Sugar in Cuba

Sugar in Cuba. Cuba has an excellent climate and a rich soil for growing surgar cane. Cuba was once a world leader in sugar production and exportation.
When colonizer Spain allowed the export from Cuban ports, the sugar boom started.and Cuba became an important supplier of sugar.
After the Spanish American war, the Spaniards left the island and the United States gained massive influence over Cuba, there were talks of annexation by the USA. The United States cut tariffs on US goods entering Cuba, after time the Cuban economy was totally dominated by US capital. In 1902 US companies controlled and owned most of the sugar factories.
Sugar tycoons like Julio Lobo, the richest man in Havana ruled.

After the Cuban revolution led by Fidel Castro the relations with the United States deteriorated rapidly as the Cuban government started the nationalization of of US companies and US property in Cuba as a reaction to the US boycott of Cuba. The US stopped the purchase of Cuban sugar which had a devastating effect on the Cuban economy.
The United States closed in Januari 1961 its embassy in Havana. In a reaction the Cuban government began to expand trade relations with the Soviet Union. Castro asked the Soviets for help and Cuba became increasingly dependent on Soviet economical support.

Soviet leader Khruschev approved the purchase of Cuban sugar in exchange for Soviet fuel, this deal sustained the Cuban economy for many years untill the collapse of the Soviet Union in 1991.

The fall of the Soviet Union had a devastating effect on Cuba, the Cuban government was forced to downsize its sugar production and could not recover its leading position in sugar production because world market situations changed.

Recommended reading Cuba downsizes its sugar industry

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