A New Latitude: Charting A Course For Cuba

Today President Barack Obama made a stunning speech announcing steps the United States will take to reduce U.S. sanctions against Cuba. The announcement followed the release of two U.S. citizens held by the Cuban government. Alan Gross was detained by Cuban authorities in 2009 while working as a USAID subcontractor. Separately, a U.S. intelligence officer, not named in the announcement but described by the President as "one of the most important" U.S. intelligence agents in Cuba, had been imprisoned in Cuba for nearly two decades.

Easing Cuban sanctions reverses five decades of policy intended to isolate the island nation, dating back to the Castro revolution. In announcing the changes, President Obama said the new direction will "end an outdated approach" to Cuba. Over the last few years, U.S. sanctions policy has trended away from total economic embargoes such as the Cuba and Iran embargoes, and toward more targeted sanctions. The President described the Cuba embargo as having had "little effect."

The announcement outlines three main categories of changes to U.S. policy toward Cuba, as follows:

Reestablish diplomatic relations. At the President's direction, Secretary of State John Kerry will initiate discussions with Cuba to reestablish diplomatic relations between the two countries, and the United States plans to establish a U.S. Embassy in Havana. Review designation as "state sponsor of terrorism." Since 1982, the U.S. Department of State has listed Cuba as a state sponsor of terrorism pursuant to the Export Administration Act, the Arms Export Control Act, and the U.S. Foreign Assistance Act. A White House press release issued today states that President Obama has directed Secretary of State Kerry to review the designation of Cuba under the current facts and the applicable laws, and to report the results of that review to the President within the next six months. Policy to authorize travel and commercial transactions. The United States will institute a policy of expanded travel authorizations and authorizations for financial and commercial transactions to Cuba. It remains to be seen how quickly and efficiently such a policy can be developed and implemented. The announcement does not take immediate effect; all aspects of the Cuban embargo (including prohibitions against travel and commercial transactions) are codified in regulations issued by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) and by the U.S...