Challenge 1: The United States’ Diplomatic Isolation of Cuba
On July 1, 2015, President Obama announced the United States would officially end the diplomatic isolation of Cuba that had been in place for more than 50 years. The doors to the U.S. Embassy in Cuba opened Aug. 14, 2015, and citizens now can travel to and from Cuba.
Challenge 2: The United States’ Trade Embargo
Though President Obama encouraged Congress to lift the trade embargo with Cuba in July, the embargo remained at the time this story was written. Until the embargo is lifted, Cuban manufacturers cannot legally sell their products in the United States.
Challenge 3: Trademark Issues
Swedish Match has been in a 16-year legal battle over the trademark for its Dominican-made Cohiba brand (not to be confused with the Cuban-made Cohiba brand made famous by Fidel Castro). Multiple manufacturers have been marketing cigars with classic Cuban names but made in trade-friendly countries such as the Dominican Republic. A slew of trademark lawsuits are likely to occur if and when the Cuba embargo is lifted.
Challenge 4: Regulations
If and when Cuban cigars can be sold legally in the United States, they will be subject to the U.S. Food and Drug Administration’s (FDA) deeming regs. Those regulations haven’t been finalized and may not include premium cigars such as Cubans—but they stand to be very costly if premium cigars are not exempt.
By the Numbers
45 minutes
Amount of time it takes to fly from Cuba to the United States
25%-30%
Estimated Cuban share of the U.S. cigar market in the fırst year the embargo is lifted
100
Maximum amount of Cuban cigars travelers can bring into the United States
100 million
Cuban cigars currently sold worldwide (annually)
70%
Estimated jump in Cuban-cigar sales if the trade embargo is lifted
Source: Habanos S.A. (arm of the Cuban state tobacco company, Cubatabaco, which controls the promotion, distribution and export of Cuban cigars)
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