Cuba opens more sectors to private business amid US pressure

Cuban President Miguel Diaz-Canel announced on Friday that the communist government will expand freedoms for small businesses, a move aimed at liberalizing the island's economy amid crippling United States sanctions. In a televised speech, Diaz-Canel stated that more sectors will open to private enterprise, and the process for approving new ventures will be streamlined. "For non-state forms of management, the list of prohibited activities will be limited so that their scope of operations is as broad as possible," the president declared. He added that a process is underway to "approve all pending applications in the shortest time possible." These reforms come as Cuba faces intensified pressure from Washington, including fuel restrictions imposed in January and tightened extraterritorial sanctions. The United Nations High Commissioner for Human Rights urged the US on June 8 to immediately lift these sanctions, noting their direct harm to Cubans, especially the most vulnerable. Private businesses, which were authorized in 2021 and can employ up to 100 people, have become increasingly vital to Cuba's economy. Since February, they have been allowed to import fuel, a sector previously exclusive to the state. The new measures will also enable private businesses to invest in the economy on equal terms with foreign investors, addressing concerns that led some foreign investors to leave the country due to US sanctions. The government is also considering eliminating state intermediaries in import and export operations. Diaz-Canel reaffirmed his commitment to decentralizing the economy and granting more autonomy to state-owned enterprises, which currently dominate economic activity. A planned overhaul of the state bureaucracy, involving a reduction in ministries and state workforce, requires parliamentary approval in July. Despite mounting economic difficulties, Diaz-Canel projected confidence, stating, "The country is not paralysed; the country is facing this situation intelligently," while denouncing the US "maximum pressure" policy.

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For non-state forms of management, the list of prohibited activities will be limited so that their scope of operations is as broad as possible.