Copyright 2002 Denver Publishing Company
Rocky
Mountain News (Denver, CO)
April 11, 2002 Thursday Final Edition
SECTION: LOCAL; Pg. 29A
LENGTH: 731 words
HEADLINE:
ONLY SMALL FISH CAUGHT IN U.S.-
CUBA TRADE NET
BYLINE: Holger Jensen
BODY:
Almost unnoticed in President Bush's war on terrorism is his parallel war on
those who trade with
Cuba. The Caribbean island is
still labeled a "terrorist state," though Fidel Castro long ago stopped
supporting Latin revolutionaries, and thus remains the target of a 41-year
economic embargo that obviously has failed to topple the world's
longest-reigning communist leader.
But the embargo, and laws designed to
strengthen it, are only selectively enforced.
Earlier this month a
Canadian salesman and his two American bosses were convicted of trading with the
enemy by selling
Cuba $
2.1 million worth of
resins used to purify water. Pennsylvania-based Bro-Tech Corp. and its three
executives were accused of arranging the embargo-busting sales through
intermediaries in Canada, Mexico, Spain, Italy and Britain. The case of the
Canadian, James Sabzali, 43, is particularly interesting for two reasons: (1) he
is the only foreign national ever prosecuted for violating the United States'
1919 Trading with the Enemy Act and (2) some of the alleged violations occurred
while he was still living in Canada.
Seven of the 21 counts of which he
was convicted involve sales he made from his Ontario home before moving to
Bro-Tech's headquarters in suburban Philadelphia. Other counts involve sales
made by his Canadian successor. Although Sabzali did not travel to
Cuba after becoming a U.S. resident in 1996, he was held
accountable for travel vouchers he approved for the Canadian salesman.
After his conviction by a Philadelphia jury, Sabzali was fitted with an
ankle bracelet, which he has to wear until his sentencing June 28. He also had
to surrender the deed to his house and his Canadian passport, along with those
of his wife and children.
He faces a maximum sentence of 205 years in
prison and more than $
5 million in fines, though federal
prosecutors have indicated they will settle for a prison term of 37 to 41 months
without parole. His two American co-defendants, Stefan and Donald Brodie, face
41 to 51 months in prison and $
9.3 million in fines.
The case has caused a public outcry in Canada, where members of
Parliament accuse the United States of trampling on Canadian sovereignty.
Cuba is Canada's largest Caribbean trading partner, accounting
for more than $
435 million in two-way trade annually, and
Canadian "blocking legislation" actually prohibits Canadian citizens from
complying with the U.S. embargo.
In other words, Sabzali would have been
breaking the law in his own country if he had refused to do business with
Cuba, at least while he was living in Canada. But he became
liable for prosecution as soon as he moved to the United States, and federal
attorneys convinced the jury to find him guilty of breaking our laws even before
he arrived.
His lawyer is, of course, appealing. But the case revives
doubts about the efficacy of an economic blockade that no other nation in the
world honors and many U.S. corporations circumvent through their foreign
subsidiaries.
The embargo, actually a set of regulations tagged onto the
Trading with the Enemy Act, barred all Americans at home and abroad from doing
business with
Cuba as of 1961. The Cuban Democracy Act of 1992
extended this prohibition to foreign subsidiaries of U.S. firms and closed
American ports for six months to ships that dock in
Cuba.
The Helms-Burton Act of 1996 went even further, imposing penalties on
foreign-owned companies that invest in or benefit from the expropriated property
of Cuban-Americans. But, because of a worldwide backlash and the difficulty of
enforcing what is essentially an extraterritorial law, every president has
waived the most objectionable portions of Helms-Burton since its enactment.
Even so, one would not expect to find American goods in
Cuba if the embargo truly worked. But they're everywhere.
Coke and Pepsi, Guess jeans, Nabisco foods, Phillip Morris and R.J.
Reynolds cigarettes, Campbell soups, Gerber baby foods, Kodak film, Colgate
toothpaste, Max Factor cosmetics and a host of other American products from
Tabasco sauce to Zenith television sets are openly sold in
Cuba's government-controlled stores.
In fact, more than
3,000 American trademarks are registered in
Cuba. So if a
hapless Canadian can be locked up for trading with the enemy, why aren't the
CEOs of some of our largest corporations behind bars?
NOTES: Foreign Affairs;
Holger Jensen is
international editor. E-mail: hjens@aol.com. His column also appears on the
Internet at www.RockyMountainNews.com/jensen/;
PERSPECTIVE
LOAD-DATE: April 13, 2002