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Cuba Announces Shift Toward Socialist Market Model

Cuba aims to ease central planning to expand private activity subject to Politburo and National Assembly approval.

Overview

  • President Miguel Díaz‑Canel announced the reform package on Friday, June 12, 2026, saying it will follow Chinese and Vietnamese-style models that mix state control with market incentives.
  • The government says the measures would open more sectors to private firms, allow some previously banned private activities, reform agriculture, and restructure parts of the state apparatus.
  • Officials and reporting note that the Politburo of the Communist Party and the National Assembly must formally approve the changes and that concrete rules and a timeline have not yet been released.
  • Washington has tightened sanctions in recent months to increase pressure on Havana, and Cuban leaders have accused the US of hostile intent while President Donald Trump has used confrontational rhetoric toward the island.
  • A Colombian navy ship, ACR Caribe, delivered about 100 tonnes of food, medicine and supplies to Havana on the same day, highlighting the island’s acute shortages and the possible human impact if reforms change trade and investment rules.