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1 1 (June 25, 2021)

handle is hein.crs/goveduk0001 and id is 1 raw text is: C $ at Seseatch $ rv Updated June 25, 2021 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 late 2014, the Obama Administrationinitiateda policy shift away fromsanctions 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 restoration of diplomatic relations (July 2015); and an easing of restrictions on travel, remittances, trade, telecommunications, and banking and financialservices (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 Commeire 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, issuing a national security presidential memorandumthat introduced newsanctions, including restrictions ontransactions with companies controlled by the Cuban military. By 2019, the Administrationhad largely abandoned engagement; from2019 to January 2021, it significantly increased sanctions (see below) to pressure the Cuban government on human rights and for its support of the Venezuelan government of Nicolas Maduro. The Biden Administration maintains that it is conducting a review of policy toward Cuba; currently, sanctions imposed during the Trump Administrationremain in place. During the U.S. election campaign, Biden s aid he would reverse TrumpAdministrationpolicies that harmedthe 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 to carefully reviewing policy decis ions made in the prior administration, including thedecisionto designate Cuba as a state sponsor ofterrorism. On June 23, the Biden Administration opposed a U.N. General As s embly resolution (approvedby voteof 184 to 2, with 3 abstentions) urging the United States to end its embargo on Cuba; the Obama Administrationhad abstained on the annual resolution in 2016. Cuban Political and Economic Developments In April2018, Vice President Miguel Dfaz-Canel succeeded Radl Castro as president, and in April2021, Dfaz-Canel s ucceeded Cas tro as head of the Cuban Communis t 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 (2006-2018), RadlCastro beganto 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 maintained 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; andU.S. economic sanctions. The Cuban government reports the economy contracted 11% in 2020; the Economist Intelligence Unit projects 2.2% growth in 2021. On Januaiy 1, 2021, Cuba eliminated its dual currency system, a major and long-debated reform. Economists maintain the currency reform will have high costs initially (especially inflation) but should boost productivity and development in the longer term. Cuba's public health responseto the pandemic initially kept cases and deaths low, but both beganto increase in late 2020 and have surged in 2021. As of June 24, 2021, the country reported 1,193 deaths and almost 173,000 cases, according to Johns Hopkins University. Cuba has made progress on two vaccines it has developed; as of June 24, Cuba had fully vaccinated 8.1% ofits population and aims to have 70% of the population vaccinated by August. Cuba has a poor record on human rights, with the government sharply restricting freedoms of expression and other basic rights. As of June 1, 2021, the human rights group Cuban Prisoners Defenders reported 150 political prisoners (including 76 imprisoned forreasons of conscience and 39under conditionalrelease). Since November 2020, the government's crackdown on the San Isidro Movement, a civil society group opposed to restrictions on artis tic expres sion, has focused international attention on the poor human rights situation. Key U.S. Sanctions Imposed Since 2017 Restrictions on Transactions with the Cuban Military. In 2017, the State Departmentpublished alist ofentities controlled by the Cuban military, intelligence, or security services, with which direct financial transactions would disproportionately benefit those services orpersonnel at the expense of the Cubanpeople orprivate enterprise. The State Department subsequently updatedits Cubarestricted list several times, most recently in January 2021; the list tps ://crs reps

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