Cuba Journal
Business

Cuba Has Removed a State Middleman From Foreign Hiring

Natalia Suyos ·

5 min read

generated illustration street facade centro havana people walking vintage classic car

A turnstile is not a wall. It is more efficient than a wall.

A wall announces that no one may pass. A turnstile gives the appearance of movement. It permits entry, one body at a time, while counting, slowing and directing every passage. It makes control feel procedural. In Cuba, for decades, the foreign company and the Cuban worker have met through precisely such a device: the state employment agency.

The company paid. The agency selected, contracted and disciplined. The worker appeared at the far end of the mechanism, employed but not directly employed, connected to foreign capital by a belt of state rubber. The arrangement was presented as protection. It was also a tollbooth.

On October 2, the government loosened one bar of it.

Decree-Law 137, published in Official Gazette No. 82, allows foreign commercial representations to hire Cuban workers directly or continue using authorized state employment entities. The accompanying Resolution 62 says that a foreign representation hiring directly assumes the obligations of an employer under Cuban labor and social-security law. The same package widens the commercial scope of foreign branches, allowing certain ones to import, export, invoice, distribute and sell wholesale, while keeping them out of ordinary retail. (cibercuba.com)

This is a small legal sentence with a long shadow behind it.

The old employment arrangement belonged to the architecture of Cuba’s post-Soviet survival. The state needed foreign currency but feared the social and political implications of allowing foreign firms to deal plainly with Cuban citizens. So it inserted itself between them. The arrangement kept the worker legible to the system, kept the company dependent on the system, and ensured that money did not travel in a straight line merely because the work did.

A foreign manager could see the person doing the job. He could not, in the essential sense, hire that person. A Cuban employee could work for an overseas company. He could not possess the ordinary leverage of being employed by one. The relationship passed through a public hand before it became real.

Now Havana says the hand may be removed.

Not everywhere. Not for everyone. Diplomatic missions, consulates, international organizations, foreign press agencies, international schools and other specified entities remain tied to authorized employment agencies. And even where direct hiring is permitted, the new resolution does not create a separate island of foreign-currency labor law. It places the new employer back inside the existing Cuban labor regime. (cibercuba.com)

That distinction is the whole story.

The state is not dismantling the turnstile because it has discovered the moral beauty of an open gate. It is lifting one metal arm because fewer people are entering. Cuba needs firms that will bring goods, money, expertise and some confidence that a commercial decision will not spend its first months waiting in a ministry corridor. It needs investors to believe they can staff an office without submitting every human choice to a state intermediary whose incentives they cannot see and whose delays they cannot price.

The government’s case is not absurd. A country under severe external pressure, short of capital and starved of imports cannot revive production by treating every foreign business as an ideological intrusion. Direct hiring can reduce friction. Wholesale authority can shorten supply chains. A firm that knows its staff, pays its bills and can move inventory with fewer detours has a better chance of staying than one that spends its life feeding paperwork into a locked slot.

And Cuba’s defenders are right about another point: sanctions and financial restrictions make every purported opening harder to test. Foreign firms do not invest in legal abstractions. They invest where payments clear, cargo is insured, contracts can be enforced and tomorrow is not an administrative surprise. A reform that gives a company more room inside Cuba cannot, by itself, neutralize the fear created outside it.

But that is not an acquittal of Havana. It is the indictment.

The regime has spent years treating normal commercial relationships as a concession it could revoke at will, and then calls the resulting mistrust an external plot. It has trained investors to expect arbitrary limits, trained workers to expect that their labor belongs first to a bureaucracy, and trained the country to mistake permission for reform. It cannot now remove one middleman and ask the world to forget the machinery around him.

The irony is sharper because the government is finally acknowledging, in law, what its own practices have long demonstrated: the intermediary was not indispensable. It was a choice.

It was a choice to make a foreign company buy labor through the state rather than hire it. A choice to make the worker’s relationship with an employer triangular rather than direct. A choice to preserve the political symbolism of sovereignty even when the economic result was scarcity, delay and resentment. The system did not merely regulate the gate. It built a business model out of standing in it.

This is why the measure matters even if it changes little immediately. It is a confession disguised as a reform. The state has conceded that foreign investment cannot remain a theatrical performance in which the investor brings money, the worker brings skill, and the bureaucracy insists on playing the indispensable third character.

Still, there is no reason to confuse this with the opening Cuba once nearly had.

The 2015–2017 thaw was not valuable because it produced a particular number of hotel reservations, commercial licenses or diplomatic ceremonies. It mattered because it briefly altered the direction of travel. It suggested that Cuba might be leaving the habit of exceptionalism: that the island could become a country where ordinary rules, ordinary contact and ordinary mutual interests might accumulate faster than ideology could interrupt them.

That historical window is closed. It cannot be reconstructed by issuing a new decree from the same administrative house that helped close it.

The 2026 version of opening is narrower, more desperate and more revealing. It comes after the political temperature has risen, after confidence has drained, after the state has spent the better part of a decade proving that every aperture can become a trapdoor. It asks foreigners to come closer at the exact moment Cuba is least able to guarantee what closeness means.

Perhaps some will. Cuba remains Cuba: talented people, strategic geography, a market of obvious needs, and a population that has learned to produce ingenuity under conditions that would flatten more comfortable societies. The country has assets. Its government is the recurring liability.

A turnstile can be made less restrictive. It can be greased. One bar can be lifted for a few selected passengers. But the people waiting outside still notice who owns the gate, who holds the key, and how quickly the mechanism can be locked again.

Natalia Suyos writes for Cuba Journal on Business.