US loosens Cuba travel restrictions

[webfact]

Moving swiftly, US eases travel and trade rules on Cuba
BRADLEY KLAPPER, Associated Press
MICHAEL WEISSENSTEIN, Associated Press

WASHINGTON (AP) — Swiftly expanding trade ties with Cuba, the Obama administration opened the door to easier travel and a wide range of new export opportunities with the communist island starting Friday, punching the biggest hole to date in America's half-century-old embargo.

Less than a month after the Cold War foes agreed to end their enmity, the Commerce and Treasury departments unveiled new rules Thursday permitting U.S. citizens to visit Cuba without special permits.

Most U.S. travelers still will be required to go on supervised group trips, but now virtually any U.S. company or organization can offer such trips without the paperwork and inspections that discouraged past expansion of travel to Cuba. Some tour operators, already seeing unprecedented interest in legal travel to Cuba, expect some tourists to simply ignore the restrictions.

American companies also now will be permitted to export telephones, computers and Internet technology, and to send supplies to private Cuban firms. However, Cuban authorities have said nothing about the restrictions they might impose on U.S. products entering a country that has long frustrated foreign investors with red tape and tapped-out infrastructure.

The changes are the latest step in President Barack Obama's plan to rebuild relations with Cuba after a history marred by suspicion, espionage and conflict. The new regulations come three days after U.S. officials confirmed the release of 53 political prisoners Cuba had promised to free.

The U.S. is now "one step closer to replacing out-of-date policies," Treasury Secretary Jacob Lew said Thursday. White House spokesman Josh Earnest said the new rules "immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy."

They also allow U.S. citizens to start bringing home small amounts of Cuban cigars, long adored by aficionados but banned under U.S. law. The limit is $100 for alcohol and tobacco products and $400 in total goods.

Only Congress can fully end the 54-year embargo. Obama announced last month he would soften the restrictions, arguing that "these 50 years have shown that isolation has not worked." The new spirit of cooperation emerged after 18 months of secret talks that culminated in the exchange of imprisoned spies and the release of Alan Gross, a U.S. government contractor who had been imprisoned in Cuba for five years.

The few U.S. companies facilitating travel to Cuba say inquiries have exploded since December and American visits are expected to surge this year from about 90,000 annually. "We're hiring more people. We've secured more hotel rooms and assets in Cuba to provide additional travel," said Tom Popper, president of New York-based insightCuba.

Hotels in Havana and elsewhere generally fall short of international standards, and those with better food and service are almost always fully booked during the winter high season. So the tourism surge could be challenging.

"American tourists are really demanding," said Maikel Gonzalez, a 34-year-old hotel receptionist in Havana.

"How do I explain to one that the taxi didn't come because it doesn't have tires or that there's no water in the rooms?"

Cubans also can legally rent out their homes or apartments, which could mean money outside of state control going to private citizens — something American officials say they want.

Most of the other possible changes now depend on Cuban President Raul Castro's government.

U.S. officials say American companies will have to weigh for themselves the risks of their exports colliding with Cuban bans.

Profitability is another issue. Foreign companies operating in Cuba currently deal almost entirely with state-owned firms that are notoriously slow, inefficient and short on cash.

Also casting a shadow on potential deals is the possibility of litigation by Cuban-Americans and U.S. firms whose property was confiscated in Fidel Castro's 1959 revolution. Some may sue companies entering into business with the Cuban government. In Washington, Congress may also seek to erect barriers to new investment.

The sudden rapprochement between Cold War foes has divided U.S. lawmakers. Republican Marco Rubio and Democrat Bob Menendez , both Cuban-Americans, have been particularly opposed.

But some business groups have welcomed the opportunity to open a new export market in a country 90 miles (145 kilometers) from Florida. Thomas Donohue, head of the U.S. Chamber of Commerce, said Wednesday it was better for the U.S. to sell computers, smartphones and cars to Cuba than to cede such business to countries like Russia and China.
___

Weissenstein reported from Havana. AP White House Correspondent Julie Pace in Washington and Associated Press writer Andrea Rodriguez in Havana contributed to this report.


-- (c) Associated Press 2015-01-16

[zydeco]

Venezuela can only look on with envy. Who could have ever imagined this a decade or so ago. Potentially, Cuban supermarket shelves bursting with goods and Venezuela looking Starvation Alley.

[umbanda]

Good luck USA!

Selling to Cuba?...What? At what prices?

Only trading for overpriced cigars or rhum!

Cuba already have trade agreements in place with China....

[zydeco]

Good luck USA!

Selling to Cuba?...What? At what prices?

Only trading for overpriced cigars or rhum!

Cuba already have trade agreements in place with China....

You do understand, don't you, that it has been Cuba, not the US, which has been crying for an end to the US trade embargo?

[umbanda]

Venezuela can only look on with envy. Who could have ever imagined this a decade or so ago. Potentially, Cuban supermarket shelves bursting with goods and Venezuela looking Starvation Alley.

Wroonnggg...To sell to Cuba the US will have to subsidy the goods to compete with China and Mexico. Most Cubans do not have money to buy those products Anyway..Cuba will resell back to Mexico, Brazil, Venezuela and any other country with high taxes in imports and with consumers of those kind of products to balance the trade with them. May even send it back to Miami depending in cost. Cuba will imposs a lot of restriction to US investors, the same its have for other foreign businesses. Probably will be exeptions just for the tourism and hotel sector like the ones in place now.

Castros still alive and well! Congrats to Cuba!

[umbanda]

Good luck USA!

Selling to Cuba?...What? At what prices?

Only trading for overpriced cigars or rhum!

Cuba already have trade agreements in place with China....

You do understand, don't you, that it has been Cuba, not the US, which has been crying for an end to the US trade embargo?

You are right....and I explained why. Congrats Cuba!

[zydeco]

Venezuela can only look on with envy. Who could have ever imagined this a decade or so ago. Potentially, Cuban supermarket shelves bursting with goods and Venezuela looking Starvation Alley.

Wroonnggg...To sell to Cuba the US will have to subsidy the goods to compete with China and Mexico. Most Cubans do not have money to buy those products Anyway..Cuba will resell back to Mexico, Brazil, Venezuela and any other country with high taxes in imports and with consumers of those kind of products to balance the trade with them. May even send it back to Miami depending in cost. Cuba will imposs a lot of restriction to US investors, the same its have for other foreign businesses. Probably will be exeptions just for the tourism and hotel sector like the ones in place now.

Castros still alive and well! Congrats to Cuba!

This is a static view of Cuba and the world. Many things will be changing in Cuba. And it can rely on a stream of people, investments, and businesses that are 90 miles away. Or a group of "high quality" tourists and investors from China. Ask the Thais about how that last one is working out.

[umbanda]

Venezuela can only look on with envy. Who could have ever imagined this a decade or so ago. Potentially, Cuban supermarket shelves bursting with goods and Venezuela looking Starvation Alley.

Wroonnggg...To sell to Cuba the US will have to subsidy the goods to compete with China and Mexico. Most Cubans do not have money to buy those products Anyway..Cuba will resell back to Mexico, Brazil, Venezuela and any other country with high taxes in imports and with consumers of those kind of products to balance the trade with them. May even send it back to Miami depending in cost. Cuba will imposs a lot of restriction to US investors, the same its have for other foreign businesses. Probably will be exeptions just for the tourism and hotel sector like the ones in place now.

Castros still alive and well! Congrats to Cuba!

This is a static view of Cuba and the world. Many things will be changing in Cuba. And it can rely on a stream of people, investments, and businesses that are 90 miles away. Or a group of "high quality" tourists and investors from China. Ask the Thais about how that last one is working out.

Looks like you do not know why California real estate is in rebounds...The Chinesse are buying everything they can!

By the way...I lived and worked in Cuba for 2 years..I am from Brazil. Cuba never will be back to Batista times and USA dominance and corruption. Never.

[zydeco]

Venezuela can only look on with envy. Who could have ever imagined this a decade or so ago. Potentially, Cuban supermarket shelves bursting with goods and Venezuela looking Starvation Alley.

Wroonnggg...To sell to Cuba the US will have to subsidy the goods to compete with China and Mexico. Most Cubans do not have money to buy those products Anyway..Cuba will resell back to Mexico, Brazil, Venezuela and any other country with high taxes in imports and with consumers of those kind of products to balance the trade with them. May even send it back to Miami depending in cost. Cuba will imposs a lot of restriction to US investors, the same its have for other foreign businesses. Probably will be exeptions just for the tourism and hotel sector like the ones in place now.

Castros still alive and well! Congrats to Cuba!

This is a static view of Cuba and the world. Many things will be changing in Cuba. And it can rely on a stream of people, investments, and businesses that are 90 miles away. Or a group of "high quality" tourists and investors from China. Ask the Thais about how that last one is working out.

Looks like you do not know why California real estate is in rebounds...The Chinesse are buying everything they can!

By the way...I lived and worked in Cuba for 2 years..I am from Brazil. Cuba never will be back to Batista times and USA dominance and corruption. Never.

Tell it to the Vietnamese, who are begging the US to come back. As will Cuba as soon as soon as the octogenarian Castros pass away.

[umbanda]

You cannot compare Cuba with any other country in the world..and the Castros and Castros's followers with any other leaders in the world....

[reptile91602]

it will be very cool when the US picks up where it left off and all of these high end casinos and resorts open up with mafia money and management and all these fat cat Italians are driving around in cars from the 50's.

[HerbalEd]

This should have been done many years ago. If so, the communist government would have failed long ago. Best way to get rid of Castro would have been to corrupt his system with the influence of free-world tourists and capitalistic consumer goods.