The United States has officially removed Cuba from its blacklist of state sponsors of terrorism.
Under the decision, Cuba is expected to have better access to American aid and banking facilities, and to be free from a long standing ban on arms exports and sales.
The decision to drop Cuba from the list came into effect after a 45-day review period in the United States Congress.
State Department spokesperson Jeff Rathke says more discussions are needed in advance of the planned reopening of embassies in both countries.
"The United States sees these as separate processes: the review of Cuba's designation as a state sponsor of terror was instructed by the president and we have had a separate process of discussions with the Cuban government about reestablishing diplomatic relations and reopening embassies."
Washington and Havana have held four rounds of talks in past months, aiming to restore diplomatic relations and re-open embassies after more than five decades of enmity.
