May 18, 2015
Cuba: President Obama’s New Policy Approach
On December 17, 2014, President Obama announced major
completed its review on April 8, 2015, and on April 14, the
developments in U.S.-Cuban relations. First, he announced
President transmitted a report to Congress rescinding
that the Cuban government had released USAID
Cuba’s designation as a state sponsor of terrorism pursuant
subcontractor Alan Gross on humanitarian grounds after
to provisions in three statutes—Section 6(j) of the Export
five years imprisonment. Gross’s imprisonment since 2009
Administration Act of 1979; Section 620A of the Foreign
was an impediment to an improvement in relations. The
Assistance Act (FAA) of 1961; and Section 40 of the Arms
President also announced that, in a separate action, the
Export Control Act (AECA). According to those laws, the
Cuban government released “one of the most important
rescission is to take effect 45 days after the report is
intelligence assets that the United States has ever had in
submitted. Of the three statutes, only the AECA has an
Cuba” in exchange for three Cuban intelligence agents who
explicit provision allowing Congress to block, via the
had been imprisoned in the United States since 1998.
enactment of a joint resolution, a removal of a country on
the list within the 45-day period. The Administration’s
Most significantly, in the aftermath of having secured the
report to Congress maintained that Cuba provided
release of Gross and the U.S. intelligence asset, President
assurances that it will not support acts of international
Obama announced a major shift in U.S. policy toward
terrorism.
Cuba, moving away from a sanctions-based policy aimed at
isolating Cuba toward a policy of engagement and a
Increase travel, commerce, and the flow of information
normalization of relations.
to and from Cuba. The White House announced a number
of policy changes to implement this third step. The changes
build upon previous steps that President Obama took in
In the most significant changes in our policy in more than
2009, when he lifted all restrictions on family travel and
fifty years, we will end an outdated approach that, for
remittances to family members in Cuba, and in 2011, when
decades, has failed to advance our interests, and instead we
he took action to increase purposeful travel to Cuba.
will begin to normalize relations between our two countries.
Through these changes, we intend to create more
Just as in 2009 and 2011, the President’s new initiative
opportunities for the American and Cuban people, and
required changes to U.S. embargo regulations administered
begin a new chapter among the nations of the Americas.
by the Department of the Treasury, Office of Foreign
President Barack Obama, December 17, 2014
Assets Control (Cuban Assets Control Regulations; 31
C.F.R. Part 515) and the Department of Commerce, Bureau
of Industry and Security (Export Administration
The President outlined three major steps to move toward
normalization:
Regulations; 15 C.F.R. Parts 730-774). Such changes fall
within the scope of the President’s discretionary licensing
authority to make changes to the embargo regulations. On
Reestablishment of diplomatic relations. As U.S.-Cuban
relations deteriorated in the early 1960s, relations were
January 15, 2015, the two agencies issued the new
regulations. These included:
severed by the Eisenhower Administration in January 1961
in response to the Cuban government’s demand to decrease
• Travel. The regulations authorize a general license for
the number of U.S. Embassy staff within 48 hours. In 1977,
the existing 12 categories of authorized travel, meaning
under the Carter Administration, both countries established
that travelers who fall under these categories do not
Interests Sections in each other’s capitals. Since January
have to apply to the Treasury Department for permission
2015, Assistant Secretary of State for Western Hemisphere
as in the past when a specific license was required for a
Affairs Roberta Jacobson has participated in three rounds of
number of these categories. Both travel agents and
talks with Cuba on reestablishing relations; another round
airlines will also be able to provide services for travel to
will be held on May 21, 2015, in Washington. The talks
Cuba without the need to obtain a specific license.
have included the logistics of reopening embassies and
Authorized travelers can also bring back up to $400
embassy operations, such as giving diplomats privileges to
worth of goods from Cuba, with no more than $100 for
carry out the full range of their roles as diplomats.
tobacco products and alcohol combined, and will be
permitted to use U.S. credit and debit cards. The
Review of Cuba’s designation by the Department of
changes do not allow travel to Cuba for tourism, which
State as a state sponsor of international terrorism. Cuba
remains prohibited by law.
has been on the so-called terrorism list since 1982 because
• Remittances. The regulations increase the amount of
of its alleged ties to international terrorism and support for
terrorist groups in Latin America. President Obama directed
permissible remittances by U.S. persons to Cuban
nationals from $500 to $2,000 per quarter. Up to
Secretary of State Kerry to review Cuba’s designation
$10,000 in remittances can be carried to Cuba by
“guided by the facts and the law.” The State Department
authorized travelers compared to $3,000 before. Certain
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Cuba: President Obama’s New Policy Approach
remittances to individuals and independent
financing from third countries; and also prohibits travel to
nongovernmental organizations (NGOs) in Cuba are
Cuba related to tourist activities.
authorized without limit for humanitarian projects; the
activities of recognized human rights organizations,
Continued Human Rights Concerns
independent organizations designed to promote a rapid
peaceful transition to democracy, and individuals and
The President maintained that the United States would
NGOs that promote independent activity to strengthen
continue to speak out on human rights and democracy
civil society; and the development of private businesses.
issues, but stressed that more could be done to support the
•
Cuban people through engagement. The President
Trade and Telecommunications. The regulations
welcomed Cuba’s decision to release a substantial number
expand commercial exports to Cuba of certain goods
of prisoners that his Administration raised directly with the
and services to empower Cuba’s nascent private sector,
Cuban government. On January 12, 2015, the State
including authorization for certain building materials for
Department announced that Cuba had released 53 prisoners
private residential construction, goods for use by
that had been drawn up on a list by the United States.
private-sector Cuban entrepreneurs, and agricultural
Observers point out that in recent years Cuba has shifted to
equipment for small farmers. The regulations also revise
using short-term detentions and harassment to repress
the definition of “payment of cash in advance” for
dissent. The Havana-based Cuban Commission on Human
authorized trade with Cuba to specify that it means
Rights and National Reconciliation reported 8,899 such
“cash before transfer of title” for payment. Certain
detentions in 2014, almost 39% higher than in 2013. On
goods produced by independent Cuban entrepreneurs (as
March 31, 2015, U.S. and Cuban delegations met in
determined by the State Department) are eligible to be
Washington to discuss how they would proceed on a future
imported into the United States.
human rights dialogue.

The regulations permit the commercial export of certain
Summit of the Americas
consumer communication devices, related software,
applications, hardware, and services, and items for the
President Obama and Cuban President Raúl Castro held a
establishment and update of communications-related
historic meeting on April 11, 2015, on the sidelines of the
systems. They also permit the export of items for
seventh Summit of the Americas in Panama. President
telecommunications, including access to the Internet,
Obama stated that “there are still going to be deep and
use of Internet services, infrastructure creation, and
significant differences between our two governments,” with
upgrades. An expanded general license authorizes
the United States continuing to raise concerns around
transactions to provide commercial telecommunications
democracy and human rights and Cuba raising concerns
services in Cuba or link third countries and Cuba. An
about U.S. policy. He maintained, however, that “what we
updated general license allows for U.S. persons to make
have both concluded is that we can disagree with the spirit
payments to a telecommunications operator located in
of respect and civility, and that over time it is possible for
Cuba for services provided to Cuban individuals.
us to turn the page and develop a new relationship in our
• Financial Services. The regulations permit U.S.
two countries.”
financial institutions to open correspondent accounts at
Cuban financial institutions to facilitate the processing
Congress has played an active role in shaping policy toward
of authorized transactions.
Cuba over the years. Some Members of Congress lauded
the President’s new policy approach toward Cuba as in the
Embargo Remains
best interest of the United States and a better way to support
change in Cuba, while other Members strongly criticized
The President acknowledged that he does not have the
the President for not obtaining concessions from Cuba to
authority to lift the embargo because it is codified into law.
advance human rights. Legislative initiatives have been
However, the President maintained that he looks forward to
introduced to further ease or lift the embargo altogether,
engaging Congress in a debate about lifting it. The Cuban
while initiatives have also been introduced to block some of
Liberty and Democratic Solidarity (LIBERTAD) Act of
the Administration’s efforts toward normalization.
1996 (P.L. 104-114) ties the lifting of the embargo to
conditions in Cuba, including that it has a democratically
For additional information, see CRS Report R43926,
elected government. Lifting the overall economic embargo
Cuba: Issues for the 114th Congress; CRS Report R43888,
would require amending or repealing the LIBERTAD Act
Cuba Sanctions: Legislative Restrictions Limiting the
as well as other statutes that have provisions impeding
Normalization of Relations; CRS Report RL31139, Cuba:
normal economic relations with Cuba, such as the FAA, the
U.S. Restrictions on Travel and Remittances; and CRS
Cuban Democracy Act (CDA) of 1992 (Title XVII of P.L.
Report R43835, State Sponsors of Acts of International
102-484), and the Trade Sanctions Reform and Export
Terrorism—Legislative Parameters: In Brief.
Enhancement Act (TSRA) of 2000 (P.L. 106-387). For
example, the CDA prohibits U.S. subsidiaries from
Mark P. Sullivan, msullivan@crs.loc.gov, 7-7689
engaging in trade with Cuba. TSRA denies U.S. exporters

access to U.S. government support or U.S. private
commercial financing or credit; requires that all
IF10045
transactions be conducted in cash in advance or with
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