Biden Administration Releases New Regulations Supporting Cuban Entrepreneurs | May 31, 2024
Dear Friend,
We hope you enjoyed your Memorial Day weekend!
CEDA is expanding our team, and we'd like to welcome Isabel Albee, our new Manager of External Affairs. Isabel is an event, media, and travel producer with almost a decade of experience working in and around Cuba. Learn more about Isabel here.
This week in Cuba news, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new amendments to the Cuban Assets Control Regulations (CACR). CEDA welcomes the regulatory changes and calls on the Biden administration to build upon these positive steps by further easing restrictions on travel, trade, and financial transactions with the Cuban people, removing Cuba from the State Sponsors of Terrorism list, and by working towards the normalization of diplomatic relations between our two countries. Read CEDA’s press statement here.
A recent delegation of Cuba’s government officials to TSA facilities at Miami International Airport sparked controversy. In other news, luxury travel company Abercrombie & Kent is resuming its tours in October after it halted its services in 2019. The U.S. Food and Drug Administration (FDA) recently authorized a phase 3 clinical trial for Heberprot-P, a drug developed in Cuba for diabetic foot ulcers. Meanwhile, Cuban priest Father Alberto Reyes began a peaceful protest against government oppression by ringing his church bells each night due to the lack of electricity.
See you next week!
This week’s top story
Biden Administration Releases New Regulations Supporting Cuban Entrepreneurs
On Tuesday, the Department of the Treasury's Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control Regulations (CACR) to support internet freedom, private entrepreneurship, and financial services in Cuba, effective May 28, 2024. The regulations were released in accordance with the Biden-Harris Administration’s policy, announced on May 16, 2022, to improve the economic well-being of the Cuban people. The changes, which were slated to be released in September 2023, include four main categories.
Updated authorizations for internet-based services, such as social media, collaboration platforms, video conferencing, and cloud-based services.
Expanded definitions for “self-employed individuals,” replacing the term with “independent private sector entrepreneurs,” to include small private businesses and cooperatives with up to 100 employees.
Cuban nationals who are independent, private-sector entrepreneurs are now authorized to open and use U.S. bank accounts for transactions.
Reinstatement of “U-turn” transactions to facilitate remittances and payments. U-turn transactions are dollar-denominated transfers that start and end outside the US but are processed through a U.S. banking institution. This will permit individuals and businesses not subject to U.S. jurisdiction to transfer funds to and from Cuba through U.S. banks. In 2019, the Trump-Pence Administration halted these transactions as part of a series of policy changes aimed at strengthening the embargo on the island, which severely limited Cuba's international trade and financial activities.
These updates reflect many of the asks outlined during CEDA's Cuban entrepreneur delegation to Washington, DC in July 2023.
This shift follows Cuba’s government’s 2021 authorization of small and medium-sized private enterprises (PYMES). The first 35 PYMES in Cuba were authorized in 2021; now, there are over 11,000 PYMES, which account for nearly one-third of all employment on the island (the New York Times).
Cuba’s Ministry of Foreign Affairs responded to the U.S. government’s announcement on Tuesday, stating that the new measures favor the private sector and would only benefit a select fraction of the population rather than comprehensively address the embargo to benefit all of Cuba. Despite these concerns, Cuba’s government conceded that it will review the measures to ensure they comply with national legislation, stating that it will not impede their implementation if deemed beneficial, even for a single population sector.
Representative Salazar took to X to condemn the new regulations, arguing that by giving the Cuban private sector access to the U.S. financial system, the Biden-Harris Administration is making a “mockery of American law.” Despite some political opposition, the move has been praised for potentially transforming the lives of many Cubans by providing new economic opportunities. Representative Jim McGovern (MA-02) expressed gratitude towards the U.S. Department of the Treasury for the new regulations, acknowledging that they would help support the Cuban private sector. He simultaneously urged the administration to continue these steps by removing Cuba from the State Sponsor of Terrorism (SSOT) list. Representative Barbara Lee (CA-12) took to X to thank President Joe Biden for implementing new regulations to ease the lives of the Cuban people. This announcement follows the Department of State’s removal of Cuba from the list of Countries Not Fully Cooperating Against Terrorism last week.
For more information on the Department of the Treasury’s recent amendments, refer to the FAQs available here.
us-cuba Relations
Delegation from Cuba’s Visit to Miami Airport Sparks Controversy: A recent visit by a delegation of Cuba’s government officials to the Transportation Security Administration (TSA) facilities at the Miami International Airport (MIA) sparked significant controversy (Miami Herald). Last week, on Monday, the delegation from Cuba toured security areas, such as a checkpoint and baggage screening area. According to Miami Mayor Daniella Levine Cava, this five-hour-long tour was hosted without prior warning by the State Department, which prompted a “formal rebuke” from Miami-Dade County demanding an apology for the visit (Axios). Mayor Levine Cava issued a press release last Tuesday, urging that the Miami-Dade County and Miami-Dade Aviation Department be informed of such visits involving foreign governments moving forward. A TSA spokesperson noted that there is “routine collaboration with countries that have direct US flights” (Axios). A State Department official corroborated this claim, stating that officials from Cuba have had such visits before, including during the Trump administration.
Members of Congress sent a letter to Biden following a delegation from Cuba at MIA: Senator Marco Rubio (FL-05) and Representative Marcos A. Gimenez (FL-28) sent a letter to U.S. Department of Homeland Security Secretary Alejandro Mayorkas and TSA Administrator David Pekoske, highlighting the concerns about what they argue is a lack of transparency regarding such visits considering Cuba’s SSOT designation. Senator Rubio and Representative Gimenez outlined a list of questions that demanded a full explanation and clarification for visits like the one that occurred last Monday.
Secretary of State Discusses Cuba’s SSOT Designation: During a House Committee testimony with U.S. Secretary of State Anthony Blinken last Wednesday, Representative Maria Elvira Salazar (FL-27) questioned Secretary Blinken about the visit, asking if this indicated that the State Department was considering removing Cuba from the SSOT list. Secretary Blinken stated that he does not foresee the State Department reviewing Cuba’s SSOT designation before the July 21 deadline but left open the possibility for review afterward. Secretary Blinken noted that Cuba’s designation as a SSOT by the previous administration was, in part, due to the refusal of the extradition of members of the National Liberation Army (ELN). However, since Colombia’s attorney general announced the suspension of the arrest warrants of ELN members and, given Cuba’s resumption of law enforcement cooperation, Secretary Blinken noted that the basis of the designation is no longer applicable.
In Other U.S.-Cuba News
China Calls on the US to Lift the Embargo on Cuba: Last Wednesday, China’s Foreign Ministry Spokeswoman, Mao Ning, commended Cuba’s efforts to counter terrorism and urged Washington to lift all its sanctions on Cuba (China Daily). Spokeswoman Mao praised Cuba’s full cooperation with counter-terrorism efforts and criticized the US for interfering in Cuba’s internal affairs.
Luxury Travel Company Resumes Cultural Tours to Cuba in October: Abercrombie & Kent is resuming tours to Cuba starting in October, after they halted in 2019, offering a 10-day “Cuba: People, Art & Culture” tour (Travel Market Report). The tour will begin in Camagüey and ends in Havana, focusing on Cuban culture, art, food, and history. Abercrombie & Kent’s senior vice president expressed excitement about returning to Cuba, emphasizing the island's “rich history and unique culture.” The itinerary, limited to 18 travelers per trip, includes stops in Trinidad, the Valley de los Ingenios, Cienfuegos, and Santa Clara.
FDA Authorizes Phase 3 Trial of Cuban Drug in the US: Earlier this month, the United States Food and Drug Administration (FDA) authorized U.S.-based Discovery Therapeutics Caribe (DTC) LLC to conduct a phase 3 clinical trial in the US for Heberprot-P, a drug developed in Cuba, to treat diabetic foot ulcers (OnCuba News). Based in Cleveland, Ohio, DTC LLC is pursuing a Biologics License Application (BLA) to market Heberprot-P in the US, facilitated by “an exclusive license agreement with Cuba’s Center for Genetic Engineering and Biotechnology (CIGB).”
US-Cuba Relations Recommended Readings and Viewings
Cuba’s Role in U.S. Presidential Elections: Since the Cuban Revolution in 1959, Cuba has influenced U.S. presidential elections, with candidates often using the topic to criticize opponents or appeal to Cuban American voters in Florida (the Quincy Institute). Dr William M. LeoGrande analyzes Cuba's role in the upcoming 2024 Presidential elections. Despite their limited electoral impact, Cuban American interests have driven policies such as the economic embargo.
Read CEDA’s interview with William M. LeoGrande and Michael J. Bustamante on Contemporary U.S.-Cuba Relations to learn more about Cuba’s role in the upcoming election.
in cuba
Cuban President Miguel Díaz-Canel Replaces Minister of Foreign Trade and Foreign Investment Ricardo Cabrisas: Last Thursday, Cuba’s Council of State, at the proposal of President Miguel Díaz-Canel and with approval of the Political Bureau of the Central Committee of the PCC, replaced Ricardo Cabrisas, the Minister of Foreign Trade and Foreign Investment (Reuters). Cabrisas, who is now 87 years old, will continue to serve as Deputy Prime Minister. Oscar Pérez Oliva-Fraga, the current first deputy minister of foreign commerce, will take over Cabrisas’ responsibilities. Additionally, 36-year-old Carlos Luis Jorge Méndez, currently General Director of Foreign Investment, was named First Deputy Minister. President Díaz-Canel’s decision to replace Cabrisas, who has played a crucial role in “negotiating Cuba’s foreign debt with China, Russia, and the Paris Club,” was not explained.
In Other cuba news:
Cuban Priest's Peaceful Protest Silenced by Alleged Government Pressure: Last week, Cuban priest Father Alberto Reyes from Esmeralda began a peaceful protest by ringing his church bells each night when there was no electricity, symbolizing national mourning (Catholic News Agency). On May 17, Father Reyes took to Facebook to announce his plan in his column titled “He Estado Pensando,” where he urged Cubans to no longer engage with Cuba’s government and speak out about their situation. After two nights, he was ordered to stop, allegedly due to pressure from Cuba’s Communist Party’s Office of Religious Affairs.
Cuban Migration
Click here for data on Cuban migration to the United States, including total Cuban migration to the US and the number of Cubans interdicted by the U.S. Coast Guard.
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