Merged: US Cuba policy change

[CaptainQuintero]

http://iipdigital.usembassy.gov/st/english/texttrans/2014/12/20141217312123.html#axzz3MB3gfKty

17 December 2014

THE WHITE HOUSE
Office of the Press Secretary
Washington, D.C.

December 17, 2014

Fact Sheet: Charting a New Course on Cuba

Today, the United States is taking historic steps to chart a new course in our relations with Cuba and to further engage and empower the Cuban people. We are separated by 90 miles of water, but brought together through the relationships between the two million Cubans and Americans of Cuban descent that live in the United States, and the 11 million Cubans who share similar hopes for a more positive future for Cuba.

It is clear that decades of U.S. isolation of Cuba have failed to accomplish our enduring objective of promoting the emergence of a democratic, prosperous, and stable Cuba. At times, longstanding U.S. policy towards Cuba has isolated the United States from regional and international partners, constrained our ability to influence outcomes throughout the Western Hemisphere, and impaired the use of the full range of tools available to the United States to promote positive change in Cuba. Though this policy has been rooted in the best of intentions, it has had little effect – today, as in 1961, Cuba is governed by the Castros and the Communist party.

We cannot keep doing the same thing and expect a different result. It does not serve America’s interests, or the Cuban people, to try to push Cuba toward collapse. We know from hard-learned experience that it is better to encourage and support reform than to impose policies that will render a country a failed state. With our actions today, we are calling on Cuba to unleash the potential of 11 million Cubans by ending unnecessary restrictions on their political, social, and economic activities. In that spirit, we should not allow U.S. sanctions to add to the burden of Cuban citizens we seek to help.

Today, we are renewing our leadership in the Americas. We are choosing to cut loose the anchor of the past, because it is entirely necessary to reach a better future – for our national interests, for the American people, and for the Cuban people.

Key Components of the Updated Policy Approach:

Since taking office in 2009, President Obama has taken steps aimed at supporting the ability of the Cuban people to gain greater control over their own lives and determine their country’s future. Today, the President announced additional measures to end our outdated approach, and to promote more effectively change in Cuba that is consistent with U.S. support for the Cuban people and in line with U.S. national security interests.

Major elements of the President’s new approach include:

Establishing diplomatic relations with Cuba-

• The President has instructed the Secretary of State to immediately initiate discussions with Cuba on the re-establishment of diplomatic relations with Cuba, which were severed in January 1961.

• In the coming months, we will re-establish an embassy in Havana and carry out high-level exchanges and visits between our two governments as part of the normalization process. As an initial step, the Assistant Secretary of State for Western Hemisphere Affairs will lead the U.S. Delegation to the next round of U.S.-Cuba Migration Talks in January 2015, in Havana.

• U.S. engagement will be critical when appropriate and will include continued strong support for improved human rights conditions and democratic reforms in Cuba and other measures aimed at fostering improved conditions for the Cuban people.

• The United States will work with Cuba on matters of mutual concern and that advance U.S. national interests, such as migration, counternarcotics, environmental protection, and trafficking in persons, among other issues.

Adjusting regulations to more effectively empower the Cuban people-

• The changes announced today will soon be implemented via amendments to regulations of the Departments of the Treasury and Commerce. Our new policy changes will further enhance our goal of empowering the Cuban population.

• Our travel and remittance policies are helping Cubans by providing alternative sources of information and opportunities for self-employment and private property ownership, and by strengthening independent civil society.

• These measures will further increase people-to-people contact; further support civil society in Cuba; and further enhance the free flow of information to, from, and among the Cuban people. Persons must comply with all provisions of the revised regulations; violations of the terms and conditions are enforceable under U.S. law.

Facilitating an expansion of travel under general licenses for the 12 existing categories of travel to Cuba authorized by law-

• General licenses will be made available for all authorized travelers in the following existing categories: (1) family visits; (2) official business of the U.S. government, foreign governments, and certain intergovernmental organizations; (3) journalistic activity; (4) professional research and professional meetings; (5) educational activities; (6) religious activities; (7) public performances, clinics, workshops, athletic and other competitions, and exhibitions; (8) support for the Cuban people; (9) humanitarian projects; (10) activities of private foundations or research or educational institutes; (11) exportation, importation, or transmission of information or information materials; and (12) certain export transactions that may be considered for authorization under existing regulations and guidelines.

• Travelers in the 12 categories of travel to Cuba authorized by law will be able to make arrangements through any service provider that complies with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) regulations governing travel services to Cuba, and general licenses will authorize provision of such services.

• The policy changes make it easier for Americans to provide business training for private Cuban businesses and small farmers and provide other support for the growth of Cuba’s nascent private sector. Additional options for promoting the growth of entrepreneurship and the private sector in Cuba will be explored.

Facilitating remittances to Cuba by U.S. persons-

• Remittance levels will be raised from $500 to $2,000 per quarter for general donative remittances to Cuban nationals (except to certain officials of the government or the Communist party); and donative remittances for humanitarian projects, support for the Cuban people, and support for the development of private businesses in Cuba will no longer require a specific license.

• Remittance forwarders will no longer require a specific license.

Authorizing expanded commercial sales/exports from the United States of certain goods and services-

• The expansion will seek to empower the nascent Cuban private sector. Items that will be authorized for export include certain building materials for private residential construction, goods for use by private sector Cuban entrepreneurs, and agricultural equipment for small farmers. This change will make it easier for Cuban citizens to have access to certain lower-priced goods to improve their living standards and gain greater economic independence from the state.

Authorizing American citizens to import additional goods from Cuba-

• Licensed U.S. 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.

Facilitating authorized transactions between the United States and Cuba-

• U.S. institutions will be permitted to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions.

• The regulatory definition of the statutory term “cash in advance” will be revised to specify that it means “cash before transfer of title”; this will provide more efficient financing of authorized trade with Cuba.

• U.S. credit and debit cards will be permitted for use by travelers to Cuba.

• These measures will improve the speed, efficiency, and oversight of authorized payments between the United States and Cuba.

Initiating new efforts to increase Cubans’ access to communications and their ability to communicate freely-

• Cuba has an internet penetration of about five percent—one of the lowest rates in the world. The cost of telecommunications in Cuba is exorbitantly high, while the services offered are extremely limited.

• The commercial export of certain items that will contribute to the ability of the Cuban people to communicate with people in the United States and the rest of the world will be authorized. This will include the commercial sale of certain consumer communications devices, related software, applications, hardware, and services, and items for the establishment and update of communications-related systems.

• Telecommunications providers will be allowed to establish the necessary mechanisms, including infrastructure, in Cuba to provide commercial telecommunications and internet services, which will improve telecommunications between the United States and Cuba.

Updating the application of Cuba sanctions in third countries-

• U.S.-owned or -controlled entities in third countries will be generally licensed to provide services to, and engage in financial transactions with, Cuban individuals in third countries. In addition, general licenses will unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba; permit U.S. persons to participate in third-country professional meetings and conferences related to Cuba; and, allow foreign vessels to enter the United States after engaging in certain humanitarian trade with Cuba, among other measures.

Pursuing discussions with the Cuban and Mexican governments to discuss our unresolved maritime boundary in the Gulf of Mexico-

• Previous agreements between the United States and Cuba delimit the maritime space between the two countries within 200 nautical miles from shore. The United States, Cuba, and Mexico have extended continental shelf in an area within the Gulf of Mexico where the three countries have not yet delimited any boundaries.

• The United States is prepared to invite the governments of Cuba and Mexico to discuss shared maritime boundaries in the Gulf of Mexico.

Initiating a review of Cuba’s designation as a State Sponsor of Terrorism-

• The President has instructed the Secretary of State to immediately launch such a review, and provide a report to the President within six months regarding Cuba’s support for international terrorism. Cuba was placed on the list in 1982.

Addressing Cuba’s participation in the 2015 Summit of the Americas in Panama-

• President Obama will participate in the Summit of the Americas in Panama. Human rights and democracy will be key Summit themes. Cuban civil society must be allowed to participate along with civil society from other countries participating in the Summit, consistent with the region’s commitments under the Inter-American Democratic Charter. The United States welcomes a constructive dialogue among Summit governments on the Summit’s principles.

Unwavering Commitment to Democracy, Human Rights, and Civil Society

A critical focus of our increased engagement will include continued strong support by the United States for improved human rights conditions and democratic reforms in Cuba. The promotion of democracy supports universal human rights by empowering civil society and a person’s right to speak freely, peacefully assemble, and associate, and by supporting the ability of people to freely determine their future. Our efforts are aimed at promoting the independence of the Cuban people so they do not need to rely on the Cuban state.

The U.S. Congress funds democracy programming in Cuba to provide humanitarian assistance, promote human rights and fundamental freedoms, and support the free flow of information in places where it is restricted and censored. The Administration will continue to implement U.S. programs aimed at promoting positive change in Cuba, and we will encourage reforms in our high level engagement with Cuban officials.

The United States encourages all nations and organizations engaged in diplomatic dialogue with the Cuban government to take every opportunity both publicly and privately to support increased respect for human rights and fundamental freedoms in Cuba.

Ultimately, it will be the Cuban people who drive economic and political reforms. That is why President Obama took steps to increase the flow of resources and information to ordinary Cuban citizens in 2009, 2011, and today. The Cuban people deserve the support of the United States and of an entire region that has committed to promote and defend democracy through the Inter-American Democratic Charter.

Read more: http://iipdigital.usembassy.gov/st/english/texttrans/2014/12/20141217312123.html#ixzz3MBeWxpvq

[PapaDisco]

I'd be surprised if open U.S. markets would have that big of an effect. Smoking is already so severely restricted that there's not much room to dramatically expand cigar consumption. Sure the CC's will eventually displace some NC's and such, but with channels so constricted I think the new offerings will not see as big a market as we think.

[geneticdrifter]

We'll see. Congress will need to lift the embargo. Congress will be controlled by the Republicans next year. Obama is trying to set up the Republicans as they are not going to want to vote to end the embargo or risk loosing votes in Florida in 2016.

A direct swing at Jeb Bush's exploratory committee as well as Marco Rubio's flip flopping on immigration. This is political gold.

[PapaDisco]

Unfortunately, 'Constructive Engagement' has failed in its biggest test case: China. I wonder if it will be any more successful in Cuba? Or if, like China, the added prosperity will merely serve to prop up the Party?

[topdiesel]

I don't see the demand getting too outta hand. americans that like Cuban cigars buy/bought them regardless of the embargo. since I've started reading cigar boards, americans have been buyingcuban cigars easily since 2002 when I started paying attention(got my first pc ) CA forum was the only show around back then

Most serious cigar smokers do know how to get a hold of them, but there are a lot of people who go to a liquor store with a walk in and buy singles for the night of drinking. It will likely play out some day and it will be interesting to see what the impact is.

[M777]

Freedom is what the good people of Cuba need. The US simply lifting the embargo won't change much for the people who live there if the cuban government doesn't change it's mentality. I hope one day they can live in a true democracy and finally be free.

As far as cigars, I'm have more than enough cc inventory to get me through a new cigar boom. I would still pick up a few boxes of my favorites for extra measure. I can just imagine LcH stores in the US without any inventory, just long and very expensive waiting lists.

[Shelby07]

Hi all. It's been a while since I've been here, but given today's events I had to come over and see what was going on (and maybe add my 2 cents.)

Without getting too deep politically (difficult given the topic and the community here) here's my initial thoughts.

- Congress will have to pass funding to build an embassy in Cuba. I don't think this will happen.

- Congress will have to approve an ambassador to Cuba. I don't think this will happen.

- Congress will have to approve the lift of the embargo. I don't think this will happen.

- As for this being a political move to gain votes for democrats, that's not clear to me. This won't do anything to swing any republican state towards the democrats, but it will affect the Cuban American voting block in Florida. Two years is an eternity in US politics, but not in the Cuban American community. As tight as Florida has been in recent races, this might be enough to swing the state in the republican's favor.

Disclaimer: It is about 1:10 PM on Wednesday here. I give no guarantees that I will hold the same opinions before I have dinner tonight.

Hope everyone has been well!

Mark

[jjdolphin]

Rarely is anything in the US done for the good of the people. If something good comes from policy it is pure chance and coincidence. Everything is a chess game for future political gain. It is unfortunate to have such a cynical approach but experience is the best teacher.

[CaptainQuintero]

Rarely is anything in the US done for the good of the people. If something good comes from policy it is pure chance and coincidence. Everything is a chess game for future political gain. It is unfortunate to have such a cynical approach but experience is the best teacher.

It is probably some ham fisted attempt at poking Putin's eye. It seems very rushed.

[rtcomputersinc]

Wont have to hide my purchases like a criminal. woo hoo!

[LordAnubis]

There's talk that Castro might even announce that Mus will be admitted to the country the next time he turns up in Havana

Ahahahahahahahhahahha.Nah they can get f@#$ed! i don't need them !!

[luv2fly]

Hi all. It's been a while since I've been here, but given today's events I had to come over and see what was going on (and maybe add my 2 cents.)

Without getting too deep politically (difficult given the topic and the community here) here's my initial thoughts.

- Congress will have to pass funding to build an embassy in Cuba. I don't think this will happen.

- Congress will have to approve an ambassador to Cuba. I don't think this will happen.

- Congress will have to approve the lift of the embargo. I don't think this will happen.

- As for this being a political move to gain votes for democrats, that's not clear to me. This won't do anything to swing any republican state towards the democrats, but it will affect the Cuban American voting block in Florida. Two years is an eternity in US politics, but not in the Cuban American community. As tight as Florida has been in recent races, this might be enough to swing the state in the republican's favor.

Disclaimer: It is about 1:10 PM on Wednesday here. I give no guarantees that I will hold the same opinions before I have dinner tonight.

Hope everyone has been well!

Mark

Good points. Also, the next President can and probably will reverse some or all of these new actions.

[knickerbocker]

In a corrupt country do you think that this extra money is really going to go to the people? We have slave labor in China for shoes that sell for $150/pair. That money doesn't go to the workers in China...

Do you also support an embargo against China?

[Shelby07]

Good points. Also, the next President can and probably will reverse some or all of these new actions.

Just to be clear, I am no fan of Obama but I am glad that he is trying to get the ball rolling. I hope this will start some discussion on a topic that has not been in the forefront of awareness in the US for many years. I think once it starts to be discussed, American public opinion will come out against the embargo.

[dangolf18]

http://news.yahoo.com/cuban-cigars-twitter-obama-us-relations-185117486.html

[OleOle]

This is great news:

Obama Announces U.S. and Cuba Will Resume Relations

http://www.nytimes.com/2014/12/18/world/americas/us-cuba-relations.html?_r=0

[Ramrod918]

Quoted from the NY times above:

"The United States will also ease travel restrictions across all 12 categories currently envisioned under limited circumstances in American law, including family visits, official visits, journalistic, professional, educational and religious activities, and public performances, officials said. Ordinary tourism, however, will remain prohibited."

[Jeremy Festa]

This is what did it all

[jdackerman]

I'd be surprised if open U.S. markets would have that big of an effect. Smoking is already so severely restricted that there's not much room to dramatically expand cigar consumption. Sure the CC's will eventually displace some NC's and such, but with channels so constricted I think the new offerings will not see as big a market as we think.

I kind of agree with this. All of us on this board are very concerned with CCs so I think we are assuming that the rest of the population is as concerned with them as well. I think there is a small % of the public in the US that can't wait to buy CCs but most people don't even smoke cigars. I see there being some parallels in CCs being available in the US and Colorado's legalization of another product. Some people will be very excited and go out of there way to purchase it, others don't really care.

Most serious cigar smokers do know how to get a hold of them, but there are a lot of people who go to a liquor store with a walk in and buy singles for the night of drinking. It will likely play out some day and it will be interesting to see what the impact is.

With this I would argue that marketing is king within that demographic. We've already seen the money that NCs throw at marketing/packaging in the US and I just don't think that Habanos will do the same. I'm not saying they can't, but you see what happens when they produce something for this demo *ahem monte opens* I think if anything we should be relieved that someone out there will pick up the stock of that stuff.

[OleOle]

Quoted from the NY times above:

"The United States will also ease travel restrictions across all 12 categories currently envisioned under limited circumstances in American law, including family visits, official visits, journalistic, professional, educational and religious activities, and public performances, officials said. Ordinary tourism, however, will remain prohibited."

It's the beginning of a social and diplomatic journey of transformation, it is unrealistic to expect all the changes all at once.

On a... uhh... rather frivolous note, I can understand many people now feeling disturbed and somewhat annoyed to be in possession of some 'embargo cigars' who now, with the thawing of international relations, may prefer to acquire new 'post-embargo' supplies and if this is the case, I can provide my address details should you wish to alleviate your feelings of taint and unease by forwarding your now unwanted 'embargo cigars' to me. It's the least I can do to help you out during this difficult situation.

[Fuzz]

Don't worry about production. Once the embargo is lifted, HSA will eventually come to the realisation that they don't have enough tobacco to supply everybody, so they will dump all the jawbreakers and start making more skinnies!

[DrunkenMonkey]

I'm not sure most members outside of the USA really understand what's going on. While on the surface this looks like a step in the right direction, its not as clean cut as that. In order to fully understand you must look back at the recent elections here in the US.

Republicans swept both the house and senate. Regardless of how the next presidential election unfolds, republicans will control congress. There is no way congress will lift the embargo. IMO, Obama knows this and is setting the republicans up for failure. While I may be walking a thin line on the rules of this forum (no discussing of US politics), in fact I am independent and think both republican and democratic parties are idiots. I digress.....going forward as I previously stated congress will not lift the embargo anytime soon. The republicans will be blamed for this, and as such the American voters will fall for this ploy. Voters will elect democrats to power in future elections and the control will shift once again. This is nothing more than a democrats versus republican fight. I wish it weren't the case, but unfortunately for Americans and Cubans it is the case. My two cents at least. And I'm just an independent and once again discouraged by our political system we have here in the U.S.

If I correctly understand what you're saying, this is ridiculous. You're saying that this is a move by Obama to make republicans look bad for opposing the normalization of relations? The idea tha supporting the ending of the embargo could be a net positive position for politicians is questionable. The idea that it would be overwhelmingly positive, and a major issue in 2016 for the electorate, benefitting opponents of the embargo to the point where it is the thing that gets them elected, is just laughable. Hopefully I'm misunderstanding what you were saying. But I think you overestimate the American electorate's prioritization of policy toward Cuba. Except perhaps in Florida, where the sentiment is exactly the opposite of what you're suggesting.

[Jeremy Festa]

I'm not sure most members outside of the USA really understand what's going on. While on the surface this looks like a step in the right direction, its not as clean cut as that. In order to fully understand you must look back at the recent elections here in the US.

Republicans swept both the house and senate. Regardless of how the next presidential election unfolds, republicans will control congress. There is no way congress will lift the embargo. IMO, Obama knows this and is setting the republicans up for failure. While I may be walking a thin line on the rules of this forum (no discussing of US politics), in fact I am independent and think both republican and democratic parties are idiots. I digress.....going forward as I previously stated congress will not lift the embargo anytime soon. The republicans will be blamed for this, and as such the American voters will fall for this ploy. Voters will elect democrats to power in future elections and the control will shift once again. This is nothing more than a democrats versus republican fight. I wish it weren't the case, but unfortunately for Americans and Cubans it is the case. My two cents at least. And I'm just an independent and once again discouraged by our political system we have here in the U.S.

No, everyone outside the U.S.A. understands it. And in the most polite way possible, I think they understand it a little better than what you have just made a mess of.

Sent from my iPhone

[ATGroom]

Six emails in my CCW inbox this morning from people asking to become the official US distributor...

[Habano]

Got damn it's crazy to see how everyone became so knowledgeable overnight on a foreign policy.

Hell some of you guys need to run for office!