Canadian businesses are facing increased uncertainty in Cuba, where they represent the second-largest source of foreign investment. Major Canadian players in Cuba, such as Sunwing and Sherritt International, are now confronting significant risks due to a slowing economy and an evolving political landscape. These risks are compounded by the Cuban government's struggles to meet its financial obligations, with hundreds of millions of dollars owed to Sherritt International alone.
The Canadian Commercial Corporation (CCC), a Crown corporation that previously supported Canadian companies entering the Cuban market, ceased its operations in Cuba on January 1, 2026. According to CCC spokesperson Liane Cerminara, this decision was driven by "a convergence of rising financial risk and deteriorating economic conditions". This move underscores the growing concerns surrounding investments in Cuba.
The evolving situation in Cuba is attributed to a combination of factors, including increased pressure from the United States and internal reforms aimed at modernizing the Cuban economy. While Cuba is seeking to attract foreign capital to stimulate infrastructure development and create jobs, tensions with the U. S. and an ongoing liquidity crisis present considerable challenges. Canada issued warnings to Canadian companies about "payment risks" amid the crisis.
Despite these challenges, Canada maintains a commitment to open dialogue and cooperation with Cuba. However, the immediate future remains uncertain for Canadian companies operating in the country, requiring careful monitoring and risk mitigation strategies. The Canadian government has also provided aid to the Cuban people, including $8 million in food aid, delivered through UN agencies.
