The Cuban government has decided to extend the deadlines for private micro, small, and medium-sized enterprises (MSMEs) and non-agricultural cooperatives to continue their wholesale trading activities. This extension, outlined in Resolution 18/2025 from the Ministry of Domestic Trade (MINCIN), was published in the Official Gazette No. 43 on May 7, 2025. It benefits non-state economic actors who are authorized to engage in wholesale trade as either a primary or secondary business activity.
However, the extension is provisional and will remain in effect only until an evaluation is completed on the economic and social impact of these businesses both provincially and nationally, as determined by the "country’s policies." Notably, this extension excludes self-employed workers engaged in wholesale trade with domestic or imported products. These individuals must adhere to the original deadlines set by Resolution 56/2024, mandating the liquidation of inventories, goods in transit, and available products once the authorized period expires.
The new resolution also adjusts a key section of the previous regulations, clarifying that MSMEs, cooperatives, and self-employed individuals who produce their goods can sell both wholesale and retail, provided they have the appropriate license specifying such activities. Provincial and municipal commerce directors, along with Marketing and Inspection departments, are tasked with ensuring compliance with these regulations.
Once the evaluation of these enterprises concludes, decisions will be made regarding who can continue engaging in wholesale trade, and updates will be made to the social purposes and inventories of those who do not receive authorization. Furthermore, it is confirmed that those holding retail licenses can continue selling products and offering services to both the public and state and private entities without being affected by these changes.
In December, the Cuban regime delivered another blow to private initiative. The Official Gazette No. 119 published Resolution 56 from MINCIN, which automatically revoked wholesale trade licenses for private MSMEs and cooperatives that had wholesale activities as a secondary focus. This decision, signed by Minister Betsy Díaz Velázquez, took effect on December 5, under the guise of "organizing" wholesale and retail trade within the non-state sector.
At that time, Prime Minister Manuel Marrero justified the move, claiming it was not about prohibition but about "reorganizing" wholesale and retail trade in the private sector. During his address to the National Assembly, Marrero emphasized that the intent was to correct deviations in the operations of some MSMEs. He explained that several of these businesses had been approved with a specific social purpose but ended up primarily focusing on importing and mass-selling goods on the streets via containers, rather than fulfilling their authorized objectives.
In April, the government announced via its official X account that self-employed workers, initially authorized to sell domestic or imported products wholesale, were in the process of liquidating goods in transit and those already available in the marketplace, as required by current regulations. Additionally, the regime extended until September 30 the deadline for private MSMEs and non-agricultural cooperatives whose main activity was wholesale trade to confirm their continuation of such activities, but with the mandatory involvement of state entities. Resolution 56 of MINCIN 2024 initially granted a 90-day period for these businesses and cooperatives to express their intent to continue in wholesale trade and update their commercial licenses accordingly.
Understanding Cuba's Economic Policy Changes
What is the purpose of the recent extension for MSMEs in Cuba?
The extension allows private MSMEs and non-agricultural cooperatives to continue wholesale trading while a national and provincial evaluation is conducted to assess their economic and social impact.
Who is excluded from the extension of wholesale trade activities?
Self-employed workers engaged in wholesale trade with national or imported products are excluded from the extension and must adhere to the original deadlines set by previous resolutions.
How does the new resolution affect retail trade licenses in Cuba?
Those with retail licenses can continue selling products and services to both the public and state and private entities without being impacted by the new regulations.