Center for International Policy

CIP SPECAL REPORT
TRAVEL BAN ON CUBA TIGHTENED: WHAT YOU SHOULD KNOW
July 7, 2003

The Center for International Policy urges both the U.S. and Cuban governments to remove all restrictions on the travel of their citizens that in any way conflict with international conventions or their own laws. Those imposed by the U.S. government are of most immediate concern to us, however, inasmuch as they violate the fundamental rights of American citizens. Further, the fact that the Cuban government impedes the departure and return of certain of its citizens in no way excuses or justifies controls placed by Washington on the travel of U.S. Citizens. Ours is a government which claims to respect the rights of its citizens and to believe their travel abroad is a useful means of spreading the message of American democracy. It should act accordingly.

-Wayne Smith

On March 24, 2003, the Treasury Department's Office of Foreign Assets Control (OFAC) announced amended regulations on travel to Cuba from the U.S. Though OFAC accepted comments on the regulations until May 23, 2003, there is no formal review process and the regulations go into effect with no real congressional oversight.

People to people travel category eliminated
The new regulations eliminate non-degree related educational travel to Cuba: the 2nd largest license category of travelers, which combined non-credit educational activities with people-to-people contacts. People-to-people travel was licensed by the previous administration, with the belief that such contacts between the two nations would promote American democratic ideals; this travel policy toward Cuba was modeled after the successful exchanges that took place between the former Soviet Bloc and the United States years ago.
· Specifically, the new regulations abolish section 515.565 (b)(2) of OFAC's Cuban Assets and Control Regulations. Effective March 23rd, "…specific licenses will no longer be granted to sponsor people-to-people educational exchanges to take individuals under their auspices on educational trips to Cuba unrelated to academic coursework." (OFAC Report for Congress, updated April 22, 2003) The new OFAC regulations will be a major setback for universities, non-profit orgs, professional associations, museums, religious groups, American businesses, continuing education programs, etc.

Cuban American restrictions eased
The new regulations eased restrictions on the largest category of travelers: Cuban Americans. The definition of a close relative was broadened and the amount of cash remittances a Cuban American may carry to Cuba rose to from $300 to $3,000. The per diem spending limit for Cuban Americans was lifted entirely. Effectively, OFAC has eased conditions under which Cuban-Americans may travel and has narrowed them for most others. This leniency arises from the fact that the majority of Cuban Americans now support lifting the travel ban. Evenso, many Cuban Americans complain that the bureaucratic process for getting permission to travel--even in extreme cases like a death in the family--is cumbersome and cruel; often Cuban Americans who cannot qualify under OFAC regulations are forced to travel to Cuba illegally.

New regulations endorse trips with a political agenda
Also, the new regulations added language about approved humanitarian trips, endorsing only those with a political purpose. The definition of 'humanitarian' is now more defined as specifically supporting dissident groups working toward a transition in Cuba.

Rationale and implications of the OFAC changes
Taylor Griffin, a Treasury Department spokesman, told the Stanford Daily (May 12, 2003) that the people-to-people category "undermined the intention of the U.S. sanctions against Cuba, which are to deprive the Castro regime of the financial wherewithal to continue to oppress its people."

Yet, loosened restrictions on Cuban American travel and remittances insure an increase in hard currency flow to the island. Thus, many analysts argue that the regulations changes amount to little more than cosmetic political payoff.

According to an analysis by the Lexington Institute, a conservative Arlington, VA-based think tank, "the [Bush] administration has taken no enforcement actions against Cuban-Americans for violations of travel or remittances rules…[however], the treasury penalizes hundreds of other Americans for travel violations every year. The new OFAC policy is discriminatory; it allows the administration broad discretion (and makes it lack transparency), and frankly shows little logic in dealing with the Cuba issue. Ironically, the new policy is hurting those who need it most."

Effects on the Cuban people
Restricting people-to-people travel will have a grave effect on the Cuban people and their quality of life. Castro's own failed economic policies, exacerbated by tough US sanctions, have made it increasingly difficult to survive on the average Cuban income ($15 USD/month). As Cuba turns increasingly to the dollar, the Cuban people are faced with the dilemma of how to get dollars in order to pay for scarce medications and food. More tourists translate into more private gain for the Cuban people (i.e. through private dining/room renting, venture wages -- usually conducted in USD$). These dollars can then be used to supplement meager food rations and an inadequate peso salary. Therefore, people-to-people travel has taken on a crucial role in empowering Cuban individuals financially, making them less dependant on the state, and introducing them gradually free-market enterprise.

Citizen diplomacy
Many Americans and pro-democracy Cubans alike argue in favor of "Citizen Diplomacy" as the best method of encouraging democratic regime change in Cuba, asserting that "the best way to promote positive openings in a society is to interact with it." The Cuban people are hungry for news from the outside world, particularly from the United States. No matter their politics, they are eager to talk to Americans in their streets, who provide Cubans with an alternate source of information to the State run media, and the opportunity to learn from a much more diverse range of opinions. An American presence in Cuba will develop ties between the two nations, provide Cubans with access to information and debate, reinforce among them the benefits of democratic leadership, and ultimately, will loosen Castro's influence and control.

Benefits of engagement to the US economy
Travel: Proximity to the US and its Caribbean appeal make Cuba a natural gem for American travelers. However, because of the travel ban, American tour groups, airlines, hotels and other service providers are banned from the Cuban tourism market, one of the fastest growing in the world. Particularly important in the weakened post-9/11 travel industry, service providers are anxious to profit from this market and reverse the losses suffered from our ailing economy.

If the travel restrictions on Cuba were lifted, "U.S. economic output would expand annually by $1.18 billion to $1.61 billion over time. This expansion would create from 16,888 to 23,020 new jobs." [Source: The Impact on the U.S. Economy of Lifting the Restriction on Travel to Cuba, a 2002 study by the Brattle Group. Available online: www.ciponline.org/cuba]

More Americans traveling to Cuba also implies a greater demand for U.S. foodstuffs there. The island's proximity makes American farmers first to profit from American travel there. Moreover, greater tourism revenues ensures that Cuba continues to pay American farmers in cash for any new contracts over the more than $270 million already contracted since the first food sales eighteen months ago.

Does OFAC have the right to eliminate people-to-people?
The Trade Sanctions Reform Act (TSRA) of 2000, introduced by Rep. Jo Ann Emerson, codified into law 13 categories of travel to Cuba - one of which was the "people-to-people" category. By proposing these new regulations, OFAC "overstepped its authority in eliminating that category," claimed Emerson at a May 14th press conference. She maintains, "Congressional intent was to expand travel to Cuba," and alleges that the executive branch (OFAC) has stepped into legislative jurisdiction - the interpretation and enforcement of law. Therefore, OFAC proposals to change legislation should be considered invalid.

What can be done about it
Given that the regulations changes have already gone into effect, there is little to be done except to press for a full congressional repeal of the restrictions, as codified under TSRA. Many grassroots organizations and educational institutions have appealed to their local and national elected officials to press for travel to Cuba. Activists also play an important role in educating their local community about the benefits of travel to Cuba by writing articles for newspapers or holding seminars on Cuba in community centers and universities.

Congressional initiatives and how Americans can support them
The congressional Cuba working groups announced bicameral, identical legislation to eliminate the travel ban at a May 14th press conference. U.S. citizens interested in repealing the ban on travel to Cuba should call their U.S. senators and representative and encourage them to cosponsor these two bills.

The bipartisan Senate bill (S 950), "The Freedom to Travel to Cuba Act," was introduced
Apr. 30, 2003 by Senators Enzi, Baucus and Dorgan. The bill now has 24 co-sponsors.
The bipartisan House bill (HR 2071), "Export Freedom to Cuba Act," was introduced
May 13th by Representatives Flake (R-AZ) and Delahunt (D-MA). Now more than 60
members have signed onto the bill.