President Barack Obama continues to pave the way for improved U.S.-Cuban relations, as changes to U.S. travel to and business with Cuba took effect on Monday.
The revisions made to the Cuban Asset Control Regulations (CACR) and Export Administration Regulations (EAR) will ease U.S. sanctions on Cuba related to travel, telecommunications and Internet-based services, business operations in Cuba, and remittances. The changes include authorizing certain U.S. entities to do business directly, establish a physical presence, and open and maintain bank accounts in Cuba.
These changes represent a step forward in achieving President Obama’s goal to break down barriers impeding U.S.-Cuban relations. But Congress has still not lifted the 54-year embargo. Florida Senator and Republican presidential hopeful Marco Rubio echoed critics of the changes saying, “As President Obama keeps giving away one-sided concessions, the Castro regime has only responded with record levels of repression.”
The Obama Administration may stir the pot further if it allows the U.N. to condemn the U.S. economic embargo against Cuba without a fight. The U.S. routinely vetoes the U.N.’s annual vote, but officials tell the Associated Press that the U.S. may abstain this year.
Granma, the official newspaper of the Cuban Communist Party, welcomed the changes, but indicated that the Obama Administration has not done enough. Cuban government policies may serve as a barrier to expanding U.S. business activity into Cuba, since the Cuban government still has the final say on who is licensed to do what in Cuba. Cuban President Raul Castro has maintained the same demands throughout this normalizing relations process, saying that there can be no normal relations until the U.S. takes three steps: ends and compensates for the embargo; discontinues Radio and Television Martí; and returns Guantanamo Bay to Cuban control.
An End to the Embargo – and Compensation
The Castro government believes that living under the embargo for over five decades has impeded Cuba’s economic development. President Castro requests not only the lifting of the embargo, but also “compensation to be paid to the Cuban people for the human and economic damages” caused by U.S. policies.
Ending the embargo will be difficult enough with a Republican-dominated Congress, but compensating Cuba will be nearly impossible. According to a report that Cuba presented to the UN General Assembly in 2014, the embargo has caused $1.11 trillion in damages. In 2008, BBC reported a similar estimate of approximately $93 billion in lost revenues.
Discontinuation of Radio and Television Martí
Radio and Television Martí are U.S. government-funded stations that broadcast news and information to Cuba. Cuba attempts to jam the station’s short-wave and medium-wave signals, but many Cuban-Americans believe that radio is the most effective medium for reaching people on the island.
This demand is most likely the best chance for compromise. The Obama Administration supports Radio and Television Martí, but has recommended consolidating the Office of Cuba Broadcasting and Voice of America’s Spanish language programs into a nonprofit similar to Radio Free Europe/Radio Liberty.
The Return of Guantanamo Bay to Cuban Control
The U.S. obtained the right to lease Guantanamo Bay in 1934, well before the Cuban Revolution in 1959. The Cuban government treats the U.S. Naval Base as an illegal occupation. According to Reuters, the U.S. pays Cuba $4,085 per month for using Guantanamo, but the Cuban government has only cashed one check - in 1959.
The real problem with this request is the U.S. military detention facility in Guantanamo Bay, which currently holds 115 prisoners as part of the U.S. anti-terrorism campaign. Obama has unsuccessfully tried to close the prison since 2009, and his latest attempt will face staunch Republican opposition in Congress. Until the military detention facility closes, the U.S. will never relinquish control of that land.
Alana Garellek is an Analyst for The Cipher Brief.
