Cuba Implements Joint Venture Law to Boost Exports Amidst Crisis
Cuba has enacted a law allowing the creation of mixed companies between the state and private sector, aiming to revive the economy and increase exports during a severe crisis.
TL;DR
- Cuba has enacted a new law allowing for the creation of mixed companies (S.R.L. mixtas) between state and private entities.
- The goal is to reactivate the economy, increase exports, boost production, substitute imports, and generate employment.
- The law permits mixed companies in any lawful sector, excluding health, education, and certain armed forces activities.
- The Ministry of Economy and Planning has ten days to approve or deny the creation of these companies.
- This move follows previous reforms allowing foreign investment and the creation of private micro, small, and medium-sized enterprises (mipymes).
- Cuba is currently facing a severe economic crisis, exacerbated by U.S. oil sanctions, with forecasts predicting a significant GDP contraction.