Bill to lift CUBAN EMBARGO!!!!!!!!

[Mr. McSquirelly]

After 50 years, senators on Friday introduced a bill to the senate to lift the Cuban Embargo, which would make the importation and sale of Cuban cigars legal in the United States. What do you guys think? On all aspects of this legislation. Here's the article from the Miami Herald on Friday:
http://www.miamiherald.com/news/nation-world/world/americas/cuba/article9855359.html
A little background information too:
http://cuba-embargo.procon.org
Good article, but a little bias, in Atlantic Monthly:
http://www.theatlantic.com/international/archive/2014/10/the-1996-incident-that-made-it-nearly-impossible-to-repeal-the-cuba-embargo/381107/

Will this thing pass? If so, what are the implications for cigar retailers? How will Habanos S.A. distribute to the largest cigar market in the world, which consumes 150 million cigars a year? What will that do to production, quality, and current pricing? How will it affect demand for Nicaraguan and Dominican cigars? Just share your thoughts and theories on this tantalizing new legislation....

 

[luckysaturn13]

I say lift the embargo... I've never had a CC and really really really want one! I haven't got too much into the political aspect but the way I figure is they are not a US territory and we cant/shouldn't control all aspects of what another nation does. The embargo is old outdated and past due. They pissed us off we pissed them off. It happens. ....They trade with some other countries so its not like we completely cut them off all the way. On a positive not the us could really help out the Cuban populations way of life by supplying medical supplies and auto parts. I saw in prior readings the Cuban cigar makers have huge warehouses full of cigars ready to go incase the embargo lifts so I don't believe quality will suffer immediately with having that as a buffer. I'm not sure if quality will suffer long term. Depends on what the current fields can sustain. I think pricing will be high due to demand and excitement at first but then I believe the excitement will die out then due to the higher volume it will create more competition amongst cc brands and price will come down to slightly above (because Cubans are "better" ) the other cigars available now.

 

[atbat82]

I would say it's a real long shot to get passed in this congress. And obviously the short term impact on the cigar world would be huge. I would think initially the price of CCs would spike tremendously as a massive new market was legalized and I think quality would decline further.

Long term, I don't think the impact would be that big. Most people who really want CCs can already get them. There would be a spike of "non-cigar guys" wanted to try them out, but that will wane eventually. Ultimately, I think people will come to realize that CCs are not inherently better or worse than NCs, just a different beast.

The cool thing to come out of it might be blends of CC and NC.

 

[MattyMatt]

I think the quote with Boehner's response gives you your answer.....not anytime soon.

 

[Mr. McSquirelly]

The cool thing to come out of it might be blends of CC and NC.

Yes, that would be very interesting. Pete Johnson, Don Pepin, Willy Herrera, etc.... rolling and blending cigars with Cuban and Nicaraguan filler, binder, and wrapper is a tantalizing idea.

BTW: I grew up in Hartford, but my parents live near New Haven. The Owl Bar is paradise!!!

 

[jfettlol]

i hope the embargo gets lifted, but they forget to include cc's in the bill.

 

[luckysaturn13]

i hope the embargo gets lifted, but they forget to include cc's in the bill.

 

[HIM*]

Personally I hope the embargo stays in place until the Castro regime is out of power. Until then lifting it isn't going to do anything to help your average Cuban. And we aren't controlling all aspects of Cuba were choosing not to trade with them theres a big difference. Even if the embargo is lifted theres still a giant mess of legal stuff with the cigar companies that will need to be settled.

 

[ZippoGeek]

Personally I hope the embargo stays in place until the Castro regime is out of power. Until then lifting it isn't going to do anything to help your average Cuban. And we aren't controlling all aspects of Cuba were choosing not to trade with them theres a big difference. Even if the embargo is lifted theres still a giant mess of legal stuff with the cigar companies that will need to be settled.

I agree with Cole on this one. Life for the average Cuban royally sucks because of that regime. I suppose we could say the same about trading with China, but IMO they're communist in name only; at least the average citizen there has a better chance at upward mobility than in Cuba.

 

[Tim H]

I hope it passes as I would like to try a cc. I've never even seen one let alone smoked a cc.

 

[The EVP]

The embargo will not be lifted while there's a Castro in power and it remains communist. Personally, I think lifting the embargo would be the worst thing to happen to the CC industry and would take them years to recover.

 

[RacFocus]

I'm afraid if it passes there will not be enough CC supply to keep up with the demand of the new market driving prices through the roof, at least at the beginning. And American tobacco taxes will be added to the cost of the CCs. Right?

 

[JuzCallMeDee]

FDA regulations may be worse than the Embargo lol

 

[Mikenice81]

Personally I hope the embargo stays in place until the Castro regime is out of power. Until then lifting it isn't going to do anything to help your average Cuban. And we aren't controlling all aspects of Cuba were choosing not to trade with them theres a big difference. Even if the embargo is lifted theres still a giant mess of legal stuff with the cigar companies that will need to be settled.

Those legal issues will probably strangle the supply in America for a while after the embargo. They will have to settle disputes over the names of Cohiba, Monte, Romeo, Hoyo, and Upmann. Plus the possibility of restitution for using the name. (doubtful) The issues are numerous. It would probably take years to actually get the cigars flowing properly.

 

[Mikenice81]

FDA regulations may be worse than the Embargo lol

They might argue that they aren't significantly like products on the market in 2007 because of the origin of the tobacco. I don't think it would hold up, but would Cuba actually take the FDA to the WTO or sue in federal court? That may be a point of de facto embargo any way. I never thought of that.

 

[The EVP]

I'm afraid if it passes there will not be enough CC supply to keep up with the demand of the new market driving prices through the roof, at least at the beginning. And American tobacco taxes will be added to the cost of the CCs. Right?

That's exactly what will happen. If you figure 5% of the US population are cigar smokers, that'll add about another 20MM customers to the market, of which most will run to get the "Forbidden Fruit" that's really not that hard to get to begin with. That's a lot of demand when you look at the law of supply and demand. Moreover, the quality is going to drop because the rollers are already under enough pressure to meet the current demand, let alone the demand of another 20 million people. In the meantime, Non-Cubans are going to see a drop in their sales and will have to drop their prices to remain competitive. I figure it'll take at least 5 years for the markets to level back out. During that time, I am going to stock up on the now lower-priced non-Cubans and let them age while everyone else fights over poor quality Cubans.

Also, take into account that the number of counterfeiters is going to increase because of the access that Americans would have and still don't know a Cuban cigar from a Cuban sandwich.

 

[jasonsbeer]

I personally would prefer to see the embargo stay in place until the Castro's are gone, at a minimum. Lifting the embargo will not help the people of Cuba. It will help the controlling communist government by giving it legitimacy, material, and moral support.

I heard once that CC's were so good because the tobacco fields were fertilized with the blood of patriots and martyrs. The Castros, and their infamous enforcer Che Guevara, killed a lot of people in cold blood.

 

[GWBowman]

Just the other day, everyone was posting to a thread about what is going to happen with cigars and the FDA. Something else for meddling know-it-alls to tell me I shouldn't do. A whole new line of things for the government to tax the piss out of in the name of public health. Or it could be the greatest thing to happen to tobacco since fire.

@The EVP
I love a good Cuban Sandwich and the only place reasonably close to get one closed.

 

[Benjamin]

Hmmm, I wonder if it ever lifts, we will be waxing on about "pre-embargo lift" Cubans when the quality was better than afterward when they flooded the market to keep up with the demand, lol. But seriously, as much as I'd like to see the embargo lifted, there are so many potentials issues with it and what it could mean for the tobacco industry. Besides, it's not like CCs are impossible to get these days.

 

[Clint]

Booooooooooooo!

Higher pricing, poorer quality, more counterfeits...Truly a bummer for the CC world.