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1 1 (March 19, 2020)

handle is hein.crs/govebid0001 and id is 1 raw text is: Congressional Research Service Inforrning the legislative debate since 1914 Updated March 19, 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 major policy shift moving away from sanctions toward engagement and the normalization of relations. The policy change included the rescission of Cuba's designation as a state sponsor of international terrorism (May 2015); the restoration of diplomatic relations (July 2015); and efforts to increase travel, commerce, and the flow of information to Cuba by easing restrictions on travel, remittances, trade, telecommunications, and banking and financial services (2015 and 2016, accomplished through amendments to the Cuban Assets Control Regulations, administered by the 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 negotiated and numerous bilateral dialogues. President Trump unveiled a new policy toward Cuba in 2017, introducing new sanctions and rolling back some of the Obama Administration's efforts to normalize relations. By 2019, the Trump Administration had largely abandoned engagement by increasing economic sanctions significantly to pressure the Cuban government on its human rights record and its support for the regime of Nicolas Maduro in Venezuela. It took actions to allow lawsuits against those trafficking in property confiscated by the Cuban government and tightened restrictions on travel to Cuba, including terminating cruise ship travel from the United States and U.S. flights to Cuban cities other than Havana. Cuban Political and Economic Developments. In April 2018, Miguel Dfaz-Canel, who was serving as first vice president, succeeded Rail Castro as president, but Castro continues to head the Cuban Communist Party until 2021. The selection of Dfaz-Canel, now 59 years old, reflects 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 from 2006 to 2018, Rail 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 February 2019, almost 87% of Cubans approved a new constitution in a national referendum. The changes include the addition of an appointed prime 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 the promotion of foreign investment. However, the new constitution ensures the state sector's dominance over the economy and the predominant role of the Communist Party. In October 2019, Cuba's National Assembly appointed Dfaz-Canel as president under the new constitution. In December 2019, Dfaz-Canel appointed tourism minister Manuel Marrero Cruz as prime minister, who reportedly will serve as the president's administrative right-hand man in implementing policy. The Cuban economy has been hard-hit by the reimposition of, and increase in, U.S. sanctions that impede international financial transactions with Cuba and by Venezuela's economic crisis, which has limited Venezuela's support to Cuba. Cuban officials reported that 4.3 million tourists visited Cuba in 2019, down from 4.7 million in 2018; the decline in tourism has hurt private sector businesses. Cuba's economy will also take a significant hit from the coronavirus (Covid-19) pandemic. As of March 19, 2020, Cuba had 11 confirmed cases (with one death, an Italian tourist) and over 350 people under surveillance. Before the pandemic, the Economist Intelligence Unit estimated that the economy would contract 0.7% in 2020, but the decline is likely to be steeper as the tourism sector shuts down. Trump Administration Sanctions. President Trump issued a national security presidential memorandum in June 2017 that introduced new sanctions. These included the elimination of people-to-people travel for individuals and restrictions on transactions with companies controlled by the Cuban military. The State Department issued a list of restricted entities in 2017, which has been updated several times, most recently in November 2019. The list includes 223 entities and subentities, including 2 ministries, 5 holding companies and 49 of their subentities, 109 hotels, 2 tourist agencies, 5 marinas, 10 stores in Old Havana, and 41 entities serving defense and security sectors. The Administration's strong criticism of Cuba for its support of Venezuela began in November 2018, when then- National Security Adviser John Bolton asserted that Cuba was responsible for enabling the Venezuelan regime's repression. In rhetoric reminiscent of the Cold War, Bolton referred to Cuba, Venezuela, and Nicaragua as the Troika of Tyranny in the hemisphere. In 2019, the Trump Administration has imposed a series of sanctions against Cuba for its poor human rights record and its support for the Maduro government in Venezuela. These include * 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 imposed sanctions on Cuba's state-run oil import and export company. Beginning in 2000, Cuba received some 90,000-100,000 barrels of oil per day (bpd), but Venezuela's economic crisis reduced this to between

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