As Cuba's economic liberalization slowly but surely progresses, The Bahamas must act quickly to establish linkages between the Cuban and Bahamian economies, according to Minister of State for Investments Khaalis Rolle.
Speaking with Guardian Business after last week's CARICOM summit in Havana, Rolle said that such linkages are crucial as Cuba positions itself as a direct competitor to The Bahamas through the adoption of more foreign investor-friendly policies.
"Make no mistake about it, Cuba will be a competitor of The Bahamas and we have to look at our strategic advantages, look at our comparative advantages, and also look at establishing some competitive advantages," he said.
Rolle cited Cuba's recent overhauls to its foreign investment laws as a signal for increased cooperation between the two countries.
Cuba approved a foreign investment law in March with a host of incentives aimed at drawing in more foreign investment, including slashed profit taxes, bolstered legal protection measures and increased opportunities for joint ventures with the state and Cuban companies.
"Previously the state handled all investments, and this shows a shift in both their
political and economic policy, where they are now inviting foreign direct investors," said Rolle.
Rolle stated that tourism was a key linkage between the two countries, but conceded that Cuba had a clear advantage over The Bahamas in terms of the cost of labor. The minister anticipated a glut of potential investors in the centrally planned economy once Cuba's government further relaxed its influence over foreign investments.
"We want to understand what those dynamics are and prepare for it. We have to look at everything that spans the gamut of investment and determine how we can cooperate with Cuba to ensure that our economy isn't impacted significantly," he said.
Speaking at the CARICOM summit last week, Prime Minister Perry Christie stressed the need for joint ventures between The Bahamas and Cuba in the tourism industry, particularly in arranging multi-destination marketing initiatives and packages.
CARICOM and Cuba adopted the Declaration of Havana during the summit, which pledged strengthened bilateral and regional programs, a commitment to promote social initiatives, the implementation of projects to improve air and sea infrastructure and connectivity, and to broaden economic and trade relations through the implementation of the revised trade and economic cooperation agreement between CARICOM and Cuba.

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