Trump's proposed Cuba policy stirs business concerns in Houston

President Donald Trump upended the business and travel hopes of many Houstonians on Friday as he announced a significant rollback to his predecessor's efforts to normalize relations with Cuba.

"Effective immediately, I am canceling the last administration's completely one-sided deal with Cuba," Trump said Friday during a speech in Miami.

Trump announced he is restricting U.S. dollars, which he said find their way to the Communist government's military, and re-enforcing the ban on tourism and continuing the 56-year-old trade embargo. He will, however, keep open the U.S. embassy in Cuba.

He said the U.S. will not lift sanctions on the Cuban regime until political prisoners are released, freedom of assembly is respected, political parties are legalized, and free and internationally supervised elections are scheduled.

"We challenge Cuba to come to the table with a new agreement that is in the best interest of both their people and our people," Trump said, "and also Cuban-Americans."

Mark Jones, a political scientist at Rice University's Baker Institute for Public Policy, said his new policies could curtail the number of Houstonians who travel to Cuba as de facto tourists through the "people-to-people" educational exemption permitted by Obama's administration.

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It could also cause exports through the Port of Houston to drop off modestly. The export of food products, construction materials and IT materials were somewhat opened by President Barack Obama's administration, Jones said. Trump prohibiting financial transactions with companies controlled by Cuba's military complicates those exports.

Cuba residents watch a television displaying coverage of U.S. President Donald Trump as he announced new restrictions limiting U.S. citizens ability to travel to and do business in Cuba. (Photo by Eliana Aponte/Bloomberg) less Cuba residents watch a television displaying coverage of U.S. President Donald Trump as he announced new restrictions limiting U.S. citizens ability to travel to and do business in Cuba. (Photo by Eliana ... more Photo: Eliana Aponte Photo: Eliana Aponte Image 1 of / 149 Caption Close Trump's proposed Cuba policy stirs business concerns in Houston 1 / 149 Back to Gallery

That reduction won't be too noticeable.

"Because of the embargo, exports to Cuba are already minuscule," Jones said.

He also noted that Cuba is an untapped market that Houston business owners would like to access.

"This is a huge setback," said Laura Murillo, president and CEO of the Houston Hispanic Chamber of Commerce.

Having participated in Mayor Sylvester Turner's business delegation to Cuba earlier this year, Murillo said she saw tremendous business opportunities for Houstonians in Cuba.

The city's proximity to the island nation, shared languages and cultural ties, and Cuba's willingness to open its doors to local entrepreneurs in a variety of industries placed Houston in the best position to maximize relations with Cuba, Murillo said.

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That opportunity, she said, is now upended.

"Houstonians for the most part want to do business with whoever wants to do business with them," she said.

Mike Weingart, Houston-based president of the southwest chapter of the American Society of Travel Agents, also believes they should have the freedom to travel.

"Americans should be able to travel to any country they want," he said.

He was in Washington last week with other travel agents to lobby for legislation that would get rid of the travel ban. The American Society of Travel Agents estimates that at least two million additional Americans would visit Cuba by 2019 if there were to be a full lifting of travel restrictions in 2017.

The Freedom to Travel to Cuba Act would repeal all provisions of law relating to U.S. residents' travel to Cuba in their entirety, saying simply that "the President may not prohibit or otherwise regulate, directly or indirectly, travel to or from Cuba by United States citizens or legal residents," according to a news release.

Jones, however, said this legislation is unlikely to be successful. Opening access to Cuba is widely supported in America, but it's not passionately supported. Opposition to normalized relations, however, has very loud and passionate supporters. And these opponents are more likely to retaliate against senators and representatives.

"It's not a coincidence that Trump is giving this speech in the epicenter of anti-Castro sentiment," Jones said.

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He added that it's interesting Trump isn't restoring the so-called "wet foot, dry foot" policy that allows Cubans to stay legally in the U.S. if they made it to the American border. Obama repealed that policy earlier this year.

Because of Trump's position on immigration, Jones said the president could get backlash for restoring this policy.

"He's making a symbolic gesture to Cuban-Americans," Jones said, "but he's not going as far as he could, which would be restoring the wet foot, dry foot policy."

Jorge Ferragut, executive director of Casa Cuba (Cuba House), a Houston-based social organization with strong anti-Castro sentiments, added that Cubans don't expect "anything good from any U.S. president."

He said presidents always act on the U.S.'s best interests not Cuban interests. The Castro dictatorship has continued to jail dissidents and has made it complicated for businesses to actually get paperwork approved to operate on the island. Obama's efforts were a joke, he said.

"President Obama sold illusions," he said. "Cuba is still not a liberated country."

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