WASHINGTON (AFP) — The United States dropped Cuba from its blacklist of state sponsors of terrorism yesterday, a significant move toward normalising ties frozen for half a century.

Cuba — on the list since 1982 — moves from the ranks of nations like Iran, Syria and Sudan, toward a working relationship with its Cold War “yanki” foe that could boost Havana’s ailing economy.

US President Barack Obama had announced earlier this year that he intended to remove Cuba from the list.

The State Department yesterday confirmed that a “final decision” had been taken, “effective today”.

This came after Congressional opponents were unable to muster enough votes to torpedo the plan within a 45-day legislative window.

The move has deep political significance, but is also practical, allowing Cuba access to US banking facilities.

Removal from the blacklist had also been seen as a prerequisite for re-establishing embassies in Washington and Havana.

But the White House was forced to admit Friday that there was still no timetable for that to happen, amid Cuban objections to democracy programmes and demands that US diplomats be allowed to meet freely with dissidents.

“There continue to be issues that need to be worked out,” said spokesman Josh Earnest.

“In discussions that were convened last week, there was important progress that was made.”

Republican leader John Boehner was scathing in his criticism of Obama’s move.

“The Obama administration has handed the Castro regime a significant political win in return for nothing,” he said.

“Relations with the Castro regime should not be revisited, let alone normalised, until the Cuban people enjoy freedom — and not one second sooner.”

Obama and Cuban President Raul Castro agreed in December to restore relations in deep freeze since 1961.

The pair held a historic meeting in Panama in April.

The White House sees better relations with Cuba as correcting an out of date policy and as a likely signature foreign policy achievement of his presidency.

A majority of Americans agree, but the move has been controversial among older Cuban Americans and Republicans who are trying to court their vote ahead of 2016 elections.

In a bid to push back, Obama on Thursday paid a surprise visit to a Miami religious shrine popular with Cuban exiles.

The visit had special significance, recognising the instrumental role of the Catholic church and Pope Francis’s successful intervention in improving ties between Havana and Washington.

While ties are warming, generations of mistrust and legislation remain.

Obama has already made it easier for 12 categories of Americans to visit the communist island, no longer requiring them to apply for a licence before travelling.

But regular tourism remains off-limits. Trips are limited to specific visits including education, sports, culture or journalism.

Those allowed to visit Cuba can bring back home $100 worth of cigars or rum, and pay for purchases on the islands with credit cards.

US companies are now allowed to invest in Cuba’s tiny but growing private sector, which emerged under modest economic reforms launched by Castro.