CHAPTER 1
INTRODUCTION
The “US Section 211 Appropriation Act case”, more commonly referred to as “United States-Cuba ‘Havana Club’ Trademark Dispute case” has been one of the more controversial and potentially divisive cases before the World Trade Organization (hereinafter referred to as: “WTO”) to date. The European Union (hereinafter referred to as: “EU”) filed a complaint against the United States alleging that a law which prohibited the registration and enforcement in the United States of a Cuban trademark, “Havana Club” rum, which was licensed to the French company, Pernod-Ricard, S.A. (hereinafter referred to as: “Pernod-Ricard”), was in violation of the WTO Agreement, which protected the intellectual property rights of WTO Members and
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Prior to the Cuban revolution in 1959, Havana Club was one of the largest selling rums in the world, with the United States being its major market. Havana Club was manufactured by Jose Arechabala, S.A. (hereinafter referred to as “JASA”). The company was owned and controlled by the Arechabala family. In 1960, Fidel Castro confiscated most large private holdings in Cuba for State use, including JASA. Neither JASA nor the Arechabala family received compensation for the assets the Cuban government …show more content…
Cubaexport, a State-owned enterprise, exported Havana Club rum, primarily to the communist countries in Eastern Europe and to the Soviet Union from 1972 to 1993. Cuba export had registered the "Havana Club" trademark with the United States Patent and Trademark Office ("PTO") in 1976 under Registration No. 1,031,631. In 1993, Cubaexport decided to seek a foreign partner for its Havana Club rum business. In this regard, Havana Rum and Liquors, S.A. ("HR&L"), was formed under the laws of Cuba. Consequently, HR&L entered into a joint-venture agreement with Pernod-Ricard. In November 1993, Pernod-Ricard and HR&L entered into an agreement, which formed Havana Club Holding, S.A. ("HCH"), a Luxemburg corporation, and Havana Club International, S.A. ("HCI"), a Cuban corporation. Cubaexport then assigned its U.S. trademarks to HR&L, which, in turn, assigned them to HCH on June 22, 1994. HCH renewed the U.S. registration for the "Havana Club" mark for a term of ten years in
Cash is not abundant in Cuba, especially for the poor to middle class families. An example of this would help move “product” from point a to b and in return, the employers can provide your family with food for a month.Government officials will often times take kickbacks for awarding large contracts to foreign companies . In return get money back from the investment in the company.
In 1959, Cubareceived 74 percent of its imports from the US, and the US received 65 percentof Cuba’s exports. On February 3, 1962, the United States imposed a fulltrade embargo on Cuba, completely ending any type of trade between the twocountries. This embargo remains in effect today, more than four decades later,and has grown ! to be a huge center of debate and controversy (DeVarona 8).Opponents to the embargo argue that the embargo does nothing more than hurt theCuban people, while proponents argue that the embargo places pressure on Castroto repair Cuba’s mismanaged and corrupt government. Both the supportersand the opponents of this embargo have strong arguments and evidence to supportthese
To begin, it is important to know about the history of Cuba to fully comprehend how things came to be as they are today. Since the Conquest and Colonization Era (1492-1898), many of the prominent European countries and the powerful neighbor to the north of Cuba, the United States of America, have attempted to take control of the land. It first began with the Spanish conquistadors, specifically Diego Velázquez, who was the first to explore and settle the land. Up until the end of the 19th century, the Spanish monarch was the authoritative figure overseeing the land and
Cuba was one of the territories that United States imperialized. The US was a heavy consumer of the sugar produced in Cuba but didn’t meet the sugar industry demands. The international market collapsed, and the US used this opportunity to purchase the sugar mills in Cuba “Cuban sugar mills into bankruptcy … sensing an opportunity, investors from the United States
Cuba first gained importance in the 1560s, when the Spanish built Havana as a center to keep and build navy ships. During the 1700s, it primarily profited from sugar plantations, though it also made money from cattle farming, tobacco, and coffee. Cuba primarily exported the sugar it produced to Spain, but
In the article, “Why Do We Still Have an Embargo of Cuba?” Patrick Haney explores the history of the embargo and the different factors which have maintained and tightened its restrictions over the past fifty years. The embargo consists of a ban on trade and commercial activity, a ban on travel, a policy on how Cuban exiles can enter the U.S., and media broadcasting to the island. These once-executive orders now codified into law by the Helms-Burton Act, have become a politically charged topic which wins and loses elections, spawned influential interest groups, and powerful political action committees.
The United States embargo of Cuba has its roots planted in 1960, 53 years ago, when “the United States Congress authorized President Eisenhower to cut off the yearly quota of sugar to be imported from Cuba under the Sugar act of 1948… by 95 percent” (Hass 1998, 37). This was done in response to a growing
One of the United States most important foreign trading partners was Cuba. The Cuban and the US economy had been intertwined for nearly a decade before the turn of the 20th century with American invests of $50 million in the Cuban economy. Americans owned the most valuable land in Cuba, which were the sugar plantations. More than 90% of Cuba’s sugar was exported to the United States7. Most of the imports to Cuba and the surrounding islands came from the US. If the Cuban market closed the US would lose not only its $50 million in investments, but also millions in lost revenue from not being able to trade with Cuba.
One of the most controversial and widely debatable issues that have been discussed extensively in international legislation for several decades is the Helms-Burton Act. The main controversy surrounding the Helms-Burton Act is the resistance from the Cuban government regarding the features of the legislation. The resistance is a clear demonstration of the legality of property claims despite of the passage of time. Throughout history, rarely has an initiative by the American government to enforce its political opinion on economies of other countries generated much anger like the 1996 Cuban Liberty and Democratic Solidarity or Helms-Burton Act. Even though President Clinton initially opposed the legislation, it was enacted after the downing of two planes by Cuban Air Force that were flown by members of an anti-Castro organization in America. The enactment of this legislation resulted in the America's Cuban Conundrum whose main issues are addressed in this article.
Bacardi, the most popular white rum brand worldwide, was founded in Cuba in 1862. Its production was moved to Puerto Rico after the Cuban Revolution and it has never returned to its home country. Currently, Cuba manufactures its own brand of rum, Havana Club, used for their famous mojitos.
The Cuban Embargo, also known as “el bloqueo” to Cuban citizens, was declared by the United States in 1960 to eliminate imports of Cuban
Supporters of the legislation believe that prohibiting foreign investment will quicken Castro’s downfall. (Close Up Foundation) Many debate on the issue of why the U.S. should or shouldn’t keep the ebargo against Cuba. These debates deal with the effects of the Embargo on Cuba’s economy, humanitarian rights and health of the people of Cuba. The embargo today places a ban on subsidiary trade, Licensing, shipping and humanitarian aid. (Close Up Foundation) In 1992, the Cuban Democracy act imposed a ban on subsidiary trade with Cuba. This ban restricted Cuba’s ability to import medicines and medical supplies from third country sources. There have also been corporate buy-outs and mergers between U.S. and European pharmaceutical companies thus adding to the number of companies permitted to do business with Cuba. Under the Cuban Democracy Act, The U.S. Treasury and Commerce Departments are allowed to license individual sales of medicines and medical supplies, supposedly for humanitarian reasons to make up for the embargo’s impact on health care delivery. According to the U.S. corporate executives, the licensing provisions are so tough as to have had the opposite effect. With this statement, it is assumed that there are fewer licenses given out for humanitarian reason therefore favoring the embargo and aiding in the downfall of health in Cuba. Since 1992, the embargo has prohibited ships from loading or unloading cargo in U.S. ports for 180 days after
The Cuban Embargo, also known as “el bloqueo” to Cuban citizens, was declared by the United States in 1960 to eliminate imports of Cuban goods. When the embargo was first set, it was only to
In the early 1900’s, Cuba was a stomping ground for many of the rich and famous from the United States. Many famous movies stars and wealthy business entrepreneurs spend their vacations there along with a substantial amount of money. Trade and commerce between the United States and Cuba flowed freely and abundantly. Even with the Dictatorship-like regime of Batista, the countries benefited from the economic trade between them. This was all about to come crashing down as revolts against Batista occurred and Fidel Castro came to power within Cuba.
While Felgenico Batista was running Cuba many American companies grew rich off of Cuban resources while the Cuban people remained poor. An American mobster named Meyer Lansky came to Cuba to open a hotel. The mobster gave Batista 10% of the profits of the hotel and casino, so Batista became wealthy off of that. Batista became very wealthy off of American business and also organized crime. Meyer Lansky also turned Havana into a drug port. Batista did very little to help the Cuban citizens. While running Cuba Batista did not offer the people neither health care nor education. So many Cubans lived in poverty. When they became ill they wouldn’t be able to go to a doctor because they wouldn’t be able to afford it. When Batista took over the country in