Cuba

An island nation in the Caribbean, important to American trade for over four centuries.

First colonized by the Spanish in the early sixteenth century, who unsuccessfully sought gold there, Cuba soon became a major producer of tobacco and sugar exported to Europe. The island also served as a rendezvous point for the Spanish fleets carrying imports into the colonies and for those from throughout New Spain carrying gold for export. To meet the labor demands, the Spanish imported slaves from Africa, and Cuba became a key destination in the famous triangle trade, connecting Europe, Africa, and America. As the North American colonies developed, Cuba exported “seasoned” slaves and molasses to the north while importing fish and foodstuffs. Throughout the colonial era, Cuba remained a haven for smuggling.

Throughout the nineteenth century, the importance of the sugarcane crop grew relative to tobacco, helping a monoculture plantation economy flourish. Early in the century, Cuba exported 70,000 short tons, a figure that rose to 1 million by the end of the century and constituted almost three-fourths of its total export revenue. Much of this export was to the United States, which grew in importance as a Cuban trading partner. When the 1894 Wilson-Gorman Tariff raised the price of Cuban sugar in America, severely hurting the Cuban economy, a Cuban insurrection grew against the Spanish. The result was the Spanish-American War of 1898, which ended Spanish control but solidified Cuba’s economic dependence on America. Trade increased, and American investments in Cuba soared. While World War I produced a sugar boom in Cuba, declining prices in the following years forced a number of Cuban businesses into receivership with U.S. banks. Given this, and the growth of American tourism to Cuba, the Great Depression severely hurt the Cuban economy. Foreign trade and investment plummeted, while resentment against the United States grew. In the years that followed, the United States supported the government dominated by Fulgencio Batista, and, in return, enjoyed special trade status. American exports received preferential treatment, while low tariffs in the United States ensured Cuba a significant percentage of the American sugar market.

The harsh Batista regime, however, resulted in a 1959 revolution, led by Fidel Castro. When Castro nationalized the Cuban holdings of two American oil companies, the United States responded by cutting the Cuban sugar quota. In retaliation, Castro nationalized most American property on the island, which, in turn, led to a complete American embargo on Cuban trade. The immediate result of the embargo was a strong alliance between Cuba and the Soviet Union that dramatically altered Cuban trade. Reciprocal trade agreements ensured Cuba cheap Soviet oil, and by 1989, 80 percent of Cuban trade was with Eastern bloc countries. With the fall of the Soviet Union, however, the Cuban economy suffered. In recent years, the Castro regime has worked to better integrate Cuba into the global economy by concluding several regional trade agreements and by allowing private interests a greater role. As the United States debates ending its embargo, however, the Cuban economy continues to suffer.

Brooks Flippen

See also: Slavery; Soviet Union; Spanish Empire; Sugar; Triangle Trade; United States.

Bibliography

Hoff, Rhonda, and Margaret Regler. Uneasy Neighbors: Cuba and the United States. New York: F. Watts, 1997.

Zanetti, Oscar L. Sugar and Railroads: A Cuban History, 1837–1959. Chapel Hill: University of North Carolina Press, 1998.