Cubans are now allowed to hold US dollars and in 1995 a convertible peso at par with the US dollar was introduced. The US trade embargo and the associated inability to secure finance from multilateral sources has led the Government to encourage foreign investment, principally in joint ventures. All sectors of the economy are now open to foreign investment and in some areas majority foreign shareholdings are allowed. 374 joint ventures are now established in Cuba, with capital from 46 countries. The leading investors are from Spain, Canada, France, Italy and Mexico, in that order.
Sugar is the major crop, and the second most important earner of foreign exchange after tourism.
However, the industry has consistently failed to reach the targets set. Cuba s dream of a 10 mn tonne raw sugar harvest has never been reached and by 1998 output had fallen steadily to 3.2 mn tonnes, the lowest for 50 years. Poor weather and shortages of fertilizers, oil and spare parts cut output. Citrus is an important agricultural export. Cuba became a member of the International Coffee Agreement in 1985 and produces about 22,000 tonnes of coffee a year but exports are minimal.