The Cuban regime will enact into law this week some of the most significant economic reforms in recent decades, according to an in Havana by Carlos Luis Jorge Méndez, Deputy Minister of Foreign Trade and Foreign Investment.
Méndez confirmed that the measures are part of the package of 176 reforms approved by the National Assembly in June and that all should be formalized before the end of the year.
Among the changes that will come into effect in the coming days is the authorization for Cuban private companies to manage imports and exports directly, without having to resort to a state agency as an intermediary.
The government will also eliminate the legal provision that requires foreign investors to hire workers through the State and will expand the rights of foreigners to develop real estate on the island.
"This reinforces the idea that Cuba is opening up," Méndez told the American newspaper. "This is a real process; it is serious. It's not a ploy."
The official insisted that the ongoing transformations are permanent in nature and not just another temporary experiment. "There are transformations we are implementing that are changing the behavior of the national economy so profoundly that they will be very difficult to reverse," he stated.
Reforms are taking place at a time of maximum pressure from the Trump administration, which has imposed energy sanctions that, according to estimates, have reduced Cuba's oil imports by between 80% and 90%. Secretary of State Marco Rubio announced a new round of sanctions on August 20 and harshly summarized Washington's stance: "Every time you create a new mechanism to try to escape the knot, we tighten it."
Méndez acknowledged that direct conversations between the two countries are currently broken, although he emphasized that Havana remains open to dialogue: "We maintain our position and are willing to continue the dialogue."
The June package, organized into 23 thematic axes, had already begun to be partially implemented. Decree 160, in effect since August 4, removed 46 prohibitions for the non-state sector and relaxed another 35 activities. Among the measures already in place are the removal of the cap of 100 workers for small and medium enterprises, the possibility for foreigners to invest directly in private companies and cooperatives, and the authorization of private banking and private exchange houses.
However, analysts warn that enthusiasm should be tempered. John Kavulich, president of the Cuba-U.S. Trade and Economic Council, described the amendments as a "good trajectory" for the Cuban private sector, but cautioned that their sustainability depends on something the regime has not yet done: reforming the constitution.
"The Cuban government will increasingly find that the more changes it makes to policies, regulations, and statutes regarding the private sector, the more questions will arise about the sustainability of those changes," Kavulich noted. "Cuba's constitution will need to be adjusted, and there isn't much time left to do so."
Skepticism has a historical basis: similar reforms promoted during the thaw under the Obama administration were subsequently reversed by the Cuban government itself, which fuels doubts about whether this opening will have a different outcome.
Related videos:
Filed under: