Cuban president announces economic reforms to liberalize the embargo-hit and blockaded island

Cuban President Miguel Díaz-Canel surprised the nation on Friday by announcing a wide-ranging package of economic reforms designed to liberalize the island's economy amid continued US economic pressure. The reforms target tourism, foreign trade, investment, and the private sector.

In an interview, Díaz-Canel stated that the country is not paralyzed and is confronting the situation intelligently. He emphasized the need for unity and insisted that the measures respond to "the demands of the present time" rather than external pressure, while acknowledging the complex international backdrop.

Arguably the most important measure is the reopening of the tourism sector to "new players" and "new modalities" utilizing state-owned hotel stock. This follows the full or partial withdrawal of major foreign companies seeking to avoid US sanctions. Tourism, a key economic driver of the Caribbean nation, has been in deep crisis since the COVID-19 pandemic, deteriorating further in recent months amid US sanctions and blockades.

The reforms also extend to agriculture, which will gain direct access to inputs, participation in the foreign exchange market, and reduced bureaucracy. Additionally, Havana will scrap the role of state import companies as intermediaries in foreign trade and lift restrictions on vehicle imports.

Díaz-Canel also announced a reform of the state apparatus aimed at reducing the number of ministries, reiterating his intention to gradually phase out universal subsidies to focus on the most vulnerable groups. The package will be reviewed by political bodies in the coming weeks before final approval.