[REVISION HISTORY]

Cuba expands private sector role and economic reforms

35 recorded revisions of this situation.

What changed

2026-10-09 04:54 UTC → 2026-10-30 14:24 UTC · added ~~removed~~

Following the implementation of Decree 160 in August 2026, Cuba has continued to expand the role of the non-state sector through several new decree-laws. These measures aim to revitalize micro, small, and medium-sized enterprises (MSMEs), cooperatives, and self-employed workers by removing previous commercial limitations. Notably, the repeal of resolutions 56 and 18 allows wholesale trade to be based on the “will of the parties” rather than being strictly conditioned by state contractual relationships. To further reorganize internal, wholesale, and retail trade, the Ministry of Domestic Trade (MINCIN) has introduced Decrees 167 and 168, which allow for the creation of commercial chains and the “Neighborhood Market” (Mercado de Barrio) concept. Recent developments have introduced a comprehensive package of 176 economic and social measures. Under Decree-Laws 128 and 133, private companies may now employ more than 100 workers, engage in direct import and export operations, and associate directly with foreign capital. To manage monetary flow, Resolutions 102/2026 and 103/2026 established updated frameworks for foreign currency management, allowing individuals and legal entities to open foreign currency accounts without prior authorization from the Central Bank. This liberalization includes allowing non-state actors to accept cash in foreign currency for imports, exports, and e-commerce. In August 2026, Decree 160 also permitted MSMEs to operate private pharmacies to address a severe medication shortage, where President Miguel Díaz-Canel noted only approximately 30% of essential medications were available. By September 2026, the “Caja Extra” service was launched to allow businesses to distribute cash pensions to retirees, alleviating bank queues. Additionally, the first private currency exchange, ADT 64, opened in Santa Clara. In October 2026, new customs regulations under Resolution 340/2026 and Decree-Law 132/2026 were introduced to prevent the immediate confiscation of excess goods. Effective October 12, travelers or shipment recipients exceeding non-commercial limits can formalize these items by paying duties and service fees in US dollars. For passenger luggage, a progressive tariff applies, ranging from 15% for imports up to $2,000 to 30% for amounts exceeding $6,000, while commercial shipments face a flat 30% tariff. Customs authorities retain the power to determine if an import is commercial based on quantity, reference values, and specific product category rules. Essential items like food, hygiene products, and medicines remain exempt.

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