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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 humanights 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 Conmmnist Party until 2021.
The selection of Dfaz-Canel, now 60 years old, reflected 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 economic improvements.
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.
The Cuban economy is being hard-hit by Venezuela's
economic cris is, which has reduced Venezuela's support for


Cuba; increased U.S. economic sanctions; and the
economic decline associatedwith the Coronavirus Disease
2019 (COVID-19) pandemic. The Economist Intelligence
Unit is forecasting an 8.3% economic contraction in 2020.
Cuba's public health responseto the COVID-19 pandemic
appears to have been effective. As of August 1,2020, the
country registered 3,408 confirmed cases and 88 deaths,
with a mortality rate of 0.78 per 100,000 people (compared
to 52.52 in the United States) according to Johns Hopkins
University. Cuba has provided international assistance to
respond to the pandemic by sending over 3,700 medical
profes sionals to alhnos t 40 countries worldwide, including
in Europe, Africa, and Latin America and the Caribbean.
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,
most recently in June 2020. The list includes 229 entities
and subentities, including 2 minis tries, 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 against Cuba for its poor human rights record and
its support for the Maduro government. In addition to the
sanctions noted below, the Administration has increased
efforts (including vis a restrictions) to call attention to
allegations of coercive labor practices in Cub a's foreign
medical missions, a major foreign exchange earner for
Cuba. In addition, in May 2020, the State Department
(pursuantto Section 40A of the Arms Export Control Act)
added Cubato its annual list of countries certified as not
cooperatingfully with U.S. antiterrorismeflforts, the first
such certification for Cuba since 2015.
 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
   sanctioned Cuba's s tate-run oil import/export company.
 LaIwsuits Related to ConfiscatedProperty. Effective
   May 2, 2019, the Administration allowed the right to file
   lawsuits against those trafficking in confiscatedproperty
   in Cubapursuant to Title I of the Cuban Liberty and


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Updated August 19,2020

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