Updated May 14, 2021
Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
not produce major improvements. Cuba adopted a new
trade embargo on Cuba, the centerpiece of U.S. policy
constitution in 2019 that introduced some reforms but
toward Cuba has consisted of economic sanctions aimed at
continued the state’s dominance over the economy and the
isolating the Cuban government.
PCC’s predominant political role.
In 2014, the Obama Administration initiated a policy shift
The Cuban economy is being hard-hit by the economic
away from sanctions and toward engagement and the
shutdown associated with the Coronavirus Disease 2019
normalization of relations. Changes included the rescission
(COVID-19) pandemic; Venezuela’s economic crisis,
of Cuba’s designation as a state sponsor of international
which has reduced Venezuelan financial support; and
terrorism (May 2015); the restoration of diplomatic
increased U.S. economic sanctions. The Cuban government
relations (July 2015); and an easing of restrictions on travel,
reports the economy contracted 11% in 2020. On January 1,
remittances, trade, telecommunications, and banking and
2021, Cuba eliminated its dual currency system, a major
financial services (2015 and 2016), accomplished through
reform that was long debated. Economists maintain the
amendments to the Cuban Assets Control Regulations,
currency reform will have high costs initially but should
administered by the Treasury Department, and the Export
boost productivity and development over the longer term.
Administration Regulations, administered by the Commerce
Department. The restoration of relations led to increased
Cuba’s public health response to the pandemic initially kept
government-to-government engagement, with over 20
cases and deaths low, but both began to increase in late
bilateral agreements and numerous dialogues.
2020 and have surged recently. As of May 12, 2021, the
country reported 768 deaths and over 118,000 cases. Cuba
President Trump unveiled his Administration’s Cuba policy
has made progress on two vaccines it is developing, has
in 2017, introducing new sanctions and rolling back efforts
begun trials that will cover 1.7 million people, and aims to
to normalize relations. By 2019, the Administration had
have 70% of the population vaccinated by August 2021.
largely abandoned engagement and, from 2019 to January
2021, significantly increased sanctions (see discussion
Cuba has a poor record on human rights, with the
below)—especially on travel and remittances—to pressure
government sharply restricting freedoms of expression and
the Cuban government on human rights and for its support
other basic rights. As of May 3, 2021, the human rights
of the Venezuelan government of Nicolás Maduro.
group Cuban Prisoners Defenders reported 145 political
prisoners (including 70 imprisoned for reasons of
Sanctions imposed under the Trump Administration remain
conscience and 40 under conditional release). Since
in place to date under the Biden Administration. During the
November 2020, the government’s crackdown on the San
U.S. election campaign, Biden said he would reverse
Isidro Movement, a civil society group opposed to
Trump Administration policies that harmed the Cuban
restrictions on artistic expression, has focused international
people without advancing democracy and human rights.
attention on the poor human rights situation.
The White House press s ecretary said on March 9 that
although a Cuba policy shift was not among the President’s
Trump Administration Sanctions. President Trump
top priorities, the Administration was “committed to
issued a national security presidential memorandum in June
making human rights a core pillar” of policy and
2017 that introduced new sanctions, including restrictions
“committed to carefully reviewing policy decisions made in
on transactions with companies controlled by the Cuban
the prior administration, including the decision to designate
military. The State Department issued a list of “restricted
Cuba as a state sponsor of terrorism.”
entities” in 2017, which was updated several times, most
recently January 8, 2021. The “Cuba restricted list”
Cuban Political and Economic Developments. In April
includes 231 entities and subentities (ministries, holding
2018, Vice President Miguel Díaz-Canel succeeded Raúl
companies, hotels, stores, and a wide variety of companies).
Castro as president, and in April 2021, Díaz-Canel
The Administration imposed a series of sanctions, discussed
succeeded Castro as head of the Cuban Communist Party
below, and initiated a campaign highlighting allegations of
(PCC) at its eighth party congress. The departure of Castro
coercive labor practices in Cuba’s medical missions abroad.
and other older leaders from the PCC’s Politburo reflects
the generational change in Cuban leadership that began
Efforts to Stop Venezuelan Oil Exports to Cuba.
several years ago. Even if Castro is gone from the political
Since April 2019, the Treasury Department has imposed
scene, the government’s slogan, Somos continuidad (We
sanctions on several shipping companies and vessels
are continuity), signals that political change is unlikely.
that transported Venezuelan oil to Cuba. In July 2019, it
While in power from 2006 to 2018, Raúl Castro began to
sanctioned Cuba’s state-run oil import/export company.
implement significant economic policy changes, moving
toward a more mixed economy with a stronger private
Lawsuits Related to Confiscated Property. Effective
sector, but his government’s slow, gradualist approach did
May 2, 2019, the Administration allowed the right to file
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Cuba: U.S. Policy Overview
lawsuits against those trafficking in confiscated property
Terrorism Designations. In May 2020, the Secretary of
in Cuba pursuant to Title III of the Cuban Liberty and
State (pursuant to Section 40A of the Arms Export
Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
Control Act) added Cuba to the annual list of countries
104-114). Lawsuits can be brought by any U.S. national,
certified as not cooperating fully with U.S. antiterrorism
including those who were not U.S. nationals at the time
efforts, the first time since 2015. On January 11, 2021,
of the confiscation. Previous Administrations had
the Secretary designated the Cuban government a state
suspended, at six-month intervals, the right to file such
sponsor of international terrorism (the previous such
lawsuits. To date, 40 lawsuits have been filed against
designation was rescinded in 2015). He cited Cuba’s
U.S. and foreign companies, including cruise ship
harboring of several U.S. fugitives since the 1970s and
operators, airlines, travel booking companies, and
of 10 leaders of Colombia’s National Liberation Army
hotels; several lawsuits have been dismissed.
(a U.S.-designated foreign terrorist organization), who
had traveled to Cuba in 2017 to engage in peace talks
Restrictions on Travel and Remittances. In June
with the Colombian government. The economic
2019, the Treasury Department eliminated people-to-
sanctions associated with the terrorism designation are,
people educational travel and the Commerce
in large part, redundant to other U.S. sanctions already
Department generally prohibited cruise ships, private
in effect. Nevertheless, a terrorism designation, requires
and corporate aircraft, sailboats, and fishing boats from
the Commerce Department to place Cuba on its most
going to Cuba. The Transportation Department
restrictive export licensing list, which could impede
suspended commercial flights to cities other than
transactions related to technology. Some sectors,
Havana in December 2019; charter flights to cities other
seeking to avoid any perception of sanctions violations,
than Havana in January 2020; and private charter flights
may become more risk averse in transactions with Cuba.
to Havana in October 2020. In September 2020,
Treasury prohibited U.S. travelers from staying at over
Injuries of U.S. Embassy Personnel. Between late 2016
400 hotels and privately owned residences identified by
and May 2018, 26 U.S. Embassy Havana community
the State Department as owned or controlled by the
members suffered a series of unexplained injuries ,
Cuban government or by a prohibited government
including hearing loss and cognitive issues. The State
official or PCC Party member (or close relative).
Department maintains the investigation into the injuries has
not reached a conclusion regarding the cause or source. On
In September 2019, Treasury capped family remittances
December 5, 2020, the National Academies of Sciences,
to $1,000 per quarter per Cuban national and eliminated
Engineering, and Medicine released a report concluding the
the category of donative remittances. In 2020, the State
most plausible mechanism for the source of the health
Department added to its “Cuba restricted list” two
symptoms was directed pulsed radio frequency energy.
Cuban companies that facilitate the processing of
remittances. In November 2020, Treasury prohibited the
117th Congress. The Senate has approved two Cuba human
processing of remittances through entities on the “Cuba
rights resolutions. On April 15, 2021, the Senate approved
restricted list.” This resulted in Western Union—the
S.Res. 37, expressing solidarity with the San Isidro
major financial services company used for transmitting
Movement, condemning attacks against artistic freedoms,
remittances to Cuba—to cease its operations in Cuba.
and calling for the repeal of laws that violate freedom of
expression and the release of arbitrarily detained artists,
Other Trade and Financial Sanctions. In September
journalist, and activists. On May 12, 2021, the Senate
2019, Treasury ended the use of U-turn transactions that
approved S.Res. 81, honoring Las Damas de Blanco, a
had allowed banking institutions to process funds
woman-led nonviolent human rights group, and calling for
transfers originating and terminating outside the United
the release of all political prisoners in Cuba.
States. In October 2019, the Commerce Department
restricted Cuba’s access to leased commercial aircraft;
Other bills introduced to date are H.R. 287 and S. 689,
reimposed a 10% de minimis rule (from 25%) requiring
which would prohibit the rescission of Cuba’s designation
a third country-based company exporting goods to Cuba
as a state sponsor terrorism list until Cuba satisfies certain
with more than 10% U.S.-origin content to apply for a
conditions in the LIBERTAD Act (P.L. 104-114); S. 249,
license; and imposed licensing requirements for
which would lift sanctions and call for negotiations on
exporting certain donated items to organizations
property claims and human rights; H.R. 198, which would
controlled by the Cuban government or PCC and items
waive certain prohibitions with respect to Cuban nationals
for telecommunications infrastructure.
coming to the United States to play organized professional
baseball; and H.R. 2684, which would establish a Cuban
Targeted Human Rights Sanctions. The State
family reunification parole program.
Department imposed visa restrictions on Raúl Castro in
September 2019 for human rights violations in Cuba and
Also see CRS Insight IN11611, Cuba: Challenges for U.S.
Venezuela. Further visa restrictions were imposed on
Policymakers in 2021; CRS Report R45657, Cuba: U.S.
Cuba’s Interior Minister in November 2019 (until his
Policy in the 116th Congress and Through the Trump
death in 2020) and Cuba’s defense minister in January
Administration; and CRS Report RL31139, Cuba: U.S.
2020 for human rights violations. Treasury imposed
Restrictions on Travel and Remittances.
financial sanctions on the head of GAESA, a military
holding company, in September 2020 and on the
Mark P. Sullivan, Specialist in Latin American Affairs
Ministry of the Interior and its minister in January 2021.
IF10045
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Cuba: U.S. Policy Overview
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