CUBA-USA/TRADE-ANALYST Obama chips away at Cuba embargo, easing business and travel

Record ID: 135524

  • Title: CUBA-USA/TRADE-ANALYST Obama chips away at Cuba embargo, easing business and travel
  • Date: 18th September 2015
  • Summary: WASHINGTON, DC, USA (SEPTEMBER 18, 2015) (REUTERS) (SOUNDBITE) (English) BROOKINGS INSTITUTE'S SENIOR FELLOW IN THE PROJECT ON INTERNATIONAL ORDER AND STRATEGY AND LATIN AMERICA INITIATIVE IN THE FOREIGN POLICY PROGRAM TED PICCONE SAYING: "This is a good opportunity for the Pope to use his platform to talk about reconciliation that is needed between the U.S and Cuba and am
  • Embargoed: 3rd October 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVA5KKZMWNBBA6ZLQUQN4ASM1WWI
  • Aspect Ratio: 16:9
  • Story Text: The Obama administration announced wide-ranging new rules on Friday (September 18) to ease trade, travel and investment restrictions with Cuba, the latest effort to chip away at the long-standing U.S. economic embargo amid a diplomatic thaw between the two former Cold War foes.
    The regulatory changes will allow certain U.S. companies to establish offices on Cuba for the first time in decades, expand banking activities and eliminate limits on the amount of money that can be taken to the Communist-ruled island, U.S. officials said.
    Washington touted the moves as a way to boost business and to support more economic and political freedom in Cuba. The changes, while significant, stop short of allowing across-the-board investment or general U.S. tourism, activities banned under the embargo.
    "More exposure to the kinds of values that we prioritize in this country and we believe this will be in the best interest of our goal of empowering the Cuban people," White House spokesman Josh Earnest said, citing the easing of telecommunications and internet based trade rules.
    Brookings Institute senior fellow Ted Piccone said that "it removes obstacles on the U.S side to get involved."
    The action comes as Washington and Havana move toward normal relations after more than half a century of hostility. The two countries restored diplomatic ties and reopened embassies earlier this summer. It also comes at a time when the Pope prepares to visit Cuba and then the United States.
    The announcement came just as Pope Francis, who played an instrumental role in the diplomatic opening late last year, prepares to visit Cuba this weekend before heading to the United State next week. The Vatican has long condemned the embargo against Cuba.
    "This is a good opportunity for the Pope to use his platform to talk about reconciliation that is needed between the U.S and Cuba and amongst Cubans, both Cubans on and off the island," Piccone said.
    Set to take effect on Monday (September 21), the new regulations, which Obama is implementing with his executive powers, will build on others he announced in January to begin lowering economic barriers with Cuba.
    But only Congress has the power to fully lift the 53-year-old economic embargo against Cuba, the main stumbling block to full normalization of ties with Havana. And Republicans who control Congress are considered unlikely to do so despite Obama's appeals. The president also faces resistance some fellow Democrats, although most support rapprochement.
    "The House and Senate leadership have made it very clear, they are n to going to take any action Cuba this year, if they do and it's negative the White House is going to veto it. So we are in a stalemate in congress, the other key next step, is what is the Castro government going to do," Piccone said.
    Critics of Obama's detente with the island slammed the move as another reward to Cuba given with no concessions from Havana, especially on the human rights front.
    Officials noted that the full impact of the latest easing of Cuba restrictions will depend on whether the Cuban government makes economic reforms of its own, including on imports.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register