Page 66 - Caribbean-Central America Profile 2018

CUBA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Republic of Cuba
Capital: Havana
Nationality: Cuban(s)
Official Language: Spanish
CUBA Population Total (millions): 11.48 (2016 est.)
Size: 42,803 square miles
Currency: Cuban Peso(CUP)
& Convertible Peso(CUC)
Internet Domain: .cu
International Dialling Code: +53
Electricity: 110 volts

COUNTRY OVERVIEW INVESTMENT INCENTIVES
Foreign investments, though subject to very strict rules, are enormous in tourism, energy and the
q The Republic of Cuba consists telecommunications sectors. Cuba’s Foreign Investment Law No. 77 (1995) provides for 100 % foreign
of the island of Cuba, Isla de la ownership in every sector of the economy except in the areas of education, health and national defence
Juventud and several adjacent and security. Also included are guarantees that foreign properties cannot be expropriated without
small islands. compensation, provisions for 99-year leases of land, and measures intended to speed the process of
approving proposed foreign investments. The Foreign Investment Law distinguishes between three forms
q The many bays, peninsulas of foreign investment:
and coastal reefs give Cuba a • Economic association through contract
shoreline of over 5,000 km and With the purpose to perform any activity authorized to the parties. Each contracting party may
more than 280 natural beaches.
contribute different means and thus create a common fund, provided the property belonging to each
one of them is established.
q The capital is Havana.
• Joint enterprise
Foreign Direct Investment is focused Implies the creation of a juridical person different from that of the contracting parties, which takes the
on the search for new external form of a company of nominative shares. Both parties agree upon the proportions of the social capital
markets, competitive technologies to be contributed by both foreign and national investors, and include them in the authorization. Once
and capital. Foreign investment a joint enterprise has been created it cannot change the partners except by agreement of the parties and
has expanded to new sectors such with the approval of the competent authority. Joint enterprises may create offices, representations,
as the energy and gas industry, branch offices and branches both in Cuba and abroad, as well as have business participation abroad.
financial sector, marketing of cigars, • Enterprise of sole foreign capital
management of aqueducts and water
supply to the Capital City. More The National Registry of Foreign Trade Commission Agents, attached to the Chamber of Commerce
recently, important businesses have in Havana, is the body in charge of registering firms interested in establishing an office in Cuba. Cuba
been approved for development of is a signatory to a number of bilateral arrangements, including economic cooperation agreements
hotels, the cement industry, civil with China, Belarus, Greece, Grenada, and Russia; investment treaties with Argentina, Barbados,
aviation, paint industry and bus Bolivia, Brazil, Cape Verde, China, Chile, Colombia, Ecuador, France, Germany, Greece, Hungary,
manufacturing. Other areas such as Italy, Laos, Jamaica, Russia, Spain, South Africa, Switzerland, Ukraine, United Kingdom, Venezuela,
agriculture, infrastructure, sugar, Vietnam; and trade agreements with the Czech Republic, Mexico, and North Korea. There are
nickel mining, building renovation ongoing discussions for a formal trade agreement with the European Union. Cuba was a signatory to
and real estate development are also the Agreement Establishing the Association of Caribbean States.
considered ripe for investment.
FREE TRADE ZONES / INDUSTRIAL PARKS
The country created a Free Trade Zone and Industrial Park in 1996. The law governs the operations of
free trade zones and industrial parks.
Government-controlled, joint venture, and 100 percent foreign-owned companies can operate in the
FTZs. All forms of economic activity are authorized, from assembly and manufacturing to financial
services and warehousing. The Ministry of Foreign Investment and Economic Cooperation can approve
or reject approvals, without a review by the Council of Ministers. Licensees will be able to lease land,
construct buildings, and operate air and seaports, railway stations and lines.
Outside the zones, licensees may also engage in economic activities considered as contributing to the
smooth functioning of the zones. Companies may bid for up to 50-year concessions to operate the zones,

B-30 Caribbean-Central American Action