Action Item: Companies should consider how improved diplomatic relations between the United States and Cuba could impact their business and employees.
On December 17, 2014, President Barack Obama announced that the United States will resume diplomatic relations with Cuba after more than 50 years. In addition to relaxing certain economic restrictions, the President announced that an Embassy will once again be established in Havana. It is expected that a fully-functioning consular presence will normalize the process for Cubans who wish to travel to the United States, as well as make it easier for Americans to travel to Cuba. Importantly, the President intends to liberalize restrictions that will benefit the Cuban private sector and, potentially, U.S. companies. Specifically, the President intends to extend general licenses, as well as expand permissible commercial sales and exports of goods and services to Cuba, including building materials and communications hardware.
Other announced changes allow U.S. and Cuban banks to build relationships and for U.S. travelers to use credit and debit cards in Cuba. Further, U.S. travelers will be allowed to import up to $400 worth of goods from Cuba, including $100 in alcohol and tobacco. Remittances by Americans to family members in Cuba also will be increased to approximately $2,000 per quarter. It is not yet known how these changes will impact related immigration laws, including Cuba-specific refugee programs and visa reciprocity.
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