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Updated December  11,2020


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 Cuban government.
In 2014, the Obama Administration initiated a policy shift
away from sanctions and toward engagement and the
normalization ofrelations. 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
financialservices (2015 and 2016), accomplished through
amendments  to the Cuban Assets Control Regulations
(CACR),  administered by the Treasury Department, and the
Export Administration 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 back efforts to
normalize relations. By 2019, the Administration had
largely abandoned engagement and had increased sanctions
to pres sure the Cuban government onhumanrights and for
its support of the Venezuelan government of Nicolds
Maduro.  In 2020, the Administration significantlyincieased
restrictions on travel and remittances.
Cuban  Political and Economic Developments. In April
2018, MiguelDiaz-Canel, who was serving as first vice
president, succeeded RadlCastro as president. Castro
continues to head the Cuban Communist Party until2021.
The selection of Diaz-Canel, now 60 years old, reflected 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 from2006 to 2018, Raid Castro began to
implement significanteconomicpolicy changes,moving
toward a more mixed economy with a stronger private
sector, buthis government's slow, gradualist approach did
not produce major economic improvements.
In 2019, Cuba adopted anew constitution with such
changes as an appointedprime 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 foreign investment promotion. The
new constitution also ensuredthe state's dominance over
the economy and the CommunistParty's predominantrole.
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 s anctions, 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 forecast an


8.3% economic  contractionin 2020. Cuba announced some
economic reforms in July 2020, and on December 10, 2020,
President Diaz-Canel announced that Cuba would eliminate
its dualcurrency systemon January 1, 2021, a major reform
that long has been debated.
Cuba's public health response to the pandemic appears to
have beeneffective. As of December 10,2020, the country
reported 136 deaths, with a mortality rate of 1.2 per
100,000 people (among the lowest rates in the hemisphere),
according to Johns Hopkins University. Cuba has provided
international as sistance for pandemic response by sending
over 3,700 medicalprofessionalsto almost40countries.
Cuba has a poor record on human rights, with the
government  sharply restricting freedoms ofexpressionand
other basic rights. As ofDecember 1,2020, the human
rights group Cuban Prisoners Defenders listed 134 political
prisoners, with 77 imprisoned forreasons of conscience. A
November2020   government crackdown on the San Isidro
Movement,  acivilsociety groupopposedto the
government's restrictions onartistic expression, spurred a
protes tby severalhundred Cubans, many young artists, and
galvanized international attention on humanrights in Cuba.
Trump  Administration Sanctions. President Trump
issued a nationalsecurity 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
entitiesin 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, 111 hotels,
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. In addition to those below, it has
highlighted allegations ofcoercive laborpractices in Cuba's
foreign medicalmissions. In May2020, the State
Department (pursuant to Section 40A of the Arms Export
Control Act) added Cuba to its annual list of countries
certified as n ot cooperatingfully with U.S. antiterrorism
efforts for 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 confiscatedproperty
   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,

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