Cuba says US sanctions are blocking its efforts to open the economy to private investment

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Lederer, E. M. (2026, August 21). Cuba says US sanctions are blocking its efforts to open the economy to private investment. Toronto Star. https://www.thestar.com/news/world/cuba-says-us-sanctions-are-blocking-its-efforts-to-open-the-economy-to-private-investment/article_91a29b2a-39f1-5647-8359-5875524958cc.html

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Toronto Star · collected 2026-08-21 · by Edith M. Lederer

Quick Summary

US Secretary of State Marco Rubio has imposed new sanctions on Cuba every two weeks, targeting state-owned industries such as mining, metal, and construction companies. This move comes despite Cuba's attempts to open up its economy to private investment, with Ambassador Ernesto Soberón Guzmán questioning the need for continued sanctions in an interview with The Associated Press. According to William LeoGrande, a professor of U.S.-Cuba relations, the goal of these sanctions is not just economic reform but rather "to overthrow the Cuban government" by crippling its economy. Cuba has seen significant disruptions due to US-imposed measures, including blackouts, shortages in medicine and food, and a decline in tourism and investment.
Written locally by qwen2.5:14b on 2026-08-21, using this article's own text rather than the other coverage of the same event (that is the story summary below).

AI analysis runs on qwen2.5:14b, locally

Story summary

Cuba's Ambassador to the UN, Ernesto Soberón Guzmán, is questioning why the US is imposing new sanctions that are hindering the country's efforts to open up to private investment. Despite passing sweeping reforms, Cuba has been hit with more economic penalties by the US on Thursday, targeting state-owned mining, metal, and construction companies. The US had previously imposed an oil blockade in January, adding to a decades-old embargo already in place. The sanctions are aimed at preventing "escape valves" according to US Secretary of State Marco Rubio, but Cuba's ambassador wants to know what the US is afraid of. The conflict has been ongoing for decades, with the US demanding economic reforms from Cuba and Cuba trying to implement them despite obstacles from Washington.

Written for “Cuba Sanctions and Economy” on 2026-10-16, grounded in this article and the 0 other(s) covering the same event.

Story

📰 Cuba Sanctions and Economy
Politics · 1 article(s) covering the same event.

Compared with similar articles

This article reads leans strongly left and hedges 0% of its claims. Each row says how that neighbour differs.
Los Angeles Times
⚖️ leaning not scored 🔴 18% hedged 9 of 50 📰 publisher trust 95
“The two articles cover unrelated news about different countries, Cuba and Iran, and do not describe the same specific happening.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
40
sentences that state something as happening or true
Uncertain
0%
0 of 40 hedged ("reportedly", "may", "according to")
Leaning
Leans strongly left
of the writing, not the subject · beta estimate
Publisher signals
63/100
Toronto Star's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Politics
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-08-21 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

Toronto Star · 7634 article(s) · 21 correction(s) detected
Running correction rate · 21 correction(s)
2026-10-07
Correction
2026-09-24
Correction

Who wrote this

Edith M. Lederer
16 article(s) here · 1 carrying a prediction
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🔮 That wasn’t all, Maysa Jalbout, the director of Education Can’t Wait, recounted of her visit to the school a few weeks ago.
🔮 Under a global cloud of wars and bitter divisions, world leaders meet at the United Nations this week facing new fears that runaway artificial intelligence could threaten humanity even as climate shocks and escalating prices are already making life much tougher for hundreds of millions of people.
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🔮 He will replace Cindy McCain as executive director of the Rome-based World Food Program.
🔮 They do whatever they want, knowing that there will be total impunity.”
🔮 UNITED NATIONS (AP) — Russia and China vetoed a United Nations resolution Thursday that would have authorized U.N. experts to keep monitoring sanctions that were reimposed against Iran last year over its nuclear program.
🔮 The U.S. State Department responded to a request for comment with a quote from Rubio saying new sanctions will continue to be announced every couple of weeks to close off “escape valves that they’re trying to create in every mechanism.”
Also by Edith M. Lederer
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 16 articles by Edith M. Lederer →

Topics

Cuba Cuban The United States U.S. UNITED NATIONS

Subjects

Cuba GPE · 15× Cuban NORP · 7× U.S. GPE · 5× Trump PERSON · 4× The United States GPE · 3× Guzmán PERSON · 2× Ernesto Soberón Guzmán PERSON · 1× U.N. ORG · 1× UNITED NATIONS GPE · 1× Washington GPE · 1×

Narrative

Christopher Hernandez-Roy, acting director of the Americas program at the Center for Strategic and International Studies, recalled that the last economic opening under President Barack Obama’s Democratic administration “was later throttled by the Cubans themselves, who feared that the opening went too far and appeared to threaten political control.” Today, he said, it appears the Cubans really do want economic reforms and outside investment.
framing: assertive · carried by 1 article(s) · first seen 2026-08-21
🔮 The U.S. State Department responded to a request for comment with a quote from Rubio saying new sanctions will continue to be announced every couple of weeks to close off “escape valves that they’re trying to create in every mechanism.”

Claims (40 extracted, 0 hedged)

The United States has demanded that Cuba open up to private investment, and Cuba has passed sweeping reforms to encourage just that. asserted
Cuba → demand → that
So Cuba’s U.N. ambassador says he wants to know why Washington keeps piling on sanctions that stymie the very economic opening it has sought for decades. asserted
it → say → decades
Ambassador Ernesto Soberón Guzmán, in an interview this week with The Associated Press, directed his question to U.S. Secretary of State Marco Rubio, the main architect of the Trump administration’s Cuba policy: “What are you afraid of? asserted
you → direct → What
If you are so convinced that the Cuban government is an incompetent government, why do you need to implement almost every two weeks new sanctions?” asserted
you → need → sanctions
The U.S. State Department responded to a request for comment with a quote from Rubio saying new sanctions will continue to be announced every couple of weeks to close off “escape valves that they’re trying to create in every mechanism.” asserted
they → respond → mechanism
Then on Thursday, the U.S. imposed more economic penalties on Cuban industries, targeting state-owned mining, metal and construction companies. asserted
U.S. → impose → companies
Cuba has been pushed to the brink by an oil blockade imposed by the United States in January on top of a decades-old embargo, coupled with the escalating sanctions. asserted
Cuba → push → sanctions
The moves by President Donald Trump’s administration, meant to put pressure on the government by depriving it of funding, have worsened already debilitating blackouts, cut workers off from public transport, crippled infrastructure and deepened shortages in medicine and food in the Caribbean island nation. asserted
moves → mean → nation
Guzmán said the sanctions are the main obstacle to Cuba opening up its economy. asserted
Cuba → say → economy
He said the impact of the U.S. measures — specifically the shortage of electricity and lack of fuel to run a business or travel — has turned off investors and tourists, a major source of Cuba’s income. asserted
impact → say → income
Some companies have pulled out of Cuba, including the Spanish hotel chain Meliá, which relied on tourist revenue and cited “significant operational, legal, economic and financial difficulties” in explaining its decision to leave. asserted
which → pull → decision
”Literally, the United States has done everything imaginable to try to prevent foreign investors,” said William LeoGrande, a professor at American University and a leading expert on U.S.-Cuba relations. asserted
LeoGrande → do → relations
”When they say, `Well, we want to see Cuba open up to foreign investment,’ they’re being disingenuous. ... asserted
they → say → investment
It’s not possible for them to succeed without some kind of sanctions relief.” asserted
them → ’ → relief
The goal of Trump’s Republican administration, he said, is “not just to open up Cuba economically but to overthrow the Cuban government — to change the nature of the Cuban political system.” asserted
he → say → system
Cuba announces major economic shift asserted
Cuba → announce → shift
John Kavulich, president of the U.S.-Cuba Trade and Economic Council, said Cuba had to make changes when it lost its economic lifeline with the U.S. ouster in January of Venezuelan leader Nicolás Maduro. asserted
it → say → Maduro
“The result is the Cuban government in the last eight months made more commercial, economic and financial changes to the country than they have as a group since the revolution,” he said. asserted
he → make → revolution
Nonetheless, the Trump administration keeps ratcheting up sanctions, putting more pressure on Cuba, which is responding by making more changes, Kavulich said. asserted
Kavulich → keep → changes
“But from our standpoint, there are two parts missing: One is Cuba implementing by regulation everything that it’s announced, and secondly, the Trump administration allowing U.S. companies to have more access to the Cuban marketplace while these changes are underway,” he said. asserted
he → be → marketplace
The changes announced by Cuban President Miguel Díaz-Canel in June aim to significantly shift Cuba’s economy and industry, which have been strictly controlled by the socialist government since the 1959 revolution. asserted
which → announce → revolution
They include more space for private businesses, imports and exports without the state as an intermediary, free hiring of personnel, authorization for private banks, investment by Cubans abroad and opportunities for fast-food chains to establish themselves on the island. asserted
chains → include → island
Guzmán said there are opportunities for investments in real estate, solar farms and energy to help ease the country’s electricity shortage, as well as in marinas and the tourism industry. asserted
investments → say → marinas
Christopher Hernandez-Roy, acting director of the Americas program at the Center for Strategic and International Studies, recalled that the last economic opening under President Barack Obama’s Democratic administration “was later throttled by the Cubans themselves, who feared that the opening went too far and appeared to threaten political control.” Today, he said, it appears the Cubans really do want economic reforms and outside investment. asserted
Cubans → act → reforms
Díaz-Canel’s economic reforms are not impossible, but U.S. sanctions “significantly constrain their prospects for success,” Hernandez-Roy said. asserted
Roy → constrain → success
He noted the irony that U.S. pressure ”is helping push the Cubans toward greater economic liberalization out of necessity, while simultaneously limiting the resources and access necessary for those reforms to actually improve the economy.” asserted
reforms → note → economy
Rubio says Cuba’s leaders ‘don’t know what they’re doing’ asserted
they → say → what
In late June, after the reforms were announced, the U.S. slapped sanctions on five state companies, three linked to a business conglomerate run by Cuba’s Revolutionary Armed Forces. asserted
three → announce → Forces
Best known as GAESA, it is believed to command nearly 40% of Cuba’s gross domestic product. asserted
it → know → product
Rubio, a former U.S. senator from Florida whose parents were born in Cuba, did not appear to be impressed by the newly announced economic changes. asserted
parents → bear → changes
He last month called Cuba “a failed state” with “a bad economic model.” asserted
He → call → model
He said Cuba’s leaders “don’t know what they’re doing” and “don’t know how to fix their economy.” asserted
they → say → economy
“I think the challenge that Cuba has faced for the last 15 years is they want to somewhat improve their economy, but they’re afraid that if they improve it too much they’ll lose political control over people,” he said. asserted
he → think → people
The United States is prepared “to do what we can do to effectuate a positive change in Cuba because it directly impacts our national security” since it is only 90 miles (145 kilometers) from the U.S. mainland, Rubio said. asserted
Rubio → do → mainland
“And we want Cuba to be prosperous. asserted
Cuba → want → ?
We want Cuba to be free.” asserted
Cuba → want → ?
The Cuban ambassador said implementing the economic changes would be far easier without the sanctions, if American companies were involved in Cuba and if trade between the two countries was possible. asserted
trade → say → countries
He said the good news is that talks are taking place between the United States and Cuba. asserted
talks → say → States
He declined to give details of what he called “very sensitive conversations.” asserted
he → decline → what
“But the point here is that even when Cuba is changing a lot,” Guzmán said, “the U.S. government keeps the same policy of aggression towards the Cuban people.” ___ asserted
government → change → people
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