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Ag reps tour Cuba as a potentially bigger trade partner

 

By MICHELE F. MIHALJEVICH
Indiana Correspondent

ARLINGTON, Va. — The lifting of a trade embargo on Cuba would benefit U.S. farmers by allowing more American commodities into the country, according to representatives of agriculture groups that visited the Caribbean island earlier this month.
While the United States currently exports some products such as corn and poultry to Cuba, markets could open for wheat, rice, pork, soybean meal and additional commodities if the embargo were ended, said Ben Conner, assistant director of policy for U.S. Wheat Associates. In 2013, U.S. food exports to Cuba totaled nearly $350 million.
“It’s not the biggest market in the world, but it is a market with 11 million people just off our coast,” he said. “To reach the full potential for exports, the embargo needs to be lifted.”
Conner was one of approximately 95 people who toured Cuba March 1-4 with the U.S. Agriculture Coalition for Cuba (USACC). Leaders of the organization, formed earlier this year, have called for an end to the embargo.
In December 2014, President Barack Obama announced changes in U.S. policy toward Cuba, including the possibility of reestablishing diplomatic relations. The President said he was also taking steps to increase travel and commerce between the countries. The current embargo traces back more than five decades and may only be lifted by an act of Congress.
During the trip to Cuba, representatives of several U.S. ag organizations and commodity groups met with Cuban officials and toured working farms, Conner said. They also had the opportunity for some sightseeing as they visited the historic Havana area.
“Clearly, the country has a lot of problems in terms of the agriculture sector,” he stated. “They don’t have nearly the capacity we do. A lot of it is rundown and a lot of investment would be needed in terms of basic upkeep.
“We also had good conversations with Cuban farmers about farming practices. We’re hopeful there will be opportunities for investments in their sector.”
Conner saw no commercial advertising in Cuba. Billboards promoting the virtues of the (Cuban) Revolution and berating the blockade – the term Cuban officials call the embargo – were seen. Stories of some Cubans still driving 1950s-era cars are true, he said, but he also saw some newer – though not necessarily new – vehicles.
Members of the traveling party had the opportunity to talk with Cubans to get their thoughts on the potential for more normal relations with the United States.
“There’s more hope now that relations can be thawed,” Conner said. “I don’t think that’s a political statement. There’s a shared history and shared family ties between the countries. They have a more personal point of view on this than I do.”
One purpose of the trip was to learn from Cuban farmers about their needs. “We want these relations to be established and to reestablish Cuba as a market for our ag products,” Conner explained. “Not just for our commodities, but for seed and equipment too.
“We want to help develop that relationship and make that connection. We think agriculture is in a position to do that.”
The United States is the only country that has shut down exports to Cuba, he said. Cuba imports wheat from the European Union and Canada and also gets commodities from countries such as Brazil and Argentina.
“This is not necessarily an embargo on Cuba but more of an embargo on the U.S.,” he said.
“Sanctions typically work best if a number of countries are involved.”
Representatives of the National Corn Growers Assoc. took part in the Cuban trip. The chair of its trade Policy and Biotechnology Action Team said trade with Cuba is necessary to build a relationship between the countries.
“This is not a one-way sales transaction,” John Linder said. “It’s a two-way partnership. Growing Cuba’s economy and increasing their global exports is good for Cuba, and it’s good for us. It means they have more money to spend on U.S. agricultural goods.”
Linder, an Ohio farmer, is enthusiastic about the potential for a trade relationship with Cuba.
“These are our neighbors. They’re only 90 miles away. The logistics of being so close gives American farmers the opportunity to be competitive. I’m excited about the possibility of building a relationship with Cuba that is efficient, globally competitive and benefits both our nations,” he added.
With a presidential election next year and Obama’s comments on Cuba at the end of last year, officials see 2015 as the time for possibly getting something done regarding the embargo, Conner said.
“The President believes the embargo is outdated and we completely agree with him on that,” he said. “There’s a lot of discussion about trade in Congress. We’re optimistic that this is as good a window as we’ve seen in a long while.”
3/17/2015