U.S. ratchets down on Cuba trade

The U.S. government has amended Obama-era regulations regarding trade with Cuba to bring them in line with President Trump’s June order to cut off potential American business ties with Cuban government entities.    The U.S. government has amended Obama-era regulations regarding trade with Cuba to bring them in line with President Trump’s June order to cut off potential American business ties with Cuban government entities.
   “We have strengthened our Cuba policies to channel economic activity away from the Cuban military and to encourage the government to move toward greater political and economic freedom for the Cuban people,” Treasury Secretary Steven Mnuchin, said in a statement.
   The amendments, which were published by the Treasury Department’s Office of Foreign Assets Control, and the Commerce Department’s Bureau of Industry Security in today’s Federal Register, will be made immediately to the Cuban Assets Control Regulations and Export Administration Regulations, respectively. 
   “The State Department is taking complementary steps to implement these policy changes that cumulatively seek to channel economic activities away from the Cuban military, intelligence, and security services, while maintaining opportunities for Americans to engage in authorized travel to Cuba and support the private, small business sector in Cuba,” Treasury said.
   To prevent illicit financial transactions under the president’s order, the State Department will present a list of entities and sub-entities, as well as personnel, that have connects to the Cuban military, intelligence, or security services.
   BIS will set up a general policy of denial for license applications to export items for use by entities and sub-entities on the Cuba Restricted List. Some export license exceptions may be permitted if they prove beneficial to the Cuban people, such as gift parcels, humanitarian donations, and consumer communications devices.
   OFAC will require Americans that travel to Cuba to do so under the auspices of an organization that is subject to U.S. jurisdiction.
   The regulations will not affect trade or travel transactions, such as purchasing a flight, made prior to the president’s June 16, 2017 announcement.
   Business groups called President Trump’s action a setback to improving the lives of Cubans.
   “These new regulations are a kick in the gut to Cuban entrepreneurs who are struggling to support their families,” said Engage Cuba, a coalition of trade associations. “Americans are significantly contributing to the growth of Cuba’s private sector. Today’s announcement will only make it harder for Americans to travel to Cuba and support the growing private sector.”