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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 policy shift
moving away fromsanctions toward engagement and the
normalization of relations. Changes included the rescission
of Cuba's designation as a state sponsor of international
terrorism(May 2015); the restorationofdiplomatic
relations (July 2015); and an easing of restrictions on travel,
remittances, trade, telecommunications, and banking and
financial services (2015 and 2016, accomplished through
amendments to the Cuban Assets Control Regulations,
administered bythe 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 and numerous bilateral dialogues.
President Trump unveiled a newpolicy toward Cubain
2017, introducingnew sanctions and rolling backsome
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 humanrights record and support
for the government of Nicolds Maduro in Venezuela.
Cuban Political and Economic Developments. In April
2018, Miguel Dfaz-Canel, who was serving as first vice
president, succeeded Raitl Castro as president, but Castro
continues to head the Cuban Communist Party until 2021.
The selection of Dfaz-Canel, now 60 years old, reflects the
generational changein 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 from2006 to 2018, Raid 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 a February 2019 referendum, Cubans approved a new
constitution that introduced such changes as an appointed
prie ministerto oversee governmentoperations; 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
constitutionensures the state sector's dominance over the
economy and the predominant role of the Communist Party.
In October 2019, Cuba's National As sembly appointed
Dfaz-Canel as president under the new constitution. In
December 2019, Dfaz-Canel appointed touris mminis ter
ManuelMarrero 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 bothVenezuela's
economic cris is, which has reduced Venezuela's support for
Cub a, increased U.S. economic sanctions, and the econonr
shutdown in response to the Coronavirus Disease 2019
(COVID-19) pandemic. Before COVID-19, the Economist
Intelligence Unit estimatedthe Cuban economy would
contract 0.7% in 2020; it is now projecting an 8.3% decline.
The global contraction in economic growth, trade, foreign
investment, andtourismlikely will slow Cuba's post-
COVID-19 economic recovery.
Cuba's public health responseto the COVID-19 pandemic
appears to have been effective to date. As of July 16, 2020,
the country registered over 2,400 confirmed cases and 87
deaths, with a mortality rate of 0.77 per 100,000 people
(compared to 41.76 in the United States, according to Johns
Hopkins University). Cubahas provided international
as sistance to respond to the pandemic by sending over
3,400 medical professionals to more than 30 countries
worldwide, including in Europe, Africa, and throughout the
Caribbean and Central America.
The pandemic led to increased calls, including by United
Nations officials, for the United States to ease s anctions 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 humanitarianrelief and
as s is tance to the Cub an people.
Trump Administration Sanctions. President Trump
is s u ed a national s ecurity presidential memorandum in June
2017 that introduced new sanctions, including restrictions
on trans actions with companies controlled by the Cuban
military. The State Department is sued a list of restricted
entities in 2017, which has beenupdated several times,
mo s t recently in June 2020. The list includes 229 entities
and subentities, including 2 ministries, 5 holding companies
and 53 of their subentities, 111 hotels, 2 tourist agencies, 5
marinas, 10 stores in Old Havana, and41 entities serving
defense and security sectors.
Since 2019, the Administration has imposed a series of
sanctions againstCuba forits poorhuman rightsrecordand
its support for the Maduro government. The Administration
also has targeted Cuba's foreign medical missions, a major
foreign exchange earner, for not addressing allegations of
coercive labor practices. Nevertheless, Cuba's medical
diplomacy, has generated political goodwill, including
recent support during theCOVID-19 pandemic.
   Efforts to Stop Venezuelan Oil Exports to Cuba.
   Since April 2019, the Treasury Department has imposed
   sanctions onseveral shipping companies and vessels


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Updated July 16,2020

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