Caribbean Trade Law and Development

Tag: cuba

  • US eases some restrictions on Cuban imports for personal use

    US eases some restrictions on Cuban imports for personal use

    Alicia Nicholls

    On October 14, 2016 the United States Department of Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security (BIS) announced further amendments to the Cuba Sanctions Regulations. These changes became effective today (October 17, 2016) and include not just an ease on restrictions of Cuban imports, including alcohol and cigars, for personal use, but also facilitation of joint Cuba-US medical research and a variety of other trade measures.

    Since the early 1960s, successive US governments have imposed an illegal economic, commercial and financial embargo on Cuba which is not only contrary to international law but has hindered the country’s economy development. In December 2014 US President Barack Obama outlined a new direction to normalise Cuba-US relations. Efforts at normalisation since 2014 have included, inter alia, the removal of Cuba from the US State Sponsors of Terrorism List in May 2015, the re-opening of embassies in July 2015 and the progressive relaxation of some sanctions.

    However, US congressional action is needed to reverse the embargo. The embargo has been widely condemned by the international community. On October 26th, the UN General Assembly will be called on for the 25th consecutive year to vote on a Cuba-introduced resolution calling for an end to the five-decade long embargo.

    Current Amendments to Cuba Sanctions Programme 

    The current tranche of amendments to the Cuban Assets Control Regulations (CACR) and the Export Administration Regulations (EAR) cover the following three broad areas:

    • Expanding opportunities for scientific collaboration and access to medical innovations
    • Facilitate increased humanitarian support, grant opportunities and improve Cuban infrastructure
    • Bolster trade and commercial activities and the growth of Cuba’s private sector

    Some of the specific amendments are as follows:

    • Authorisation of joint-medical research with Cuban nationals for non-commercial and commercial research
    • Importation , marketing, sale and distribution in the US of FDA-approved Cuba-origin pharmaceuticals
    • Persons who engage in those above activities will be allowed to open and maintain bank accounts in Cuba for use in conducting authorised business
    • Authorisation of grants, scholarships and awards to Cuba or Cuban nationals for scientific research and religious activities
    • Authorisation of persons subject to US jurisdiction to provide services to Cuba or Cuban nationals relating to developing, repairing, maintaining and enhancing certain Cuban infrastructure to directly benefit the Cuban people
    • Removal of monetary value limitations on what authorised travelers may import from Cuba into the US as accompanied luggage. These include Cuban alcohol and cigars. However, the imports must be for personal use and normal limits on duty and tax exemptions will apply.
    • BIS will generally authorise exports of certain consumer goods that are sold online or through other means directly to eligible individuals in Cuba for their personal use
    • Expanded general license by OFAC authorising persons subject to US jurisdiction to enter into certain contingent contracts for transactions currently prohibited by the embargo, subject to conditions.
    • OFAC authorisation of importation into the US or a third country of items previously exported or re-exported to Cuba under a BIS or OFAC authorisation

    Comprehensive information on all of the amendments may be obtained via the US Treasury Department’s website here.

     Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

  • US President Obama lands in Cuba; US hotel to open in Cuba

    Alicia Nicholls

    According to a CNN news report, United States President Barack Obama landed in Cuba on Sunday. President Obama’s three-day visit to Cuba marks the first time in more than eighty years that a sitting US president has stepped foot on Cuban soil. The US president, who is accompanied by first lady Michelle Obama and daughters Malia and Sasha, was greeted upon arrival by top Cuban officials.

    In related news US hotel chain Starwood has reached an agreement to open the first US hotel in Cuba since the embargo. According to this BBC report, Starwood will renovate and operate three hotels in Havana.

    Rapprochement

    President Obama’s visit is the latest in a series of steps taken by his administration since December 2014 towards normalising relations between the US and Cuba. These steps have involved the progressive removal of some travel and trade restrictions and include:

    • Allowing individual travel by US citizens to Cuba for educational “people to people” purposes, although a general travel ban remains in effect
    • Approval of a ferry service between the US and Cuba
    • Allowing US bank accounts for Cuban nationals
    • Re-opening of US embassy in Havana
    • Lifting of restrictions on export financing
    • Agreement to resume commercial air links between the US and Cuba. Several US airlines have already signed up.

    A full list of the restrictions eased are available in a press release issued by the US Treasury and Commerce Departments.

    However, despite the President’s calls for congress to lift the decades-old embargo, it remains.

    More will be posted as the story develops.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

  • Cuba and North Korea Sign Trade and Technology Agreements

    Alicia Nicholls

    Cuba and the Democratic People’s Republic of Korea (North Korea) have added two additional protocols to a growing list of cooperation deals between the two countries.

    Prensa Latina reports that two protocols, one on trade and the other on science and technological development, were signed by the Cuban Minister of Foreign Trade and Foreign Investment, Rodrigo Malmierca and North Korean Ambassador to Cuba, Pak Chang Yul at the Ministry of Foreign Trade and Foreign Investment in Havana, Cuba this week.

    The trade protocol is an interesting one as it will be based on bartering, that is, payment for goods and services via other goods and services, as opposed to cash. The exchange of goods is expected to help Cuba obtain inputs for its sugar industry and railway system.

    Cuba and North Korea have enjoyed strong relations since 1960 (the height of the Cold War) and both countries are subject to heavy US economic sanctions. According to Diario de Cuba, Cuba and North Korea already have cooperation agreements in a number of sectors, including education, oil, agriculture and trade.

     

     

    For further information, please see the full news report from Prensa Latina (In Spanish).

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. The Author is not affiliated with the World Bank, the Caribbean Association of Banks or any bank. You can read more of her commentaries and follow her on Twitter @LicyLaw.

  • Cuba: US eases restrictions on trade financing

    Alicia Nicholls

    The United States’ Office of Foreign Assets Control (OFAC) and the Department of Commerce have announced today several further amendments to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR). These amendments further implement the new direction toward Cuba that President Obama outlined in December 2014.

    Key among these amendments is that US banks will now be allowed to provide financing for most types of exports and re-exports to Cuba, with agriculture commodities and items being the major exception.

    Summary of amendments 

    In summary, the amendments include:

    • Removing financing restrictions for most types of authorized exports and re-exports to Cuba.
    • Additional amendments to increase support for the Cuban people and facilitate authorized exports e.g: news gathering, telecommunications, agriculture
    • Additional amendment to facilitate carrier service by air and with Cuban airlines.
    • Expanding authorizations within existing travel categories to facilitate travel to Cuba for additional purposes e.g: information and informational materials, professional meetings and public performances

    For more information, please see this press release from the Department of Commerce.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can read more of her commentaries and follow her on Twitter @LicyLaw.