By Felicia Schwartz and Louise Radnofsky
WASHINGTON -- The Trump administration on Wednesday continued to
pare back rules intended to normalize ties with Cuba, announcing
new regulations tightening travel and financial transactions by
Americans.
President Donald Trump had said in June he would reverse steps
taken by predecessor Barack Obama to relax a decades-old U.S.
embargo against the Castro regime, as Mr. Trump had pledged on the
campaign trail.
The regulatory changes unveiled by the Treasury, State and
Commerce departments are to take effect Thursday. While they will
have an impact on the ability of individuals to travel to Cuba and
curtail some business interactions, however, much of Mr. Obama's
program will remain in place.
"It wasn't a full reversal, but it's not great news for American
travelers and, as a resulting byproduct, this hurts the Cuban
private sector," said James Williams, president of
pro-normalization group Engage Cuba.
He added that the shift will make it harder for American
businesses to operate in Cuba. "It doesn't fully close the door,
but it's a step backwards."
Many Americans who want to visit Cuba will have to do so by
traveling through tour operators subject to U.S. jurisdiction and
be accompanied by a representative of a sponsoring organization
that is also subject to U.S. jurisdiction.
Most individual travel will no longer be allowed, except in
cases where a flight or accommodation had been booked before June,
because the Trump administration eliminated a category of travel
created under the Obama administration that essentially allowed for
tourist travel.
Similarly, commercial and business transactions arranged before
the regulations are published on Thursday will be allowed to
continue, administration officials said.
But the administration posted a list of entities connected with
the Cuban military, and Americans would be forbidden from engaging
in some financial transactions in the future with them.
Individual travelers still will be allowed to go to Cuba under a
category that allows for travel in support of the Cuban people, but
officials said travelers in that category will be subject to
stricter regulatory enforcement.
The tightening comes amid heightened tensions between Washington
and Havana, as officials investigate health problems suffered by at
least 24 American officials and family members at the U.S. embassy
in Havana, with symptoms including dizziness, hearing loss, and
mild traumatic brain injury. U.S. officials have blamed the
symptoms on an undefined attack, possibly one using a sonic
device.
Officials said Wednesday that the rules changes were not
connected to the continuing investigation into the illnesses in
Havana. Mr. Trump announced the policy shift in June, before the
Trump administration disclosed the illnesses in August.
"We have strengthened our Cuba policies to channel economic
activity away from the Cuban military and to encourage the
government to move toward greater political and economic freedom
for the Cuban people," Treasury Secretary Steven Mnuchin said.
The U.S.-Cuban opening under Mr. Obama allowed several American
companies to begin making inroads into travel, telecommunications
and other sectors of the Cuban economy, including several hotel
deals.
Industry groups faulted the move for limiting American
engagement on the island, though some found bright spots.
"We are encouraged that the administration took steps to limit
disruption to preexisting commercial activities, ensuring that U.S.
companies can continue to do business with Cuba's nascent private
sector. We urge the administration to continue to keep business in
mind and avoid further steps to restrict the economic relationship
between the U.S. and Cuba," said Myron Brilliant, head of
international affairs at the U.S. Chamber of Commerce.
The new rules will prevent Americans from staying at more than
80 hotels in Cuba, but exclude from that ban the Four Points
Sheraton in Havana, which is owned by a firm tied to Cuba's
military, though managed by Starwood Hotels & Resorts Worldwide
Inc., which is owned by Marriott International Inc.
The list bans Americans from staying at other hotels owned by
the same Cuban firm, including some operated by foreign
competitors.
An administration official said that the Trump administration
determined it was not in U.S. interests to penalize the
American-operated hotel.
A Marriott spokeswoman said the company is aware of the policy
changes and is reviewing the adjustments to see if they will affect
contracts and business relationships.
American farm equipment firms Deere & Co. and Caterpillar
Inc. both recently announced deals to begin distributing equipment
in Cuba, and they should proceed as planned. Deere & Co. didn't
immediately respond to a request for comment.
Caterpillar's equipment will be distributed through a Puerto
Rican-based dealership, Rimco Inc., which will set up shop in the
Mariel Special Economic Development zone, an area outside of Havana
aimed at attracting investment from foreign companies. Mariel is
included on the prohibited entities list, but U.S. officials said
the changes wouldn't affect companies already doing deals with
prohibited entities.
Caterpillar declined to comment and directed inquiries to Rimco,
which did not immediately respond to questions.
Write to Felicia Schwartz at Felicia.Schwartz@wsj.com and Louise
Radnofsky at louise.radnofsky@wsj.com
(END) Dow Jones Newswires
November 08, 2017 18:44 ET (23:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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