US to ease trade restrictions on Cuba ahead of Obama visit

In a move, which could potentially broaden Cuba’s access to the global economy, the US has decided to ease trade restrictions on its southern neighbour. Ahead of US President Barack Obama’s historic visit to Cuba on March 20, the US administration eased restriction on US-Cuba trade, financial transaction and travel. Mr Obama’s visit intended to advance his policy of restoring relations with Cuba. Announcing that it would further loosen travel restrictions on Cuba, the US has said that it would ease limits on the use of US dollars in trade transactions. The US and Cuba restored diplomatic ties in 2014.

The latest decision to ease restrictions by Mr. Obama is a move away from the long-standing US economic embargo against Cuba. The US President had used his executive powers to sidestep US lawmakers who had refused to support the lifting of sanctions. The changed rules allow Cubans to open US bank accounts and authorise those living in the US to earn a salary or compensation. It will also allow individuals to visit the island for “people-to-people educational travel”, instead of requiring them to go in group tours.

The easing of restrictions comes as Mr Obama prepares to travel on March 20-22 to Cuba. No US President has visited Cuba in the last 88 years. The US administration earlier eased rules to allow scheduled air service between the two countries after signing a pact.

“We see this speech as a unique moment in the history between our countries,” Ben Rhodes, a senior foreign policy advisor, said. Mr Rhodes is also the architect of Mr Obama’s Cuba policy. The restoring of diplomatic ties with Cuba under the Obama administration is rated as one of his biggest foreign policy accomplishments during his tenure.

The decision to restore ties with Cuba has not gone down well with many of the Republicans. With the US in election mode already, it would be interesting to watch how Mr Obama’s successor approaches Cuba

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