Joe Biden announced an opening to Cuba: more flights, remittances and even investments on the island

The government of President Joe Biden announced this Monday an opening towards Cuba that breaks down several of the severe sanctions imposed by the government of Donald Trump and opens the way for US investments in the island. The newspaper El Nuevo Herald even announced that a North American company was authorized to invest 25,000 dollars in a private business in the Caribbean country.

The measures include the increase in flights to Cuba and the lifting of the restrictions imposed by the Republican president on the remittances that Cuban immigrants can send to the island.

In a statement, the State Department indicated that it will withdraw the current limit of 1,000 dollars per quarter on family remittances and will allow non-family remittances, which will provide support to independent Cuban entrepreneurs.

Washington will also allow scheduled and charter flights to places other than Havana. On the other hand, it will restore a family reunification program that had been suspended for years

“With these measures, we intend to support the aspirations of Cubans for freedom and greater economic opportunities so that they can lead successful lives in their country,” the State Department added. “We continue to call on the Cuban government to immediately release political prisoners, respect the fundamental freedoms of the Cuban people and allow them to determine their future,” he said.

The policy change follows a review that began shortly after a series of widespread protests on the island on July 11-12.

In Miami, they talk about the first US investment in a private company in Cuba

Meanwhile, the Miami newspaper El Nuevo Herald said that the United States authorized a US company to finance and invest in a private business in Cuba.

If confirmed, it would be an unprecedented measure that could open the door to US investment in the incipient Cuban private sector. The embargo in place since 1960 prohibits most financial transactions between the two countries.

According to the newspaper, the decision was made last week. The Treasury Department allowed a company run by John Kavulich, president of the United States-Cuba Trade and Economic Council, to invest and lend money to a small private company in the service sector in Cuba. The amount to invest is less than $25,000.

Details of the transaction are “tangential,” Kavulich said. What matters is that “others can now try to benefit from the precedent set by the license”. “Now there is an option when days ago there was none,” he was quoted as saying by the newspaper.

However, this type of investment should be authorized by the Cuban government.

“To my knowledge, there is no precedent, and no direct capital investment has been authorized in Cuba since the Kennedy administration imposed a full trade embargo,” said Bob Muse, a Washington DC attorney. that he drafted the contingent investment agreement with the owner of the Cuban small business and the license application.

“It’s a significant step,” Muse said. Kavulich declined to identify the Cuban company in which he will invest.

What are the most important measures announced by Joe Biden for Cuba

Among the most important measures announced this Monday by Washington are:

• The restoration of commercial flights and charter flights to different parts of the island was prohibited by Trump in 2019. Until now there were only flights to Havana.
• Permission to travel for educational or professional-related purposes. Also, the trips of groups of Americans destined to make contact with the Cuban people, known in English as “ people to people travel ”. However, individual visits of this kind will continue to be prohibited.
• Increased support for Cuban entrepreneurs with authorizations to access electronic commerce platforms, among other actions.
• Non-family remittances will be allowed, which will provide support to independent Cuban entrepreneurs.