Helms-Burton Act
Encyclopedia
The Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 (Helms–Burton Act, , ) is a United States federal law which strengthens and continues the United States embargo against Cuba
. The act extended the territorial application of the initial embargo to apply to foreign companies trading with Cuba
, and penalized foreign companies allegedly "trafficking" in property formerly owned by U.S. citizens but expropriated
by Cuba after the Cuban revolution
. The act also covers property formerly owned by Cubans who have since become U.S. citizens.
The Act is named for its original sponsors, Senator Jesse Helms
, Republican
of North Carolina
, and Representative Dan Burton, Republican of Indiana
.
The law was passed on March 12, 1996 by the 104th United States Congress
. The bill, which had been tabled in late 1995 after Senator Helms was unable to overcome several Democratic filibusters, was reintroduced prompted by an episode that happened a month earlier. On February 24, 1996, Cuban fighter jets shot down two private planes operated by a Miami based anti-Castro Cuban refugee support group called Brothers to the Rescue
(Hermanos al Rescate).
, the European Union
, Britain
, Canada
, Mexico
, Brazil
, Argentina
and other U.S. allies that enjoy normal trade relations with Cuba. The governments argued that the law ran counter to the spirit of international law and sovereignty.
After a complaint by the European Union with the World Trade Organization
, a dispute settlement panel was established. Later, the work of the panel was suspended to find a solution through negotiations. After a year, the panel lost its jurisdiction over the matter, and the EU did not pursue the matter any further before the WTO.
The law has also been condemned by humanitarian groups because these groups argue that sanctions against an entire country will affect only the innocent population.
The law provides for compensation of only the largest of claims for confiscated property, primarily only the claims of large multinational companies (valued at roughly $6 billion). It fails to provide for the claims of individuals of the exiled Cuban-American community whose personal residences were confiscated.
The European Union
introduced a Council Regulation (No 2271/96) (law binding all member states) declaring the extraterritorial provisions of the Helms–Burton Act to be unenforceable within the EU, and permitting recovery of any damages imposed under it. The EU law also applied sanctions against US companies and their executives for making Title III complaints.
The United Kingdom
had previously introduced provisions by statutory instrument extending its Protection of Trading Interests Act 1980
(originally passed in the wake of extraterritorial claims by the U.S. in the 1970s) to United States rules on trade with Cuba. United Kingdom law was later extended to counter-act the Helms–Burton Act as well. This included criminal sanctions for complying with certain provisions of the Helms–Burton Act whilst in the UK.
Mexico
passed a law in October 1996 aimed at neutralizing the Helms–Burton Act. The law provides for a fine of 2.2 million pesos
, or $280,254, against anyone who while in Mexican territory obeys another country's laws aimed at reducing Mexican trade or foreign investment in a third country.
Similarly, Canada passed a law to counteract the effect of Helms-Burton. In addition, its legislature proposed (but did not pass) the Godfrey-Milliken Bill
that satirized Burton-Helms. Sponsored by a Loyalist descendant, it demanded recompense for United Empire Loyalists
and proposing similar travel restrictions on those "trafficking" in property confiscated during the American Revolution
.
Presidents Bill Clinton
and George W. Bush
both signed a provision allowing for a waiver of the law. Effective May 10, 1999, with CFR Title 31 Part 515, the act was amended.
The following are laws that were passed in different countries to counteract the effects of Helms-Burton:
United States embargo against Cuba
The United States embargo against Cuba is a commercial, economic, and financial embargo partially imposed on Cuba in October 1960...
. The act extended the territorial application of the initial embargo to apply to foreign companies trading with Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
, and penalized foreign companies allegedly "trafficking" in property formerly owned by U.S. citizens but expropriated
Confiscation
Confiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...
by Cuba after the Cuban revolution
Cuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...
. The act also covers property formerly owned by Cubans who have since become U.S. citizens.
The Act is named for its original sponsors, Senator Jesse Helms
Jesse Helms
Jesse Alexander Helms, Jr. was a five-term Republican United States Senator from North Carolina who served as chairman of the Senate Foreign Relations Committee from 1995 to 2001...
, Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
of North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, and Representative Dan Burton, Republican of Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
.
The law was passed on March 12, 1996 by the 104th United States Congress
104th United States Congress
The One Hundred Fourth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from January 3, 1995 to January 3, 1997, during the third and...
. The bill, which had been tabled in late 1995 after Senator Helms was unable to overcome several Democratic filibusters, was reintroduced prompted by an episode that happened a month earlier. On February 24, 1996, Cuban fighter jets shot down two private planes operated by a Miami based anti-Castro Cuban refugee support group called Brothers to the Rescue
Brothers to the Rescue
Brothers to the Rescue is a Miami-based activist organization headed by José Basulto. Formed by Cuban exiles, the group is widely known for its opposition to the Cuban government and, then President, Fidel Castro...
(Hermanos al Rescate).
Content
This law includes a wide variety of provisions intended to bring about "a peaceful transition to a representative democracy and market economy in Cuba":- International Sanctions against the Cuban Government. Economic embargo, any non-U.S. company that deals economically with Cuba can be subjected to legal action and that company's leadership can be barred from entry into the United States. Sanctions may be applied to non-U.S. companies trading with Cuba. This means that internationally operating companies have to choose between Cuba and the U.S., which is a much larger market.
- United States opposition against Cuban membership in International Financial Institutions.
- Television broadcasting from the United States to Cuba.
- Authorization of United States support for "democratic and human rights groups" and international observers.
- Declares United States policy towards a "transition government" and a "democratically elected government" in Cuba.
- Protection of property rights of certain United States nationals.
- Exclusion of certain aliens from the United States, primarily senior officials or major stock holders, and their families, of companies that do business in Cuba on property expropriated from American citizens. To date, executives from Italy, Mexico, Canada, Israel, and the United Kingdom have been barred.
- Provides power to the Legislative Branch to override an Executive Branch cancellation of the embargo.
- Prohibits the completion of the Juragua Nuclear Power PlantJuragua Nuclear Power PlantJuragua Nuclear Power Plant was a nuclear power plant under construction in Cuba when a suspension of construction was announced in 1992 following the collapse of the Soviet Union and the termination of Soviet economic aid to Cuba....
. - Prompts for the retirement of former Soviet Union personnel out of Cuban military and intelligence facilities, including the military and intelligence facilities at Lourdes and Cienfuegos.
- Prohibits recognition of a transitional government in Cuba that includes Fidel or Raúl Castro
- Prohibits recognition of a Cuban government that has not provided compensation for U.S. certified claims against confiscated property, defined as non-residential property with an excess of $50,000 value in 1959.
- Prompts for extradition or otherwise rendition to the United States of all persons sought by the United States Department of Justice for crimes committed in the United States.
Legislative history
- October 19, 1995: Passed Senate, 74-24.
- March 6, 1996: Passed House, 336-86.
- March 12, 1996: Signed by President Bill ClintonBill ClintonWilliam Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
.
Reactions
The Helms–Burton Act was condemned by the Council of EuropeCouncil of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...
, the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and other U.S. allies that enjoy normal trade relations with Cuba. The governments argued that the law ran counter to the spirit of international law and sovereignty.
After a complaint by the European Union with the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
, a dispute settlement panel was established. Later, the work of the panel was suspended to find a solution through negotiations. After a year, the panel lost its jurisdiction over the matter, and the EU did not pursue the matter any further before the WTO.
The law has also been condemned by humanitarian groups because these groups argue that sanctions against an entire country will affect only the innocent population.
The law provides for compensation of only the largest of claims for confiscated property, primarily only the claims of large multinational companies (valued at roughly $6 billion). It fails to provide for the claims of individuals of the exiled Cuban-American community whose personal residences were confiscated.
The European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
introduced a Council Regulation (No 2271/96) (law binding all member states) declaring the extraterritorial provisions of the Helms–Burton Act to be unenforceable within the EU, and permitting recovery of any damages imposed under it. The EU law also applied sanctions against US companies and their executives for making Title III complaints.
The United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
had previously introduced provisions by statutory instrument extending its Protection of Trading Interests Act 1980
Protection of Trading Interests Act 1980
The Protection of Trading Interests Act 1980 was a piece of legislation passed by the British Parliament to counter American assertions of extraterritorial jurisdiction....
(originally passed in the wake of extraterritorial claims by the U.S. in the 1970s) to United States rules on trade with Cuba. United Kingdom law was later extended to counter-act the Helms–Burton Act as well. This included criminal sanctions for complying with certain provisions of the Helms–Burton Act whilst in the UK.
Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
passed a law in October 1996 aimed at neutralizing the Helms–Burton Act. The law provides for a fine of 2.2 million pesos
Mexican peso
The peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 12th most traded currency in the world, the third most traded in the Americas, and by far the most...
, or $280,254, against anyone who while in Mexican territory obeys another country's laws aimed at reducing Mexican trade or foreign investment in a third country.
Similarly, Canada passed a law to counteract the effect of Helms-Burton. In addition, its legislature proposed (but did not pass) the Godfrey-Milliken Bill
Godfrey-Milliken Bill
The Godfrey-Milliken Bill, officially Bill C-339: The American Liberty and Democratic Solidarity Act was a Private Member's Bill introduced in the Canadian parliament by Liberal MPs Peter Milliken and John Godfrey...
that satirized Burton-Helms. Sponsored by a Loyalist descendant, it demanded recompense for United Empire Loyalists
United Empire Loyalists
The name United Empire Loyalists is an honorific given after the fact to those American Loyalists who resettled in British North America and other British Colonies as an act of fealty to King George III after the British defeat in the American Revolutionary War and prior to the Treaty of Paris...
and proposing similar travel restrictions on those "trafficking" in property confiscated during the American Revolution
American Revolution
The American Revolution was the political upheaval during the last half of the 18th century in which thirteen colonies in North America joined together to break free from the British Empire, combining to become the United States of America...
.
Presidents Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
and George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
both signed a provision allowing for a waiver of the law. Effective May 10, 1999, with CFR Title 31 Part 515, the act was amended.
The following are laws that were passed in different countries to counteract the effects of Helms-Burton:
- Foreign Extraterritorial Measures Act of CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
- Law of Protection of Commerce and Investments from Foreign Policies that Contravene International Law of MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...