US President Barack Obama has moved to normalise diplomatic relations with Cuba.
The White House said the shift was needed because the long-standing US embargo against the communist-ruled island has failed to promote democracy and has hurt the Cuban people.
Here are the key changes:
Diplomatic relations:
- The US will open an embassy in Havana.
- During the next six months, US Secretary of State John Kerry will review Cuba's designation as a state sponsor of terrorism.
- US officials will hold high-level talks with Cuban counterparts on issues such as migration, narcotics, environmental protections, human trafficking.
- US officials will discuss maritime boundaries with Cuba and Mexico in the Gulf of Mexico.
Expanded Travel:
- More Americans will be allowed to travel to Cuba.
- The overall travel ban can only be lifted by Congress, so tourism will not be allowed.
- Travel licenses will be available for family visits, journalists, professional research and professional meetings, educational activities, religious activities, performances and athletic competitions, humanitarian projects, and certain export activities.
Trade:
- Trade will be authorised with Cuban private companies in building materials for private homes, goods for entrepreneurs, farm equipment for small farmers.
- Licensed travellers can bring back $400 in Cuban goods, including up to $100 in tobacco and alcohol for personal use.
- The overall trade ban can only be lifted by Congress.
Banking:
- US banks can open correspondent accounts at Cuban banks to help process authorised trade and remittances.
- Rules defining "cash in advance" will be revised to mean "cash before transfer of title" to help finance trade with Cuba.
- Travellers can use US credit and debit cards.
- US-owned entities in other countries will be allowed to provide services to Cuban people who are outside of Cuba.
- US bank accounts of Cuban nationals who have moved outside of Cuba will be unblocked.
Telecommunications:
- Export of telecom devices and services will be authorised.
- Telecom providers will be allowed to provide commercial telecom and internet services.
Remittances:
- US citizens can send up to $2,000 per quarter to Cuban nationals and humanitarian projects, up from $500. Licenses will no longer be required.
