Obama hails new chapter in ties with Cuba

US President Barack Obama said on Wednesday a "new chapter" has been opened in Washington's ties with Cuba, saying it is time to end an "outdated approach" that has failed to move relations forward.

"Through these changes, we intend to create more opportunities for the American and Cuban people and begin a new chapter," Obama said.

Obama said the two countries have agreed to reestablish diplomatic relations and open economic and travel ties, marking the most significant shift in Washington's policy toward the communist island in decades.

In a speech at the White House, Obama said the thaw in relations after a five-decade freeze is being made after he determined the "rigid" and outdated policy of the past failed to have an impact on Cuba.

As Obama spoke, Cuban President Raul Castro said three Cubans freed in a prisoner swap had returned home.

Wednesday's announcement comes amid a series of new confidence-building measures between the long-time foes, including the release of US citizen Alan Gross, as well as a swap for a US intelligence asset held in Cuba and the freeing of the three Cubans jailed in the US.

The two leaders spoke by phone for more than 45 minutes on Tuesday, the first substantive presidential-level discussion between the US and Cuba since 1961.

There has been more than a year of secret talks between US and Cuban officials in Canada and at the Vatican.

US officials said Pope Francis was personally engaged in the process and sent separate letters to Obama and Castro in the summer, urging them to resume relations.

Gross, 65, was on a plane that landed in the US on Wednesday after being released on humanitarian grounds after more than five years in prison.

He was accompanied by his wife, Judy, and three congressional lawmakers.

The US will soon reopen an embassy in Havana and carry out high-level exchanges and visits between the governments.

The US is also easing travel bans to Cuba, including for family visits, official US government business, and educational activities, although tourist travel remains banned.

Early in his presidency, Obama allowed unlimited family visits by Cuban-Americans and removed a $1,200 annual cap on remittances.

US Secretary of State John Kerry is also launching a review of Cuba's designation as a state sponsor of terror.

AP - AFP