The Trump administration is opening the door for lawsuits against firms operating on possessions Cuba captured following the 1959 revolution.
The decision will be a blow to the efforts to draw investment into the island of Havana.
Pompeo’s decision gives Americans the right to sue businesses that run out of tobacco mills, hotels, distilleries and other properties Cuba nationalized after Fidel Castro took power. It enables lawsuits by Cubans who became U.S. taxpayers years after their possessions were obtained.
Pompeo says,”Those citizens’ chances for prosecution have been made out of reach for two years.”
Word of the transfer prompted remarks from Canada and Europe, which have vowed to protect their companies.
Spain’s government spokeswoman says government will offer support to any Spanish firm affected by potential U.S. lawsuits filed against foreign firms in Cuba.
Isabel Celaa stated Wednesday”that the Spanish government will give its funding to Spanish companies at Cuba.” She did not elaborate on what kind of service might take.
Celaa told reporters after the Cabinet meeting Madrid knows that the European Union also intends to throw its weight against companies with business interests beyond the bloc.
Even the U.S. government is expected to announce later Wednesday it will permit lawsuits against foreign firms doing business in possessions seized from Americans following Cuba’s 1959 revolution.
The European Union is warning that it stands out to safeguard the interests of European firms or individuals doing business in Cuba who might be struck by any U.S. suits filed against overseas companies there.
The government of president Donald Trump is expected to announce Wednesday that it will allow lawsuits against foreign companies doing business in houses seized from Americans after the 1959 revolution of Cuba.
European Commission spokesman Alexander Winterstein states that the EU”is prepared to protect European interests, including European divisions and the financial actions of EU entities and individuals in their relations with Cuba.”
He’s declined to state what measures are being contemplated.
A senior official in Madrid states that the Spanish authorities is asking the European Union to battle a U.S. move to permit lawsuits against foreign firms operating in lands seized from Americans from post-revolution Cuba.
The move, announced Tuesday, breaks with two years of U.S. policy on the staircase.
Spain, which has investments in resorts and other tourism-related industries in Cuba, would request the EU to dispute the conclusion from the World Trade Organization, a senior administration official told The Associated Press.
She added that Spain has been dedicated to safeguarding its interests.
— From Aritz Parra
The Trump administration is planning to alter a longstanding U.S. plan on Cuba.
The administration is expected to announce Wednesday that it will enable suits against companies doing business in houses seized from Americans following the 1959 revolution of Cuba.
A law passed in 1996, the Helms-Burton Act, gives Americans the right to sue the companies that run out of tobacco mills, hotels, distilleries and other possessions after Fidel Castro took power, that Cuba nationalized. The act even allows suits by Cubans who became U.S. citizens years after their properties were shot.
However, every U.S. president since Bill Clinton has suspended that the vital clause to prevent trade clashes and a possible mass of suits that could prevent any potential settlement with Cuba over nationalized properties.