreement on Technical 
Barriers to Trade, which describes a Technical Regulation  as a "document which lays down product 
characteristics … including the applicable administrative provisions, with which compliance is 
mandatory."  Article 2.2 of the same Agreement states that Members shall ensure that technical 
regulations are not prepared, adopted or applied w ith a view to or with the effect of creating 
unnecessary obstacles to international trade. 
 The relationship established between US secur ity interests and the possible consumption of 
Cuban sugar is solely and clearly intended to damage  the country by targeting what used to be its 
main export, a product which accounted for the bulk of its export revenues. 
 Any transaction carried out from or to Cuba  involving US companies requires specific 
licences, even in the case of shipments of produc ts for which the United States has not notified an 
import licensing requirement.  These licences must be approved by several government agencies, a cumbersome process which is at odds with the practi ce in other countries.  Thus, all trade to or from 
Cuba violates Article 1.2 and 1.3 of the Agreement on Import Licensing Procedures. 
 Finally, all of these laws and measures are contrary to Articles XXXVI and XXXVII of 
Part IV of the GATT (Trade and Development), wh ich establish principles and objectives to ensure a 
rapid and sustained increase of the export earnings of the less-developed contracting parties, and 
commitments on the part of the developed contracti ng parties to comply with those provisions.  The 
measures taken by the United States against Cuba ar e diametrically opposed to what is intended by 
these GATT disciplines. 
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