The biggest winners of the renewed US-Cuba relations

The United States will take historic steps to restore diplomatic relations with Cuba, beginning with the opening of an embassy in Havana and easing of trade and travel restrictions.

President Barack Obama made the announcement during a televised speech on Wednesday, saying it’s “time for a new approach” on Cuba. The new approach ends efforts to isolate the communist nation that go back more than half a century.

SEE ALSO: What normalizing ties with Cuba means for America

Here’s a look at some of the biggest winners of the new move to normalize relations between the U.S. and Cuba. 

Travelers

Although ordinary tourism will still be banned, Americans will be allowed to travel to Cuba if they fit into 12 categories, including family visits, humanitarian projects, and professional, educational and religious activities.

Once in Cuba, travelers will be able to use credit and debit cards.

An estimated 170,000 authorized travelers made the trip to Cuba last year, according to the U.S. Department of Commerce. That number is expected to grow with the easing of travel restrictions to Cuba.

U.S. exporters

The U.S. is easing trade restrictions on Cuba. This means the U.S. will now be able to export some items to Cuba, including certain building materials for private residential construction, goods for use by private sector Cuban entrepreneurs and agricultural equipment for small farmers.

According to the White House, this will make it easier for Cubans “to have access to certain lower-priced goods to improve their living standards and gain greater economic independence from the state.”

Telecommunications providers

U.S. telecommunications firms will be able to establish the necessary mechanisms, including infrastructure, in Cuba to provide commercial telecommunications and internet services.

Currently, Cuba has one of the lowest internet penetration rates in the world at 5 percent. This is mainly because of the high cost of telecommunications in Cuba. And those who are able to afford it have limited services.

The White House says that by allowing telecommunications providers to go into Cuba, the Cuban people will be able to better communicate with people in the U.S. and the rest of the world.

Cigar aficionados

Many cigar aficionados are wondering if they will be able to get their hands on Cuban cigars. Under the new changes, only “licensed U.S. travelers” who make the trip to Cuba will be able to bring back a limited amount of Cuban cigars.

Those who travel to Cuba will now be able to import up to $400 worth of goods, including $100 worth of tobacco products and alcohol combined.

Large imports of Cuban cigars will still be barred given that the trade embargo on Cuba still exists. Only Congress can lift the embargo and allow large bulks of Cuban cigars to be imported from Cuba.

Remittance beneficiaries

Easing restrictions on remittance means Cuban Americans will now be able to send more money back home.

Under the new changes, remittance levels will be raised from $500 to $2,000 per quarter for general donative remittances to Cuban nationals—except to certain officials of the government or the Communist Party. In addition, donative remittances for humanitarian projects and the development of private businesses will no longer require a license.

This could result in more money added to the Cuban economy. The U.S. Department of State estimates that families in the U.S. send up to $2 billion in cash remittances to Cuba every year.

SEE ALSO: Cuba deal worries some Cubans, insults others

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