Manuel Marrero Unveils Plan for Internal Trade Overhaul in Cuba

Cuba's Prime Minister, Manuel Marrero Cruz, revealed on Monday a new initiative aimed at restructuring the nation’s internal trade system. This move seeks to enhance the distribution of essential goods amidst the ongoing economic crisis plaguing the island. During an annual review attended by Cuban leader Miguel Díaz-Canel and officials from the Ministry of Internal Trade (MINCIN), Marrero pointed out that the current system suffers from significant organizational issues and inefficiencies in the management and distribution of critical supplies for the populace.

A report from Canal Caribe highlighted persistent failures and delays in the delivery of the standard family basket, a concern that has troubled consumers throughout 2024. The meeting underscored the erratic supply of staple items such as rice, oil, and sugar. Citizens interviewed by the state media expressed their frustration over the partial or delayed arrival of products, forcing many to turn to the parallel or informal market, which is unaffordable for numerous individuals due to exorbitant prices.

Cuban authorities have cited the U.S. embargo as a contributing factor, yet they avoid addressing the government's inefficiency in managing internal trade. Additional challenges include delays in financial transactions, rising logistical costs, fuel shortages, and the deterioration of state infrastructure. However, the government's narrative often neglects to acknowledge the detrimental effects of its centralized control over the economy, which has led to chronic shortages and dependency.

Marrero strongly criticized bureaucracy, labeling it a major barrier to ensuring equitable access to food and essential goods. He announced plans to establish new oversight mechanisms to curb the diversion of goods to the black market and introduced regulations to organize electronic commerce, a sector where state entities have been involved in illegal practices by selling products without licenses or taxes. Despite these measures, past experiences have shown their ineffectiveness, given that corruption within the state apparatus itself facilitates the diversion of goods to the black market.

The meeting also reviewed successful initiatives, such as the integration of comprehensive technological solutions aimed at improving the traceability and control of goods from port unloading to retail stores. These efforts are intended to combat theft and diversion, which resulted in economic losses amounting to 60 million pesos in 2024.

Betsy Díaz Velázquez, the Minister of Internal Trade, mentioned plans for 2025 to boost foreign investment, create state micro, small, and medium enterprises focused on energy savings and gastronomy, foster cooperative production with non-state economic actors, and expand municipal food processing centers to enhance food offerings.

The promises of "reordering" evoke memories of the failed "Tarea Ordenamiento" implemented in 2021, which instead of improving the economy, accelerated inflation and exacerbated shortages. Despite this precedent, the government persists in applying similar measures without acknowledging its role in the current crisis. The initiative, which was originally intended to streamline economic transactions and improve efficiency, brought challenges like inflation and increased prices for basic goods and services, posing significant difficulties for island residents.

These circumstances have led the government to introduce new regulations for the private sector and seek alternative ways to attract foreign currency, including the partial reintroduction of the dollar in certain economic transactions, further deepening poverty for a significant portion of the population.