US eases travel and trade restrictions with Cuba

By Caribbean News Now contributor

WASHINGTON, USA — The US Treasury Department on Friday eased restrictions on American companies seeking to do business in Cuba and further opened up travel to the island in the latest action by the Obama administration to erode the practical impact of the 53-year-old US trade embargo.

The new rules, which take effect on Monday, target travel, telecommunications, Internet-based services, business operations and banking, and allow US companies to establish a presence in Cuba. They also eliminate limits on the amount of money people can send back to the Caribbean nation, Reuters reported.

“A stronger, more open US-Cuba relationship has the potential to create economic opportunities for both Americans and Cubans alike,” US Treasury Secretary Jacob Lew said in a statement.

“By further easing these sanctions, the United States is helping to support the Cuban people in their effort to achieve the political and economic freedom necessary to build a democratic, prosperous, and stable Cuba,” he said.

Officials said while the changes are aimed at expanding business, they also seek to boost so-called “people-to-people” contact between Americans and Cubans.

Under the rules released by the US Treasury and Commerce Departments, companies can establish subsidiaries or joint ventures as well as open offices, stores and warehouses in Cuba. They also allow telecommunications and Internet services between the nations.

Although they do not change who can travel to Cuba, the rules do ease movement of authorized travelers by licensing transportation providers. The regulations also abolish the cap on remittances and allow the travelers to open and maintain bank accounts in Cuba.

Previously, people had only been able to send $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 traveller 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.