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Cuba: U.S. Policy Overview
Since the early 1960s, when the United States imposed a
trade embargo on Cuba, the centerpiece of U.S. policy
toward Cuba has consisted of economic sanctions aimed at
isolating the government.
In 2014, the Obama Administration initiated a major policy
shift moving away from sanctions toward engagement and
the normalization of relations. The policy change included
the rescission of Cuba's designation as a state sponsor of
international terrorism in May 2015; the restoration of
diplomatic relations in July 2015; and efforts to increase
travel, commerce, and the flow of information to Cuba by
easing restrictions on travel, remittances, trade,
telecommunications, and banking and financial services
(accomplished through amendments in 2015 and 2016 to
the Cuban Assets Control Regulations [CACR],
administered by the Treasury Department, and the Export
Administration Regulations [EAR], administered by the
Commerce Department). The restoration of relations led to
increased government-to-government engagement, with
over 20 bilateral agreements negotiated and bilateral
dialogues conducted in numerous areas of cooperation.
President Trump unveiled a new policy toward Cuba in
2017, introducing new sanctions and rolling back some of
the Obama Administration's efforts to normalize relations.
By 2019, the Trump Administration had largely abandoned
the previous Administration's policy of engagement by
increasing economic sanctions significantly to pressure the
Cuban government on its human rights record and its
support for the regime of Nicolis Maduro in Venezuela. It
also took actions to allow lawsuits against those trafficking
in property confiscated by the Cuban government and
tightened restrictions on travel to Cuba, including the
termination of cruise ship travel from the United States.
With these actions, U.S. policy toward Cuba has again
shifted to a policy of strong economic pressure.
Cuban Political Developments. In April 2018, Miguel
Dfaz-Canel, who was serving as first vice president,
succeeded Rafil Castro as president, but Castro continues to
head the Cuban Communist Party until 2021. The selection
of Dfaz-Canel, now 59 years old, reflects the generational
change in Cuban leadership that began several years ago
and marks the first time since the 1959 Cuban revolution
that a Castro is not in charge of the government. While in
power from 2006 to 2018, Rafil Castro began to implement
significant economic policy changes, moving toward a
more mixed economy with a stronger private sector, but his
government's slow, gradualist approach did not produce
major improvements to the Cuban economy, which has
experienced minimal growth in recent years.
In February 2019, almost 87% of Cubans approved a new
constitution in a national referendum. Among the changes
are the addition of an appointed prime minister to oversee
government operations; limits on the president's terms (two
5-year terms) and age (60, beginning first term); and some
market-oriented economic reforms, including the right to
private property and the promotion of foreign investment.
However, the new constitution ensures the state sector's
dominance over the economy and the predominant role of
the Communist Party. In October 2019, Cuba's National
Assembly appointed Dfaz-Canel as president under the new
constitution, and two remaining old-guard revolutionary
leaders were removed from the downsized Council of State,
a reflection of generational change in the government.
Dfaz-Canel has three months to nominate a prime minister.
The Cuban economy has been hard-hit by the increase in
U.S. sanctions, which impede international financial
transactions with Cuba, and by Venezuela's economic
crisis, which has limited Venezuela's support to Cuba.
Cuba reported that, as of July 2019, tourism arrivals had
dropped by almost 24% compared to the previous year,
hurting restaurants and other private sector businesses. In
September and October 2019, Cuba experienced severe fuel
shortages limiting transportation and resulting in planned
blackouts. In November 2019, the Economist Intelligence
Unit forecast that the economy would grow by 0.5% in
2019 but contract by 0.7% in 2020.
Trump Administration Sanctions. President Trump
issued a national security presidential memorandum in June
2017 that introduced new sanctions. These included
restrictions on transactions with companies controlled by
the Cuban military and the elimination of people-to-people
travel for individuals. To implement these changes, in
November 2017, the Treasury and Commerce Departments
amended the CACR and EAR and the State Department
issued a list of restricted entities. Updated several times,
most recently in November 2019, the list currently includes
223 entities and subentities, including 2 ministries, 5
holding companies and 49 of their subentities, 109 hotels, 2
tourist agencies, 5 marinas, 10 stores in Old Havana, and 41
entities serving the defense and security sectors.
The Administration's strong criticism of Cuba for its
support of Venezuela began in November 2018, when then-
National Security Adviser John Bolton asserted in a speech
that Cuba was responsible for enabling the Venezuelan
regime's repression. In rhetoric reminiscent of the Cold
War, Bolton referred to Cuba, Venezuela, and Nicaragua as
the Troika of Tyranny in the hemisphere and its leaders
as the three stooges of socialism.
In 2019, the Trump Administration has imposed a series of
sanctions against Cuba for its poor human rights record and
its support for the Maduro government in Venezuela.
Among the sanctions imposed are the following:
* Efforts to Stop Venezuelan Oil Exports to Cuba.
Since April 2019, the Treasury Department has imposed
sanctions on several shipping companies and vessels
that have transported Venezuelan oil to Cuba. In July
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