On December 17, 2014, following the release by Cuba of American Alan Gross, President Obama announced a new approach to relations with Cuba. According to the announcement and a Fact Sheet released at the same time, the following steps will be taken: Re-establish diplomatic relations: U.S. diplomatic relations with Cuba were severed in January of 1961. The President is immediately reopening discussions with Cuba and working to re-establish an embassy in Havana in the next coming months. The U.S. will work with Cuba on matters of mutual concern that advance U.S. national interests, such as migration, counternarcotics, environmental protection, and trafficking in persons, among other issues. More effectively empower the Cuban people by adjusting regulations: The President is taking steps to improve travel and remittance policies that will further increase people-to-people contact, support civil society in Cuba, and enhance the free flow of information to, from, and among the Cuban people. Facilitate an expansion of travel to Cuba: With expanded travel, Americans will be able to help support the growth of civil society in Cuba more easily, and provide business training for private Cuban businesses and small farmers. Americans will also be able to provide other support for the growth of Cuba’s nascent private sector General licenses will be made available for all authorized travelers in 12 existing categories:

  • Family visits
  • Official business of the U.S. government, foreign governments, and certain intergovernmental organizations
  • Journalistic activity
  • Professional research and professional meetings
  • Educational activities
  • Religious activities
  • Public performances, clinics, workshops, athletic and other competitions, and exhibitions
  • Support for the Cuban people
  • Humanitarian projects
  • Activities of private foundations, research, or educational institutions
  • Exportation, importation, or transmission of information or information materials
  • Certain export transactions that may be considered for authorization under existing regulations and guidelines

Facilitating remittances to Cuba by U.S. persons: Remittance levels will be raised from $500 to $2,000 per quarter for general donative remittances to Cuban nationals (except to certain officials of the government or the Communist party); and donative remittances for humanitarian projects, support for the Cuban people, and support for the development of private businesses in Cuba will no longer require a specific license. Remittance forwarders will no longer require a specific license. Authorize expanded sales and exports of certain goods and services from the U.S. to Cuba: The expansion will seek to empower the nascent Cuban private sector and make it easier for Cuban citizens to have access to certain lower-priced goods to improve their living standards and gain greater economic independence from the state. Authorize American citizens to import additional goods from Cuba: Licensed U.S. travelers to Cuba will be authorized to import $400 worth of goods from Cuba, of which no more than $100 can consist of tobacco products and alcohol combined. Initiate new efforts to increase Cubans’ access to communications and their ability to communicate freely: Cuba has an Internet penetration of about five percent – one of the lowest rates in the world. The cost of telecommunications in Cuba is exorbitantly high, while the services offered are extremely limited. Now, telecommunications providers will be allowed to establish the necessary mechanisms, including infrastructure, in Cuba to provide commercial telecommunications and internet services. Facilitating authorized transactions between the United States and Cuba:

  • U.S. institutions will be permitted to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions.
  • The regulatory definition of the statutory term “cash in advance” will be revised to specify that it means “cash before transfer of title”; this will provide more efficient financing of authorized trade with Cuba.
  • U.S. credit and debit cards will be permitted for use by travelers to Cuba.
  • These measures will improve the speed, efficiency, and oversight of authorized payments between the United States and Cuba.

Updating the application of Cuba sanctions in third countries: U.S.-owned or -controlled entities in third countries will be generally licensed to provide services to, and engage in financial transactions with, Cuban individuals in third countries. In addition, general licenses will unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba; permit U.S. persons to participate in third-country professional meetings and conferences related to Cuba; and, allow foreign vessels to enter the United States after engaging in certain humanitarian trade with Cuba, among other measures. Pursuing discussions with the Cuban and Mexican governments to discuss our unresolved maritime boundary in the Gulf of Mexico: Previous agreements between the United States and Cuba delimit the maritime space between the two countries within 200 nautical miles from shore. The United States, Cuba, and Mexico have extended continental shelf in an area within the Gulf of Mexico where the three countries have not yet delimited any boundaries. The United States is prepared to invite the governments of Cuba and Mexico to discuss shared maritime boundaries in the Gulf of Mexico. Initiating a review of Cuba’s designation as a State Sponsor of Terrorism: The President has instructed the Secretary of State to immediately launch such a review, and provide a report to the President within six months regarding Cuba’s support for international terrorism. Cuba was placed on the list in 1982. Addressing Cuba’s participation in the 2015 Summit of the Americas in Panama: President Obama will participate in the Summit of the Americas in Panama. Human rights and democracy will be key Summit themes. Cuban civil society must be allowed to participate along with civil society from other countries participating in the Summit, consistent with the region’s commitments under the Inter-American Democratic Charter. The United States welcomes a constructive dialogue among Summit governments on the Summit’s principles. Unwavering Commitment to Democracy, Human Rights, and Civil Society: A critical focus of our increased engagement will include continued strong support by the United States for improved human rights conditions and democratic reforms in Cuba. The promotion of democracy supports universal human rights by empowering civil society and a person’s right to speak freely, peacefully assemble, and associate, and by supporting the ability of people to freely determine their future. U.S. efforts are aimed at promoting the independence of the Cuban people so they do not need to rely on the Cuban state. The U.S. Congress funds democracy programming in Cuba to provide humanitarian assistance, promote human rights and fundamental freedoms, and support the free flow of information in places where it is restricted and censored. The Administration will continue to implement U.S. programs aimed at promoting positive change in Cuba, and it will encourage reforms in the U.S. high level engagement with Cuban officials. The United States encourages all nations and organizations engaged in diplomatic dialogue with the Cuban government to take every opportunity both publicly and privately to support increased respect for human rights and fundamental freedoms in Cuba. This article was first published on www.internationaltradecomplianceupdate.com.

Previous articleHong Kong Anti-Corruption Briefing
Next articleSpanish Government, pressured by OECD, agrees to anti-corruption measures