Facts about the Cuban embargo

Although President Obama and many commentators described the easing of US-Cuba rensions as the end of 54 years of isolation and economic sanctions against the island, the reality is that most of the economic sanctions remain in place, since they are enshrined in the Helms-Burton law passed bu Congress in 1996.

Only Congress, not the President, has the power to change or revoke the Helms-Burton provisions, which esentially prohibit and punish any company -not just US corporations- that conduct any business in or with Cuba.

American citizens wishing to travel to Cuba as tourists still may not do so freely, although "general licenses" will be expanded for travelers in 12 existing categories. The categories are: 1) family visits; 2) official US or foreign government business; 3) journalists; 4) professional research and meetings; 5) educational activities; 6) religious activities; 7) public performances, competitions and exhibitions; 8) support for the Cuban people; 9) humanitarian projects; 10) activities of private foundations, research or educational institutions; 11) exportation, importation or transmission of informacion and information materials; and, 12) export transactions that are authorized under existing regulations and guidelines.

That latter phrase "export transactions", refers to the sale of agricultural products on a cash basis only to the island, a concession granted by the Trade Sanctions Reform and Export Enhancement Act of October 2000. In 2013, the dollar value of US agricultural exports to Cuba was 348 million dollars, making Cuba the 46th largest (out of 224) US trade partner. That same law authorizes the export of some medical equipment and supplies to Cuba. The dollar value of those transations in 2013 was 2 million dollars.

As a result of the most recent Cuba-US agreement, however, some current restrictions were eased:

  • Licensed US travelers to Cuba will be authorized to import $400 worth of goods from Cuba, of which no more than $100 can consist of tobacco products and alcohol combined.
  • Cubans living in the US will be authorized to send as much as $2,000 every three months (as opposed to the current limit of $500) to their relatives in the island.
  • Donations for humanitarian projects or to support "the development of private business in Cuba" will no longer require a specific license; that includes exports of building materials for residential construction, agricultural equipment for farmers and "goods for use by private sector Cuban enterpreneurs".
  • American telecommunications companies will be authorized to provide equipment or create the infrastructure necessary to expand Cubans' access to the Internet, which only has a 5% penetration rate on the island.
  • US credit and debit cards will be permitted for use by travelers to Cuba.

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