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Updated October 28,2020


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 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 restorationof diplomatic
relations (July 2015); and an easing ofrestrictions on travel,
remittances, trade, telecommunications, and banking and
financial services (2015 and 2016), accomplished through
amendments  to the Cuban Assets Control Regulations
(CACR),  administered by the Treasury Department, and the
Export Adminis tration Regulations, administered by the
Commerce  Department. The restoration ofrelations led to
increased government-to-government engagement, with
over 20 bilateral agreements and numerous dialogues.
President Trump unveiled a new policy toward Cubain
2017, introducingnew sanctions and rolling backefforts to
normalize relations. By 2019, the Administration largely
abandoned engagement  by increasing economic sanctions
significantly to pressure the Cuban government on human
rights and for its support of the Venezuelan government of
Nicolds Maduro. In 2020, the Administrationhas ratcheted
up restrictions on travel and family remittances. On October
27, the Administration announced new s anctions that could
lead to the curtailment of most remittances in late
November,  when the restrictions become effective.
Cuban  Political and Economic Developments. In April
2018, Miguel Diaz-Canel, who was serving as first vice
president, succeeded Radl Castro as president, but Castro
continues to head the Cuban Communist Party until 2021.
The selection of Diaz-Canel, now 60 years old, reflected the
generational changein Cuban leadership thatbegan several
years ago and marks the first time since the 1959 Cuban
revolution that a Castro is notin charge of the government.
While in power from2006 to 2018, Radl Castro began to
implement significanteconomic policy changes, moving
toward a more mixed economy with a s tronger private
sector, buthis 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
prime 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 Assembly appointed
Diaz-Canel as president under the new constitution. In


December2019,  Diaz-Canel appointed tourismminis ter
Manuel  Marrero 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, which have hurt
Cuba's nascentprivate s ector; and the economic decline
associated with the Coronavirus Disease 2019 (COVID-19)
pandemic. The Economist Intelligence Unit is forecasting
an 8.3% economic contraction in 2020.
Cuba's public health response to the COVID-19 pandemic
appears to have been effective. As of October 28, 2020, the
country reported 128 deaths, with a mortality rate of 1.13
per 100,000 people (among the lowest rates in the
hemisphere), according to Johns Hopkins University. Cuba
has providedinternationalassistance to respondto the
pandemic by sending over 3,700 medical professionals to
almost 40 countries worldwide.
Trump  Administration Sanctions. President Trump
is sued a nationals ecurity presidential memorandumin June
2017 that introduced new s anctions, 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 severaltimes,
most recently in September2020. The Cuba restricted list'
includes 230entities andsubentities, including 2ministries,
5 holding companies and 54 of their subentities, 111hotels,
2 tourist agencies, 5 marinas, 10 stores in Old Havana, and
41 entities serving defense and security sectors.
Since 2019, the Adminis tration has imposed increasingly
strong sanctions against Cuba. In addition to the sanctions
noted below, the Administrationhas increased efforts
(including vis a restrictions) to call attention to allegations
of coercive laborpractices in Cuba's foreign medical
missions, a major foreign exchange earner for Cuba. In
May  2020, the State Department (pursuant to Section 40A
of the Arms Export Control Act) added Cuba to its annual
list of countries certified as notcooperatingfully with U.S.
antiterrorismefforts, the first time since 2015.
  Efforts to Stop Venezuelan Oil Exports to Cuba.
   Since April2019, the Treasury Department has imposed
   sanctions onseveralshipping companies and vessels
   that transported Venezuelan oilto Cuba. In July 2019, it
   sanctioned Cuba's state-run oil import/export company.
  Lawsuits Related to ConfiscatedProperty. Effective
   May  2, 2019, the Administration allowed the right to file
   lawsuits against those trafficking in confiscated property
   in Cuba pursuant to Title III 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

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