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Cuban Parliament Passes New Foreign
Investment Law
The
Cuban Parliament unanimously adopted on March 29 a
new Foreign Investment Law, crucial to updating the
country’s economic model and building a prosperous
and sustainable socialist system.
The
law was adopted with modifications submitted by the
parliamentary commissions on Economic, and
Constitutional and Legal Issues.
The
extraordinary session, called by the Council of
State to analyze the bill, was attended by President
Raul Castro, as well as by Communist Party leaders
and government officials.
Lawmakers insisted on the need to attract foreign
capital to sectors of special importance to the
country, particularly those related to production,
always based the principle of protecting natural
resources and the country’s national sovereignty.
The
new Cuban foreign investment law offers guarantees
to investors such as the free transfer abroad of
profits in convertible currency, tax exemptions on
net profits and other benefits authorized for
reinvestment.
Speaking to the Cuban Parliament, Foreign Investment
and Trade Minister Rodrigo Malmierca said that the
new law states that properties acquired in Cuba by
foreign investors in the areas of production and
services cannot be expropriated except in cases of
public or social interest previously declared by the
Cuban government.
In
such cases, any expropriation would imply
appropriate compensation according to established
commercial value and by mutual agreement between the
investors and Cuba, Malmierca pointed out.
Cuban Government Vice-President Marino Murillo said
that the new Foreign Investment Law is necessary to
begin speaking of development and not only of
economic growth and its appropriate implementation
does not mean giving away the country in pieces.
Addressing lawmakers, Murillo, who heads the
Permanent Commission for the Implementation and
Development of the Economic and Social Guidelines
approved by the Communist Party said that in order
to achieve greater economic growth, the country must
increase its Gross Domestic Product by seven percent
annually, with investment rates of up to 20 percent
, which requires external financing not available to
the country at this time.
Murillo said that Cuba currently dedicates most of
its created wealth to local consumption and a
smaller portion to investment. This reality confirms
the need for a new foreign investment law, in tune
with the economic guidelines, he noted.
The
government vice-president said that as the bill
states, the participation of foreign capital
complements the country’s investment efforts and it
will continue to be so in global terms, though for
some sectors foreign investment will be crucial.
Speaking at the Assembly, Fernando Gonzalez, one of
the five Cuban anti-terrorist fighters imprisoned in
U.S. jails since 1998, expressed on behalf of his
comrades his gratitude to the national and world
solidarity movements for their support of the cause
and his return home.
The
Cuban Parliament elected through secret and direct
vote two new members to the country’s Council of
State, the body representing the Assembly between
sessions.
The
general secretary of the Cuban Workers’
Confederation, Ulises Guilarte, and the president of
the Small Farmers’ Association, Rafael Ramon
Santiesteban were elected to the Council of State
during the First Extraordinary Session of the Cuban
legislative body. (acn)
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