WOLA: Advocacy for Human Rights in the Americas
28 May 2024 | WOLA Statement

Biden Administration Rolls Out Policies Supporting Cuban Entrepreneurs and Internet Freedom

On May 28, 2024, the U.S. Treasury Department published details of the Biden administration’s long-awaited policy package to support Cuba’s private sector and internet freedom. These key measures include critical access to the U.S. banking system in addition to other services such as licensing for digital software services, and the authorization of the use of social media and collaboration platforms and “U-turn” transactions, allowing for the transfer of funds through the U.S. financial system which originate and end outside the country. While still a far cry from the Obama-era policy changes that sought a new chapter in U.S.-Cuba relations, these adjustments are likely to help stimulate private sector growth for the island’s shattered economy.

Since first being legalized in 2021, some 11,000 mipymes (​​small- and medium-sized businesses) have been approved. Ranging in scope from transportation services to restaurants and textile companies, mipymes represent an important shift in Cuba’s economic landscape in recent decades.

Expanding the availability of internet-based services and digital communications platforms in Cuba is a welcome development for Cuban civil society organizations and entrepreneurs alike, whose work will be enhanced by access to these services. Likewise, allowing independent economic actors the ability to open and use U.S. bank accounts, including online payment platforms, among other measures, are steps towards expanding economic liberties and providing opportunity amidst the island’s profound humanitarian crisis. In recent months, Cuba has experienced lengthy energy blackouts as well as shortages of food, fuel, and medicine. Emigration from Cuba, primarily to the United States, has since surpassed any wave seen since the 1959 Revolution, indicative of the hardship on the island.

This rollout fulfills the outstanding commitments outlined in the Biden administration’s May 2022 announcement on Cuba policy changes. Nonetheless, other U.S. restrictions that dampen prospects for private Cuban business remain in force, most notably Cuba’s inclusion in the list of state sponsors of terrorism. This measure prevents independent Cuban entrepreneurs from accessing international banking services, while discouraging foreign nationals from visiting Cuba under the threat of losing their Electronic System for Travel Authorization (ESTA) visa waiver for travel to the U.S., and presenting barriers for civil society organizations, churches, and aid groups to provide humanitarian assistance to the Cuban people.

Apart from following through with the May 2022 policy changes, the Biden administration should adopt additional measures to address the dire humanitarian and human rights crisis in Cuba.

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