General Foreign Investment Policy Principles
1.To conceive of foreign investment as a source for the country’s short, mid and long range economic development. Access to cutting edge technologies, securing managerial methods, diversifying and broadening export markets, replacing imports, access to foreign financing, creating new job sources and securing greater incomes on the basis of production linkage with the domestic economy are objectives that should be proposed in order to attract foreign investment.
2.To secure new managerial methods that contribute to achieving a better market position, increased productivity and profitability, efficiency of complex investment processes and their assimilation by the rest of the economy.
3.To immediately prioritize foreign investment directed to replacing food imports.
4.To encourage the development of comprehensive projects generating production linkage in the search for collective efficiency. These projects may be executed with one investor or with several having this mutual interest.
5.Corresponding to the country’s demographic dynamics, foreign investment must allow access to cutting edge technologies that increase productivity and permit efficient use of the workforce.
6. To contribute to changing the country’s energy matrix by taking advantage of renewable energy sources, using solar and wind power and power from agro-industrial waste such as sugar cane, forestry and scrub (marabu) biomass, generation of water and biogas power.
7.To consider the participation of foreign capital in the complementation of national scientific and technological development projects, preserving intellectual property over the results obtained, especially brand names and patents created by the Cuban Party.
8.To consider foreign investment in certain economic sectors and activities as an active and fundamental element for growth.
9.To consider agricultural and foods industry production as prioritized sectors along with tourism, including health, the development of energy sources especially renewable energy, the exploration and exploitation of hydrocarbons and mining resources and construction or improvement of industrial infrastructures.
10.To guide the greater part of foreign investment towards export sectors. Moreover, to direct it towards eliminating bottle-necks in the production chain, encouraging modernization, infrastructure and changing the technological model in the economy as well as ensuring efficient satisfaction of the country’s needs with the aim of replacing imports.
11. To encourage foreign investment on the basis of a broad-based and diverse Portfolio of Projects. To focus promotion by stages and potential sectors/activities and to encourage diversification in the participation of business people from different countries. To prioritize massive promotion for the Special Economic Development Zones starting with the work by the Special Economic Development Zone of Mariel.
12. To consider prioritized activities implying transfer of technology, production linkage, carried out in areas having lesser economic development or contributing to increasing the efficiency of the production chain.
13.In the extraction of natural resources, providing public services, developing biotechnology, wholesale commerce and tourism; Cuban participation will always constitute the majority share.
14.Among the requirements for approval of foreign investment businesses, introducing criteria planning a balance of payments over time; this element will be considered to be among the decisive indicators for approval.
15.In foreign investment businesses there shall be no free contracting of the workforce other than in exceptions foreseen by law. The employer-entity will be maintained as a business organization and its aim will be to supply and control the workforce. Salaries will fit the work contributed, efficiency and the added value generated by the enterprise. Payment for the workforce services is negotiated between the employer- entity and the enterprise having foreign capital on the basis of what has been established by the Ministry of Labor and Social Security. To eliminate concepts of salary scales and establish a minimum wage. Contracted employees will earn a salary higher than the minimum wage established.
16. Foreign investment may be directed selectively towards development of non-state ownership forms with juridical personality, prioritizing the cooperative sector.
17.State goods will not be transferred in property other than in exceptional cases where they will be destined for purposes of the country’s development and they do not adversely affect the political, social and economic foundations of the State.
18.Exclusivity rights are not granted on the Cuban market; the foreign partner has equality of conditions with third parties and may be supplier and client of the business.
19.In projects aiming at exporting goods or services, the foreign Party shall guarantee the market.
20.The country’s shortage in construction capacity cannot stop the development of the process of foreign capital investments. Alternatives required to prevent it may be assessed even contracting foreign labor force.
21.Bidding for design and construction services between foreign and Cuban enterprises whenever the complexity of project so requires, in accordance with regulations in legislation in force about the country’s investment process.
22. To authorize establishing enterprises having 100% foreign capital for executing investment projects having the complexity and important that requires it especially for the development of industrial infrastructure through special turnkey contacts such as: Engineering, Procurement and Construction Contracts (IPC); Engineering, Procurement and Construction Management Contracts (IPCM); Building, Ownership, Operation and Transfer Contracts (BOOT), Building, Transfer and Operation Contracts (BTO).
23. In principle the setting up of bank accounts abroad will not be authorized nor the acceptance of external guarantees compromising the retaining of Cuban flows in banks abroad.
24. The economic information requested for foreign investment will be made compatible with international indicators used to measure the results. To publish statistics that will be determined.
25. Any increase to the investment budget will be assumed by the International Economic Association.