Cuba Has Its New Foreign Investment Law

Parliament unanimously approves the legislation

Cuba’s parliament votes on the new foreign investment law on 29-3-2014.

HAVANA TIMES — Cuba’s parliament today unanimously approved the new law to attract more foreign investment to the Caribbean island, reported dpa news.

The more than 600 members of the National Assembly gathered at the Havana Convention Center to approve the latest in the market reforms championed by the government of Raul Castro. It will take effect within 90 days.

Even the most controversial legislation in Cuba is routinely approved without opposition, from what detractors consider a rubber-stamp parliament.

The Foreign Investment Law will open the economy to foreign capital in nearly “all sectors”, according to information published in the official media. Foreign Trade Minister Rodrigo Malmierca said the new law will also allow investments from Cuban exiles.

Some of the nuances are a drop in the tax for joint ventures (with the Cuban state) on profits from 30 to 15% with an 8-year grace period, while fully owned foreign projects will have fewer incentives.

With the reform, the government hopes to obtain up to 2.500 billion dollars a year in direct foreign investment, noted Vice President Marino Murillo, who is in charge of overseeing the economic reforms.

Raul Castro (bottom left) and his top brass, also deputies, were on hand to cast their votes.

Some of the more attractive areas of the economy to open for investment are agriculture, sugar production, building renovation and real estate, notes Reuters.

“If the economy does not grow at levels around 7 percent … we are not going to be able to develop,” said Malmierca.

President/General Raul Castro also attended the parliament meeting to cast his vote. He has repeatedly advocated in recent months for such a law to increase capital inflows to revive the economy of the island and support the socialist agenda.

While the new law involves virtually all of Cuba, investors in the recently opened Mariel Port Special Economic Zone will receive additional incentives.

A discussion on the rights of Cuban workers employed by the joint ventures or all foreign companies was not mentioned in any of the reports.

Related Post: Cuba Opens Wide to Foreign Investment

61 thoughts on “Cuba Has Its New Foreign Investment Law

  • April 3, 2014 at 6:20 pm

    Like I said, that’s one segment of the population. There are others who oppose the revolution and the Castros. Maybe these people have no reason to go to your office and talk with you.

  • April 3, 2014 at 2:49 pm

    I speak with many Cubans, in the privacy of my office right here in the United States. A good chunk of them support the revolution, even though they live here. All most all of them would like to see the US get its boot off of Cuba’s neck.

  • April 3, 2014 at 2:42 pm

    How can you call yourself pro-Cuban if the majority of Cubans obviously disagree with you ?

  • April 3, 2014 at 8:58 am

    They count unemployment differently than in the US. Yes, we could in the US also have lower unemployment is we sent 11 million people to Mexico like the Mexican government has done. NAFTA also had a severe impact on agricultural employment, as U.S. subsidized corn and other products wiped out family farmers in Mexico. From 1991-2007, there were 4.9 million
    Did NAFTA Help Mexico?: An Assessment After 20 Years 2
    Mexican family farmers displaced; while seasonal labor in agro-export industries increased by about 3 million. This meant a net loss of 1.9 million jobs.

  • April 2, 2014 at 7:15 pm

    Wow! Mexico has only 5 % unemployment today? That’s a damn site better than the US which is at least twice that. It seems that Mexico, and Canada, are getting the better deal out of NAFTA.

    I read today that During the 1960s and 1970s, when Cuban agents were promoting revolution throughout Latin America, Fidel decided to leave Mexico alone as a safe haven for the Cuban government to do business with the capitalist world. Say what you will about Fidel, but he certainly was a shrewd character.

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