"Today, the Stars and Stripes again fly over our Embassy in Havana. Today, more Americans are visiting Cuba and engaging the Cuban people than at any time in the last 50 years," Obama said in a statement.
"We continue to have differences with the Cuban government, but we raise those issues directly, and we will always stand for human rights and the universal values that we support around the globe," he said.
"Over the next year, we will continue on this path, empowering Cubans and Americans to lead the way," he said.
Obama said one year ago, he announced that after more than 50 years, America would change its relationship with Cuba and put the interests of the people of both countries before the outdated ways of the past.
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"Since then, we have taken important steps forward to normalise relations between our countries-re-establishing diplomatic relations and opening embassies, facilitating greater travel and commerce, connecting more Americans and Cubans and promoting the free flow of information to, from, and within Cuba," he said.
The US also announced the start of commercial flights between the two countries. The move is the latest in a series of steps taken to cool off tensions between the two countries.
Cuban Foreign Minister Bruno Rodriguez Parilla travelled to Washington in July to re-open Cuba's US Embassy, and Secretary of State John Kerry flew to Cuba a month later to re-open the US Embassy there for the first time since 1961.
But not all Cold War vestiges have been cast off -- the US embargo remains in place with support from Republican lawmakers who have railed against President Obama's efforts to renew relations with Cuba.