Cuban President Miguel Díaz-Canel announced a wide-ranging package of economic reforms on Friday, aimed at liberalizing the island's economy amidst continued US sanctions and embargos.
The reforms will impact key sectors including tourism, foreign trade, investment, and the private sector. Arguably the most significant measure is the reopening of the tourism sector to "new players" and "new modalities," utilizing state-owned hotel stock after foreign companies withdrew to avoid US sanctions. Tourism, a major economic driver for Cuba, has been in deep crisis since the COVID-19 pandemic, exacerbated by ongoing US economic pressure.
Further reforms extend to the agricultural sector, granting it direct access to inputs, participation in the foreign exchange market, and reduced bureaucratic procedures. Havana will also eliminate the role of state import companies as intermediaries in foreign trade and lift restrictions on vehicle imports.
Díaz-Canel stated that the measures respond to the "demands of the present time" and are intended to streamline and energize the economy, emphasizing unity in the face of a "hostile environment." He also announced a reform of the state apparatus to reduce the number of ministries and reiterated the intention to gradually phase out universal subsidies, focusing them on the most vulnerable groups.
The package is scheduled for review by the country's political bodies in the coming weeks before final approval.
