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Updated May 29, 2020


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 (May 2015); the restoration of
diplomatic relations (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
(2015 and 2016, accomplished through amendments to the
Cuban Assets Control Regulations, administered by the
Treasury Department, and the Export Administration
Regulations, administered by the Commerce Department).
The restoration of relations led to increased government-to-
government engagement, with over 20 bilateral agreements
negotiated and numerous bilateral dialogues.
President Trump unveiled a new policy toward Cuba in
2017, introducing new sanctions and rolling back some
efforts to normalize relations. By 2019, the Trump
Administration had largely abandoned engagement by
increasing economic sanctions significantly to pressure the
Cuban government for its human rights record and support
for the government of Nicol6s Maduro in Venezuela.
Cuban Political and Economic 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, Rail 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 economy, which
has experienced minimal growth in recent years.
In February 2019, almost 87% of Cubans approved a new
constitution in a national referendum. The changes include
the addition of an appointed prime minister to oversee
government operations; limits on the president's tenure
(two five-year terms) and age (60, beginning first term);
and 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. In December 2019, Dfaz-Canel


appointed tourism minister Manuel Marrero Cruz as prime
minister, who reportedly will serve as the president's
administrative right-hand man in implementing policy.
The Cuban economy is being hard-hit by both Venezuela's
economic crisis, which has reduced Venezuela's support for
Cuba and increased U.S. economic sanctions, and the
economic shutdown in response to the Coronavirus Disease
2019 (COVID-19) pandemic. Before COVID-19, the
Economist Intelligence Unit estimated the Cuban economy
would contract 0.7% in 2020; now, it is projecting a more
than 8% decline. The global contraction in economic
growth, trade, foreign investment, and tourism likely will
slow Cuba's post-COVID- 19 economic recovery.
As of May 28, 2020, Cuba registered over 2,000 confirmed
COVID-19 cases and 82 deaths (a mortality rate of 0.72 per
100,000 people, compared to 31.06 in the United States,
according to Johns Hopkins University). Cuba has been
providing international assistance to respond to the
pandemic by sending some 2,300 medical professionals to
more than 20 countries worldwide, including in Europe,
Africa, and throughout the Caribbean and Central America.
The pandemic has led to increased calls, including by
United Nations officials, for the United States to ease
sanctions to make it less difficult for Cuba to acquire
needed equipment, supplies, and medicines to confront the
health crisis. U.S. officials responded by maintaining that
U.S. sanctions allow for such exports providing
humanitarian relief and assistance to the Cuban people.
Trump Administration Sanctions. President Trump
issued a national security presidential memorandum in June
2017 that introduced new sanctions. These included the
elimination of people-to-people travel for individuals and
restrictions on transactions with companies controlled by
the Cuban military. The State Department issued a list of
restricted entities in 2017, which has been updated
several times, most recently in November 2019. The list
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 defense and security sectors.
Since 2019, the Administration has imposed a series of
sanctions against Cuba for its poor human rights record and
its support for the Maduro government. The Administration
also has targeted Cuba's foreign medical missions, a major
foreign exchange earner for Cuba, for not addressing
allegations of coercive labor practices. (Cuba's medical
diplomacy, however, has generated political goodwill,
including recent support during the COVID- 19 pandemic).
   Efforts to Stop Venezuelan Oil Exports to Cuba.
   Since April 2019, the Treasury Department has imposed
   sanctions on several shipping companies and vessels
   that transported Venezuelan oil to Cuba. In July 2019, it


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