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| Farm groups support new trade legislation with Cuba |
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By JANE HOUIN
Ohio Correspondent WASHINGTON, D.C. — With agricultural sales to Cuba totaling $350 million last year alone, it’s little wonder agricultural groups like the American Farm Bureau Federation (AFBF) are supporting new Congressional legislation to remove burdensome restriction impeding trade with Cuba.
This new legislation, introduced in the Senate by Sens. Max Baucus (D-Mont.) and Mike Crapo (R-Idaho), and in the House by Reps. Charles Rangel (D-N.Y.) and Jo Ann Emerson (R-Mo.), would allow U.S. agriculture to continue selling goods to Cuba with the potential for a significantly increased share of the market, according to AFBF.
“There are considerable restrictions placed on U.S. agricultural sales to Cuba that impede our marketing efforts and sales to that country,” said AFBF President Bob Stallman. “This legislation would remove those costly barriers.”
“Cuba represents an important opportunity for agricultural exports, and fuller U.S. engagement in Cuba is essential to bring positive change to the country,” Crapo said. “Our legislation will ensure that unnecessary government regulations do not hinder that progress.”
U.S. agriculture sales to Cuba have totaled $1.4 billion since 2000. Last year alone, agricultural sales totaled $350 million, up from the previous year.
“I am very pleased to join my colleagues in the House and Senate to work in a bi-partisan manner to fix a policy that has been broken for years,” Congressman Rangel said. “A policy that in 50 years has done nothing to change Cuba but only harms everyday Americans like our farmers and our business people, should be changed. That is what this bill is designed to do.”
The legislation, S. 1673, aims to better enable U.S. producers to export to Cuba and enhance U.S. and Cuba political and economic opportunities.
“Unfortunately, Idaho products have made up very little of the $1.5 billion in U.S. agricultural products sold to Cuba since the initial easing of trade restrictions,” Crapo said. “That is due to the continued difficulty and additional obstacles that have been placed on exporting to the country.”
A trade embargo in place since 1962 was eased in 2001 to allow for the export of some food and medicine. In 2005, however, a change by the Treasury Department to the cash payment in advance rule caused payments for agriculture exports to be made before ships leave U.S. ports rather than upon delivery, making it more difficult for American farmers to sell their products to Cuba.
Stallman said AFBF will continue to work with Congress to eliminate the restrictions.
“Such restrictions adversely affect markets and are an inappropriate tool for the implementation of foreign policy,” Stallman said.
Provisions of the S. 1673 legislation include clarifying Congressional intent regarding payments for agricultural purchases., streamlining bank-to-bank payments between Cuba and the U.S. for transactions, and eliminating travel restrictions and encouraging better access for Cuban trade officials and inspectors to visit the U.S. for purchases.
Additional aspects of the legislation include increasing activities relating to the export promotion of U.S. agricultural products to Cuba and easing restrictions currently complicating the sale of U.S. medicines and medical devices to Cuba.
Earlier this year, Representatives Jerry Moran (Kan.), Stephanie Herseth (S.D.), Jo Ann Emerson (Mo.) and Mike Ross (Ark.) introduced similar legislation in the House of Represenatives, H.R. 1026, the Agricultural Export Facilitation Act of 2007, but this legislation has received an unfavorable executive comment from the USDA while referred to the House Committee on Agriculture.
This legislation was introduced after a Congressional delegation’s visit to Cuba in December 2006 to meet with Cuban government, trade and religious leaders.
“With the stepping aside of Cuban dictator Fidel Castro, this is an opportune time to encourage the United States to change its trade policies toward Cuba,” Moran said.
“Cuba is an important market for U.S. agriculture, as well as for manufacturers and distributors of food products. But the actions of our own government have created a climate of uncertainty and have inhibited the sale of agricultural goods. Our unreliable and uncertain trade policies are sending the signal to Cuba that it is easier to purchase its products elsewhere. We are only hurting ourselves.”
Companies in 38 states have signed contracts to sell commodities to Cuba, with total sales of $2 billion since 2001.
According to various estimates, the banking regulations are costing American producers $200-$300 million. It has been estimated that lifting the travel embargo entirely would create 20,000 new jobs and $1 billion in revenues to the U.S. travel industry.
This farm news was published in the July 4, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
| 7/5/2007 |
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