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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 govemmentoperations; 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 October 8,2020, the
country reported 123 deaths, with a mortality rate of 1.08
per 100,000 people (among the lowest rates in the
hemisphere), according to Johns Hopkins University. Cuba
has provided international as sistance to respond to the
pandemic by sending over 3,700 medical professionals to
almost 40 countries worldwide, including in Europe, Africa,
and Latin America and the Caribbean.
Trump Administration Sanctions. President Trump
is sued a national s ecurity presidential memorandumin 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 been updated several times,
most recently September29, 2020. The list includes 230
entities and subentities, including 2 ministries, 5 holding
companies and 54 of their subentities, 111 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
increasingly strong sanctions against Cubaforits poor
human rights record andits support for the Maduro
government. In addition to the sanctions noted below, the
Administration has increased efforts (including visa
restrictions) to call attention to allegations of coercive labor
practices in Cuba's foreignmedical missions, a major
foreign exchange earner for Cub a. In May 2020, the State
Department (pursuant to Section 40A of the Arms Export
Control Act) also added Cubato its annual list of countries
certified as not cooperatingfully with U.S. antiterrorism
efforts, 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 onseveral shipping companies and vessels
   that transported Venezuelanoilto Cuba. In July 2019, it
   sanctioned Cuba's state-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
   Democratic Solidarity (LIBERTAD) Act of 1996 (P.L.
   104-114). Lawsuits can be brought by any U.S. national
   including those who were not U.S. nationals at the time
   of the confiscation. Previous Administrations had
   suspended, at six-month intervals, the right to file such
   lawsuits pursuantto the provisions of the law. The
   European Union and Canadacriticized the Trump
   Administration's action, vowingto ban enforcement or


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Updated October 8,2020

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