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Congressional Research Service
Informing the legislative debate since 1914
Updated October 26, 2018
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 December 2014,
however, the Obama Administration initiated a major
policy shift, moving away from sanctions toward a policy
of engagement and the normalization of relations. The
policy change included the rescission of Cuba's designation
as a state sponsor of international terrorism in May 2015;
the restoration of diplomatic relations in July 2015; and
steps to increase travel, commerce, and the flow of
information to Cuba.
In June 2017, President Trump unveiled his policy on Cuba.
The policy leaves most of the Obama-era policy changes in
place but rolls back some efforts to normalize relations,
including restrictions on people-to-people educational
travel to Cuba and on financial transactions with companies
controlled by the Cuban military.
As anticipated, Radil Castro stepped down as president on
April 19, 2018, and Cuba's National Assembly of People's
Power selected First Vice President Miguel Dfaz-Canel to
succeed Castro as president. Castro, however, is expected to
head the Cuban Communist Party until 2021. The selection
of Dfaz-Canel, 58 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. Most
observers do not expect major policy changes under Diaz-
Canel, but he faces two enormous challenges-reforming
the economy and responding to desires for greater freedom.
Government-to-Government Engagement. With the
restoration of relations in 2015, government-to-government
engagement increased significantly. U.S. and Cuban
officials have held seven Bilateral Commission meetings,
the most recent in June 2018, to coordinate efforts to
advance engagement.
Officials have negotiated numerous bilateral agreements,
including on such issues as environmental cooperation,
direct mail, civil aviation, maritime navigation, agriculture,
health cooperation, counternarcotics cooperation, federal air
marshals, cancer research, seismology, meteorology,
wildlife conservation, animal and plant health, oil-spill
preparedness and response, law enforcement cooperation,
search and rescue, and the delimitation of the U.S.-Cuban
maritime boundary in the eastern Gulf of Mexico. Bilateral
dialogues have been held on these and other issues,
including counterterrorism, U.S. property claims, human
rights, renewable energy and efficiency, trafficking in
persons, migration, and cybersecurity.
President Trump issued a national security presidential
memorandum (NSPM) on Cuba in June 2017 replacing
President Obama's October 2016 presidential policy
directive that had laid out objectives for normalization. The
new policy emphasizes that engagement should advance the
interests of the United States and the Cuban people.
Travel and Commerce. The Obama Administration's
policy change of increasing travel, commerce, and the flow
of information to and from Cuba required amendments to
U.S. regulations administered by the Department of the
Treasury, Office of Foreign Assets Control (Cuban Assets
Control Regulations [CACR]; 31 C.F.R. Part 515) and the
Department of Commerce, Bureau of Industry and Security
(Export Administration Regulations [EAR]; 15 C.F.R. Parts
730-774). To implement the policy, the two agencies issued
five rounds of amendments to the regulations in 2015-2016.
The amendments eased restrictions on travel (for the
existing 12 categories of permissible travel, with travel for
tourism remaining prohibited), remittances, trade,
telecommunications, and banking and financial services.
Authorized travelers can bring back Cuban products as
accompanied baggage for personal use, including alcohol
and tobacco products. Certain U.S. companies or other
entities are authorized to have a physical presence in Cuba,
such as an office, retail outlet, or warehouse.
The export of certain commercial goods and services to
Cuba's private sector is authorized, including building
materials for private residential construction, goods for use
by private-sector Cuban entrepreneurs, and agricultural
equipment. The export of certain consumer goods sold
online or through other means directly to eligible
individuals in Cuba for personal use is authorized. Certain
goods produced by independent Cuban entrepreneurs are
eligible to be imported into the United States.
Certain exports to Cuba are subject to a general policy of
approval by the Commerce Department, including exports
for environmental protection; civil aviation and commercial
aircraft safety; telecommunications; U.S. news bureaus;
human rights organizations and nongovernmental
organizations; and agricultural commodities (such as
insecticides, pesticides, and herbicides) that fall outside the
scope of those allowed under a license exception. Licenses
for certain exports are considered on a case-by-case basis,
including exports to state-owned entities providing goods
and services for the use and benefit of the Cuban people.
The commercial export of certain consumer communication
devices is authorized, as well as the export of items for
telecommunications. A general license authorizes
transactions to provide commercial telecommunications
services in Cuba or to link third countries and Cuba. U.S.
companies may establish joint ventures with entities in
Cuba to provide telecommunication and Internet-based
services and to enter into licensing agreements.
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