WASHINGTON/HAVANA (Reuters) – The White House is drafting sweeping regulations to further weaken the US trade embargo on Cuba that would ease restrictions on US companies and make it easier for Americans to travel there, US government sources said yesterday.
The regulations, to be announced as soon as today, include allowing US companies to establish subsidiaries with Cuba, possibly via joint ventures with Cuban firms such as state telecommunications monopoly Etecsa, they said.
The rules would also allow general licences for ferries and cruise ships to stop in Cuba rather than requiring them to apply for specific licences, they said.
There was no immediate comment from President Barack Obama’s administration.
“These are the most comprehensive expansion in US trade and investment regulations with Cuba in decades,” said John Kavulich, head of the US-Cuba Trade and Economic Council, who is familiar with the new rules.
“The result will be an exponential increase in interest towards Cuba by US companies and pressure upon Cuba by those same companies to permit access to the marketplace,” Kavulich said.
The regulations would expand on others that Obama announced in January to ease the 53-year-old embargo of the Communist-ruled island.
Those new rules were an initial gesture after Obama and Cuban President Raul Castro announced on December 17 they would move toward normal relations between the former Cold War foes for the first time in more than half a century.
Although legislation seeking to promote commercial ties between the two countries has support from Democrats and some Republicans, efforts to pass bills that would ease trade and travel restrictions have been stymied by opposition from Republi-can congressional leaders.
Given the resistance from Congress, Obama is using executive powers to ease the trade barriers.
The administration was drafting the new regulations as Jose Cabanas, a veteran diplomat, yesterday became Cuba’s first ambassador to the United States in 54 years.
Washington has yet to name an ambassador to Cuba.
Cuba is also preparing for a three-night visit from Pope Francis starting tomorrow.
One advocate of US engagement with Cuba who has been briefed on the matter said administration officials first discussed the regulations with supporters of Obama’s Cuba policy in July.
“The focus is on ease of doing business and have been in hopper to be released for a couple of weeks. Interesting that they’re choosing it to coincide with the pope’s visit,” said Felice Gorordo, co-founder of the Cuban-American group Roots of Hope.
