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European Union Warns Of Legal Action Against U.S. Over Cuba Property Claims

Photo by Gary Raynaldo /  The Habana Libre Hotel, located in the Vedado section of Havana, used to be the American-owned  Havana Hilton before Fidel Castro came to power and confiscated it along with other US properties in Cuba. The hotel, currently managed by Spain’s Melia chain,  could become a target of U.S. litigation.

By Gary Raynaldo        DIPLOMATIC TIMES

The European Union is not too happy with President Trump’s action allowing U.S. lawsuits over seized property in Cuba. The Trump administration announced it is allowing former owners of commercial property expropriated by Cuba to sue companies and the Cuban government for using or “trafficking” in those confiscated holdings.  Secretary of State Mike Pompeo said Wednesday the U.S.  won’t renew a ban on litigation that had been in place for two decades The Trump administration is activating,  effective May 2,  Title III of the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD).  Lawsuits will now  be allowed in American courts against Cuban companies using property seized during the 1959 revolution. The EU vowed to sue using the World Trade Organization if the Trump administration attempts to sanction European firms doing business in Cuba. Last month.  Pompeo told Congress he intended to suspend a section of the Helms-Burton Act for 30 days  beginning March 19, that allows former owners of commercial property expropriated by Cuba to sue companies and the Cuban government.  The fact that the this was the shortest suspension period was an indication the Trump administration planned an activation of  LIBERTAD.

Brussels Vows To Protect The Interests Of EU Companies Doing Business In Cuba 

Credit: EU / Federica Mogherini, minister of European Foreign Affairs

“The decision by the United States to renege on its longstanding commitment to waive Title III of the Helms-Burton (LIBERTAD) Act is regrettable, and will have an important impact on legitimate EU and Canadian economic operators in Cuba. The EU and Canada consider the extraterritorial application of unilateral Cuba-related measures contrary to international law. “

-Joint statement by High Representative / Vice President Federica Moghernini, Minister of Foreign Affairs of Canada Chrystia Freeland, Apri. 17, 2019, Brussels. 

“We are determined to work together to protect the interests of our companies in the context of the WTO and by banning the enforcement or recognition of foreign judgments based on Title III, both in the EU and Canada. Our respective laws allow any US claims to be counter-claimed in European and Canadian courts, so the US decision to allow suits against foreign companies can only lead to an unnecessary spiral of legal actions.”

European-Managed Cuban Entities Such As  Habana Libre Hotel, Formerly Hilton, May Be Targeted 

Photo by Gary Raynaldo / Interior of the Habana Libre Hotel, formerly Havana Hilton. Following Fidel Castro’s entry into Havana on January 8, 1959, the hotel became his headquarters, with Castro residing for three months in the hotel’s Continental Suite, room 2324.

Credit: by Gary Raynaldo / Taxi classic Cadillac Coupe de Ville  waiting for customers at Habana Libre Hotel In Downtown Havana

LIBERTAD  Will Expedite Transition To Democracy in Cuba:  Pompeo 

Credit: U.S. Department of State /  Mike Pompeo, Secretary of State

Secretary of State Mike Pompeo stated that the right to bring an action under Title III of the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD) Act is necessary to the national interests of teh United States and will expedite a transition to democracy in Cuba. 

Critics Blast Trump’s New Cuba Property Action 

LIBERTAD  would  incite litigation that could have a “crippling effect on U.S.-Cuba trade,”  according to the Engage Cuba Coalition, which describes itself as “a national coalition of private companies, organizations, and local leaders dedicated to advancing federal legislation to lift the 55-year-old Cuba embargo in order to empower the Cuban people and open opportunities for U.S. businesses.”

“This is a continuation of the same embargo policy that has failed for nearly 60 years. You can put lipstick on a pig, but it’s still a pig. We now have six decades of evidence that the embargo hurts everyday Cubans while emboldening hardliners in the Cuban government. Continuing this failed policy undermines American interests and helps our adversaries.”

James Williams, President of Engage Cuba.

 

“President Trump is doing this for one reason, and one reason only: to appease fringe hardliners in South Florida ahead of the 2020 election,  Williams said in a statement issued by Engage Cuba Wednesday after Pompeo announced the new U.S. policy.  “The only way to get property claimants what they deserve is through diplomatic negotiations, which President Trump just threw off the table. This lets the Cuban government off the hook and shifts the burden to American, European and Canadian companies. American companies and our closest allies will now be paying instead of the Cuban government.”

 TRUMP TRIED TO OPEN TRUMP HOTEL AND GOLF RESORT IN CUBA:

-Trump Tower Havana

In September 2016, when Trump was the Republican presidential candidate, Newsweek magazine revealed that in 1998, Trump Hotels and Casino Resorts hired a consulting firm to explore business opportunities on the island. Reportedly acting with Trump’s knowledge, representatives from Seven Arrows Investment and Development Corp. traveled to Cuba, which was then led by Fidel Castro.

 

“The hypocrisy of the Trump administration cozying up to the most brutal dictatorships in the world in Saudi Arabia, Russia and North Korea, but claiming to care about democracy and human rights in Cuba, is like living in a parallel universe. President Trump himself tried for years to open up a Trump Hotel and golf resort in Cuba,”    Williams  added. 

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