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ACERE Insights

US-Cuba Policy Highlights

Issue No. 21 - August 28, 2025

In this newsletter:

In this newsletter:

  • ACERE Policy Insight

    • GAESA Leaks, If True, Highlight Cuba Sanctions’ Utter Failure

  • ACERE Statement
  • US-Cuba Policy News
    • Trump DOJ supports Cuba lawsuit against cruise lines
    • Expedia wins defense verdict on billion-dollar Helms-Burton Act claim
    • Record U.S. agricultural exports to Cuba, which pays in cash due to sanctions
    • China’s spy chief pledges more intelligence sharing with Cuba, months after U.S. jitters
    • Rep. Salazar (R-FL) asks State, Treasury departments to investigate FL companies supporting Cuban private sector
    • New official takes on key role with strategic mission at U.S. Embassy in Cuba
    • Grenada foreign minister rejects U.S. claims that Cuba’s medical missions are ‘forced labor’
    • Salvadoran convicted of planting bomb in Cuban hotel in 1997 released from jail
    • Sanctions adrift: U.S.-Cuba policy stuck in strategic stagnation
    • American Airlines must face suit over confiscated Cuban airport
    • Radio/TV Martí dodges DOGE
    • U.S. deportations to Cuba continue in late July
    • United pauses Cuba routes amid demand uncertainty, policy shift

  • News from Cuba
    • Cuban currency hits record low as dollarization gains ground
    • Drought and breakdowns: more than 1 million Cubans without regular water supply 
    • Cuba and Haiti, the only two regional economies set to decline in 2025, according to ECLAC
    • ‘Our north is the south’: softball leagues flourish in Brazilian cities as Cuban arrivals outnumber Venezuelans for first time

    • China plans to open solar-powered shoe factory in Cuba

    • For first time in decades, Cuban private sector outweighs state

  • Recommended Media
    • The new fears of Cubans in Florida
    • 20-hour blackouts, garbage-lined streets: this is life under Cuba’s ‘war economy’

    • Vietnamese are helping Cuba with 38-cent donations. A lot of them

    • The embargo on Cuba doesn’t represent American values
    • Inflation has hurt Cubans’ pockets more than official figures suggest
    • The Cuban billionaire behind the pro-immigrant billboards in Miami

ACERE Policy Insight

GAESA Leaks, If True, Highlight Cuba Sanctions’ Utter Failure

In early August, the Miami Herald asserted that the Cuban military holding company GAESA had nearly $18 billion in assets sitting mostly as cash in foreign bank accounts, citing a trove of leaked documents and setting off a firestorm of debate about the conglomerate’s outsized role in the Cuban economy. The sweeping claims that GAESA was amassing wealth at the expense of the Cuban people and squeezing the state of funds that could be used for energy, food, and healthcare have been cited by hardline Cuban-American lawmakers in Congress to push for harsher sanctions against the island and argue that engagement with the island would not primarily benefit the Cuban people. If the leaked documents are genuine—and there’s reason to believe they may not be—they reveal an inconvenient truth: that Cuba sanctions intended to starve the government of funds have proven utterly ineffective, and that those most impacted by ‘maximum pressure’ policies are not the island’s leaders but Cuban families and the independent private sector.

The Herald’s investigation, alleging that GAESA’s holdings in retail, energy, tourism, finance and other sectors make up nearly 40% of the Cuban economy, is based on a blurry screenshoot of a purported GAESA assets balance sheet from March 2024 and four tables the Herald created (the original documents were not published) to show GAESA’s assets, liabilities, sales, profits and contributions to the government in 2023 and 2024. In a recent interview, British economist Emily Morris argues that the Herald mistakenly interpreted the March 2024 GAESA balance sheet, saying that her understanding of Cuba’s accounting system and a clear indication on the balance sheet that dollar income is being expressed in Cuban pesos allow her to deduce that the conglomerate’s total assets would actually be 17.9 billion Cuban pesos, not dollars (the equivalent of $746 million USD). Morris also asserts that nothing in the data presented by the Herald supports what she calls the “logical leap” that GAESA is squeezing the state of funds or that money is somehow being taken from the state, clarifying that “Cuba’s finances are kept secret because they are handled as a national security issue given [the island] is facing relentless U.S. efforts to force political change through economic sanctions.”

While the Herald concedes that targeted U.S. sanctions against GAESA-held firms over the past few years have indeed reduced the conglomerate’s income and assets, other analysts have questioned the figure of $18 billion as implausible, given it far surpasses the combined value of Cuba’s annual exports and domestic consumption levels, calling into question the interpretation of the data contained in the leaked documents. Whether GAESA holds hundreds of millions or billions of dollars in foreign accounts, what’s clear is that its offshore entities have established tried-and-true mechanisms to circumvent U.S. sanctions relatively successfully—options the Cuban people and private entrepreneurs do not have. While this certainly limits transparency over economic activity, it neither proves that there is no government oversight over GAESA’s actions nor constitutes evidence of wholesale government corruption. In fact, the screenshot of the March 2024 financial statement the Herald published has a “Ministry of Finances and Prices” heading, indicating some civilian government oversight of GAESA’s finances. Likewise, there is no proof on the island of a sizable class of incredibly rich Cuban officials or a massively well-equipped military that would have to exist if funds of this magnitude were truly being siphoned off to enrich the governing elite.

Ultimately, the threat of ever-tightening U.S. sanctions on Cuba increases the government’s incentives to keep information on international transactions hidden, particularly through the use of extensive offshore business networks, which Cuban citizens and independent entrepreneurs do not have access to. While this lack of accountability lends itself to economic distortions, speculation, and misinterpretation, it also shows that indiscriminate U.S. sanctions have failed as a tool for democratization on the island, having limited impacts on the military’s business apparatus and producing an asymmetric effect that disproportionately affects families and the private sector. As Cuba’s “polycrisis” continues to grow more severe, what the Herald investigation most clearly sheds light on is that ordinary Cuban citizens suffer the greatest impact of U.S.-Cuba policy, given they do not have the means or economic control to evade the effects of the sanctions the way GAESA can.

ACERE Statement

“ACERE firmly opposes the recent decision by the U.S. State Department to impose visa restrictions on current and former officials from Africa, Brazil, Grenada and the Pan American Health Organization (PAHO) involved in Cuba’s international medical missions.

This decision, announced on August 13, falsely and damagingly labels these life-saving brigades as a “coercive forced labor export scheme,” which is not only inaccurate but actively undermines U.S. alliances, South-South cooperation, and the sovereign right of nations to determine their own public health partnerships.” Read the ACERE Statement

US-Cuba Policy News

The views and opinions expressed by authors are their own and articles do not necessarily reflect the views or positions of ACERE.

Trump DOJ supports Cuba lawsuit against cruise lines: Seatrade Cruise News reports that the Trump administration’s Department of Justice has asked the Supreme Court to review an appeals court decision siding with four cruise lines that had used Havana’s docks decades after they had been nationalized by the Cuban government. Havana Docks Corp, which sued Carnival, Royal Caribbean, Norwegian, and MSC, was the first plaintiff to win a final judgment under Title III of the Helms-Burton Act, though its award of approximately $440 million was overturned by the 11th Circuit Court of Appeals in October 2024. The court found that Havana Docks’ concession to operate and profit from the docks expired in 2004 (twelve years before they were used by the cruise lines as part of the Obama administration’s opening to Cuba) and that Havana Docks did not own the property itself but rather operated under a concessionary agreement. In the submission of its views to SCOTUS, the Solicitor General said that the Havana Docks case “involves a significant United States foreign-policy interest” and is important as a “bellwether for future Title III cases,” arguing that it is the Trump administration’s policy not only to “deprive the Cuban government of funds that undermine the United States’ longstanding embargo of Cuba” but to “increase economic pressure to achieve democratic reforms in Cuba.” For more information on the backchannel lobbying campaign by Havana Docks and its collaborators to convince the Trump administration to activate Title III of the Helms-Burton Act for the first time in 25 years, see this 2023 investigative report in the Miami New Times. https://www.seatrade-cruise.com/finance-legal-regulatory/trump-doj-supports-cuba-lawsuit-against-cruise-lines

Expedia wins defense verdict on billion-dollar Helms-Burton Act claim: A jury in Delaware federal court has sided with Expedia Group in a lawsuit brought under Title III of the Helms-Burton Act in which the plaintiff sought $1.7 billion in damages for trafficking in confiscated property that was previously owned by the Cuban-American Sanchez Hill family. The plaintiff, Central Santa Lucia (CSL), alleged to own the claim to a 100,000-acre area of coastal land in Cuba where several resort hotels are now located, saying that Expedia Group trafficked that property when its affiliates facilitated online bookings at those hotels. Yet only individuals who were U.S. citizens at the time when Helms-Burton became law can file suits under the statute, and Expedia’s attorneys uncovered evidence that CSL had forged documents that had assigned the rights to the certified claim to 13 family members who were U.S. citizens before the law was signed in March 1996, leading to the unanimous verdict for Expedia. A separate Helms-Burton case against Expedia in which a jury ordered payment of nearly $30 million to a Cuban-American man, Mario Echevarría, who claims to own expropriated property in Cuba’s Cayo Coco, in which Expedia allegedly trafficked, is ongoing, with the plaintiff most recently rejecting Expedia’s motion for a new trial. https://www.scottdoug.com/sdm-wins-defense-verdict-on-billion-dollar-helms-burton-act-claim/

Record U.S. agricultural exports to Cuba, which pays in cash due to sanctions: Washington correspondents Jim Cason and David Brooks of the Mexican daily La Jornada report that U.S. agricultural exports to Cuba increased 17% from January to May 2025 compared to the same period last year, topping $200 million. The $37 million in food and agricultural products shipped overwhelmingly to Cuba’s private sector in May alone marks a monthly record, John Kavulich of the U.S.-Cuba Trade and Economic Council told the authors. While the majority of these exports are basic products like frozen chicken legs, a staple in Cubans’ diet, the increase in sales can be attributed to higher-end goods sold in private Cuban stores that are prohibitively expensive for most residents on the island. Per the Trade Sanctions and Export Enhancement Act of 2000, Cuba can legally purchase food from the U.S. if paid for in cash in advance, and the billions of dollars in one-way trade over two decades have often been used by sanctions proponents to allege that Cuba sanctions either do not exist or have no impact on the island. https://www.jornada.com.mx/noticia/2025/07/28/mundo/exportacion-record-de-eu-a-cuba-que-paga-en-efectivo-debido-al-bloqueo

China’s spy chief pledges more intelligence sharing with Cuba, months after U.S. jitters: The South China Morning Post reports that China’s state security chief Chen Yixin pledged increased intelligence sharing to Cuba’s interior minister Lazaro Alberto Alvarez Casas at a recent meeting in Beijing. Chen said that China was ready to work with Cuba to implement agreements made by Chinese president Xi Jinping and Cuban president Miguel Díaz-Canel at their meeting in May, just days after a Congressional hearing scrutinizing the alleged presence of Chinese surveillance sites in Cuba. The hearing, chaired by Cuban-American Rep. Carlos Gimenez (R-FL) and stemming from a CSIS report claiming a signals intelligence facility in the Cuban town of Bejucal has been upgraded in recent months, led to calls from hardline lawmakers for the Trump administration to take further steps against Cuban-Chinese collaboration. In Beijing, Cuba’s interior minister, who is subject to stiff U.S. sanctions, also met with Wang Xiaohong, China’s public security minister, who said China was willing to increase personnel exchanges with Cuba and build more law enforcement capacity. “China firmly supports Cuba in upholding its national sovereignty, opposing external interference and blockade, and advancing its economic and social development,” President Xi told Díaz-Canel in May. https://www.scmp.com/news/china/politics/article/3323027/chinas-spy-chief-pledges-more-intelligence-sharing-cuba-months-after-us-jitters

Rep. Salazar (R-FL) asks State, Treasury departments to investigate FL companies supporting Cuban private sector: Cuban-American Rep. María Elvira Salazar (R-FL), Chair of the House Foreign Affairs Subcommittee on the Western Hemisphere, sent a letter to the State and Treasury Departments requesting investigations into South FL-based companies sending food, medicines, vehicles, and humanitarian parcels to relatives and private sector entrepreneurs in Cuba through both general and specific U.S. government licenses. In the letter, Salazar expressed concern that the firms, which create hundreds of jobs and generate millions in taxes for her district, may be violating U.S. sanctions on Cuba—which prohibit most business dealings with the Cuban government—given the taxes and customs duties recipients on the island pay to Cuban authorities. Salazar’s effort follows a Congressional hearing she convened last year alleging that Cuba’s private sector was a “myth” created by Cuban authorities to evade U.S. sanctions, which generated swift backlash from House Democrats, U.S. officials, and Cuban entrepreneurs themselves, whose retail sales recently surpassed those reported by state owned firms for the first time in decades. https://salazar.house.gov/media/press-releases/rep-salazar-sends-letter-demanding-investigation-and-action-against-companies#

New official takes on key role with strategic mission at U.S. Embassy in Cuba: Miami’s El Nuevo Herald reports that the U.S. Embassy in Havana has a new Deputy Chief of Mission, career foreign service officer Roy Perrin, who will replace Elias Baumann as the #2 U.S. diplomat in Cuba. Perrin, a New Orleans native and Tulane Law graduate, has prior experience serving the U.S. government in Venezuela, Costa Rica, Turkey, and China, and most recently served as the Deputy Chief of Mission at the U.S. Embassy in Tegucigalpa, Honduras. In Washington, Perrin has served as Deputy Director of the State Department’s Office of Central American Affairs, among other roles. His post in Havana comes after the recently celebrated 10th anniversary of the formal re-establishment of diplomatic relations between the U.S. and Cuba, which have waned in the first six months of the second Trump administration under Secretary of State Marco Rubio. https://www.elnuevoherald.com/noticias/acceso-miami/article311809063.html

Grenada foreign minister rejects U.S. claims that Cuba’s medical missions are ‘forced labor’: The Miami Herald reports that Grenada’s foreign minister has pushed back on the State Department’s assertions that the eastern Caribbean nation, which has had a long-standing relationship with Cuba, is exploiting Cuban doctors and other medical professionals in order to enrich Cuba’s government. “Regarding the charges of so-called forced labor and human trafficking, we will never be party to anything of that nature,” Joseph Andall, the foreign minister, said. “Grenada respects all international conventions and protocols regarding the protection of human dignity, and we are quite satisfied that the Cuban medical program with us is totally above board and in compliance with our international labor and human rights standards. So we have no qualms about being able to defend them.” The pushback came after Secretary of State Marco Rubio announced visa restrictions against officials from Grenada, Brazil, the Pan American Health Organization, and unnamed African countries over their role in Cuba’s labor export program. Just this week, Grenada’s Finance Minister, who in March said he’d be willing to give up his U.S. visa in order to support the Cuban people, announced his U.S. visa had been formally withdrawn. “Without the input of the Cuban Medical Brigade,” foreign minister Andall told the Herald, “there is no question that our health system will collapse.” https://www.miamiherald.com/news/nation-world/world/americas/cuba/article311716616.html

Salvadoran convicted of planting bomb in Cuban hotel in 1997 released from jail: AP Havana Bureau Chief Andrea Rodríguez reports that a Salvadoran man convicted of placing a bomb at a Cuban hotel in 1997 has been released from jail after fulfilling his sentence. The release of Otto René Rodríguez Llerena, who confessed to being recruited, trained, armed, and paid by Cuban-American terrorists Luis Posada Carriles and Orlando Bosch to place explosives in Havana’s Meliá Cohiba hotel, comes after last December’s release from Cuban jails of another Salvadoran hitman, Ernesto Cruz Leon, whose bombs killed an Italian tourist at another hotel. In an official statement, Cuba’s foreign ministry said, “The Cuban government reiterates its commitment to the fight against terrorism, the respect for human rights, and the need for the international community to hold those who promote these acts accountable.” In January, the Trump administration revoked the Biden administration’s decision to rescind the U.S. designation of Cuba as a state sponsor of terrorism, and more recently Cuba submitted to the UN its own list of Cuban-born “terrorists” it alleges are organizing and financing violent attacks against Cuba from U.S. soil. https://apnews.com/article/cuba-ataques-terroristas-bombas-hoteles-7a41eb6c1d4157d062dc298e9d664efb?utm_source=twitter&utm_medium=share

Sanctions adrift: U.S.-Cuba policy stuck in strategic stagnation: Citing a recent report by the London-based think-tank Chatham House on the effectiveness of sanctions as a U.S. foreign policy tool, the Cuba Study Group writes in its monthly newsletter that “U.S. sanctions policy on Cuba bears virtually none of the hallmarks of an effective sanctions program.” The organization argues that U.S. sanctions toward Cuba “lack clear, achievable objectives beyond vague aspirations for a democratic transition; operate unilaterally without meaningful allied coordination; have never undergone systematic assessment of their effectiveness; remain divorced from any broader diplomatic strategy or credible alternatives; and have become emblematic of the very hypocrisy and double standards that fuel the ‘axis of the sanctioned’ narrative.” Cuba Study Group argues that “after six decades of negligible returns, the embargo stands as a testament to the risks the report warns against,” saying that “without fundamental recalibration along the lines suggested by the Chatham House report, hardline U.S.-Cuba policy appears destined to perpetuate this cycle of ineffectiveness—punishing ordinary Cubans while leaving the regime’s grip on power not only intact, but arguably strengthened by the very isolation it was meant to impose.” https://preview.mailerlite.io/emails/webview/1476379/161917138480661640

American Airlines must face suit over confiscated Cuban airport: Courthouse News Service reports that a Cuban-American man in Florida can move forward in a lawsuit against American Airlines for trafficking in property where Cuba’s busiest airport, Havana’s Jose Martí International, is located, for which he holds a certified claim by the U.S. government. A three-judge panel overturned a Florida federal judge’s dismissal of the suit given the plaintiff, Jose Lopez Regueiro, was not a U.S. citizen when the land was confiscated in 1959 nor when he acquired an interest in the airport, having only become a U.S. citizen in 2015 and filing suit in 2021. This case, made possible by the first Trump administration’s controversial decision to activate Title III of the 1996 Helms-Burton (LIBERTAD) Act, potentially sets a legal precedent allowing certified claimants to pursue suits in U.S. courts against U.S., Cuban or third-country firms allegedly “trafficking” in property nationalized following the Cuban revolution even if they or their families were not U.S. citizens at the time of expropriation. Lopez Regueiro’s attorney Andres Rivero said in a statement that, “We will continue to pursue traffickers like American Airlines and Expedia to stop and punish their shameful support for the repressive communist regime in Cuba.” Meanwhile, American Airlines, which dominates the U.S. commercial aviation market to Cuba, has sought Department of Transportation permission to reduce its Cuba flights from Miami for the 2025-26 winter season, citing “ongoing U.S.-Cuba market conditions.” If approved, American would cut in half its daily flights to Havana, drastically reduce the frequency of flights to Camaguey, Holguín and Varadero, and eliminate all flights to Santiago de Cuba. https://www.courthousenews.com/american-airlines-must-face-suit-over-confiscated-cuban-airport/

Radio/TV Martí dodges DOGE: In an op-ed in the Miami Herald, Alvaro Alba, Deputy Director of the federally-funded Office of Cuba Broadcasting (OCB), which operates Radio and Television Martí, celebrates how the broadcaster founded 40 years ago to beam propaganda to the island has survived the DOGE axe led by Elon Musk earlier this year. “None of this would have been possible without the consistent support of Cuban American elected officials who have fiercely defended OCB’s mission,” Alba writes, likely referring to the Chairman of the House Appropriations Subcommittee responsible for overseeing OCB’s budget, Cuban-American Rep. Mario Díaz-Balart (R-FL). In the op-ed, Alba, a Miami-based Cuban American, claims that taxpayer-funded Radio Martí and the website Martí Noticias are consumed by millions of Cubans in Cuba, but in reality, the broadcaster has a small audience on the island, and has long been considered a pork barrel project benefiting Miami politicians and right-wing ideologues like Alba, who received a salary of $183,702 last year, according to OpenGovPay. https://www.miamiherald.com/opinion/op-ed/article311424245.html

U.S. deportations to Cuba continue in late July: Havana-based independent media outlet OnCuba reports that repatriation flights to Cuba from the U.S. continued in late July, with 118 irregular migrants, including 96 men and 22 women, returned to Havana on July 31. The flight marks the seventh U.S.-origin deportation flight to Cuba during the Trump administration, and the twenty-seventh from different countries in the region so far in 2025, totaling 833 individuals, according to Cuban authorities. Recent data obtained from ICE by the Deportation Data Project show that 731 Cuban nationals have also been deported to third-countries (other than Cuba) so far in 2025, mostly to Mexico (719), the majority of whom (632) faced no other criminal charges other than purportedly violating immigration laws. https://oncubanews.com/cuba-ee-uu/cuba-recibe-el-septimo-vuelo-de-migrantes-deportados-desde-eeuu-bajo-la-administracion-trump/

United pauses Cuba routes amid demand uncertainty, policy shift: United Airlines has notified the Department of Transportation that it intends to halt its Cuba routes for the 2025-26 winter season, starting September, given seasonal fluctuations and fresh restrictions on travel to and from the island. By suspending its sole nonstop service from Houston, after having scrapped its regular flights from Newark in 2023, the airline has effectively exited the Cuban market. The only U.S. carrier serving Cuba from airports outside of Florida, United’s departure leaves American, Southwest and Delta as the only other U.S. carriers still flying commercially to Cuba, from just two airports: Tampa and Miami. The move comes as Cuba has reported a 25% drop in tourism during the first six months of 2025, including a sharp reduction in Cuban-American travelers over fears of re-entry to the U.S. following travel to the island. https://aviationweek.com/air-transport/airlines-lessors/united-pauses-cuba-route-amid-demand-uncertainty-policy-shift

News from Cuba

The views and opinions expressed by authors are their own and articles do not necessarily reflect the views or positions of ACERE.

Cuban currency hits record low as dollarization gains ground: Reuters reports that the Cuban peso traded on the informal market at an all time low of 400 pesos to the dollar in early August, as partial dollarization of the state-dominated economy gained momentum. Enhanced U.S. sanctions under the second Trump administration together with sluggish domestic reforms have led to an 11% contraction of the economy since 2019, stoking social tensions amid scarcity of basic goods, generating runaway inflation, and deteriorating infrastructure and public services. Authors Marc Frank and Mario Fuentes writes that “the currency’s weakening this year has coincided with government moves to open well-stocked retail outlets that accept only convertible currency in cash, foreign credit cards, or a state-issued dollar card, and increased use of those forms of payment in tourism, wholesale trade, and to pay customs duties.” They add that “government officials have acknowledged dollarization and inflation have increased inequality in a country where about 40% of the population has no access to foreign currency through remittances or other sources.” https://www.reuters.com/world/americas/cuban-currency-hits-record-low-dollarization-gains-ground-2025-08-11/

Drought and breakdowns: more than 1 million Cubans without regular water supply: AP Havana Bureau Chief Andrea Rodríguez reports that more than 1 million Cubans are facing water supply issues amid a seasonal drought and lack of repair to hydraulic infrastructure throughout the country. Particularly in Cuba’s eastern provinces, the lack of rainfall and the consequently low reservoir levels are currently affecting some 860,000 people, most critically in the provinces of Santiago de Cuba, Holguín, and Ciego de Ávila. In Havana, shortages are mostly due to an unstable electrical supply to power the water pumps that service the capital region. Rodríguez reports that in many areas, it is common to see trucks delivering water to homes and buildings after residents complain that they have not received water for several days. https://www.chicagotribune.com/2025/08/11/sequa-y-averas-ms-de-un-milln-de-personas-sin-abastecimiento-regular-de-agua-en-cuba/

Cuba and Haiti, the only two regional economies set to decline in 2025, according to ECLAC: While Latin America and the Caribbean as a region is projected to grow a modest 2.2% in 2025, Cuba and Haiti are the only two countries whose economies are expected to contract this year, by 1.5% and 2.3% respectively, according to a recent report released the Economic Commission for Latin America and the Caribbean (ECLAC). The specialized UN agency found that Argentina, Panama, and Paraguay will lead countries in the region this year with greater than 4% GDP growth, while other countries like Colombia, El Salvador, and Peru will experience more moderate growth between 2-3%. Cuban Economy Minister Joaquín Alonso has publicly acknowledged the magnitude of Cuba’s crisis, the island’s greatest since the 1990s, which has manifested in severe foreign exchange deficits, chronic shortages of food, medicine, and fuel, and dramatic reductions in key sectors such as agriculture and industry. ECLAC forecasts 0.1% growth for Cuba in 2026, the equivalent of stagnation, and classifies Cuba as one of five countries in the region with “chronic inflation,” pointing to U.S. extraterritorial sanctions, the loss of critical tourism revenues, and structural distortions in the country’s economic model, among others, as precipitating factors for the island’s ongoing recession. https://oncubanews.com/en/cuba/cuba-and-haiti-only-two-regional-economies-set-to-decline-in-2025-according-to-eclac/

‘Our north is the south’: softball leagues flourish in Brazilian cities as Cuban arrivals outnumber Venezuelans for first time: The Guardian reports that as of June 2025, Cubans have surpassed Venezuelans as the largest group of asylum seekers in Brazil, the most populous country in the Western Hemisphere after the United States. “I love Cuba, but with the crisis it’s impossible to live there now,” said Roberto Hernandez Tello, a 59-year-old Cuban immigrant from Camaguey living in the southern city of Curitiba. “I have a 31-year-old son who lives in the U.S. But since Trump scrapped the CHNV humanitarian parole program, I chose to come to Brazil,” he added. The Guardian notes that Cubans usually travel visa-free to Guyana or Suriname and then cross the border into Brazil through the northern states of Roraima and Amapá, eventually heading to the relatively prosperous southern states with higher GDP per capita and strong healthcare, education and transportation systems. According to the UN Refugee Agency, in 2024 Brazil became the country with the highest number of Cubans applying for asylum (22,288 applications), ahead of Mexico (17,884) and the US (13,685), which could be even higher, as many Cubans struggle even to submit their requests. https://www.theguardian.com/world/2025/aug/02/cuban-asylum-seekers-outnumber-venezuelans-brazil

China plans to open solar-powered shoe factory in Cuba: The Miami Herald reports that a Chinese firm will open a solar-powered factory producing flip-flops and other footwear in a joint venture with Cuba this year. The new company was established with the goal of “developing, producing and marketing footwear, leather goods, saddlery, plastics and textiles,” according to Business Director María Eugenia Fabra Tamayo, who says their goal is to produce up to 3 pairs of shoes per capita. Targeting consumers who work in the telecommunications, agriculture, sugar, tourism, and retail sectors through chain stores and e-commerce platforms, the company plans to employ 100 workers in the Regla municipality of Havana, as well as export athletic, executive, and protective footwear to other countries in Latin America and the Caribbean. China has become one of Cuba’s main allies amid the deep crisis plaguing the island, strengthening ties in key sectors such as tourism, cybersecurity, and clean energy. https://www.miamiherald.com/news/nation-world/world/americas/cuba/article311441995.html#storylink=cpy

For first time in decades, Cuban private sector outweighs state: Reuters reports new government data revealing that Cuba’s private sector is now accounting for more retail sales by value on the island than the state for the first time since the years following the 1959 revolution. Figures from the National Statistics Office (ONEI) show that the non-state sector was responsible for 55% of retail sales of goods and services in 2024, up from 44% in 2023. Reuters notes that hundreds of bustling, informal markets across the island sell products usually not found at the state’s retail chains at high prices, boosting the value of private sector sales and, as such, not accurately reflecting overall volume. Last month, Economy Minister Joaquín Alonso told Cuba’s National Assembly that private sector imports topped $1 billion, a 34% increase compared to the same period last year, saying that “we do not want to confront this sector (which currently employs 40% of the island’s workforce, according to official figures), but rather to properly guide it.“https://www.reuters.com/world/americas/first-time-decades-cubas-private-sector-outweighs-state-2025-07-29/

Recommended Media

The views and opinions expressed by authors are their own and articles do not necessarily reflect the views or positions of ACERE.

The new fears of Cubans in Florida: The Economist reports that as Miami’s Freedom Tower, better known as the “Ellis Island of the South,” gets unveiled next month following its $65 million facelift, the privileged status that Cuban immigrants have enjoyed since the Cold War is quickly slipping away. The author writes that for Cubans in South Florida, the Trump administration’s immigration policies are “arousing not only fear but also indignation, particularly as local leaders who had long defended Cuban migrants now stand idly by for fear of drawing Trumpian ire.” According to Cuban-American former Congressman Joe García, “all of a sudden, we’re just like Mexicans,” referring to the apparent loss of special immigration privileges Cuban immigrants once enjoyed. Miami-based immigration lawyer Wilfredo Allen, whose 16,000 clients are nearly all Cuban, said that 28 judges at Miami’s downtown immigrant court wade through a backlog of some 312,000 pending cases on a daily basis. “People are terrified of going to court hearings,” Allen said. “There’s no rhyme or reason as to how they handle these cases. It’s totally arbitrary.” https://www.economist.com/the-americas/2025/08/21/the-new-fears-of-cubans-in-florida

20-hour blackouts, garbage-lined streets: this is life under Cuba’s ‘war economy’: CNN en Español journalist Gonzalo Zegarra writes that prolonged blackouts in Cuba are severely hamstringing the recovery of the island’s economy, compounding issues related to the water supply, trash collection, public transportation, and food production, among others. Documenting a laundry list of external and internal factors contributing to Cuba’s profound economic recession, Zegarra writes that a stagnant productive sector, a severe foreign reserves shortage, and the reduced availability of subsidized food are contributing to a growing polycrisis on the island that authorities are increasingly acknowledging. This paralysis, Zegarra notes, has precipitated partial government responses that in turn create other issues, and combined with the Trump administration’s unwillingness to reconsider any of its sanctions against the island, have led to a unprecedented migratory exodus that has reduced the island’s population for a fourth consecutive year in 2024. https://amp.cnn.com/cnn/2025/08/22/americas/cuba-crisis-energy-economy-intl-latam

Vietnamese are helping Cuba with 38-cent donations. A lot of them.: New York Times Vietnam Bureau Chief Damien Cave writes that “a new crowdfunding campaign for Cuba led by the Central Committee of the Vietnam Red Cross Society has raised more than $13 million in the first week, far more than organizers had expected for the entire 2-month effort…attracting 1.7 million donations.” The campaign, intended to assuage hunger and runaway inflation on the island, appealed to many Vietnamese who remember how “Cuba supported Vietnam during the wars of the 1960s and ‘70s, building hospitals and sending doctors, sugar and cattle.” Cave argues that many Vietnamese have also had an “awkward realization” that the two countries’ roles have reversed because of choices made as the Cold War ended, referencing Vietnam’s pivot to free enterprise in the late-1980s and Cuba’s insistence on strict state control over the economy. Noting that the U.S. embargo has limited Cuba’s options for recovery, Cave writes that Vietnam has become even more determined to help, including through donations of rice and new joint ventures to produce the staple of Cubans’ diets on the island itself. https://www.nytimes.com/2025/08/19/world/asia/vietnam-cuba-fundraising.html

The embargo on Cuba doesn’t represent American values: Miami-born Cuban-American marine scientist Fernando Bretos, PhD, writes for the independent media outlet Belly of the Beast: “The embargo is fundamentally un-American. [Its] limitations stand in direct opposition to the values, principles and liberties that lie at the heart of what our nation is meant to represent.” Bretos, who has worked in Cuba for over 25 years on coral restoration and climate resilience in coastal communities, argues that, along with restricting remittances, increasing bureaucracy, and stunting business development, U.S. sanctions on Cuba have curtailed science diplomacy between the two countries. “The embargo restricts travel by scientists like me, limits the flow of supplies and technology for cutting-edge scientific research and prevents Cuban scientists from traveling to the U.S. for academic exchange and training,” Bretos says. https://www.bellyofthebeastcuba.com/embargo-on-cuba-doesnt-represent-american-values-traveling-to-cuba-does

Inflation has hurt Cubans’ pockets more than official figures suggest: Dr. Emily Morris, an economist at University College, London, writes in The Conversation that “official figures systematically understate the actual increase in prices faced by Cuban households.” In the article, Morris notes that “in 2021, for example, research estimated the inflation rate was anywhere between 174% and 700% – well above the government’s estimate (77.3%).” While inflation may be leveling off, with the official annual rate easing to 15% in June, rising prices “have put essential goods beyond the reach of most people who depend on state incomes,” Morris argues. She also contends that “constraint on economic growth imposed by US measures is real and severe,” writing that “every branch of the Cuban economy has been affected by US sanctions…and the lack of hard currency has, in turn, limited the scope for the investments and reforms needed for economic recovery.” https://theconversation.com/cuban-government-scrambling-to-deal-with-outrage-about-countrys-economic-crisis-261702

The Cuban billionaire behind the pro-immigrant billboards in Miami: El País reports that Cuban-born, Miami-based billionaire Mike Fernández has been anonymously funding a campaign against the Trump administration’s immigration agenda since April, paying for billboards on Miami highways calling out Secretary of State Marco Rubio and the three Cuban-American members of Congress from South Florida – Republicans Mario Díaz-Balart, María Elvira Salazar and Carlos Giménez. The campaign, for which Fernandez says he’s willing to spend up to $30 million, calls the lawmakers “cowards” and “traitors” for abandoning immigrants through policies like mass deportations, quotas for daily arrests, the cancellation of temporary protections and humanitarian programs, and the use of immigration detention centers for individuals with no criminal record. “The direction that we’re going as a nation is totally opposite to what the Constitution says [and] to the way that Americans treated me as a child,” Fernández told El País. “I don’t object to many of the provisions of the Administration and their policies. What I do object to is the cruelty and the treatment of others as if they were animals.” https://english.elpais.com/usa/2025-08-05/the-cuban-billionaire-behind-the-pro-immigrant-billboards-in-miami-if-i-have-to-spend-30-million-in-this-fight-i-will-spend-it.html

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