European Union legislators passed a joint resolution criticizing "the continuing flagrant violation of the civil and political human rights and the fundamental freedoms of members of the Cuban opposition and of independent journalists."
On Wednesday, Italian Foreign Minister Franco Frattini, whose country holds the EU presidency, told the legislature that the human rights situation continues to deteriorate on the Caribbean island.
In July, Castro said his country would no longer accept aid from the EU, accusing it of backing the anti-Castro policy of the United States.
EU members have already agreed to reduce high-level governmental visits and participation in cultural events on the island.
Since 1993, the EU has provided over $156 million in aid to Cuba. [End]
"They point out that, despite four decades of sanctions against his government, Castro remains in power," Grassley said. "They also contend that U.S. farmers and businesses are losing trade opportunities in Cuba to their counterparts in other countries."
But Grassley also explained that other lawmakers "believe that now is not the proper time to change U.S. trade policies," given that Castro's record on human rights has "become even more egregious during the past year" and that "lifting trade restrictions will in effect reward Castro for his actions."
State Department Under Secretary Al Larsen testified on the problems American businesses face over investing in Cuban markets.
"The reality of the situation is that investing in Cuba remains a very risky proposition," Larsen said. "Proceeds from foreign investment go principally to the coffers of the Cuban state. Any economic benefit derived from tourism or other joint ventures does not filter down to the average Cuban citizen."
Larsen also pointed to the "very serious issue" of Cuban creditworthiness.
"According to its own figures Cuba owes nearly $11 billion to the creditors of the Paris Club," Larsen explained. The business information provider, Dun and Bradstreet, rated Cuba as one of the riskiest economies in the world."
Commerce Department Under Secretary Grant Aldonas pointed out that the State Department has identified Cuba as one of seven countries on its list of terrorist-sponsoring countries.
Aldonas added that lifting the trade embargo would produce minimal results anyway since Castro would likely allow very little to be traded.
Still, the committee's ranking minority committee member, Montana Democrat Max Baucus, said his state would benefit from agricultural trade with Cuba.***