Cuban President Unveils Unprecedented Economic Reforms to Liberalize Economy

In a historic shift ending decades of absolute state control, Cuban President Miguel Díaz-Canel revealed a broad set of economic reforms on Friday, affecting key sectors such as tourism, foreign trade, foreign investment, and the private sector. These measures aim to loosen restrictions and reduce bureaucracy within the island's communist economy, which is currently experiencing economic deterioration.

Díaz-Canel addressed local media, stating, "The country is not at a standstill. It is confronting these circumstances with considerable wisdom. We cannot say everything clearly because the enemy monitors all our actions." He added, "Our unity is what we must respond with."

In remarks broadcast on official television, the president explained that the reforms respond to the "requirements of the current phase" and seek to accelerate the economy and inject new vitality. While acknowledging the complexity of the international situation, Díaz-Canel emphasized that these changes are not a reaction to external pressures and called for solidarity and unity in facing what he described as a "hostile environment."

Among the key announced measures is the opening of the tourism sector to "new actors" and the adoption of "new mechanisms" to utilize state-owned hotel facilities. This follows the full or partial withdrawal of major foreign companies aiming to avoid US sanctions. The tourism sector, a major driver of Cuba's economy, has been severely affected by a deep crisis since the pandemic, which has worsened recently due to increasing US pressures.

The reform agenda also extends to agriculture by allowing direct access to production inputs, granting participation rights in the foreign exchange market, and reducing bureaucratic procedures. Additionally, the Havana government plans to eliminate the role of state import agencies that, by law, acted as intermediaries in the country’s foreign trade. Restrictions on vehicle imports will also be lifted.

Furthermore, Díaz-Canel announced a restructuring of the state apparatus to reduce the number of ministries. He reaffirmed the commitment to gradually phase out comprehensive subsidies to better target the most vulnerable and needy groups. This package of reforms will undergo study and evaluation by political authorities in the coming weeks before final approval.