Trade Switzerland Cuba Doing business with Cuba gives you a taste of the power of the US

The United States has placed Swiss companies conducting business with Cuba under increasing pressure, creating significant obstacles for trade and financial transactions. This situation has led to growing difficulties for Swiss firms seeking to engage in commercial activities with the island nation, particularly due to new sanctions imposed by Washington. The impact is felt across multiple sectors, affecting everything from tourism to broader international trade operations. The issue stems from a chain reaction triggered by the tightening of U.S. sanctions against Cuba. These measures have prompted European and Latin American financial institutions to reduce their exposure to transactions involving countries under U.S. economic restrictions. As part of this strategy, known as “de-risking,” banks are increasingly limiting their involvement with entities linked to sanctioned jurisdictions. For Swiss businesses, this means that even indirect dealings with Cuba can trigger scrutiny and complications. Swiss-Cuban trade remains limited in scale, with annual turnover estimated in the millions of francs. Key exports from Switzerland to Cuba include paper products, cardboard, and watches. Despite these modest volumes, the challenges faced by Swiss enterprises highlight a broader trend of rising complexity in cross-border commerce. According to Ursin Mirer of the Swiss-Cuban Chamber of Commerce, while interest in trade persists, the barriers have become too formidable to ignore. He explains that although Swiss companies can obtain bank drafts, invoices, or guarantees from state-controlled institutions, they often struggle to collect payments once issued. One notable example is Caribbean Tours, a Zurich-based travel agency specializing in Cuban tours. With over two decades of experience, the company has seen its customer base drastically shrink in recent years. Owner Reto Rüfenacht reports that the number of tourists traveling to Cuba has plummeted, leading to a sharp decline in revenue. To navigate the financial hurdles, the firm has resorted to unconventional methods, such as personally carrying cash to the island to settle local expenses. This includes payments for tour guides, accommodations, and other services essential to maintaining operations. Beyond direct interactions with Cuba, Caribbean Tours faces indirect consequences stemming from U.S. sanctions. Even when processing travel packages for destinations outside Cuba, such as Mexico or Belize, the company’s transfers are flagged by banking systems that link them to Cuba. This has created a ripple effect, complicating relationships with major European travel agencies like Dertour and Kuoni. Rüfenacht notes that these issues extend beyond the immediate scope of his business, illustrating how U.S. policy impacts a wide range of international transactions. Other European firms engaged in trade with Cuba face similar constraints. Legal experts, including Cedric Ryngaert of the University of Utrecht, explain that U.S. authorities claim jurisdiction over any transaction involving their financial system, even indirectly. A mere association with an American correspondent bank handling dollar-clearing operations can lead to heightened scrutiny. Consequently, many banks have either terminated or restricted certain business relationships to avoid potential repercussions on the U.S. market. This evolving landscape presents a complex challenge for European companies operating in regions affected by U.S. sanctions. Financial channels become more difficult to navigate, often resulting in higher costs and reduced reliability. While some firms continue to seek ways to maintain operations, others are forced to reconsider their strategies or pivot entirely. The situation underscores the far-reaching implications of geopolitical tensions on global commerce, particularly for smaller businesses caught in the crossfire of larger political decisions.