Helms-Burton, aimed at Cuba, hits American trade ties

President Clinton should delay the application of the ill conceived Helms-Burton law, which, in part, can bar executives who do business in Cuba from entering the United States.

The Clinton administration has informed the top executives and shareholders of Sherritt International Corp., a Canadian mining company that does business in Cuba, that in compliance with the Helms-Burton law they and their families will be barred from entering the United States.

Under a provision of the law, however, the president could decide to delay its implementation for up to six months. That would give Clinton time to consider how Helms-Burton conforms to the nation’s obligations within the North American Free Trade Agreement and all other international trade laws.

The Helms-Burton act is hurting the United States’ relationship with Canada, Mexico and countries in Europe. Many of these nations do business with Cuba, and the effect of the law is to punish them for doing so. Yet in seeking to slap the hands of a company in Canada, the United States hurts its own trade prospects; suffice it to say that one year of trade between Canada and Cuba does not equal one day of trade between Canada and the U.S.

Trade between Canada and the U.S. is a $400-billion-a-year business and Canada is the nation’s second-largest commercial partner.

If the president insists on applying the law now, both Canada and Mexico could follow up the dispute within NAFTA. Some fear the conflict could escalate into a trade war. Already a coalition of Canadian churches and labor groups is urging Canadian tourists to boycott Florida as their winter vacation site. For Florida, that could hurt a $1.3-billion-a-year business.

In trade, what goes around comes around. The president knew that when he wisely pushed for NAFTA agreement. He should see that now.