Baracoa (bäräkōˈä) [key], city (1996 est. pop. 50,000), Guantanamo prov., SE Cuba, a port near the eastern extremity of the island. It is a processing and export center for a region producing bananas, coconuts, and cacao. Founded c.1512 by the Spanish explorer Diego de Velázquez, Baracoa is the oldest settlement in Cuba.