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			 The upgrade would lift Cuba to the so-called "Tier 2 Watch List" 
			from Tier 3, where it has languished for 12 years due to allegations 
			of sex trafficking and what U.S. authorities have previously 
			described as “coerced labor with Cuban government work missions 
			abroad.”  
			 
			The upgrade was contained in a draft report that could be modified 
			by the time of publication, expected this month, said a 
			Congressional aide with knowledge of the report. A second source 
			confirmed the upgrade. The sources requested anonymity. 
			 
			They attributed the upgrade to better cooperation between Washington 
			and Havana on human trafficking issues and better treatment of 
			victims, but they declined to provide specifics before the State 
			Department publishes the annual Trafficking in Persons report. 
			 
			The report, which tracks "modern slavery" such as forced labor and 
			the sex trade, is usually released in June but has been delayed this 
			year. 
			 
			The State Department declined to confirm the upgrade. “Given that 
			the report is not yet finalized, we will not comment on any specific 
			findings,” said State Department spokesman John Kirby. 
			
			  The thawing with Cuba is part of President Barack Obama’s efforts to 
			reshape American diplomatic relationships with some countries 
			previously seen as enemies, as underlined by Tuesday’s deal to limit 
			Iran’s nuclear ability in return for the lifting of some sanctions 
			and the 2012 opening up to longtime pariah Myanmar. 
			 
			The Trafficking in Persons report includes four categories: Tier 1 
			for nations that meet minimum U.S. standards; Tier 2 for those that 
			are making significant efforts to do so; Tier 2 "Watch List" for 
			those that deserve special scrutiny; and Tier 3 for countries that 
			fail to fully comply with the minimum U.S. standards and are not 
			making significant efforts to do so. 
			 
			Tier 3 countries may face sanctions, including the loss of U.S. aid 
			and U.S. support for World Bank and International Monetary Fund 
			loans, until major overhauls are introduced. Last year there were 23 
			countries on Tier 3, including North Korea, Syria, Iran and Cuba. 
			 
			The report was first published in 2001, though Cuba only made its 
			first appearance in 2003. 
			 
			 
			 
			FORCED LABOR 
			 
			In an attempt to end U.S. isolation of Cuba, Obama has used his 
			executive powers to relax some travel, business and 
			telecommunications restrictions since sealing a diplomatic 
			breakthrough with Havana in December.  
			 
			He has urged Congress to ease a 53-year-old U.S. trade embargo, 
			ended Cuba’s designation as a state sponsor of terrorism and 
			announced on July 1 the formal re-establishment of diplomatic 
			relations, including reopening of embassies in each other's 
			capitals, as part of a “new chapter” of engagement after more than a 
			half-century of estrangement.  
			 
			An upgrade in the trafficking report will face almost certain 
			criticism from political opponents of Cuba's Communist government, 
			including some U.S. lawmakers. 
			 
			Past U.S. reports on Cuba’s human trafficking record have been 
			highly critical, citing allegations of children coerced into 
			prostitution and forced labor in Cuban state-backed overseas’ work 
			missions through a program that sends thousands of Cuban doctors and 
			nurses abroad. 
			 
			Passports of those on the missions are sometimes withheld and people 
			have had their movements restricted, previous U.S. reports have 
			said. The Cuban government has denied the allegations. 
			 
			
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			Cuba has more than 50,000 health workers in more than 60 countries, 
			making professional services the country's top export earner. Those 
			doctors and nurses generally are well paid by Cuban standards and 
			the positions can be appealing to Cuban medical professionals. In 
			some countries the programs are very large - for example Cuba has 
			some 30,000 doctors and nurses in Venezuela, a socialist ally that 
			provides Cuba an estimated 125,000 barrels of oil per day. Some 
			foreign diplomats in Havana say allegations of forced labor in the 
			program appear overblown.  
			 
			However, some Cuban doctors and nurses have defected from their 
			overseas missions, complaining of difficult work conditions. Many 
			are openly recruited to defect under the U.S.-funded Cuban Medical 
			Professional Parole Program, which allows Cuban doctors and other 
			health workers who are overseas to enter the United States as 
			refugees. 
			 
			“SHOCKING” 
			 
			In last year’s report, the United States urged Cuba to revise laws 
			to criminalize all forms of human trafficking and meet international 
			standards, strengthen training of police and others in identifying 
			and protecting victims, and to adopt new anti-trafficking policies 
			to “ensure no use of coercion in Cuban work-abroad missions” and to 
			take other steps including more criminal prosecutions. 
			 
			It is unclear how many of those steps Cuba has taken. 
			 
			One area of concern to U.S. authorities has been the absence of laws 
			criminalizing prostitution for minors aged 16 to 18, a legal gray 
			area in Cuba where the age of consent is 16 and prostitution is 
			permitted, although pimping is outlawed. 
			 
			Senator Robert Menendez, a Democrat on the Senate Foreign Relations 
			Committee who has been a harsh critic of Obama’s Cuba policy, said 
			forced labor continues in Cuba with the conscription of doctors and 
			medical personnel to work overseas. 
			 
			“It’s shocking. There is nothing that the Cubans have done to 
			improve their standing,” said Menendez, who is the son of Cuban 
			immigrants, in an interview. “You have to earn your way up the 
			ladder, not just have political expediency be the reason that you 
			get moved from Tier 3." 
			  
			
			  
			 
			Menendez and human rights groups were also highly critical of the 
			State Department’s plans, revealed last week by Reuters, to upgrade 
			Malaysia from Tier 3, a move that could smooth the way for an 
			ambitious U.S.-led free-trade deal with the Southeast Asian nation 
			and 11 other countries. 
			 
			The Malaysian upgrade has not been confirmed by the State 
			Department, which says it is still finalizing the ratings. 
			 
			(Additional reporting by Daniel Trotta in Havana; Editing by Martin 
			Howell) 
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