Cuba: President Obama’s New Policy Approach Page: 1 of 2

                                
Congressional Research Service
Informing the legislative debate since 1914

May 18, 2015

Cuba: President Obama's New Policy Approach

On December 17, 2014, President Obama announced major
developments in U.S.-Cuban relations. First, he announced
that the Cuban government had released USAID
subcontractor Alan Gross on humanitarian grounds after
five years imprisonment. Gross's imprisonment since 2009
was an impediment to an improvement in relations. The
President also announced that, in a separate action, the
Cuban government released "one of the most important
intelligence assets that the United States has ever had in
Cuba" in exchange for three Cuban intelligence agents who
had been imprisoned in the United States since 1998.
Most significantly, in the aftermath of having secured the
release of Gross and the U.S. intelligence asset, President
Obama announced a major shift in U.S. policy toward
Cuba, moving away from a sanctions-based policy aimed at
isolating Cuba toward a policy of engagement and a
normalization of relations.
In the most significant changes in our policy in more than
fifty years, we will end an outdated approach that, for
decades, has failed to advance our interests, and instead we
will begin to normalize relations between our two countries.
Through these changes, we intend to create more
opportunities for the American and Cuban people, and
begin a new chapter among the nations of the Americas.
President Barack Obama, December 17, 2014
The President outlined three major steps to move toward
normalization:
Reestablishment of diplomatic relations. As U.S.-Cuban
relations deteriorated in the early 1960s, relations were
severed by the Eisenhower Administration in January 1961
in response to the Cuban government's demand to decrease
the number of U.S. Embassy staff within 48 hours. In 1977,
under the Carter Administration, both countries established
Interests Sections in each other's capitals. Since January
2015, Assistant Secretary of State for Western Hemisphere
Affairs Roberta Jacobson has participated in three rounds of
talks with Cuba on reestablishing relations; another round
will be held on May 21, 2015, in Washington. The talks
have included the logistics of reopening embassies and
embassy operations, such as giving diplomats privileges to
carry out the full range of their roles as diplomats.
Review of Cuba's designation by the Department of
State as a state sponsor of international terrorism. Cuba
has been on the so-called terrorism list since 1982 because
of its alleged ties to international terrorism and support for
terrorist groups in Latin America. President Obama directed
Secretary of State Kerry to review Cuba's designation
"guided by the facts and the law." The State Department

completed its review on April 8, 2015, and on April 14, the
President transmitted a report to Congress rescinding
Cuba's designation as a state sponsor of terrorism pursuant
to provisions in three statutes-Section 6(j) of the Export
Administration Act of 1979; Section 620A of the Foreign
Assistance Act (FAA) of 1961; and Section 40 of the Arms
Export Control Act (AECA). According to those laws, the
rescission is to take effect 45 days after the report is
submitted. Of the three statutes, only the AECA has an
explicit provision allowing Congress to block, via the
enactment of a joint resolution, a removal of a country on
the list within the 45-day period. The Administration's
report to Congress maintained that Cuba provided
assurances that it will not support acts of international
terrorism.
Increase travel, commerce, and the flow of information
to and from Cuba. The White House announced a number
of policy changes to implement this third step. The changes
build upon previous steps that President Obama took in
2009, when he lifted all restrictions on family travel and
remittances to family members in Cuba, and in 2011, when
he took action to increase purposeful travel to Cuba.
Just as in 2009 and 2011, the President's new initiative
required changes to U.S. embargo regulations administered
by the Department of the Treasury, Office of Foreign
Assets Control (Cuban Assets Control Regulations; 31
C.F.R. Part 515) and the Department of Commerce, Bureau
of Industry and Security (Export Administration
Regulations; 15 C.F.R. Parts 730-774). Such changes fall
within the scope of the President's discretionary licensing
authority to make changes to the embargo regulations. On
January 15, 2015, the two agencies issued the new
regulations. These included:
" Travel. The regulations authorize a general license for
the existing 12 categories of authorized travel, meaning
that travelers who fall under these categories do not
have to apply to the Treasury Department for permission
as in the past when a specific license was required for a
number of these categories. Both travel agents and
airlines will also be able to provide services for travel to
Cuba without the need to obtain a specific license.
Authorized travelers can also bring back up to $400
worth of goods from Cuba, with no more than $100 for
tobacco products and alcohol combined, and will be
permitted to use U.S. credit and debit cards. The
changes do not allow travel to Cuba for tourism, which
remains prohibited by law.
" Remittances. The regulations increase the amount of
permissible remittances by U.S. persons to Cuban
nationals from $500 to $2,000 per quarter. Up to
$10,000 in remittances can be carried to Cuba by
authorized travelers compared to $3,000 before. Certain

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