Trump Policy Will Generally Ban Transactions With Cuban Military
President Donald Trump rolled out changes to U.S. economic policy toward Cuba on June 16, which will include diverting economic activities away from the “Cuban military monopoly,” while allowing U.S. individuals and entities to develop economic ties with the private small business sector in Cuba, according to a White House fact sheet. “President Trump’s policy changes will encourage American commerce with free Cuban businesses and pressure the Cuban government to allow the Cuban people to expand the private sector.” The policy directs the Commerce and Treasury departments to start within 30 days the process of issuing new regulations, a process that could take several months, the White House said.
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Any commercial engagement involving direct transactions with entities related to the Cuban military, intelligence or security services that may be implicated by the new Cuba policy will be permitted “provided that those commercial engagements were in place prior to the issuance of the forthcoming regulations,” an Office of Foreign Assets Control fact sheet says (here). Exports to the Cuban military service won’t be allowed, with exemptions for transactions related to operation of the U.S. embassy in Havana or the naval station at Guantanamo Bay, transactions for promotion of democracy, and transactions to expand telecom or Internet access to the Cuban people, a senior White House official said during a briefing with reporters June 15 (here).
House Foreign Affairs Committee Chairman Ed Royce, R-Calif. applauded the development in a statement (here). Senate Finance Committee ranking member Ron Wyden, D-Ore., and House Ways and Means ranking member Richard Neal, D-Mass., slammed the announced reforms in an emailed statements. The U.S. Chamber of Commerce criticized (here) the policy, saying the changes risk ceding U.S. growth opportunities in Cuba to other countries that may not share the U.S.’s interest in a free and democratic Cuba that respects Cuba’s rights. But the chamber urged the Cuban government to lessen government control or ownership of Cuban businesses.