U.S. easing restrictions on travel and trade with Cuba

U.S. easing restrictions on travel and trade with Cuba

The Obama administration's attempt to reestablish diplomatic relations with Cuba will make travel to the country easier, as well as opening some trade possibilities.

On Friday the U.S. government will ease restrictions on travel and trade to Cuba, making it easier for Americans to go to the neighboring country than it has been for more than 50 years. Treasury Secretary Jacob J. Lew says that the changes will have a “direct impact” in promoting positive change for the citizens of Cuba. The move comes as part of the Obama administration’s decision to reestablish diplomatic relations.

Tourism will still not be allowed, but U.S. travelers can make arrangements for their trip through any agency or airline providing service to Cuba, without obtaining a special license, as long as their trip falls into one of 12 categories of authorized travel. Previously, the travel providers had to obtain a license from the Treasury Office of Foreign Assets Control (OFAC). Authorized travel includes such categories as family visits, official U.S. government business, journalism activity and professional research and meetings. Travelers will still need to obtain visas from the government of Cuba, but prior approval from OFAC will not be necessary.

There will be no limits on how much travelers can spend on the island, and they will be able to use U.S. credit and debit cards in the future. Spending money in Cuba was previously restricted. Visitors will be allowed to bring back $400 worth of souvenirs, including a maximum of $100 worth of tobacco or alcohol products.

Under the new regulations, U.S. companies will be allowed to sell auto parts, building materials and hair salon supplies to private Cuban businesses as exceptions to the U.S. trade embargo, which still remains in effect. American exporters will be responsible for ensuring that their products go to private businesses and not the Cuban government. A senior U.S. official says that most exports and imports between the U.S. and Cuba will remain prohibited.

The Obama administration moved to ease Cuban travel restrictions after receiving confirmation that 53 political prisoners had been released under an agreement made between President Obama and Cuban President Raul Castro last month. Mr. Obama released three Cuban spies who had been held prisoner for years.

Critics of the changes, led by Republican Sen. Marco Rubio, a Cuban-American from Florida, argue that the U.S. is playing into the hands of the Castro brothers by relaxing restrictions without getting any commitment for meaningful change on their part. Cuba is still one of the world’s most repressive countries according to the U.S. state department and human rights groups.

However, Obama argues that the approach taken over the last 50 years has not worked and it is time to try something different. Assistant Secretary of State Roberta S. Jacobson will be traveling to Havana next week to discuss the changing relationship as the president moves toward re-establishing a Cuban embassy with an ambassador.

Rubio and Indiana Republican Sen. Dan Coats have asked Lew to detail how the president plans to lawfully implement the provisions of the renewal of diplomatic relations with Cuba, expressing concern in a letter sent Wednesday that there are “stark differences” between the administration’s announcement and the law. A senior U.S. official said that officials from Treasury, the State Department and the Commerce Department have carefully vetted the new rules to make sure they are in accordance with relevant U.S. laws.

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