[authors: Elizabeth Owerbach & Valecia Battle]

On June 10, Senator Jerry Moran (R-KS) introduced S. 1543: The Cuba Trade Act of 2015, which aims to "repeal{} or amend current laws restricting trade with Cuba," including "the enforcement of an economic embargo of Cuba," "the prohibition on indirect financing of Cuba," and "restrictions on remittances." This action follows Secretary of State Kerry's rescission of Cuba's designation as a State Sponsor of Terrorism on May 29, as reported by King & Spalding in June 2015.

Prior to the introduction of Senator Moran's bill, members of Congress had introduced three other bills to expand U.S. opportunities in Cuba, but little action has been taken on these to date. Some members of Congress have explicitly vowed not to lift the embargo, and others have played a more active role by adding riders to appropriations bills in an attempt to scale back recent regulatory changes. These riders attempt to limit U.S. exports, block funding for airline and cruise ship service to Cuba, and restrict funds for building an embassy in the country. President Obama has threatened to veto at least some of these bills.

The relaxation of certain aspects of the U.S. embargo against Cuba took place after the December 2014 announcement by President Obama of his intention to improve relations with Cuba. Specifically, as reported by King & Spalding in January 2015, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and the Treasury Department's Office of Foreign Assets Control (OFAC) made regulatory changes aimed at normalizing U.S. relations with Cuba. The Agencies implemented amendments to their respective regulations that eased restrictions on certain authorized travel and permitted certain exports and re-exports to support private sector growth in Cuba. These changes promote Cuban-U.S. interpersonal exchange but do not significantly impact the existing embargo. Because the embargo against Cuba can only be lifted by an act of Congress, the U.S. embargo against Cuba largely remains in place.

On July 1, President Obama announced that the United States and Cuba will open embassies in each others' capitals and re-establish diplomatic ties. However, the future of trade relations between the United States and Cuba remains relatively contentious, despite some public support for increased U.S. engagement with Cuba. Companies considering increased trade with Cuba, however, must be cognizant of continuing barriers. In addition to the existing U.S. embargo, companies should also consider other regulatory hurdles, such as the Foreign Corrupt Practices Act and Cuba's dated tax and commerce systems.