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The Pitfalls of Increased Tariff Protectionism in Cuban Industries

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The Pitfalls of Increased Tariff Protectionism in Cuban Industries

The Cuban government has recently implemented a significant increase in tariffs on the import of alcoholic beverages and tobacco products. The decision, as published in the Official Gazette, aims to protect national production in these industries and enhance development.

However, critics argue that this move could have negative consequences in the long run. While industrial protection policies have been successful in countries like South Korea, Japan, and Germany, misapplied policies can result in harmful dynamics that are difficult to rectify.

Cuba, with its rich tradition and experience in the production of alcohols and tobaccos, has historically held a strong position in the global market. The recent decision to protect these industries through tariffs has raised concerns about the state of Cuban exports and the competitiveness of local products.

Experts suggest that instead of relying on tariff barriers to shield domestic industries, Cuba should focus on innovation and improving the quality of its products to compete on a global scale. The inability to compete with international producers is attributed to state-controlled industries and ideologies such as socialism and Castroism.

Critics argue that the increase in tariffs is not aimed at protecting national industries but rather prioritizes the interests of the government. The decision could potentially lead to a decline in Cuban exports and make the country a net importer of alcohol and tobacco products.

As the debate continues, it remains to be seen how the Cuban government will address the challenges facing its domestic industries and the potential impact of increased tariff protectionism.

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