Under the rules released by the US Treasury and Commerce Departments, companies can establish subsidiaries or joint ventures as well as open offices, stores and warehouses in Cuba.
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Cuba insiders say the focus now largely shifts to the Cuban government and how it will handle newfound attention from US businesses.
The Obama administration on Friday moved to further change U.S.-Cuba trade rules, ushering in what experts called a major development that would significantly open the door to expanded business on the island.
The first American secretary of state to visit Cuba since 1945, Kerry presided over the flag-raising ceremony at the recently reopened U.S. Embassy, a symbolic act after the the two Cold War enemies reestablished diplomatic relations in July.
The Treasury announcement specified the types of businesses and offices allowed to be opened in Cuba, and they include US exporters of “permitted goods” such as farm products and construction materials; telecommunications providers and Internet services; news bureaus; and education and religious groups.
The new regulations also allow exports from the U.S.to Cuba for safety in civil aviation – such as explosion detection.
“Raul doesn’t have to respond to USA policy, but it would makes things more likely to keep happening if these US gestures bore fruit”, Henken said. “That’s not how it operates”, said Kirby Jones, head of Alamar Associates, which has advised companies on business in Cuba since the 1970s. Only around five percent of people in Cuba have regular access to the Internet, largely due to strict government control over the state-run carrier, Etesca.
Michael Regan of Bloomberg news discussed what these changes would mean with Here & Now’s Peter O’Dowd.
“Obama took a sledgehammer to US regulations today, but he’s 50 percent of the equation”, said Kavulich of the U.S.-Cuba Trade and Economic Council.
The White House announced on Friday further loosening of its trade embargo with Cuba, according to Reuters and US National Public Radio.
Despite lingering questions for American companies about the business climate, the buying power of Cuban consumers, the influence of the government and the lack of infrastructure needed to facilitate business, there are signs of change.
“While this will not be an immediate big earner for USA companies, it is an opportunity to get on the island and start building from there”, he said. The unidentified official claimed that breakthroughs are expected to take place before the end of the year. He’ll then travel to the US for a multi-city visit, including a White House meeting with Obama. Direct mail service was halted in 1963, though letters and packages travel back and forth through countries like Canada and Mexico.
One flight after another, travelers packed Miami global Airport terminals for Havana, Cuba.
However, the new regulations, which come into effect on Monday, do not change who can travel to Cuba. Those flying sometimes must arrive at the airport four hours in advance; strict baggage limits apply. Despite this, it’s unlikely that the Cuban government will allow USA carriers to set up shop.
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The rules, however, do not permit tourist activity in Cuba.
