US-Cuba thaw: tight ties remain on economic relations

Tourists and locals sit on the wall of the waterfront near the Morro lighthouse in Old Havana, Cuba, on August 25, 2010The historic breakthrough in US-Cuba relations announced Wednesday will allow more money to flow to the Caribbean island but keep trade and investment relations under tight controls, experts said. After a trade embargo on Cuba for more than 50 years, the White House said it will expand how much money Americans can send to the impoverished country and open up the flow of US tourists there. Gary Hufbauer of the Peterson Institute for International Economics in Washington estimates that a full thaw in relations could open up $5-10 billion in investment into Cuba. The deal announced by the White House will boost the flow of dollars into Cuba.

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