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February 15, 2002

Conference highlights
Cuban trade potential

Approximately 150 members of U.S. commodity organizations, state Farm Bureaus, notable U.S. agricultural corporations, including representatives from Pioneer Hi-Bred International, along with several port authorities were in Mexico earlier this month, meeting with Cuban trade officials during the three-day "U.S. Agricultural Sales to Cuba" conference.

Passage of the Trade Sanctions Reform Act of 2000, allowing recent shipments of American corn, wheat and poultry to Cuba, sparked discussion among Cuban officials and U.S. farm groups for increased agricultural trade, leading to forums like the conference in Mexico.

Texas Farm Bureau President Donald Patman of Waxahachie was among those attending. Patman noted that Farm Bureau has led efforts to lift sanctions against Cuba, arguing that the use of embargoes and sanctions is counterproductive and deprives U.S. farmers and ranchers of a much-needed market of 12 million people just 90 miles offshore.

"Cuba is an especially important market for Texas," said Patman. "We have an abundance of all commodities. We're strangled with oversupply and overproduction. We need to get the fast track authority, the TPA, and move these products out to Cuba and other countries. This is the way to help agriculture get back on its feet and somewhere down the line, make it possible for us to start getting our monies from the market place rather than market and government."

Texas Farm Bureau leaders have made several visits to the island nation to explore opportunities.

Despite current sanctions, 227,000 tons of American food and grain sailed to Havana harbor in late January. And Cuba had just ordered more—1,500 tons of chicken legs from Tyson foods. U.S. companies like Archer Daniels Midland, Cargill, and Riceland were among those shipping $40 million in U.S. corn, wheat and soybeans to Cuba in the wake of Hurricane Michele. Those shipments that continue through the end of February are the first direct commercial sales of U.S.-produced agricultural products to Cuba in nearly four decades.

One of the conference speakers, Kirby Jones, president of Alamar Associates, an American-based Cuban business consulting firm, said those with the perception that Cuba is run by communists should be encouraged to know that while Cuba has a socialist base, it has a fair amount of capitalism. He stressed that U.S.policy towards Cuba is causing Americans to fall further behind compared to other foreign investors.

Jones said pressure for sanctions reform is building from within Congress, as corporate America's business interests in Cuba grow.

U.S. Rep. Joanne Emerson (D-Mo.) and U.S. Sen. Blanche Lincoln (D-Ark.) favor lifting the 40-year old Cuban trade embargo. They hope to address lifting the travel ban and removing financing restrictions during the 2002 legislative session.

Emerson, who serves on the House Ways and Means Committee,—backed the 2000 Cuban sanctions reform package, sponsored by Rep. George R. Nethercutt, Jr. (R-Washington). Unfortunately, said Emerson, that package was undermined by a series of "bad" amendments that short changed export potential to Cuba.

Emerson vowed to seek financing options, either through the farm bill or the ag appropriations bill.

"There are five major opponents in the House—Republican Whip Tom DeLay, who is vehemently opposed to any open doors with Cuba, and Ileana Ross Lehtinen of Florida and Lincoln Diaz-Balart, who were born in Cuba and are now U.S. citizens who have personal reasons for opposing trade with (Fidel) Castro," Emerson claimed.

On the Senate side, Lincoln, a farmer who serves on the Senate Finance Committee, said there is solid support in the Senate for sanctions reform. However, the Bush administration, also an opponent, presents another hurdle.