Sugar industry of Cuba

The outbreak of the Haitian Revolution in 1791 influenced Cuban planters to demand the free importation of slaves and the easing of trade relations in an effort to replace Haiti as the main sugar producer in the Caribbean.

[3] Population growth, urbanization, industrialization, and rising incomes in the 19th century resulted in an increase in world sugar production and consumption.

Cuba's independence from Spain after the Spanish–American War in 1898 and its formation of a republic in 1902 led to investments in the Cuban economy from the United States.

Cuba remained unchallenged as the world's largest sugar producer until the 1960s, when the Soviet Union, Brazil, and India increased their production to comparable levels.

[4] In 1920, US banks gave large loans to finance Cuban efforts to profit from a speculative boom in world sugar prices.

Additionally, many large US sugar companies operating in Cuba were vertically integrated with their own processing industries in the United States.

The Smoot–Hawley Tariff Act in 1930 further impacted Cuban producers by implementing protectionist trade policies that restricted exports to the United States.

The United States embargo against Cuba restricted imports to the country, including replacement parts for the primarily US machinery in the sugar grinding mills.

Additionally, the loss of the United States as a trading partner introduced high transport costs and difficulties in communication as Cuba worked to orient itself towards the Soviet Union.

"[7] Cuba and the Soviet Union signed a long-term trade agreement in January 1964 that allowed for the export of 24 million tons of sugar at a fixed price of 6.11 cents per pound from 1965 to 1970.

The US embargo further hampered the Cuban economy by restricting the imports of fertilizers, fuel, and replacement parts for aging machinery.