US drops Cuba from list of state sponsors of terrorism
The United States formally dropped Cuba from a list of state sponsors of terrorism on May 29, an important step toward restoring diplomatic ties but one that will have limited effect on removing US sanctions on the Communist-ruled island.
President Barack Obama had said on April 14 he would drop the former Cold War rival from the list, initiating a 45-day review period for Congress that expired on May 29.
Obama ordered a review of Cuba's status on the terrorism list as part of a landmark policy shift on Dec. 17, when he and Cuban President Raul Castro announced they would seek to restore diplomatic relations that Washington severed in 1961, and work toward a broad normalization of ties.
Removal from the list is more symbolic than of practical significance.
It ends a prohibition on US economic aid, a ban on US arms exports, controls on "dual-use" items with military and civilian applications, and a requirement that the United States oppose loans to Cuba by international financial institutions such as the World Bank and International Monetary Fund.
But those bans remain in place under other, overlapping US sanctions, since Cuba is still subject to a wider US economic embargo that has been in place since the early 1960s.
"As a practical matter, most restrictions related to exports and foreign aid will remain due to the comprehensive trade and arms embargo," said a US official on condition of anonymity.
The official said Cuba's removal might make private companies and banks more open to doing authorized business with Cuba.
Cuba had cited its designation as a state terrorism sponsor as an obstacle to re-establishing diplomatic relations and upgrading their so-called interests sections in Havana and Washington into full-blown embassies.
The two sides have held four rounds of high-level negotiations since December and say they are closing in on a deal to reopen the embassies. The State Department must give the US Congress a 15-day notice before opening an embassy.