Get all your news in one place.
100's of premium titles.
One app.
Start reading
Latin Times
Latin Times
World
LatinTimes Staff Reporter

Havana Says the Reforms Are Homegrown. Washington's Fingerprints Are Everywhere Anyway

CUBA-ECONOMY-GOVERNMENT-SANCTIONS A man selling okra walks past a poster depicting former Cuba's President Raul Castro in Havana on June 29, 2026. Cuba announced on July 29, 2026 that it would open up sectors of its economy such as petrol stations, pharmacies and care homes to the private sector, following Parliament's approval of a package of 176 measures in favour of a market economy. (Credit: Photo by YAMIL LAGE / AFP via Getty Images)

The Denial, Delivered at the Podium

Cuban President Miguel Díaz-Canel used the closing minutes of parliament's mid-year session to knock down a theory that keeps resurfacing at home and abroad: that his government's economic overhaul only exists because Washington forced Havana's hand. Addressing lawmakers on the second and final day of the National Assembly's ordinary session, he insisted the changes grew out of years of internal debate, not a concession squeezed out by sanctions or backchannel talks.

He was blunt about where credit belongs. According to Infobae's dispatch from Havana, the transformations don't answer to any request tied to the limited talks Cuban and U.S. officials have held recently, and he called them "the fruit of a sovereign decision." In his telling, the package is a matter of national maturity, not foreign leverage — a strategic priority the moment simply demands.

Just How Big Is This Overhaul?

The scale explains why the debate matters. Lawmakers ratified 176 measures spanning 23 policy areas back on June 18–19, a day after the Communist Party's Central Committee gave its blessing, and Havana bills it as the deepest restructuring of its planned economy in a generation. This week's session added a companion law that folds the central government down from 27 bodies to 21 — merging the economy and finance ministries among other consolidations — with the remaining paperwork due to wrap by September.

The Pressure Campaign That Makes Skeptics Skeptical

It's easy to see why so many assume Washington is calling the shots. On January 29, President Trump signed an executive order declaring a national emergency over Cuba and opening the door to tariffs on any country that sells oil to the island — a mechanism widely described in Cuban and Spanish-language coverage as an oil blockade, even though it works by penalizing third-country suppliers rather than physically stopping tankers. The practical effect has been similar either way: energy shortages have deepened and blackouts have multiplied nationwide.

Then came May's sanctions. The State Department designated GAESA, the military-run conglomerate that dominates tourism and finance, along with several of its executives, with officials framing the goal as cutting off Cuba's communist leadership and armed forces from illicit resources. Tourism absorbed the shock: Cuba's own government has now conceded that seven international hotel chains that once ran 46% of the country's room inventory — more than 80,000 rooms — have pulled out, spooked by exposure to U.S. penalties, leaving roughly 25,000 hospitality workers in limbo.

The showdown hasn't stayed confined to trade policy. In May, federal prosecutors in Miami unsealed a superseding indictment charging former president Raúl Castro and five co-defendants with murder, aircraft destruction, and conspiracy over the 1996 downing of two Brothers to the Rescue planes, which killed four people. President Trump, meanwhile, has floated the idea that Cuba's crisis could end in what he called a "friendly takeover" of the island — a line he first used in late February and revived weeks later, telling reporters that regime change would simply be a question of timing once U.S. operations against Iran wound down.

Framing Pressure as Proof, Not Surrender

Díaz-Canel didn't dispute that the pressure is real — he leaned into it. He pointed to fuel-starved blackouts and thousands of shipping containers stuck in foreign ports because carriers fear running afoul of U.S. sanctions, describing the moment as an unprecedented squeeze from the world's most powerful nation. In his framing, the reforms are less a white flag than a fortification: proof the system is adapting under siege, not folding.

Díaz-Canel wasn't alone in making that case this week. Prime Minister Manuel Marrero told the same session that "we are not deviating from our socialist model," according to Cibercuba, framing the overhaul as a defense of the revolution rather than a break from it — a message he wrapped in Fidel Castro-era slogans ahead of the late leader's upcoming birth centenary. Weeks earlier, Deputy Prime Minister Óscar Pérez-Oliva Fraga made a similar case in a CNN en Español interview, arguing the changes follow a strategy Havana had mapped out long before any contact with Washington began.

Economists Care Less About Credit, More About Results

Independent analysts have shown far less interest in who gets to claim the reforms and far more interest in whether they'll work. Economist Pedro Monreal described the process as "belated pragmatism," noting that several of the steps arrive only after years of visible decline. Economist Elías Amor has gone further, arguing the package sidesteps the crisis's real drivers — Cuba's runaway inflation and a fiscal deficit that regional analysts peg at more than 12% of GDP, financed largely by printing money. That skepticism lines up with grim macro forecasts: the U.N.'s regional economic commission projects Cuba's output will shrink again this year, piling onto blackouts, fuel scarcity, and shortages that have shaped daily life on the island since 2020.

What Happens Next

The real test isn't the vote count — it's implementation. Ministries have until September to finish restructuring internally, a deadline that will show whether Havana can convert parliamentary approval into functioning change on the ground. Whatever the true origin of the reforms, one thing both Cuban officials and outside observers agree on: the island's next few months unfold under continued American pressure, regardless of the label Havana chooses to put on it.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.