Northwest Arkansas Democrat-Gazette
CUBAN MILITARY TARGETED
Trump’s change in policy prohibits any commercial dealings with Cuba’s economically powerful military and, according to White House aides, was driven by the president’s concerns that the previous policy was enriching the Cuban military and intelligence services that contribute to repression on the island.
Asked whether companies that have already signed Cuban contracts, such as Starwood Hotels and Resorts, should expect to lose money, an administration official said, “That will be handled in the specifics of regulations by Treasury and Commerce.” But “the administration’s intent,” the official said, “is not to disrupt existing transactions that have [already] occurred.”
The restrictions on dealing with the military could significantly affect U.S. travel, although the military has already begun to reorganize its ownership of some businesses and entities in anticipation of such changes. Airbnb, which has built a multimillion-dollar business among Cubans who rent out rooms to foreign visitors, is not affected by the new policy. Americans will also still be allowed to bring back unlimited amounts of Cuban products — including rum and cigars — for personal use.
But the ease with which U.S. citizens have been able to travel to Cuba over the past two years could also be affected by a significant change in the Treasury Departments control over their activities. Although the U.S. government does not technically prohibit Cuban travel, Treasury regulations under the embargo prohibit the expenditure of U.S. dollars without a special license. Successive presidents have eased and tightened that prohibition, and Obama significantly loosened it by allowing individuals to “self-declare” the purpose of their travel in one of a dozen allowed categories, including for educational, commercial, or “support for the Cuban people.”
While tourist travel remained officially banned, Obama also allowed a broad category of “people-to-people” visits to Cuba. Trump’s new directive still allows individual travel in all but that category and reverts to an earlier policy of requiring “people-to-people” visits only in a Treasury-licensed group.
While Americans have long been required to be able to “authenticate” the purpose of any visit to Cuba, and to keep receipts and records for five years, the rules were rarely enforced. The White House officials indicated Trump would call for a tighter enforcement.
The officials said that the aging Cuban government, in which Castro is due to be replaced next year by a designated successor, can return to favor with the United States by improving its human-rights record, including lifting restrictions on dissent, releasing political prisoners and moving toward democracy.