Cuba Reforms Policy on Car Sales
The Cuban government announced yesterday that it will be loosening restrictions on the purchase of new and used foreign-made cars. Under the new policy, Cubans will no longer need a permit issued by the Transportation Ministry to purchase cars from state vendors.
Until 2011, Cubans could only buy and sell cars made before 1959. But the new regulations approved by the Council of Ministers on Wednesday will “eliminate existing mechanisms of approval for the purchase of motor vehicles from the state,” according to state newspaper Granma. As a result, the paper reported that “the retail sale of new and used motorcycles, cars, vans, small trucks and mini buses for Cubans and foreign residents, companies and diplomats is freed up.”
Despite the change in policy, the Cuban government will maintain its monopoly on the sale of all cars on the island. According to Bert Hoffman of the German Institute of Global and Area Studies, this will cause car prices to remain high due to lack of competition in the market.
The change in policy comes in the context of Cuba’s reforms—knows as the lineamientos (guidelines)—which are led by President Raúl Castro and are meant to modernize the socialist regime’s struggling economy.
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