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Monday, August 1, 2011

Haiti’s National Elections: Issues, Concerns, and Outcome

Maureen Taft-Morales
Specialist in Latin American Affairs

In proximity to the United States, and with such a chronically unstable political environment and fragile economy, Haiti has been a constant policy issue for the United States. Congress views the stability of the nation with great concern and commitment to improving conditions there. The Obama Administration considers Haiti its top priority in the Latin American and Caribbean region. Both Congress and the international community have invested significant resources in the political, economic, and social development of Haiti, and have closely monitored the election process as a prelude to the next steps in Haiti’s development. For the past 25 years, Haiti has been making the transition from a legacy of authoritarian rule to a democratic government. Elections are a part of that process. In the short term, elections have usually been a source of increased political tensions and instability in Haiti. In the long term, elected governments in Haiti have contributed to the gradual strengthening of government capacity and transparency.

Haiti has concluded its latest election cycle, although it is still finalizing the results of a few legislative seats. The United States provided $16 million in election support through the U.S. Agency for International Development (USAID). Like many of the previous Haitian elections, the recent process has been riddled with political tensions, violence, allegations of irregularities, and low voter turnout. The first round of voting for president and the legislature, held on November 28, 2010, was marred by opposition charges of fraud, especially in the presidential race. The Haitian government asked the Organization of American States (OAS) for help and delayed releasing final results, while the OAS team of international elections experts investigated and verified the process. On February 3, following the OAS team’s recommendations, the Haitian Provisional Electoral Council (CEP) reversed their original finding by eliminating Jude Celestin, the governing party’s candidate, from the race by a narrow margin. Instead, Michel “Sweet Micky” Martelly, a popular singer, proceeded to the run-off race against Mirlande Manigat, a constitutional lawyer and university administrator.

After months of dispute, the second round of elections took place on March 20. The OAS electoral observation mission reported that the second round was more organized, transparent, and peaceful than the first. When final results were announced, controversy again erupted, this time over legislative races. The CEP’s final tallies changed the outcome in favor of the ruling Inite party for 19 legislative districts. Under pressure from the public and the OAS mission, the CEP eventually reverted to 15 of the 19 original results; four seats in the chamber of deputies are still to be decided. The outcome of the presidential race was not challenged, and Michel Martelly was sworn into office peacefully on May 14. Local elections are due to be held, but haven’t yet been scheduled.

President Martelly is having difficulty forming his administration. The legislature passed several constitutional amendments in a flurry of activity in its first three weeks. Since then it has focused on the selection of a prime minister. The majority Inite parliament blocked Martelly’s first choice, and over half of the Senate asked him to rescind his second candidate.

In addition to ongoing issues regarding the legitimacy of the March 20 elections, other questions have raised concerns within the international community and Congress. These include the destabilizing presence of former dictator Jean-Claude “Baby Doc” Duvalier and former President Jean-Bertrand Aristide, and the newly elected government’s ability to handle the complex postearthquake reconstruction process and its relationship with the donor community.



Date of Report: July 18, 2011
Number of Pages: 23
Order Number: R41689Price: $29.95
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Cuba’s Offshore Oil Development: Background and U.S. Policy Considerations


Neelesh Nerurkar
Specialist in Energy Policy

Mark P. Sullivan
Specialist in Latin American Affairs


Cuba is moving toward development of its offshore oil resources. While the country has proven oil reserves of just 0.1 billion barrels, the U.S. Geological Survey estimates that offshore reserves in the North Cuba Basin could contain an additional 4.6 billion barrels of undiscovered technically recoverable crude oil. The Spanish oil company Repsol, in a consortium with Norway’s Statoil and India’s Oil and Natural Gas Corporation, is expected to begin offshore exploratory drilling in late 2011, and a number of other companies are considering exploratory drilling. At present, Cuba has six offshore projects with foreign oil companies. If oil is found, some experts estimate that it would take at least three to five years before production would begin. While it is unclear whether offshore oil production could result in Cuba becoming a net oil exporter, it could reduce Cuba’s current dependence on Venezuela for oil supplies.

In the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico, some Members of Congress and others have expressed concern about Cuba’s development of its deepwater petroleum reserves so close to the United States. They are concerned about oil spill risks and about the status of disaster preparedness and coordination with the United States in the event of an oil spill. Dealing with these challenges is made more difficult because of the longstanding poor state of relations between Cuba and the United States. If an oil spill did occur in the waters northwest of Cuba, currents in the Florida Straits could carry the oil to U.S. waters and coastal areas in Florida, although a number of factors would determine the potential environmental impact. If significant amounts of oil did reach U.S. waters, marine and coastal resources in southern Florida could be at risk.

With regard to disaster response coordination, the United States and Cuba are not parties to a bilateral agreement on oil spills. While U.S. oil spill mitigation companies can be licensed by the Treasury and Commerce Departments to provide support and equipment in the event of an oil spill, some energy and policy analysts have called for the Administration to ease regulatory restrictions on the transfer of U.S. equipment and personnel to Cuba that would be needed to combat a spill. Some have also called for more formal U.S.-Cuban government cooperation and planning to minimize potential damage from an oil spill. Similar U.S. cooperation with Mexico could be a potential model for U.S.-Cuban cooperation, while two multilateral agreements on oil spills under the auspices of the International Maritime Organization also could provide a mechanism for some U.S.-Cuban engagement on oil pollution preparedness and response.

To date in the 112
th Congress, three legislative initiatives have been introduced taking different approaches toward Cuba’s offshore oil development. H.R. 372 would authorize the Secretary of Interior to deny oil leases and permits to those companies that engage in activities with the government of any foreign country subject to any U.S. government sanction or embargo. S. 405 would require companies conducting oil operations off the coast of Cuba to submit an oil response plan for their Cuba operations if they wanted to lease drilling rights in the United States. The bill would also require the Secretary of the Interior to begin efforts toward the development and implementation of oil spill response plans for nondomestic oil spills in the Gulf of Mexico, including recommendations on joint contingency plan with Mexico, Cuba, and the Bahamas. H.R. 2047 would impose visa restrictions on foreign nationals and economic sanctions on companies that help facilitate the development of Cuba’s offshore petroleum resources. For additional information on Cuba, see CRS Report R41617, Cuba: Issues for the 112th Congress.


Date of Report: July 21, 2011
Number of Pages: 21
Order Number: R41522
Price: $29.95

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Thursday, July 21, 2011

Cuba: Issues for the 112th Congress


Mark P. Sullivan
Specialist in Latin American Affairs

Cuba remains a one-party communist state with a poor record on human rights. The country’s political succession in 2006 from the long-ruling Fidel Castro to his brother Raúl was characterized by a remarkable degree of stability. The government of Raúl Castro has implemented limited economic policy changes, including an expansion of self-employment begun in October 2010. A party congress held in April laid out numerous economic goals that could increase the private sector. Few observers expect the government to ease its tight control over the political system, although it has reduced the number of political prisoners over the past several years, including the release of more than 125 since mid-2010 after talks with the Catholic Church.

Since the early 1960s, U.S. policy has consisted largely of isolating Cuba through economic sanctions. A second policy component has consisted of support measures for the Cuban people, including U.S.-sponsored broadcasting and support for human rights activists. In light of Fidel Castro’s departure as head of government, many observers called for a reexamination of policy. Two broad approaches toward Cuba have been at the center of debate. The first is to maintain the dual-track policy of isolating the Cuban government while providing support to the Cuban people. The second is aimed at changing attitudes in the Cuban government and society through increased engagement. Since taking office, the Obama Administration has lifted restrictions on family travel and remittances, moved to reengage Cuba on migration and other bilateral issues, and, in January 2011, announced further measures to ease restrictions on purposeful travel and non-family remittances. The Administration has criticized the government’s repression of dissidents, but it has welcomed the release of political prisoners as a positive sign. The Administration has continued to call for the release of a U.S. government subcontractor, Alan Gross, detained since late 2009 who was sentenced to 15 years in March 2011.

Strong interest on Cuba is continuing in the 112th Congress, focused on a number of issues, including U.S. sanctions, the human rights situation, Cuba’s imprisonment of a U.S. government subcontractor, the status of Cuba’s economic reforms and its offshore oil development, and U.S. democracy programs. The House Appropriations Committee-approved version of the FY2012 Financial Services Appropriations bill, H.R. 2434, would (in Section 901) roll back President Obama’s actions easing restrictions on remittances and family travel and (in Section 618) continue to clarify the definition of “payment of cash in advance” for U.S. agricultural exports to Cuba during FY2012. (P.L. 112-10, enacted in April 2011, continued the “payment of cash in advance” provision for FY2011.) Several introduced bills would ease sanctions: H.R. 255 and H.R. 1887 (overall sanctions); H.R. 833 and H.R. 1888 (agricultural exports); H.R. 380 and H.R. 1886 (travel). Two initiatives, S. 603 and H.R. 1166, would modify a trademark sanction, while several bills already noted would eliminate that sanction (H.R. 255, H.R. 1887, and H.R. 1888). Three bills would take different approaches toward Cuba’s offshore oil development: H.R. 372, S. 405, and H.R. 2047. Two initiatives would discontinue Radio and TV Martí broadcasts to Cuba: S. 476 and H.R. 1317. One resolution would call for the return of U.S. fugitives in Cuba.

For additional information, see CRS Report RL31139, Cuba: U.S. Restrictions on Travel and Remittances, by Mark P. Sullivan, and CRS Report R41522, Cuba’s Offshore Oil Development: Background and U.S. Policy Considerations, by Neelesh Nerurkar and Mark P. Sullivan.



Date of Report: July 15, 2011
Number of Pages: 65
Order Number: R41617
Price: $29.95

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Wednesday, July 20, 2011

Honduran-U.S. Relations


Peter J. Meyer
Analyst in Latin American Affairs

On January 27, 2010, Porfirio “Pepe” Lobo Sosa was inaugurated President of Honduras, assuming power after seven months of domestic political crisis and international isolation that had resulted from the June 28, 2009 ouster of President Manuel Zelaya. While the strength of Lobo’s National Party in the legislature has enabled the Administration to pass much of its policy agenda, Lobo has made only limited progress in addressing the challenges inherited as a result of the political crisis. Several efforts to foster political reconciliation have helped Honduras secure international recognition but have done little to lesson domestic polarization. Likewise, human rights abuses—which increased significantly in the aftermath of Zelaya’s ouster—have continued, and the citizen security situation has deteriorated. In June 2011, 45% of Hondurans approved of Lobo’s performance in office.

In addition to the political problems inherited as a result of the 2009 ouster, Lobo has had to contend with a weak economy. Honduras suffered an economic contraction of 2.1% in 2009 as the global financial crisis, together with the domestic political crisis, led to significant declines in tourism, remittances, export earnings, and foreign investment. Lobo has pushed a number of reforms through Congress designed to restore macroeconomic stability, strengthen public finances, and encourage sustained economic growth. Although these reforms have generated considerable opposition from some sectors of Honduran society, they have the support of the international financial institutions, which are now providing Honduras with access to much needed development financing. The economy began to recover in 2010, with estimated growth of 2.8%, and is expected to grow by 3.8% in 2011. Nonetheless, significant development challenges remain. Approximately 60% of Honduras’ eight million citizens live below the poverty line and the country performs poorly on a number of social indicators.

Although relations were strained during the political crisis, the United States has traditionally had a close relationship with Honduras. Broad U.S. policy goals in the country include a strengthened democracy with an effective justice system that protects human rights and promotes the rule of law, and the promotion of sustainable economic growth with a more open economy and improved living conditions. In addition to providing Honduras with substantial amounts of foreign assistance ($50.2 million in FY2010) and maintaining significant military and economic ties, the United States cooperates with Honduras on transnational issues such as migration, crime, narcotics trafficking, trafficking in persons, and port security.

The 111
th Congress expressed considerable interest in Honduras as a result of the 2009 political crisis and its aftermath. Several resolutions were introduced and multiple hearings were held. Issues such as human rights abuses, the state of democracy, security challenges, and the treatment of U.S. businesses have continued to be of interest to the 112th Congress. On June 15, 2011, a bill (H.R. 2200) was introduced in the House to limit U.S. assistance to Honduras unless the President certifies that the Government of Honduras has settled all outstanding expropriation claims brought by U.S. companies.

This report examines current political and economic conditions in Honduras as well as issues in Honduran-U.S. relations. For a more detailed examination of the Honduran political crisis, see CRS Report R41064, Honduran Political Crisis, June 2009-January 2010.



Date of Report: July 14, 2011
Number of Pages: 30
Order Number: RL34027
Price: $29.95

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Tuesday, July 19, 2011

Cuba: U.S. Restrictions on Travel and Remittances


Mark P. Sullivan
Specialist in Latin American Affairs

Restrictions on travel to Cuba have been a key and often contentious component in U.S. efforts to isolate Cuba’s communist government since the early 1960s. Under the George W. Bush Administration, restrictions on travel and on private remittances to Cuba were tightened. In March 2003, the Administration eliminated travel for people-to-people educational exchanges unrelated to academic coursework. In June 2004, the Administration further restricted family and educational travel, eliminated the category of fully-hosted travel, and restricted remittances so that they could only be sent to the remitter’s immediate family. Initially there was mixed reaction to the Administration’s June 2004 tightening of Cuba travel and remittance restrictions, but opposition to the policy grew, especially within the Cuban American community regarding the restrictions on family travel and remittances.

Under the Obama Administration, Congress took action in 2009 to ease some restrictions on travel to Cuba by including two provisions in the FY2009 omnibus appropriations measure (P.L. 111-8), which President Obama signed into law on March 11, 2009. The first provision eased restrictions on family travel, which the Treasury Department implemented by issuing a general license for such travel as it existed prior to the Bush Administration’s tightening of family travel restrictions in 2004. The second provision eased travel restrictions related to the marketing and sale of agricultural and medical goods to Cuba, and required the Treasury Department to issue a general license for such travel. Subsequently, in April 2009, President Obama announced that his Administration would go further and allow unlimited family travel and remittances. Regulations implementing these changes were issued in September 2009. The new regulations also included the authorization of general licenses for travel transactions for telecommunications-related sales and for attendance at professional meetings related to commercial telecommunications.

In January 2011, the Obama Administration announced policy changes further easing restrictions on travel and remittances. The measures (1) increase purposeful travel to Cuba related to religious, educational, and people-to-people exchanges; (2) allow any U.S. person to send remittances to non-family members in Cuba and make it easier for religious institutions to send remittances for religious activities; and (3) permit all U.S. international airports to apply to provide services to licensed charter flights. These new measures, with the exception of the expansion of eligible airports, are similar to policies that were undertaken by the Clinton Administration in 1999, but subsequently curtailed by the Bush Administration in 2003-2004.

Interest on the issue of Cuba travel and remittances is continuing in the 112
th Congress. The House Appropriations Committee version of the FY2012 Financial Services and General Government Appropriations bill, H.R. 2434, would roll back President Obama’s easing of restrictions on remittances and family travel. In contrast, several initiatives have been introduced that would lift travel restrictions. H.R. 1886 would prohibit restrictions on travel to Cuba. H.R. 1888, in addition to removing some restrictions on the export of U.S. agricultural products to Cuba, would also prohibit Cuba travel restrictions. Two initiatives that would lift the overall Cuba embargo, H.R. 255 and H.R. 1887, also would lift restrictions on travel and remittances to Cuba. H.R. 380 would prohibit the Treasury Department from making any funds to implement, administer, or enforce regulations requiring specific licenses for travel-related transactions directly related to educational activities in Cuba. (For further information, see CRS Report R41617, Cuba: Issues for the 112th Congress.)


Date of Report: July 15, 2011
Number of Pages: 40
Order Number: RL31139
Price: $29.95

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