GAO Finds Relaxed Cuba Regulations Have Generated Business Interest, But Not Many Commercial Deals
U.S. regulatory changes including a license exemption to encourage U.S. exports that support the Cuban people have garnered U.S. business interest, but few commercial deals have been completed and bilateral economic engagement is still limited, according to a Government Accountability Office report released Jan. 17 (here). U.S. trade with Cuba has decreased in line with falling agricultural exports, which have been legal since 2000, the GAO said. Moreover, the U.S. trade embargo and Cuban government barriers constrict the range of opportunities for U.S. businesses and the Cuban private sector, the report says.
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The State Department and other U.S. agencies have engaged Cuban government officials, hosted events alongside Cuban entrepreneurs and promoted business training opportunities, but the GAO found that U.S. agencies haven’t collected and documented key information on the Cuban economy, regulatory impacts and “agency activities” in adherence with federal standards for internal control. “Without collecting and documenting information, agencies risk being unable to monitor and assess changes over time in economic engagement with Cuba, including with the private sector,” the report says. Starting in December 2014, the Obama administration has restored diplomatic relations with Cuba and modified some parts of the embargo. State agreed with GAO’s recommendation in the report that the department should consult with key agencies in taking steps to identify and collect information to monitor changes in bilateral economic engagement resulting from the changes in U.S. policy.
The GAO examined U.S. government and other reviews of the Cuban private sector, analyzed Cuban government data, interviewed U.S. federal and non-government Cuba experts, and did field work on the island for its assessment, which lasted from January to December 2016, the GAO said. Former Rep. Charlie Rangel, D-N.Y., then ranking member of the House Ways and Means Trade Subcommittee, and Rep. Tom Emmer, R-Minn., requested the review.