US lifts Cuba's terrorism designation in part of deal to free prisoners

President Joe Biden is removing the US designation of Cuba as a state sponsor of terrorism, the White House said, in a deal that will see imprisoned protesters released in the communist country.

"An assessment has been completed, and we do not have information that supports Cuba's designation as being a state sponsor of terrorism," a senior administration official told reporters on Tuesday.

He said the Catholic Church was "significantly advancing" an agreement with Cuba to allow for the humanitarian release of "political prisoners in Cuba and those who have been detained unjustly."

The move will likely be overturned after the return to office next week of Republican Donald Trump, who reinstated the designation in the last few days of his first term of office in 2021.

Cuba said it would free 553 prisoners held for "diverse crimes" shortly after Washington's announcement.

President Miguel Diaz-Canel has announced a decision "to grant freedom to 553 persons who had been duly tried for diverse crimes," Cuba's Foreign Ministry said in a statement.

The incoming president's allies immediately criticised Biden over Tuesday's announcement, with Ted Cruz, a Cuban-American member of the US Senate's Foreign Relations Committee, calling it a "rank appeasement of the Cuban regime."

'More difficult circumstances'

The US would also ease some economic pressure on Cuba, as well as a 2017 memorandum issued by Trump toughening US posture toward Cuba.

Analysts say the Covid-19 pandemic, which tanked tourism, and economic mismanagement by the government have contributed greatly to the state of the economy.

But Diaz-Canel has described US sanctions as "genocidal" and said his country was prepared for "more difficult circumstances" after Trump's election.

Cuba was also ready for "dialogue" with the new administration, Diaz-Canel added, speaking weeks after Trump was reelected.

Cuba has been dealing with over six decades of US sanctions, which the Cuban government blames for the island nation's worst economic crisis, with shortages of fuel, food, medicines and electricity.

Blackouts and soaring food prices led to unprecedented anti-government protests around three years ago, with hundreds of people arrested and some given long prison terms, according to rights groups.