Cuba approves new rules to expand private sector's role in its economy

Havana – Cuba has taken a significant step towards economic liberalization with the approval of three new decree-laws designed to diversify its business system and broaden the scope of private enterprise. The Council of State's decision aims to remove restrictions and foster greater development and diversity within the nation's economic actors.

The first decree-law modifies existing regulations for micro, small, and medium-sized enterprises (MSMEs), non-agricultural cooperatives, and self-employed workers. Lázara Mercedes López-Acea, president of the National Institute of Non-State Economic Actors, explained that these changes align with ongoing economic and social transformations, enhancing the operational autonomy and structure of these entities.

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eliminate restrictions, favor development and diversity of the country's business system.

These new decrees are part of a larger initiative encompassing 176 economic reforms launched in June. Experts suggest these reforms are crucial for addressing the island's six-year economic crisis, although the government has not officially framed the private sector as a primary solution. The measures are expected to allow private companies to exceed the current 100-worker limit and introduce new business models, such as managing hotels, car rentals, and passenger transport services.

Additionally, the Minister of Economy and Planning, Joaquín Alonso, presented a new decree-law on 'Bidding,' which will standardize the process for selecting counterparties in contracts for goods, services, and works involving state and private economic actors. Another modification adjusts customs tariffs for non-commercial personal imports, allowing individuals to import goods commercially as passengers or through shipments without engaging in formal foreign trade activities. These adjustments come as Cuba grapples with a severe economic downturn, exacerbated by U.S. sanctions.

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in correspondence with the economic and social transformations related to the management model of economic actors in terms of approval, classification, organization, operation and autonomy.