Cuba opens up its economy to private businesses

In December 2014, President Obama and Cuba’s president, Raul Castro, made surprise and simultaneous announcements that, after a half-century of mutual hostility, the two countries would move toward re-establishing normal relations. The United States also announced the loosening of some of the longstanding Cuban trade and travel restrictions. These developments have generated excitement and media buzz about opportunities in Cuba for U.S. business.

While the changes are real and future prospects are interesting, the U.S. trade embargo remains in place and prohibits most business dealings with Cuba, and the Cuban government’s willingness to accommodate large-scale U.S. investment is still uncertain.

A full opening of trade and business relations between the U.S. and Cuba will take time. In the meantime, there are niche opportunities for some U.S. businesses and a much-improved climate for visiting the island, investigating the market and developing relationships.