Cuba: foreign investment law takes effect
Cuba's new Foreign Investment Law went into effect on June 28, as was planned when the National Assembly of Popular Power passed the measure in March. The government is hoping to generate some $2.5 billion in investment each year under the law, which cuts tax rates for foreign investors from 30% to 15% and guarantees that most foreign-owned companies will be exempt from expropriation. Investment is expected to be focused on light industry, packaging, chemicals, iron and steel, building materials, logistics and pharmaceuticals; much of it will go to the Mariel port, 40 km west of Havana, which is being developed as a major "free trade zone." The government is currently studying 23 proposals for projects from Brazil, China, Spain, France, Italy, the Netherlands and Russia. The new law doesn't allow for private Cuban citizens to invest, and Cubans will work for the foreign companies through state-owned employment companies, not directly. (La Jornada, Mexico, June 29, from DPA, AFP, Prensa Latina; Global Post, June 29, from Xinhua)
From Weekly News Update on the Americas, June 29.