U.S. Eases Cuba Sanctions To Benefit Travel and Commerce

The U.S. Treasury and Commerce departments have announced changes in the decades-long embargo against Cuba that will ease travel and commerce between the two countries.

Cuba, the only country left under the U.S. Trading with the Enemy Act of 1917, was slapped with a trade embargo by the U.S. in 1961.

Last December, President Obama announced that the U.S. would re-establish diplomatic relations with Cuba, including establishing an embassy in Havana and easing travel and trade between the two countries.

Specifically, the U.S. revised its Cuban Assets Control Regulations and Export Administration Regulations. The new rules took effect on Jan. 16.

"After all, these 50 years have shown that isolation has not worked. It's time for a new approach," the President said in his speech.

Under the new rules, except for tourism purposes, Americans can now travel to Cuba without the need for specific license. These are for "family visits; official business of the U.S. government, foreign governments, and certain intergovernmental organizations; journalistic activity; professional research and professional meetings; educational activities; religious activities; public performances, clinics, workshops, athletic and other competitions, and exhibitions; support for the Cuban people; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation, or transmission of information or information materials; and certain authorized export transactions."

Travelers will enjoy no limits in authorized expenses and they can now use U.S. credit and debit cards in Cuba.

Airlines and travel agents can now provide services without the need for license from the Office of Foreign Assets Control.

U.S. insurance companies can now provide coverage on health, life and travel insurance policies to people in addition to Americans who travel to Cuba.

American travelers will also be allowed to import up to $400 worth of goods from Cuba for personal use including up to $100 worth of alcohol and tobacco products.

The rules also allow the commercial export to Cuba of consumer communications devices, software, applications, hardware and services including internet-based communications.

Personal computers, mobile phones, TVs, memory devices, recording devices and consumer software will be allowed to be sold and donated to Cuba.

Remittances to Cuban nationals will be increased from $500 to $2,000 per quarter. Authorized travelers can now carry up to $10,000 in family remittances and remittances to religious organizations and students in Cuba.

U.S.-owned and controlled entities including banks outside the U.S. can now provide goods and services to a Cuban national outside of Cuba except when it involves commercial exportation of goods and services to or from Cuba.

While the U.S. and Cuba have re-established relations, Obama said Cuba's human rights policy will not change immediately.

"But I'm under no illusion about the continued barriers to freedom that remain for ordinary Cubans. The United States believes that no Cubans should face harassment or arrest or beatings simply because they're exercising a universal right to have their voices heard, and we will continue to support civil society there," he said.

He added, "I do not expect the changes I am announcing today to bring about a transformation of Cuban society overnight."

Obama added that continuing the embargo against Cuba is no longer beneficial. "I do not believe we can keep doing the same thing for over five decades and expect a different result. Moreover, it does not serve America's interests, or the Cuban people, to try to push Cuba toward collapse," he said.