Cuba Approves Major Free-Market Reforms Amid Economic Crisis

Cuban lawmakers have adopted nearly 200 free-market reforms aimed at rescuing the Communist island from a severe crisis exacerbated by a U.S. oil blockade. In a landmark speech to the National Assembly, Prime Minister Manuel Marrero unveiled 176 measures designed to reduce the state’s role in the economy and attract investment across various sectors.

Under these reforms, foreign investors will no longer need to partner with the state, large private enterprises will be permitted, and both Cuban and foreign investors will have the right to acquire stakes in state companies. These changes come amid U.S. pressure on Cuba, with President Trump considering taking over the Caribbean nation, just 90 miles from Florida.

Daniel Torralbas, a London-based Cuban economist, described these reforms as “the most profound” since the 1959 revolution led by Fidel Castro. The reforms were adopted unanimously by lawmakers at a session that ended with President Miguel Diaz-Canel echoing Castro’s revolutionary slogan: “Socialism or death!”

Marrero did not specify a timeline for implementing the reforms, but Diaz-Canel had argued on Wednesday for “urgent changes” to prevent economic collapse. The oil blockade imposed by Trump in January has pushed Cuba’s economy to the brink of collapse, forcing the Communist Party into concessions previously considered heretical.

While Havana traditionally blamed its problems on U.S. trade embargoes and more recently the oil blockade, Diaz-Canel admitted there are “obstacles that don’t come from outside” such as slowness, bureaucracy, and norms impeding production. He also mentioned decisions postponed.

Michael Bustamante, a Cuban studies chair at the University of Miami, told Agence France-Presse that Cubans are in an “uncomfortable position,” making changes to their economic model under U.S. pressure. Power cuts have become common, with some lasting over 30 hours, and shortages of food, fuel, drinking water, and medicine are widespread. The United Nations High Commissioner for Human Rights has warned that children are dying due to a lack of medical supplies.

Victor Hierrezuelo, a 63-year-old bank worker, told AFP that without reforms, “the revolution will collapse!” However, it is unclear whether these changes will satisfy Trump, who wants Cuba’s leaders and economic model to change. Vice President JD Vance said Washington is interested in how Cubans could become “happy and successful.”

The U.S. has recently placed considerable pressure on Cuba’s leadership, including indicting former Cuban President Raúl Castro for shooting down two civilian planes in 1996. CIA Director John Ratcliffe met with senior Cuban officials in May to discuss expanding political dialogue between the countries.

Despite local disillusionment over power cuts and shortages, the small business sector welcomed the reforms as a sign of hope. Mario Gonzales, a restaurant manager in Havana’s historic old town, hopes for a tourism revival.