The Cuban regime has pointed the finger at sanctions imposed by Donald Trump's administration as a significant factor hindering the progress of its proposed economic reforms this year. They contend that the U.S. embargo remains the "greatest obstacle" to implementing the changes aimed at reviving Cuba's struggling economy.
In an interview with Reuters released on Tuesday, Oscar Pérez-Oliva Fraga, Cuba's Minister of Foreign Trade and Foreign Investment and Deputy Prime Minister, expressed that Washington should ease sanctions to facilitate deeper economic reforms.
"It is not our policy to prohibit American companies from investing in Cuba, trading with Cuba, or engaging in any business activities with Cuba," asserted Pérez-Oliva. "The commercial embargo is what prevents this possibility," he added.
These remarks follow the Cuban government's announcement of a comprehensive package of 176 Economic and Social Transformations in June, described by authorities as a wide-ranging overhaul of the economic model. The reforms include more room for market mechanisms, private banking, foreign investment, partial dollarization, changes in the business system, and new permissions for private actors.
Pérez-Oliva criticized the intensification of sanctions under Trump, which he claims is obstructing the inflow of foreign capital crucial for these transformations.
International Business Impact
The official also criticized the U.S. for pressuring foreign companies to cut ties with Cuba while allegedly facilitating certain operations for American enterprises. "On one hand, international companies—long-standing partners of Cuba worldwide—are being threatened and urged to cease their economic and trade relations with our country," he said. "On the other, efforts are made to boost activities of U.S. companies."
Pérez-Oliva cited a U.S. policy allowing American companies to export fuel to Cuba's private sector, interpreting it as an attempt to increase the island's economic dependence on the United States. "The policy aims to enforce Cuba's economic dependence," he stated, asserting that Cuba "will never again be a colony of any country."
Contrasting Views from Washington
Washington offers a sharply different perspective on Cuba's economic woes. Just last week, Secretary of State Marco Rubio argued that the Cuban political and economic model itself is the main barrier to attracting investment. "No one will invest in Cuba under its current governmental model," Rubio stated, raising concerns about legal security for investors and the possibility of unilateral changes to business conditions by Cuban authorities.
Rubio also emphasized that Cuba is free to trade with nations other than the United States, attributing limited foreign investment to a lack of guarantees, stability of regulations, and confidence in Cuban institutions.
Progress and Challenges of Cuban Reforms
Despite these conflicting positions, Havana claims to be rapidly implementing the reforms. On Monday, Prime Minister Manuel Marrero Cruz reported that 158 of the 176 measures, representing 89% of the package, had already been carried out, supported by 197 legal norms. However, Marrero acknowledged the need to verify the tangible outcomes of the transformations in areas such as production, income, prices, and employment.
The package, approved in June, includes changes across 23 economic sectors, including banking and finance, foreign investment, foreign trade, agriculture, energy, tourism, pricing, and business ownership.
In response to the reforms, the Trump administration imposed new sanctions on entities linked to the Cuban state apparatus, maintaining pressure on the financial, logistical, and mining sectors.
Future of International Investments
Pérez-Oliva also discussed the impact of these measures on foreign companies with interests in Cuban mining. Reuters noted that Canada's Sherritt International suspended its direct involvement in a nickel and cobalt joint venture following a Trump executive order threatening sanctions on Cuba-related mining activities. Australia's Antilles Gold, linked to a copper and gold project on the island, is also evaluating its next steps, according to Pérez-Oliva.
"Neither Antilles Gold nor Sherritt has withdrawn from Cuba," assured Pérez-Oliva. "In light of these sanctions, these companies are exploring alternatives to determine how to continue their operations."
The minister denied reports of recent contacts between Havana and companies directly associated with Trump. "I am not aware of any company directly linked to President Trump that has contacted Cuba," he stated, adding that neither he nor other Cuban officials had met with representatives of businesses tied to the former U.S. President.
Reuters recalled that Trump's business associates did visit Cuba in 2016 and held discussions with tourism sector officials about potential business opportunities.
Pérez-Oliva, 55, and a grand-nephew of Fidel Castro—his maternal grandmother, Ángela Castro, was the former leader's sister—also dismissed rumors that he is being groomed as a potential presidential successor. "I have no aspirations in that regard," he said. "I am simply a public servant and will work wherever needed, without aspiring to any particular position."
Key Questions About Cuba's Economic Reforms
What are the main components of Cuba's new economic reforms?
Cuba's economic reforms include increased market mechanisms, private banking, foreign investment, partial dollarization, changes in the business system, and new permissions for private actors.
How has the Trump administration's policy affected Cuba's economy?
The Trump administration's policy has intensified sanctions, making it difficult for Cuba to attract foreign capital, which is crucial for implementing its economic reforms. Additionally, it pressures foreign companies to cut ties with Cuba while facilitating some U.S. business operations.
What is Washington's perspective on Cuba's economic challenges?
Washington believes the primary obstacle to investment in Cuba is the country's political and economic model, citing issues with legal security for investors and stability of regulations.