President Donald Trump walks on the South Lawn as he arrives at the White House in Washington, Monday, April 15, 2019, after visiting Minnesota. (AP Photo/Andrew Harnik)

Trump to allow lawsuits over US properties seized in Cuba

The move marks a change in more than two decades of U.S. policy on Cuba

Stepping up pressure on Cuba, the Trump administration will allow lawsuits against foreign companies doing business in properties seized from Americans after the island’s 1959 revolution, a senior administration official said Tuesday.

The move marks a change in more than two decades of U.S. policy on Cuba.

President Donald Trump has been taking steps to isolate embattled Venezuela President Nicolas Maduro, who is holding power with help from other countries, including Cuba, China and Russia. The new policy against Havana could deal a severe blow to Cuba’s efforts to draw foreign investment, and spawn international trade disputes between the U.S. and Europe.

The administration official who provided details of the shift spoke on condition of anonymity ahead of the official announcement by the State Department.

After that announcement, national security adviser John Bolton is expected to discuss the new policy during a speech Wednesday in Miami, which is home to thousands of exiles and immigrants from Cuba, Venezuela and Nicaragua.

READ MORE: Trump keeps attacking as redacted Russia report due Thursday

The speech at the Bay of Pigs Veterans Association is to be delivered on the 58th anniversary of the United States’ failed 1961 invasion of the island, an attempt to overthrow the Cuban government.

Johana Tablada, Cuba’s deputy director of U.S. affairs, said on Twitter: “Before they try to euphorically ride a wave of wickedness and lies, they should take a dose of reality. The world has told John Bolton and the U.S. government to eliminate the criminal blockade against Cuba and the Helms-Burton Act.”

The 1996 act gave Americans the right to sue the mostly European companies that operate out of hotels, tobacco factories, distilleries and other properties that Cuba nationalized after Fidel Castro took power. The act even allows lawsuits by Cubans who became U.S. citizens years after their properties were taken.

Canada, France, Spain, Great Britain and other countries with large investments in Cuba have ferociously protested the law and threatened to sue in the World Trade Organization if Washington tries to interfere with the business ties between Cuba and another sovereign nation. U.S. airlines and cruise lines that bring hundreds of thousands of travellers to Cuba each year appear to be exempted.

Every U.S. president since Bill Clinton has suspended the key clause to avoid those trade clashes and a potential mass of lawsuits that would prevent any future settlement with Cuba over nationalized properties. Cuba has said it is willing to reimburse the owners of confiscated properties, but only if the communist government is also reimbursed for billions of dollars in damages generated by the six-decade U.S. trade embargo.

The announcement comes at a moment of severe economic weakness for Cuba, which is struggling to find enough cash to import basic food and other supplies following a drop in aid from Venezuela, and a string of bad years in other key economic sectors.

Foreign investment in Cuba increased slightly in recent years, but it remains far below the levels needed to recapitalize the island’s dilapidated, often collapsing infrastructure. The Trump administration’s decision is not expected to drive out major foreign players like Pernod-Ricard of France, which makes Havana Club rum, or Spanish hotel chains Melia or Iberostar, but it could prove a major obstacle to new investment from foreign companies.

“It will harm prospective investment in Cuba. It will not cause people who are invested in Cuba already to pull out now,” said Phil Peters, director of the Arlington, Virginia-based Cuba Research Center, who advocated for closer relations with Cuba and has consulted for U.S. companies looking to invest.

READ MORE: Trump says Boeing should fix, then re-brand Max 8 jets

Peters said he also believed the new measure could hurt the Trump administration’s effort to force Maduro from power with help from allies like Spain.

“There are plenty of countries that are interested in helping Venezuela find a soft landing after Maduro, but they are not interested in waging an economic war on Cuba,” Peters said.

The U.S. official said the administration also plans to start enforcing the section of the act that allows the U.S. to deny entry visas to Cubans and citizens of other countries involved in trafficking in the confiscated property.

Deb Riechmann And Michael Weissenstein, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

Lacombe and District Chamber of Commerce hosts 38th annual Spring Trade Show

Show runs April 26th, 27th at the Gary Moe Auto Group Sportsplex

Lacombe Grade 6 students become Mayor for a Day at City Hall

Students took part in a mock City council meeting

Town of Blackfalds holds Multi-Plex Open House

Designs for dual-arena, expanded library shown at public consultation

Lacombe’s Galactic Wranglers Robotics Club earns way to World Championships

Community donates over $18,000 for Houston trip in five days

Lacombe Rams Rugby off to promising start in 2019

Coach looking for right mix of veterans and new players

‘Open for business:’ Jason Kenney’s UCP wins majority in Alberta election

The UCP was leading or elected in 63 of 87 seats Tuesday night

Kirkland Signature veggie burgers recalled due to possible metal fragments

Recalled products came in 1.7 kg packages with a best before date of Apr. 23, 2019

Parents of 13 who tortured children get life after hearing victims

One of their daughters fled their home and pleaded for help to a 911 operator

Flooding, climate change force Quebecers to rethink relationship with water

Compensation for victims of recurring floods limit to 50% of a home’s value, or a maximum of $100,000

Storms blast South, where tornadoes threaten several states

9.7 million people in the Carolinas and Virginia at a moderate risk of severe weather

Private cargo ship brings Easter feast to the space station

There are three Americans two Russians and one Canadian living on the space station

Notre Dame rector: “Computer glitch” possible fire culprit

The fire burned through the lattice of oak beams supporting the monument’s vaulted stone ceiling

Undercover cops don’t need warrant to email, text suspected child lurers: court

High court decision came Thursday in the case of Sean Patrick Mills of Newfoundland

VIDEO: Trump tried to seize control of Mueller probe, report says

Special counsel Robert Mueller’s report revealed to a waiting nation Thursday

Most Read