Obama administration loosens Cuba embargo with new measures

The United States continues to prohibit American tourists to travel to Cuba amid the announcement of sanctions relief for authorized travel between the two countries, a U.S. administration official told reporters on Tuesday.

“These amendments will remove restrictions on payment and financing terms for authorized exports and re-exports to Cuba of items other than agricultural items or commodities”, according to a statement from the Treasury and Commerce Departments.

The rule also establishes the eligibility of Cuban air carriers to enter arrangements allowing the use of USA airports, and loosens some travel restrictions. But U.S. hopes of building wider trade between American businesses and Cuba’s private sector have been largely frustrated by Congressional reluctance to end the embargo itself and by the island’s labyrinthine restrictions on imports, exports and private business.

Secretary of State John F. Kerry previous year removed Cuba from the USA list of state sponsors of terrorism, a move demanded by Cuban President Raul Castro.

The Cuban government maintains that there will be no normalization of relations between the two countries until Washington lifts the embargo on the island.

Treasury Secretary Jack Lew said the changes build on the administration’s policies since President Barack Obama normalized relations with the Castro regime in December 2014. “We will continue to push them on this issue”, the official said.

“These regulations are more proof that the Obama Administration’s intent has never been to empower the Cuban people but rather to empower the Cuban government’s monopolies and state-run enterprises”, said Republican presidential candidate Marco Rubio, a Cuban-American U.S. senator from Florida.

Licenses for such exports that are deemed to be meeting the needs of the Cuban people will be granted on a case-by-case basis, the department said.

Caterpillar Inc., for example, will be able to provide financing for approved shipments of agricultural machinery after the rules take effect on Wednesday, lawyers say.

The rules also create an opening for US citizens to organize a variety of events on the island, from research conferences to sports competitions.