President Joe Biden will remove the US designation of Cuba as a state sponsor of terrorism as part of a prisoner release deal, the White House said.
President-elect Donald Trump reinstated this designation in the final days of his first presidency in 2021, banning US economic aid and arms exports to the country.
But on Tuesday, a Biden administration official said the situation assessment provided “no information” to support the designation.
Cuba said the move was a step “in the right direction,” despite its “limited nature.”
“This decision puts an end to specific coercive measures that, along with many others, are causing serious damage to the Cuban economy, with a severe impact on the population,” the Cuban Foreign Ministry said in a statement.
The immediate hope is that the move will lead to the release of some protesters imprisoned after large anti-government protests in Cuba due to the country's economic decline in 2021.
The White House official said a “large” number of prisoners would be released “in short order” as part of the deal facilitated by the Catholic Church.
Cuba is currently located alongside North Korea, Syria and Iran US list of state sponsors of terrorism.
This means that the United States considers them to have “repeatedly provided support for acts of international terrorism.”
In returning Cuba to the list after it was removed in 2015 by President Barack Obama, Trump cited the communist country's support for Venezuelan leader Nicolas Maduro.
Cuba at the time called the move “cynical,” “hypocritical” and an act of “political opportunism.”
Besides demanding the release of prisoners, this decision is also important because it can be seen as a step towards the normalization of relations between Cuba and the United States.
This could pave the way for dialogue on other controversial issues.
It could also help the dire economic situation in Cuba, where some major banks and foreign investors struggle to operate there legally.
A White House statement said Biden will inform Congress of his plans, which also include eliminating financial restrictions Trump imposed on some Cubans.
It will also suspend the ability of individuals to file claims for confiscated property in Cuba, the statement said.
It is unclear whether Trump will reverse this latest decision when he returns to office on January 20.
The president-elect's nominee for the next US Secretary of State, Marco Rubio, has long called for sanctions against Cuba.
His family left the country in the 1950s, before the communist revolution that brought Fidel Castro to power.
