Tuesday's announcement comes days after Obama and Cuban President Raúl Castro met on the sidelines of the Summit of the Americas in Panama. The talks marked the first formal meeting between leaders of the two countries in a half-century.
The U.S. long ago ceased accusing Cuba of supporting terrorism. When Obama and Castro announced the thaw in relations in December, Obama expressed his willingness to remove Cuba from the list.
However, he held off on making a final decision amid indications that the White House was reluctant to grant Cuba's request until other thorny issues — such as restrictions on U.S. diplomats in Havana — were resolved.
White House press secretary Josh Earnest said that taking Cuba off the list does not change the fact that the U.S. has differences with the island nation's government.
"Our concerns over a wide range of Cuba's policies and actions fall outside the criteria that is relevant to whether to rescind Cuba's designation as a state sponsor of terrorism," he said.
Al Jazeera and The Associated Press
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