Cuba is bankrupt and beleaguered by an aging dictatorship dominated by the Castro brothers, which have had the Cuban people and virtually every aspect of life and death on the island under their totalitarian thumbs for over 50 years. The Castro regime's control over the 12 million Cubans on the island, and its tired anti-Americanism mantra, is expected to cave in much like the collapse of the former Soviet Union in 1991.

Cuba represents the largest potential consumer market in the Caribbean and the Cuban people are well aware of most American brand names and demand for them is strong, though purchasing power is less than weak given the economic realities of the vast majority of Cuba's population. The U.S. embargo against bilateral trade with Cuba imposed in 1960 has forced American businesses to wait on the sidelines while other countries have been doing business on the island for decades. Cuba represents a market with robust long-term growth potential that hinges on what happens with Cuba's government institutions and economic engine in the coming years, presumably after the Castro brothers are out of power. Without a dramatic change in Cuba's failed socialist system and a transition where the rule of law prevails, any investments made in Cuba remain at the whim of a corrupt, lawless few who have a well-documented history of stripping away private property rights, unlawfully confiscating assets, publicly proclaiming contempt against free-market capitalism and abusing the rights of workers and basic human rights of the Cuban people. The hope is that Cuba's dismal state of affairs will change for the better in the foreseeable future, leading to the end of the embargo, enabling free trade and commerce with the island nation, and ultimately, improved conditions and opportunities for the Cuban people.

Lawyers in our Cuba Practice Group are familiar with the history of laws relating to U.S. policy on Cuba, including the long-standing U.S. embargo, The Cuban Democracy Act of 1992, The Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 (commonly known as the Helms-Burton Act), and rules, regulations and amendments promulgated by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). We are also familiar with applicable laws and processes relating to the U.S. export exceptions and the various plans in place or being developed by local, state and national government authorities and quasi public-private organizations monitoring on-going political and economic developments in Cuba.

We closely monitor changes to U.S. policy, new legislation and amendments to existing laws that impact U.S.-Cuba relations. We can advise clients regarding obtaining U.S. Treasury and Commerce Department licenses, negotiating contracts and facilitating complex transactions. Our Firm can assist individuals and companies to position themselves to enter the full Cuban market at the moment the trade embargo is lifted and the Cuban people are finally given the freedoms and opportunities they so richly deserve. Our Firm can assist with strategic planning and positioning for success when U.S.-Cuba relations are normalized. Our Cuba Practice Group can also assist those with claims associated with property that was unlawfully confiscated by Fidel Castro's communist government, properly documenting such losses and claims and, to the extent allowable by law, filing or registering legitimate claims with the appropriate government agencies.

Furthermore, our lawyers are the sons and daughters of Cuban-born parents who fled Fidel Castro's communist dictatorship in pursuit of freedom and opportunity for themselves and their children. All our lawyers are fluent in Spanish, intimately familiar with Cuban history, culture and traditions, and look forward to serving as an effective professional bridge between American companies, Cuban-Americans, and foreign businesses and individuals, on the one hand, and a free and democratic future Cuba, on the other.

For more information regarding our Cuba Practice Group, please contact Peter A. González.

Recent Developments in OFAC rules amending CACR

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) recently issued a final rule amending the Cuban Assets Control Regulations, 31 C.F.R. Part 515 (CACR), to implement President Obama's initiative of April 13, 2009, to reach out to the Cuban people in support of their desire to freely determine their country's future, promote greater contact between separated family members in the United States and Cuba, and increase the flow of remittances and information to the Cuban people. The amendments to the CACR change the rules in three major areas: (1) family visits; (2) family remittances; and (3) telecommunications. These amendments also make certain technical and conforming changes to the CACR. SMGQ can provide guidance to its clients on the details of these recent changes in the law.

Furthermore, the new amendments to the CACR also implement provisions of the Omnibus Appropriations Act, 2009. Pursuant to section 620 of the Omnibus Appropriations Act, 2009, which amended the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), there is a new general license for travel-related transactions incident to agricultural and medical sales under TSRA. This new general license authorizes, with certain conditions, travel-related transactions that are directly incident to the commercial marketing, sales negotiation, accompanied delivery, or servicing in Cuba of agricultural commodities, medicine, or medical devices that appear consistent with the Department of Commerce's export or re-export licensing policy.