Carlos Luis Jorge Méndez, the Deputy Minister of Foreign Trade and Foreign Investment of Cuba, shared in an exclusive interview with USA Today, released this Sunday, that the economic reforms announced by the Cuban regime in June will start becoming law this week. These changes underscore the regime’s intention to project an image of openness.
Speaking to the American media outlet in Havana, Méndez described the reforms as an unprecedented structural shift in recent times: "This reinforces the idea that Cuba is opening up. It's a genuine process, not a maneuver," he stated.
The reforms package approved in June consists of 176 economic changes categorized into 23 thematic areas. Méndez highlighted three pivotal changes among the reforms.
The first allows private Cuban companies to manage imports and exports directly, bypassing the mandatory use of a state agency, though some exceptions apply.
The second abolishes the legal requirement for foreign investors to hire workers through state agencies, a rule that has historically complicated and increased the cost of investing on the island.
The third expands the rights of foreigners to develop real estate within Cuban territory.
Méndez emphasized that these changes are not temporary experiments, unlike those the regime has previously dismantled: "There are transformations we are implementing that alter the national economy's behavior so profoundly that they will be challenging to reverse," he asserted.
The official noted that all reforms should be in effect before the end of 2026. By July 30, the regime had approved 110 out of the 121 measures planned for the first two months, reaching 90.9% of the intended plan, according to government data.
These announcements come amid intense pressure from the United States. The Trump administration has effectively imposed an energy blockade, which estimates suggest has slashed Cuban fuel imports by 80% to 90%. On August 20, Secretary of State Marco Rubio announced a new round of sanctions and summarized Washington's strategy to Axios: "Whenever they devise a new mechanism to escape the stranglehold, we shut it down."
In this context, Méndez confirmed that bilateral talks between Cuba and the United States are at a standstill, although the regime remains willing to engage in dialogue: "We maintain our position and are open to continuing the dialogue," he stated.
Skepticism about the permanence of the reforms remains high. John Kavulich, president of the U.S.-Cuba Trade and Economic Council —an organization active since 1994— acknowledged the reforms are on a "positive trajectory," but warned that without a fundamental constitutional reform, these measures might meet the same fate as those rolled back during the rapprochement with the Obama administration.
"Cuba's constitution will need adjustment, and time is running out to do so," Kavulich was quoted by USA Today. The U.S. government, on the other hand, labeled the June reforms as merely cosmetic when they were announced, a position Washington has not altered.
Key Insights on Cuba's Economic Reforms
What are the major changes in Cuba's recent economic reforms?
The significant changes include allowing private Cuban companies to manage imports and exports directly, removing the requirement for foreign investors to hire workers through state agencies, and expanding rights for foreigners to develop real estate in Cuba.
How does the U.S. view Cuba's latest economic reforms?
The U.S. government has dismissed the June reforms as superficial and has not changed its stance, maintaining the pressure through sanctions and other measures.
What challenges do these reforms face according to experts?
Experts like John Kavulich caution that without comprehensive constitutional reform, the changes risk being reversed, similar to previous reforms that were rolled back after the Obama administration's rapprochement with Cuba.