United States embargo against Cuba The United States embargo against Cuba is a commercial , economic , and financial embargo partially imposed on Cuba in October 1960 ( almost two years after the Batista regime was deposed by the Cuban Revolution ) . It was enacted after Cuba nationalized the properties of United States citizens and corporations and it was strengthened to a near - total embargo on February 7 , 1962 . Titled the Cuban Democracy Act , the embargo was codified into law in 1993 with the stated purpose of maintaining sanctions on Cuba so long as the Cuban government continues to refuse to move toward " democratization and greater respect for human rights . " In 1996 , Congress passed the Helms – Burton Act , which further restricted United States citizens from doing business in or with Cuba , and mandated restrictions on giving public or private assistance to any successor government in Havana unless and until certain claims against the Cuban government are met . In 1999 , U . S . President Bill Clinton expanded the trade embargo even further by also disallowing foreign subsidiaries of U . S . companies to trade with Cuba . In 2000 , Clinton authorized the sale of certain " humanitarian " US products to Cuba . The English word ' embargo ' is dubbed by its opponents in Cuba and Latin America as el bloqueo , despite the fact that the word ' embargo ' exists in Spanish , with an identical meaning in this context . The term ' bloqueo ' ( Spanish for " the blockade " ) suggests the presence of a physical blockade by the US Government . Despite this implication , no such blockade exists . The USA does not block Cuba ' s trade with third - party countries : other countries are not under the jurisdiction of US domestic laws , such as the Cuban Democracy Act ( although , in theory , foreign countries that trade with Cuba could be penalised by the US , which has been condemned as an " extraterritorial " measure that contravenes " the sovereign equality of States , non - intervention in their internal affairs and freedom of trade and navigation as paramount to the conduct of international affairs . " ) . Cuba can , and does , conduct international trade with many third - party countries ; Cuba has been a member of the World Trade Organization ( WTO ) since 1995 . Rationing and shortages of food and consumer goods exist in Cuba , but it is possible that the Cuban economy may have been " throttled " by " collectivist central planning " , rather than by the embargo . In 2011 , the US Government ' s UN Representative stated that the " Cuban Government ’ s own policy was the largest obstacle to the country ’ s own development , concentrating political and economic decisions in the hands of the few and stifling economic growth " , and that " The United States was , in fact , a leading source of food and humanitarian aid to Cuba . " The embargo has been periodically debated and criticised for over 20 years in UN General Assembly votes . President Barack Obama has outlined a series of steps that Cuba could take to demonstrate a willingness to open its closed society , including releasing political prisoners , allowing United States telecommunications companies to operate on the island and ending government fees on U . S . dollars sent by relatives in the United States . In confirmation hearings for the position of Secretary of State , Hillary Clinton said that she believed that the ban on Cuban - American family travel should be lifted . Many saw this as an opportunity for Cubans and Americans to engage in viable businesses together . The process toward larger diplomatic and commercial openings with Cuba was derailed when Cuban authorities arrested USAID contractor Alan Gross in , sentencing him to 15 years in prison in 2011 . While maintaining limited economic exchanges with Cuba , President Obama stated that , without improved human rights and freedoms by Cuba , the embargo remains " in the national interest of the United States . " As of November 2011 , U . S . – Cuba relations remain frozen and Cuba also remains one of the four countries in the world designated as a State Sponsor of Terrorism by the United States Department of State Beyond Cuba ' s human rights violations and its state sponsored terrorism designation , the United States holds $ 6 billion worth of financial claims against the Cuban government . The Cuban - American position is that the U . S . embargo is , in part , an appropriate response to these unaddressed claims . The Latin America Working Group argues that pro - embargo Cuban - American exiles , whose votes are crucial in Florida , have swayed many politicians to also adopt similar views . The Cuban - American views have been opposed by some business leaders who argue that trading freely would be good for Cuba and the United States . At present , the embargo , which limits American businesses from conducting business with Cuban interests , is still in effect and is the most enduring trade embargo in modern history . Despite the existence of the embargo , the United States is the fifth largest exporter to Cuba ( 6 . 6 % of Cuba ' s imports are from the US ) . However , Cuba must pay cash for all imports , as credit is not allowed . History . The U . S . arms embargo had been in force since March 1958 when armed conflict broke out in Cuba between rebels and the Fulgencio Batista regime . In July 1960 , in response to Cuba ' s new revolutionary government ' s seizure of US properties , the United States reduced the Cuban import quota of brown sugar to 700 , 000 tons , under the Sugar Act of 1948 ; the Soviet Union responded by agreeing to purchase the sugar instead , as Cuba ' s new government continued to take further actions to nationalize American businesses and privately owned properties . Kennedy - era embargo . In response to the Cuban alignment with the Soviet Union during the Cold War , President John F . Kennedy extended measures by Executive Order , first widening the scope of the trade restrictions on February 8 ( announced on February 3 and again on March 23 , 1962 ) . According to his press secretary , Pierre Salinger , Kennedy asked Salinger to purchase 1 , 200 Cuban cigars for his future use immediately before the extended embargo was to come into effect . Salinger succeeded , returning in the morning with 1 , 201 Petit H . Upmann cigars , Kennedy ' s favorite cigar size and brand . Following the Cuban Missile Crisis , Kennedy imposed travel restrictions on February 8 , 1963 , and the Cuban Assets Control Regulations were issued on July 8 , 1963 , under the Trading with the Enemy Act in response to Cubans hosting Soviet nuclear weapons . Under these restrictions , Cuban assets in the U . S . were frozen and the existing restrictions were consolidated . In 1962 , Cuba was expelled from the Organization of American States ( OAS ) " by a vote of 14 in favor , one ( Cuba ) against with six abstentions . Mexico and Ecuador , two abstaining members argued that the expulsion was not authorized in the OAS Charter . " Multilateral sanctions were imposed by the OAS on July 26 , 1964 , which were later rescinded on July 29 , 1975 . Cuban relations with the Organization of American States have since improved , and as of 3 June 2009 , membership suspension was lifted . The restrictions on U . S . citizens traveling to Cuba lapsed on March 19 , 1977 ; the regulation was renewable every six months , but President Jimmy Carter did not renew it and the regulation on spending US $ in Cuba was lifted shortly afterwards . President Ronald Reagan reinstated the trade embargo on April 19 , 1982 . This has been modified subsequently with the present regulation , effective June 30 , 2004 , being the Cuban Assets Control Regulations , 31 C . F . R . part 515 . The current regulation does not limit travel of US Citizens to Cuba " per se " , but it makes it illegal for US Citizens to have transactions ( spend money or receive gifts ) in Cuba under most circumstances without a US government Office of Foreign Assets Control issued license . Since even paying unavoidable airfare ticket taxes into a Cuban airport would violate this transaction law , it is effectively impossible for ordinary tourists to visit Cuba without breaking the monetary transaction rule . Helms – Burton Act . The 1963 U . S . embargo was reinforced in October 1992 by the Cuban Democracy Act ( the " Torricelli Law " ) and in 1996 by the Cuban Liberty and Democracy Solidarity Act ( known as the Helms – Burton Act ) which penalizes foreign companies that do business in Cuba by preventing them from doing business in the US . Justification provided for these restrictions was that these companies were trafficking in stolen U . S . properties , and should , thus , be excluded from the United States . The European Union resented the Helms Burton Act because it felt that the US was dictating how other nations ought to conduct their trade and challenged it on that basis . The EU eventually dropped its challenge in favor of negotiating a solution . After Cuba shot down two unarmed Brothers to the Rescue planes in 1996 , killing three Americans and a US resident , a bi - partisan coalition in the United States Congress approved the Helms - Burton Act . The Title III of this law also states that any non - U . S . company that " knowingly trafficks in property in Cuba confiscated without compensation from a U . S . person " can be subjected to litigation and that company ' s leadership can be barred from entry into the United States . Sanctions may also be applied to non - U . S . companies trading with Cuba . This restriction also applies to maritime shipping , as ships docking at Cuban ports are not allowed to dock at U . S . ports for six months . It ' s important to note that this title includes waiver authority , so that the President might suspend its application . This waiver must be renewed every six months and traditionally it has been . It was renewed for the last time July 17 , 2006 , therefore the suspension of this provision will remain effective for , at least , another six months following that date . In response to pressure from some American farmers and agribusiness , the embargo was relaxed by the Trade Sanctions Reform and Export Enhancement Act , which was passed by the Congress in October 2000 and signed by President Bill Clinton . The relaxation allowed the sale of agricultural goods and medicine to Cuba for humanitarian reasons . Although Cuba initially declined to engage in such trade having even refused U . S . food aid in the past , seeing it as a half - measure serving U . S . interests , the Cuban government began to allow the purchase of food from the U . S . as a result of Hurricane Michelle in November 2001 . These purchases have grown since then , even though all sales are made in cash . In 2007 , the US was the largest food supplier of Cuba , which nevertheless is largely self - sufficient , and its fifth largest trading partner . In some touristic spots across the island , American brands such as Coca - Cola can be purchased . Ford tankers refuel planes in airports and some computers use Microsoft software . However , the origin of the financing behind such goods is not always clear . The goods often come from third parties based in countries outside the U . S . , even if the product being dealt originally has U . S . shareholders or investors . This can be seen , for example , with Nestle products ( which have a 10 % US ownership ) that can be bought in Cuba with Cuban convertible peso s ( CUCs ) . These CUC pesos are hard currency that are traded in foreign exchange against the US dollar , Euro and other currencies . On 16 July 2012 , the " Ana Cecilia " became the first officially sanctioned direct ship to sail from the United States to Cuba after leaving the port of Miami for the island . It carried food , medicine and personal hygiene goods sent by Cuban - Americans to family members . Details of embargo . Restrictions on tourism by U . S . citizens and residents . According to the U . S . Department of State : " Cuban Assets Control Regulations are enforced by the U . S . Treasury Department and affect all U . S . citizens and permanent residents wherever they are located , all people and organizations physically located in the United States , and all branches and subsidiaries of U . S . organizations throughout the world . Regulation does not limit travel of U . S . citizens to Cuba " per se " , but it makes it illegal for U . S . citizens to have transactions ( spend money or receive gifts ) in Cuba , under most circumstances . Since even paying unavoidable airfare ticket taxes into a Cuban airport would violate the transaction law , it is impossible for ordinary tourists to visit Cuba without breaking the monetary transaction rule . The regulations require that persons subject to U . S . jurisdiction be licensed in order to engage in any travel - related transactions pursuant to travel to , from , and within Cuba . Transactions related solely to tourist travel are not licensable . " Spurred by a burgeoning interest in the assumed untapped product demand in Cuba , a growing number of free - market ers in Congress , backed by Western and Great Plains lawmakers who represent agribusiness , have tried each year since 2000 to water down or completely erase regulations preventing Americans from traveling to Cuba . Four times over that time period the United States House of Representatives has adopted language lifting the travel ban , and in 2003 the U . S . Senate followed suit for the first time . However , each time President George W . Bush threatened to veto the bill . Faced with a veto threat , each year Congress dropped its attempt to lift the travel ban . Some United States nationals circumvent the ban by traveling to Cuba from a different country ( such as Mexico , The Bahamas , Canada or Costa Rica ) , as Cuban immigration authorities do not routinely stamp passports , but instead stamp a Cuban visa page which is provided , and not permanently affixed to the passport . In doing so , however , U . S . citizens still risk prosecution and fines , by the U . S . government , if discovered . There is no U . S . Embassy or consulate in Cuba and United States representation is limited to a United States Interests Section . The United States Treasury Department ' s Office of Foreign Assets Control ( OFAC ) considers any visit of more than one day to be prima facie proof of violation . Furthermore , OFAC also holds that U . S . citizens may not receive goods or services for free from any Cuban national , eliminating any attempts to circumvent the regulation based on that premise . On July 25 , 2011 , OFAC declared that the “ people to people ” relaxation of restrictions on travel conceded by the Obama administration should not be mistakenly interpreted as promoting tourism . On October 10 , 2006 , the United States announced the creation of a task force made up of officials from several U . S . agencies that will pursue more aggressively violators of the U . S . trade embargo against Cuba , with severe penalties . The regulations are still in force and are administered by the U . S . Treasury Department , Office of Foreign Assets Control . Criminal penalties for violating the embargo range up to ten years in prison , $ 1 million in corporate fines , and $ 250 , 000 in individual fines ; civil penalties up to $ 55 , 000 per violation . Cuban - Americans . The Obama administration made slight changes to the restrictions on U . S . travel to Cuba . On April 13 , 2009 , President Barack Obama eased the travel ban , now allowing Cuban - Americans to travel freely to Cuba ; and on January 14 , 2011 he further eased the ban , by allowing students and religious missionaries to travel to Cuba if they meet certain restrictions . Socio - Economic Effects of the embargo . The 1998 U . S . State Department report " Zenith and Eclipse : A Comparative Look at Socio - Economic Conditions in Pre - Castro and Present Day Cuba " argued that the U . S . embargo has added , at most , relatively small increases in transportation costs . It claims that the main problem is not the embargo but the lack of foreign currency due to the unwillingness to liberalize the economy , diversify the export base , during the years of abundant Soviet aid . Cuba also amassed substantial debts owed to its Japanese , European , and Latin American trading partners acquired during the years of abundant Soviet aid . The U . S . Chamber of Commerce estimates that the embargo costs the U . S . economy $ 1 . 2 billion per year in lost sales and exports , while the Cuban government estimates that the embargo only costs the island itself $ 685 million annually . The United States has spent over $ 500 million broadcasting Radio Marti and TV Marti , even though the transmission signals of the latter are effectively blocked by the Cuban government . The self - proclaimed - non - partisan Cuba Policy Foundation estimates that the embargo costs the U . S . economy $ 3 . 6 billion per year in economic output . Critiques of embargo laws and rules . The UN General Assembly has passed the following resolutions against the US embargo on Cuba : The embargo has been criticized for its effects on food , clean water , medicine , and other economic needs of the Cuban population . Criticism has come from both Fidel Castro and Raúl Castro , citizens and groups from within Cuba , and international organizations and leaders including Barack Obama . Some academic critics , outside Cuba , have also linked the embargo to shortages of medical supplies and soap which have resulted in a series of medical crises and heightened levels of infectious diseases . It has also been linked to epidemics of specific diseases , including neurological disorders and blindness caused by poor nutrition . Travel restrictions embedded in the embargo have also been shown to limit the amount of medical information that flows into Cuba from the United States . An article written in 1997 suggests malnutrition and disease resulting from increased food and medicine prices have affected men and the elderly , in particular , due to Cuba ' s rationing system which gives preferential treatment to women and children . On May 1 , 2009 , Venezuelan President Hugo Chávez voiced his concern over the continued embargo . While speaking about his meeting U . S . President Barack Obama at a summit days earlier , Chávez stated " if President Obama does not dismantle this savage blockade of the Cuban people , then it is all a lie , it will all be a great farce and the U . S . empire will be alive and well , threatening us . " The Helms - Burton Act has been the target of criticism from Canadian and European governments in particular , who object to what they say is the extraterritorial pretensions of a piece of legislation aimed at punishing non - U . S . corporations and non - U . S . investors who have economic interests in Cuba . In the Canadian House of Commons , Helms - Burton was mocked by the introduction of the Godfrey - Milliken Bill , which called for the return of property of United Empire Loyalists seized by the American government as a result of the American Revolution ( the bill never became law ) . The European Council has stated that it : " while reaffirming its concern to promote democratic reform in Cuba , recalled the deep concern expressed by the European Council over the extraterritorial effects of the " Cuban Liberty and Democratic Solidarity ( Libertad ) Act " adopted by the United States and similar pending legislation regarding Iran and Libya . It noted the widespread international objections to this legislation . It called upon President Clinton to waive the provisions of Title III and expressed serious concern at the measures already taken to implement Title IV of the Act . The Council identified a range of measures which could be deployed by the EU in response to the damage to the interests of EU companies resulting from the implementation of the Act . Among these are the following " : Some critics argue that the embargo actually helps Fidel and Raul Castro more than it hurts them , by providing a scapegoat to blame for all of Cuba ' s problems . Hillary Clinton has publicly shared the view that the embargo helps the Castros , noting that " It is my personal belief that the Castros do not want to see an end to the embargo and do no want to see normalization with the United States . " Clinton said in the same interview that " we ' re open to changing with them , " though the US government maintains its strong stance in support of the embargo while the Castros continue to oppose it . George P . Shultz , who served as Secretary of State under Reagan , has gone as far as to call the continued embargo " " insane " " . Daniel Griswold , director of the Cato Institute ' s Center for Trade Policy Studies , criticized the current policy in June 2009 by stating : " The embargo has been a failure by every measure . It has not changed the course or nature of the Cuban government . It has not liberated a single Cuban citizen . In fact , the embargo has made the Cuban people a bit more impoverished , without making them one bit more free . At the same time , it has deprived Americans of their freedom to travel and has cost US farmers and other producers billions of dollars of potential exports . " Some American business leaders openly call for an end to the embargo . They argue , as long as the embargo continues , non - U . S . foreign businesses in Cuba that violate the embargo , do not have to compete with U . S . businesses , and thus , will have a head start when and if the embargo is lifted . José Azel , a Senior Research Associate at the Institute for Cuban and Cuban - American Studies , University of Miami and the author of the recently published book , " Mañana in Cuba " ( Tomorrow in Cuba ) presents an opposing perspective : " Currently over 190 nations engage economically and politically with Cuba while the United States remains alone in enforcing its economic sanctions policy . If indeed U . S . policy is deemed as one case of failure to change the nature of the Cuban government , there are 190 cases of failure on the same grounds . By a preponderance of evidence ( 190 to 1 ) the case can be made that engagement with that regime has been a dismal failure . " Some religious leaders oppose the embargo for a variety of reasons , including humanitarian and economic hardships the embargo imposes on Cubans . Pope John Paul II called for the end to the embargo during his 1979 pastoral visit to Mexico . However , during his January 1998 visit to Cuba , Pope John Paul II delivered his most powerful attack against President Fidel Castro ' s government , urging the Roman Catholic Church to take " courageous and prophetic stands in the face of the corruption of political or economic power " and to promote human rights within Cuba . Patriarch Bartholomew I called the embargo a " historic mistake " while visiting the island on January 25 , 2004 . A joint letter in 1998 from the Disciples of Christ and the United Church of Christ to the U . S . Senate called for the easing of economic restrictions against Cuba . While also opposing the embargo , the General Secretary of the National Council of Churches stated , " We did not understand the depth of the suffering of Christians under communism . And we failed to really cry out under the communist oppression . " Rev . Jesse Jackson , Rev . Al Sharpton , and Minister Louis Farrakhan have also publicly opposed the embargo . On May 15 , 2002 former President Jimmy Carter spoke in Havana , calling for an end to the embargo , saying " Our two nations have been trapped in a destructive state of belligerence for 42 years , and it is time for us to change our relationship . " The US bishops called for an end to the embargo on Cuba , after Pope Benedict XVI ' s 2012 visit to the island . The United Nations General Assembly has condemned the embargo as a violation of international law every year since 1992 . Israel is the only country that routinely joins the U . S . in voting against the resolution as has Palau every year from 2004 to 2008 . On October 26 , 2010 , for the 19th time , the General Assembly condemned the embargo , 187 to 2 with 3 abstentions . Israel sided with the U . S . , while Marshall Islands , Palau and Micronesia abstained . The Foreign Minister of the Republic of Cuba , Perez Roque called the embargo " an act of genocide " . Cuba has also denounced as " theft " the use of frozen Cuban assets to pay for lawsuits filed in the US against the Republic of Cuba . In addition to the Cuban authorities , film director Michael Moore has also challenged the embargo by bringing 9 / 11 rescue workers in need of health care to Cuba to obtain subsidized health care . In June 2011 , former Democratic presidential candidate George McGovern spoke out against the travel ban before visiting Cuba , remarking : McGovern blamed " embittered Cuban exiles in Miami " for keeping the embargo alive all these years , because of their dislike for Fidel Castro . Dr . José Azel frames the embargo in ideological opposition to Karl Marx who " makes it clear in chapter two of The Communist Manifesto that ' . . . the theory of the Communists may be summed up in the single sentence : Abolition of private property . ' " Dr . Azel articulates the validity of the embargo and sanctions , on the libertarian principle of property rights that hold the " fundamental reason for the existence of governments is to protect life , liberty , and property . " 2010 Bill to End the Travel Ban . On February 23 , 2010 , U . S . Congressman Rep . Collin Peterson of Minnesota introduced a bill that would bar the president from prohibiting travel to Cuba or preventing transactions required for such trips . June 2010 letter by Cuban dissidents . On Thursday , June 10 , 2010 seventy - four of Cuba ' s dissidents signed a letter to the United States Congress in support of a bill that would lift the U . S . travel ban for Americans wishing to visit Cuba . The signers include blogger Yoani Sanchez and hunger striker Guillermo Farinas , as well as Elizardo Sanchez , head of Cuba ' s most prominent human rights group and Miriam Levi , who helped found the Damas de Blanco , or Ladies in White , a group of wives and mothers of jailed dissidents . The letter supports a bill introduced on February 23 by Rep . Collin Peterson , a Minnesota Democrat , that would bar the president from prohibiting travel to Cuba or blocking transactions required to make such trips . It also would bar the White House from stopping direct transfers between U . S . and Cuban banks . The signers stated that : The Center for Democracy in the Americas , a Washington - based group supporting the bill , issued a press release stating that " 74 of Cuba ' s most prominent political dissidents have endorsed the Peterson - Moran legislation to end the travel ban and expand food exports to Cuba because in their words it is good for human rights , good for alleviating hunger , and good for spreading information and showing solidarity with the Cuban people . Their letter answers every argument the pro - embargo forces use to oppose this legislation . This , itself , answers the question ' who is speaking for the Cuban people in this debate ? ' – those who want to send food and Americans to visit the island and stand with ordinary Cubans , or those who don ' t . If Cuba ' s best known bloggers , dissidents , hunger strikers , and other activists for human rights want this legislation enacted , what else needs be said ? " The Center also hosts English as well as the Spanish version of the letter signed by the 74 dissidents . Polling data and public opinion . 2009 , U . S . polling indicates that the American public is currently in favor of ending the embargo , ( 51 % end vs . to 36 % continue . ) A 2008 USA Today / Gallup Poll . indicates that despite overwhelmingly unfavorable opinions of Fidel Castro ( 83 % unfavorable vs 5 % favorable ) , Americans believe that diplomatic relations " should " be re - established with Cuba . ( 61 % in favor , 31 % opposed ) . In January 2012 , an Angus Reid Public Opinion poll showed 57 % of Americans called for ending the travel ban that prevents most Americans from visiting Cuba . 27 % disagreed and 16 % were not sure .