Cuba encourages foreign investment measures to boost the economy

 

HAVANA, Cuba, Aug 16 (ACN) Cuba announced new measures that substantially modify the role of foreign investment in domestic trade, in order to immediately increase the supply of goods to the population.

Ana Teresita Gonzalez Fraga, first deputy head of the ministry of foreign trade and foreign investment (MINCEX by its Spanish acronym), explained on the informative program Mesa Redonda that the decisions will be accompanied by evaluation and control mechanisms to ensure their effectiveness and ratified that the state monopoly of foreign trade will continue to be exercised by the Cuban state, establishing the control and regulations associated with the activity.

She pointed out that one of the provisions is to promote the development of businesses throughout the country to boost wholesale trade through foreign investment, an activity that until now was mainly focused on the production of goods and services, but now it is proposed to create entities dedicated to commercialization in the wholesale market.

In search of greater efficiency, it was agreed to selectively promote the creation of joint ventures to carry out retail trade activities, the first deputy minister added.

The promotion of foreign investment businesses for the sale of raw materials, inputs and equipment, and for the supply of finished goods, such as food and cleaning products of economic line, is another of the measures set forth in order to overcome the existing shortage.

In this regard, Betzy Diaz Velazquez, minister of domestic trade (MINCIN by its Spanish acronym), recalled that until now retail trade had not been contemplated in this last economic activity, while recognizing among its benefits how much capital a foreign businessman or partner can bring to the country, and the usefulness of knowing and applying their management methods and marketing knowledge.

For this reason, she stressed the aspiration that non-state management forms participate in retail trade, although some MSMEs already do it and said that joint ventures with mixed companies that can have access to retail trade throughout the country are being evaluated, and at first priority will be given to those partners, branches or foreign entrepreneurs who have been in Cuba for years, who have remained here despite the adversities.

As regards MINCEX, Gonzalez Fraga expressed that it was approved to grant, on an exceptional basis, the power to non-state entities to operate in foreign trade without intermediaries, taking into account different criteria.

Imports will be allowed, she specified, in those cases in which directly carrying out such activity allows to enter into advantageous contracts that contribute to obtain goods and services with better conditions in terms of price; that is to say, those forms of management that subsequently market their offers at lower prices to the population will be given the go-ahead.

Imports include only inputs, raw materials and equipment that allow private sector entities to comply with their social purpose, and for this purpose the same mechanism stipulated for state-owned companies will be followed.

The creation of state-owned micro, small and medium-sized enterprises (MSMEs) will continue, especially outside Havana, for the development of foreign trade.

The approved decisions will encourage exports of goods and services, Gonzalez Fraga concluded.