By Jill Hickson
The Cuban Freedom and Democratic Solidarity Act, better known as the Helms-Burton Act, is causing a major rift between the US and governments all over the world.
On July 16 President Bill Clinton was forced to delay implementation of the act's Title III, which allows US citizens to sue foreign companies that use property nationalised by Cuba.
In May the US sent the first warnings to firms in Italy, Mexico and Canada. Carrying accusations of "trafficking" in confiscated property in Cuba, further letters of warning were ready to be sent to a list of foreign firms investing in Cuba, warning them that if they continue with their investments, their executives could have their US entry visas withdrawn.
Since the bill's passage in March, many countries have spoken out against the US legislation, which tries to restrict their right to trade on the world market.
Mexico and Canada have announced a formal challenge to the legislation through the North American Free Trade Agreement (NAFTA), while at the same time passing their own legislation making legal resources available to protect their nationals.
The European Union issued a communiqué on specific reprisals against the US, including a request to set up a disputes panel in the World Trade Organisation (WTO) and a list of US companies that could be sanctioned.
Influential business groups in the United States had sent a petition asking Clinton to postpone implementing the clause. Signers included the National Association of Manufactures, the National Chamber of Commerce and the National Council on Foreign Trade. At least 20 major US companies, among them Coca-Cola, Pepsi and General Motors, have expressed interest in doing business with Cuba. More than 180 businesses have sent representatives to Cuba to discuss trade possibilities in the past two years.
Even US Treasury Secretary Robert Rubin has acknowledged that the act would sour relations with US trade partners and subject US firms to retaliatory measures: "The European Union, along with Canada and other countries, cannot accept that United States laws should penalise European companies going about their lawful business in Cuba or anywhere else in the world".
The EU reacted cautiously to the postponement of Title III but added that the decision condemns Clinton's signing the bill into effect in the first place. EU representatives also pointed to the implementation of Title IV, which is not being postponed and which denies access to US territory to foreign business executives investing in Cuba. The State Department has already denied entrance to executives and shareholders of the Canadian company Sherritt International.
The president of the European Commission, Jacques Santer, warned that the EU could impose visa restrictions on US citizens or freeze US assets.
Japan has for the first time officially expressed its opposition to Helms-Burton. Mexico and Spain are discussing passing a law to annul the effects of the Helms-Burton Act, with the aim of protecting Spanish and Mexican investments in Cuba. France announced that it will apply sanctions against the United States. Canadian Prime Minister Jean Chretien reiterated his opposition to the act, saying that his government will take measures to protect Canadian companies.