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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 Cuban government.
In 2014, the Obama Administration initiated apolicy shift
away from sanctions and toward engagement andthe
normalization of relations. Changes included the rescission
of Cuba's designation as a state sponsor of international
terrorism(May 2015); the restoration of diplomatic
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 by the Treasury Department, and the Export
Administration Regulations, administered by the Commeice
Department. The restoration ofrelations led to increased
government-to-government engagement, with over 20
bilateral agreements and numerous dialogues.
President Trump unveiled his Administration's Cuba policy
in 2017, introducing new sanctions and rolling back efforts
to normalize relations. By 2019, the Administration had
largely abandoned engagement and, from2019 to January
2021, significantly increased s anctions (see discussion
below)-especially on travel and remittances-to pressure
the Cuban government on human rights and for its support
of the Venezuelan government ofNicolas Maduro.
Sanctions imposed under the Trump Administrationremain
in place to date under the Biden Administration. During the
U.S. election campaign, Biden s aid he wouldreverse
Trump Adminis tration policies that harmed the Cuban
people without advancing democracy andhuman rights.
The White Housepress secretary said on March 9 that
although a Cuba policy shift was notamong the President's
top priorities, the Administration was committed to
making human rights a core pillar ofpolicy and
committed to carefully reviewing policy decisions made in
the prior administration, including the decision to designate
Cuba as a state sponsor ofterrorism.
Cuban Political and Economic Developments. In April
2018, Vice President Miguel Diaz-Canel succeeded Radl
Castro as president, and in April2021, Dfaz-Canel
succeeded Castro as head of the Cuban Communist Party
(PCC) at its eighth party congress. The departure of Castro
and other older leaders fromthe PCC's Politburo reflects
the generational change in Cub an leadership that began
several years ago. Even if Castro is gone fromthe political
scene, the government's slogan, Somos continuidad (We
are continuity), signals that political change is unlikely.
While in power from2006 to 2018, Radl Castro began to
implement significanteconomic policy changes, moving
toward a more mixed economy with a strongerprivate
sector, buthis government's slow, gradualist approach did

not produce major improvements. Cuba adopted a new
constitution in 2019 that introduced some reforms but
continued the state's dominance over the economy and the
PCC's predominant politicalrole.
The Cuban economy is being hard-hit by theeconomic
shutdown associated with the Coronavirus Disease 2019
(COVID-19) pandemic; Venezuela's economic crisis,
which has reduced Venezuelan financial support; and
increased U.S. economic sanctions. The Cuban government
reports theeconomy contracted 11% in 2020. On January 1,
2021, Cuba eliminated its dual currency system, a major
reform that was long debated. Economists maintain the
currency reformwill have high costs initially but should
boostproductivity and development over the longer term.
Cuba's public health response to the pandemic initially kept
cases and deaths low, but both beganto increase in late
2020 and have surgedrecently. As ofMay 12, 2021, the
country reported 768 deaths andover 118,000 cases. Cuba
has made progress on two vaccines it is developing, has
begun trials that will cover 1.7 million people, and aims to
have 70% of the population v accinated by August 2021.
Cuba has a poor record on human rights, with the
government sharply restricting freedoms of expression and
other basic rights. As of May 3, 2021, the human rights
group Cuban Prisoners Defenders reported 145 political
prisoners (including 70imprisoned forreasonsof
conscience and 40under conditionalrelease). Since
November 2020, the government's crackdown on the San
Isidro Movement, a civil society group opposed to
restrictions on artistic expres sion, has focused international
attention on the poor human rights situation.
Trump Administration Sanctions. President Trump
is s ued a nationals ecurity presidential memorandumin June
2017 that introduced new sanctions, including restrictions
on transactions with companies controlled by the Cuban
military. The State Department is sued a list ofrestricted
entities in 2017, which was updated severaltimes, most
recently January 8,2021. The Cuba restricted list
includes 231 entities and s ubentities (minis tries, holding
companies, hotels, stores, and a wide variety of companies).
The Administration imposed a series of sanctions, discussed
below, and initiated a campaign highlighting allegations of
coercive labor practices in Cuba's medicalmis sions abroad.
 Ffforts to Stop Venezuelan Oil Exports to Cuba.
Since April2019, the Treasury Department has imposed
s anctions on s everal shipping companies and vessels
that transported Venezuelan oilto Cuba. In July 2019, it
s anctioned Cuba's state-run oilimport/export comp any.
 Lawsuits Related to ConfiscatedProperty. Effective
May 2, 2019, the Administration allowed the right to file

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