Move opens the door for full establishment of diplomatic relations and business opportunities between the United States and Cuba.
The U.S. State Department on Friday officially removed Cuba from its list of state sponsors of terrorism, paving the way for the two nations to normalize relations.
In mid-April, the U.S. government certified that Cuba has not supported any international terrorism for at least six months and notified Congress. The pre-notification period expired Friday without any action by Congress, after which the department rescinded Cuba’s designation as a state sponsor of terrorism.
The next step in normalizing relations, expected to take place in the coming weeks, is the opening of respective embassies in Havana and Washington, D.C. U.S. officials recently found a small South Florida bank – Stonegate – that will process payroll checks, and handle credit card and other transactions for the new Cuban embassy.
President Obama began the process of re-establishing diplomatic ties in December, but full trade and travel will not be possible until Congress removes the 50-year-old trade embargo against Cuba.
Some lawmakers on Capitol Hill oppose rapprochement with the island nation, saying the Cuban government has not done anything to improve its human rights record.
“The main goal is to get the process firmly on track by the end of President Obama’s term, so that it will be almost impossible for another administration to undo the gains,” Elizabeth Newhouse, Cuba program director at the Center for International Policy, said in a statement.
American businesses are eager to access the untapped Cuban market of 11.5 million people and many ports want to become the home for ocean shipping services to Cuba.
Clearing Cuba of terrorist affiliations has several implications for business, according to Jennifer Diaz, a trade attorney at Becker & Poliakoff, in Coral Gables, Fla.
Businesses and investors will no longer perceive Cuba as an investment risk, more banking institutions are likely to join Stonegate in providing banking options to Cuba and U.S. travelers, and more international companies will be willing to trade with Cuba as regulatory burdens gradually become easier, Diaz said in a recent blog posting.
U.S. drops terrorism designation for Cuba
