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The Extraterritoriality of the American Blockade Against Cuba

What can Canadian citizens and businesses do about the extraterritorial reach of the American Blockade/Embargo Against Cuba?

What MORE Can Canadians Do?

The first step is to be aware that Canada has adopted legislation to prohibit Canadian-based companies to comply with requirements by the US that would prohibit these third-countries companies to follow US restrictions. Did you know this?

In the words of the Canadian government, and not of a radical anti-US blockade organization:

“What does this mean for Canadian businesses who have activities in Cuba?  Canadian businesses that have U.S. citizens as shareholders, management, directors, officers, employees or representatives/agents, etc. need to understand the do’s and don’t of the Trump Cuba Policy or they might find themselves in trouble in both the United States and Canada.  The United States imposes various economic sanctions against Cuba effectively prohibiting many transactions with Cuba.  Canada, on the other hand, blocks U.S. anti-Cuba legislation with the Foreign Extraterritorial Measures Act (Canada) (“FEMA”) and the Foreign Extraterritorial Measures (United States) Order, 1992, as amended.  In Canada, persons must report to the Attorney General of Canada when they prevented, impeded or trade or commerce between Canada and Cuba is reduced:

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Section 5 of FEMA prohibits Canadian companies and its directors, officers, managers and employees from complying with U.S. anti-Cuba legislation that prohibits, infringes or otherwise influences trade between Canada and Cuba.  In other words, a Canadian company or representative cannot not undertake business activities that are legal under Canadian law on the basis of compliance with U.S. anti-Cuba laws. The prohibition applies to trade in goods, including technology and trade in services, including technology-related services.

This results in tension between complying with Canadian law and complying with United States laws (e.g, Helms-Burton).  Multi-national companies sometimes get caught between the two sets of opposing laws.  For example, recently (on June 8, 2017) OFAC fined a US company (American Honda Finance Corporation) $87,255 in connection with leases of Honda vehicles by Honda Canada Finance, Inc. to the Cuban Embassy in Ottawa.  The leased vehicles were on Canadian soil.  The financing of the vehicles driven on Canadian roads went through the fined US entity. The transaction was perfectly legal in Canada and could not have been rejected in Canada even if the reason was to comply with U.S. laws.  If the Canadian entity was asked to not lease vehicles to the Cuban officials in Ottawa, they would have had to report that request under provisions of FEMA.  This recent OFAC file should act as a wake-up call to Canadian companies to understand the Trump Cuba Policy and re-visit compliance programs relating to business with Cuba/Cuban persons.  This recent U.S. fine should be a wake-up call to Canadian companies that the U.S. will enforce its Cuba sanctions even if the activities are legal in Canada.”

End of quote from the Federal Government. My question:  Should the recent US fine against Honda also not act as a wake- up call to Cuban solidarity activists to publicize Federal legislation among business community and the friends of Cuba at large so we can use this to step-up the work against the American blockade, but with «Canadian Content »?

Books by Arnold August:

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