20 January 2025

In a surprise announcement on 14 January, just days before demitting office, the White House said that President Biden was removing Cuba from the US list of state sponsors of terrorism; suspending the right of claimants to take legal action under Title III of Helms Burton against companies that traffic in expropriated property; and ending sanctions on Cuban companies banned from doing business with the US.  

The White House spokesperson, Karine Jean-Pierre, said that the now former President’s decision is intended,  “to support the Cuban people as part of an understanding with the Catholic Church under the leadership of Pope Francis.” It would also, she said, “improve the livelihood of Cubans,” and “advance the human rights of the Cuban people.” Announcing Biden’s decision, Jean-Pierre noted that it honoured “the wisdom and counsel”  provided to him “by many world leaders, especially in Latin America.”

Welcoming the changes, the Cuban government avoided linking the rolling back of sanctions to a separate announcement that it had made just one hour after the release of the White House decision, saying that Havana will release 533 prisoners held in Cuban jails under a deal brokered by the Vatican.

Although all aspects of the decision are unlikely to be rescinded immediately by the Trump Administration, the US Secretary of State designate, Marco Rubio and incoming senior national security figures indicated that the new administration will not be bound by the decision.

Highlights in this issue: 

• Rubio suggests it may take time to reverse Biden’s decision
• Just six of fourteen sugar mills reported to be grinding in early January
• Despite constraints, new onshore oil exploration to begin this year
• Peso-Dollar street rate climbs as purchasing power of MLC declines
• Vietnamese rice project indicates new Cuban approach to foreign investment

The lifting of the terrorism designation is expected to ease in the short-term,  limitations on the purchase of essential items by the Cuban government and on activities related to Cuban companies involved in tourism, finance, and money transfer mainly linked to the Cuban military-controlled conglomerate, GAESA. Despite this, it is expected that most US and foreign businesses and financial institutions will respond cautiously given the uncertainty over future actions by the Trump administration and the many other aspects of the US embargo which remain in place.

The White House statement appeared  to suggest that the decision may form a part of a wider or longer-term approach involving Cuba and the Catholic Church.

It noted: “In taking these steps to bolster the ongoing dialogue between the government of Cuba and the Catholic Church  …. (and) …. “in appreciation of the Catholic Church’s efforts to facilitate Cuba to take its own, constructive measures to restore liberty to its citizens and enable conditions that improve the livelihood of Cubans.”

20 January 2025, Issue 1263

 The Caribbean Council is able to provide further detail about all of the stories in Cuba Briefing. If you would like a more detailed insight into any of the content of today’s issue, please get in touch.