Clash of Laws in US and Canada Regarding Trade With Cuba

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Clash of Laws in U.S. & Canda Regarding Trade with Cuba Introduction When Canadian laws collide with laws in the United States with reference to trade with Cuba, which side prevails? More specifically, when an American subsidiary is operating in Canada and engages in profitable trade or export-related activities with Cuba which is illegal from the point of view of the U.S. Department of Justice what will happen to that U.S. subsidiary in Canada? Which side is right and which side is in the wrong? Is it fair for an American subsidiary operating in Canada to be held accountable for what some view as archaic U.S. laws that forbid any trade with Cuba? These issues and others related to the U.S. embargo on trade with Cuba will be presented in this paper. The Original Basis Background into the Legal Issues In the first place, at the heart of the current legal standoff between the two neighbors in North America, is the United States' law called "Trading with the Enemy Act" (which was signed into law in 1917). The Trading with the Enemy Act was an attempt to prevent American companies from exporting to or importing from companies in nations that the U.S. listed as "enemies" of America. And in 1994, James Sabzali, a Canadian citizen working as a foreign national in Philadelphia, sold Canadian water purification systems to Cuban hospitals, in violation of the Trading with the Enemy Act (TWEA). He was originally charged with 75 counts in violation of the TWEA and could have been
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