Cuba lifts restrictions on car imports

Cuba will allow cars to be imported for sale at market prices, lifting a 50-year-old ban.

Traffic in Havana

Cuba has announced it will allow unrestricted car imports for the first time in 50 years. (AAP)

The Cuban government has announced it will allow unrestricted car imports for the first time in half a century, marking the end of an era that made icons of the island's vintage automobiles.

The official newspaper Granma said the decision to allow cars to be imported for sale at market prices on the island was taken on Wednesday by Cuba's council of ministers.

It said the decision will gradually free up retail sales of all manner of vehicles - cars, vans, trucks and motorcycles - and ends the practice of granting some Cubans special permission to bring in vehicles as a privilege.

Granma acknowledged the so-called "letters of authorisation" issued by the transport ministry had generated "resentment, dissatisfaction and, in not a few cases ... (were) a source of speculation and enrichment."

Holders of the letters, however, will still be first in line to buy cars while the new system is phased in, Granma said.

Opening Cuba's domestic car market to imports is likely to have fateful consequences for the lovingly maintained 1950s Chevys, Fords and Pontiacs that have survived a 50-year-old US embargo.

But the changes are a long-awaited element of President Raul Castro's attempts to gradually liberalise Cuba's Soviet-style economy.


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Source: AAP



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