Friday 18 September 2015

Obama Seeking to Bypass Tough Cuban Sanctions Law

The Obama administration announced wide-ranging new rules on Friday 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.
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.
Set to take effect on Monday, the new regulations, which President Barack Obama is implementing with his executive powers, 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.
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.
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.
U.S officials said the changes aim to expand business and also boost "people-to-people" contact between the two countries.

Previously, people had been able to send only $2,000 per quarter to Cuban nationals or carry $10,000 there, according to the Treasury Department. Cuban nationals were limited to carrying $3,000.
In addition to building on commercial enterprises, the changes "have the potential to stimulate long overdue economic reform across the country," Commerce Secretary Penny Pritzker said.
The rules address traveler safety by allowing the export of civil aviation equipment to Cuba to ensure aircraft safety, officials said.
The regulations increase educational opportunities by allowing Internet-based courses and further expand humanitarian efforts by allowing disaster relief.


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