Changes in Travel and Trade Regulations for Americans in Cuba

The U.S. government is significantly easing the existing restrictions on American trade and investment in Cuba by reducing sanctions against the island. According to a report by the Associated Press, under the new regulations that will take effect on Friday, January 16 (26 Dey), American travel to Cuba will be more accessible, and after more than half a century of prohibition, they will be allowed to bring a small amount of Cuban cigars back to the U.S. This decision by the U.S. Department of Commerce is another step in President Barack Obama's policy to resume diplomatic relations with the Cuban government. The announcement came three days after the release of 53 political prisoners in Cuba. The complete lifting of sanctions imposed on Cuba over five decades ago is within the authority of the U.S. Congress. However, these new measures will allow Americans to use credit cards in Cuba, and American companies will be permitted to export phones, computers, and internet technology to Cuba and invest in small economic institutions in the country. Tourist travel to Cuba remains prohibited, but Americans who are allowed to travel to the country will no longer need special permits. Last month, Barack Obama promised to resume diplomatic relations between the two countries by easing sanctions. Obama stated, "These 50 years have shown that the policy of isolation has had no effect." This agreement is the result of 18 months of confidential bilateral negotiations that led to the release of spies imprisoned in both countries and Alan Gross, a U.S. government contractor who had been imprisoned in Cuba for five years. This sudden shift in the approach of the two Cold War adversaries has sparked opposition from some members of the U.S. legislative bodies, regardless of their party affiliation. Among the Democrats and Republicans in Congress, Republican Senator Marco Rubio and Democratic Senator Bob Menendez, both of Cuban descent, have opposed this change in the U.S. government's approach more than others. However, many who support strengthening trade relations with Cuba have welcomed these changes. The President of the U.S. Chamber of Commerce stated on Wednesday, January 14 (24 Dey), that it is better for the U.S. to sell computers, smartphones, and cars to Cuba than to let this trade go to countries like China or Russia. However, it does not seem that all sanctions against Cuba will be lifted in the near future. Starting Friday, January 26 (26 Dey), American companies will be able to export mobile phones, televisions, electronic storage devices, recording equipment, computers, and software to a country that lacks suitable information technology and internet infrastructure. Americans are allowed to travel to Cuba for family visits, government business trips, reporting, research, education, religious activities, and other reasons. These trips will no longer require special permission. The ceiling for money transfers for family members will increase from $8,000 per year to $20,000 per year. Travelers returning from Cuba are allowed to bring $100 worth of alcoholic beverages and tobacco and a total of $400 worth of goods to the U.S. Other changes in the travel and trade regulations for Americans in Cuba include: removing restrictions on the amount of money spent in a day and how it can be spent; allowing the use of credit and debit cards; travel agencies and airlines can establish air travel to Cuba without needing special permits; insurance companies will be allowed to provide health and life insurance coverage to travelers or residents of Cuba; financial institutions can open accounts in Cuban banks to facilitate approved transactions; investment in small agricultural and commercial activities in Cuba will be permitted; and American companies will be allowed to export building materials to Cuba for the renovation and restoration of private buildings. In the next step towards normalizing bilateral relations, officials from both countries are set to discuss immigration issues next week in Havana, the capital of Cuba. Roberta Jacobson, a senior official at the U.S. State Department for Latin American affairs and head of the American delegation in these talks, is the highest-ranking U.S. official to visit Cuba since 1980. Washington intends to create the conditions for the opening of the U.S. embassy in Havana and future meetings between officials from both countries as part of the normalization process. Secretary of State John Kerry may visit Cuba this year.