Foreign Investment
Since the Special Period, Cuba has actively courted foreign investment. All would be foreign investors are required to form joint ventures with the Cuban government. The sole exception to this rule are Venezuelans, who are allowed to hold 100% ownership in businesses due to an economic agreement between Cuba and Venezuela. Cuban officials said in early 1998 that there were a total of 332 joint ventures. Many of these are loans or contracts for management, supplies, or services normally not considered equity investment in Western economies. Investors are constrained by the U.S.-Cuban Liberty and Democratic Solidarity Act which provides sanctions for those who "traffic" in property expropriated from U.S. citizens. As of March 1998, 15 executives of three foreign companies have been excluded from entry into the United States. Over a dozen companies have pulled out of Cuba or altered their plans to invest there due to the threat of action under the Libertad Act.
Read more about this topic: Economy Of Cuba
Famous quotes containing the words foreign and/or investment:
“’Tis our true policy to steer clear of permanent alliances with any portion of the foreign world.”
—George Washington (1732–1799)
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