Cuba’s Economic Reforms for Foreign Investment

New economic reforms were implemented in Cuba. According to Betsy Díaz Velázquez, minister of domestic trade, and Ana Teresita González Fraga, first deputy minister of foreign trade, the new measures are as follows:

• Direct import and export is authorized for certain non-state economic actors in the economy.

• Permission is granted to those that generate goods and services for export, beginning with those that export informational services.

• Private entities that offer products at better prices for the population are authorized to carry out foreign trade.

• For retail trade, foreign investment is authorized through the creation of joint ventures. Countries and partners that have remained in Cuba, despite the difficulties, will be prioritized.

• The participation of companies with 100% foreign capital is authorized for wholesale trade. They will be subjected to an evaluation so that they respond to the needs of the country.

• Business development through foreign investment is promoted throughout the country to boost wholesale trade.

• The creation of joint ventures under the foreign investment law, which will allow greater efficiency in this area of commerce, is selectively authorized to carry out retail trade activities.

• Foreign investment businesses are encouraged to be used, primarily for the sale of raw materials, supplies , equipment, and other goods that can contribute to promoting the development of national production. It is preferred that these entities can pre-finance national producers that have the qualities to become suppliers.

• Foreign investment operations can also sell and wholesale these products.

• The liquidity that the country obtains from taxes and other income associated with these businesses will be used to stimulate national production, support imports of economic products, and market them to the population in Cuban pesos.

• Foreign investment operations established in the country for the provision of goods and services will facilitate the wholesale trade sectors, including forms of non-state management, NGOs, embassies, business institutions, and branches in Cuba.

(Misión Verdad)

Translation: Orinoco Tribune

OT/FV/SL