Óscar Pérez-Oliva Fraga, serving as both Vice President of the Council of Ministers and head of the Ministry of Foreign Trade (MINCEX), revealed a comprehensive set of eight legal guidelines this Thursday. These new measures aim to reshape foreign investment, international trade, and tourism within Cuba.
The government touts these regulations as an extension of their economic reforms. Pérez-Oliva highlighted the significant "novelty" of enabling Cuban private entrepreneurs to collaborate with foreign capital. He remarked, "It could pave the way for intriguing growth dynamics."
Regarding the direct access of private firms to international markets, Pérez-Oliva acknowledged certain limitations: "Although it may not directly boost trade growth, it will enhance these entities' management capabilities."
Additionally, the package introduces three regulations for the tourism sector: guidelines for tourism transportation, travel agencies, and tourist guides. These regulations provide a flexible employment model, allowing for hiring based on language, region, or specialty.
Pérez-Oliva emphasized that these measures are "not targeted at any specific country" but are "generally aimed at increasing flexibility, simplifying processes, and reducing bureaucratic delays," describing them as "crucial for our current circumstances."
Among the most notable changes is the Council of Ministers' Agreement 10443/2026, which permits foreign investors to hire personnel directly, removing the mandatory state employment intermediaries previously involved.
Furthermore, the Central Bank of Cuba's Resolution 100/2026 eliminates the prior approval needed for joint ventures and national investors in international economic association contracts to open accounts in foreign banks, although they must notify the BCC within seven calendar days.
The Council of State's Decree-Law 128/2026 updates the Foreign Investment Law 118, effective since 2014, while MINCEX's Resolution 126/2026 outlines procedures for granting, modifying, and canceling import and export commodity classifications. Policies for foreign capital participation in wholesale and retail trade and investments in conservation and heritage areas are also revised.
These regulations are part of a broader adjustment process expedited by the government throughout 2026.
In June, the National Assembly approved a set of 176 economic measures across 23 categories, including opening direct foreign trade to private companies and cooperatives.
In July, Decree 153/2026 amended the regulations of Law 118 to expedite the approval of foreign capital ventures, while March's Decree-Law 114 regulated partnerships between state and non-state entities for the first time.
All these reforms come amid a severe economic crisis characterized by currency shortages, power outages, and reduced production, prompting the government to seek foreign capital and diaspora investments as potential recovery strategies, though tangible results have yet to materialize.
Pérez-Oliva also announced that Cuba is working on a comprehensive update to the Foreign Investment Law, which is scheduled for discussion and approval during the National Assembly's November session.
Understanding Cuba's New Economic Regulations
What is the main goal of the new regulations introduced by Cuba?
The primary aim of the new regulations is to enhance foreign investment, optimize international trade, and revitalize the tourism sector, offering a more flexible and simplified framework for economic activities.
How do these reforms impact foreign investors in Cuba?
The reforms allow foreign investors to directly hire personnel without state intermediaries, streamline the process of opening foreign bank accounts, and offer new opportunities for investment in various sectors.
Why are these economic changes significant for Cuba?
These changes are crucial as they aim to address Cuba's ongoing economic challenges, including currency scarcity and production slowdowns, by attracting foreign capital and encouraging private sector growth.