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ViewpointSeptember 1 2015

US-Cuban relations: progress, challenges and surprises

The announcement in December 2014 of a restoration of normal relations between Cuba and the US shocked many, and thus far very little opposition has been registered. However, this inactivity should not shroud the challenges that lie ahead for both countries, says Peter Hakim of Inter-American Dialogue.
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It was only eight months ago, on December 17, that Cuban president Raúl Castro and US president Barack Obama revealed – to almost everyone else’s surprise – that their governments, after more than a year of secret negotiations, had reached agreement to end half a century of hostility and restore normal relations. Since their December announcement, the US and Cuba have succeeded in restoring full diplomatic ties. For the first time since 1961, the Cuban flag flies over the country’s embassy in Washington and the American banner over the US embassy in Havana. There have been other critical steps toward rapprochement.

Although the US trade embargo still severely limits US-Cuban economic transactions, Mr Obama has raised the ceiling on family remittances to Cuba more than fourfold to some $500 a month, loosened restrictions on trade with and investment in Cuba, and substantially eased curbs on travel to the island. Tourism is still banned, but many professional groups – academics, journalists, artists, investors and athletes, for example – no longer need permits to travel to Cuba. Air transport to Cuba has been expanded, and the US has given the green light to a ferry service between Florida and Cuba (which Havana now has to approve). US banks are now allowed to do business with Cuban counterparts.  

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