WASHINGTON: The Obama administration eased rules on Friday for US citizens wishing to travel to Cuba or do business with its growing ranks of independent entrepreneurs, hoping to kindle greater economic freedom on the island.

The Treasury and Commerce departments said the regulations that take effect on Monday simplify procedures for tourism, telephone and Internet investments, and money transfers to Cuba.

The changes were first reported on Thursday and come as both countries seek to transform their new diplomatic relationship into deeper commercial ties. By the end of the year, the former Cold War foes should resume direct postal service for the first time in five decades and clinch an agreement on regularly scheduled commercial flights, a US official familiar with the process said.

“A stronger, more open US-Cuba relationship has the potential to create economic opportunities for both Americans and Cubans alike,” Treasury Secretary Jack Lew said in a statement. Easing the embargo on Cuba, he said, will “support the Cuban people in their effort to achieve the political and economic freedom necessary to build a democratic, prosperous and stable Cuba.”

Commerce Secretary Penny Pritzker said the new rules could “stimulate long overdue economic reform across the country”.

When President Barack Obama laid out his vision of improved US-Cuban relations nine months ago, he said his objectives were twofold: ease economic hardship in Cuba and aid the development of a private market outside of state control.

In January, he eased economic restrictions on Cuba in potentially the most dramatic manner since relations between the countries broke down after Fidel Castro’s revolution in 1959 and the subsequent Bay of Pigs invasion and Cuban missile crisis. Only Congress can end the embargo.

The action sought to cut red tape for U.S. travel to Cuba, permit American companies to export telephones, computers and Internet technology, and allow US firms to send supplies to private Cuban enterprises. But efforts to expand business, tourism and other exchanges ran into an overlapping thicket of US laws and hindrances, not to mention an uneven response from Cuba’s political leaders.

Many US travellers still need to go on supervised group trips. Routine airline service hasn’t satisfied various federal conditions. Cruise ships and ferries are still trying to finalise regular maritime routes with Cuban authorities. Credit card and other companies still can’t transfer payments to Cuba.

Published in Dawn, September 19th, 2015

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