By TIM ALEXANDER
Illinois Correspondent

WASHINGTON, D.C. — A bill which would increase trade parameters and ease travel restrictions with Cuba, that has the backing of most agricultural commodity organizations, was not marked up by the U.S. House Foreign Affairs Committee on Sept. 29 – meaning the Travel Restriction Reform and Export Enhancement Act (H.R. 4645) will remain idle until at least November.

The disappointment was evident in a statement issued by Rep. Howard L. Berman (D-Calif.), who chairs the committee and supports the repeal of travel restrictions and trade restrictions for U.S. businesses and individuals wishing to visit or engage in business with Cuba.

“The committee had been scheduled to consider this legislation tomorrow,” Berman said Sept. 28, “but it now appears that (Sept. 29) will be the last day that Congress is in session before an extended district work period. That makes it increasingly likely that our discussion of the bill will be disrupted or cut short by votes or other activity on the House floor.

“Accordingly, I am postponing consideration of H.R. 4645 until a time when the committee will be able to hold the robust and uninterrupted debate this important issue deserves. I firmly believe that when we date and vote on the merits of this legislation, and I intend for it to be soon, the right to travel will be restored to all Americans.”

Agricultural interests would be served with the bill’s passage by lifting the “cash in advance” clause created when partial export of agricultural goods to Cuba from the United States was restored in 2000, proponents of the ag industry believe. According to a recent Internet posting written by Illinois Corn Growers’ Assoc. President Tim Lenz, the cash in advance clause makes the Cuban importer pay for U.S. agricultural goods while they are still at U.S. ports, rather than at the point of import.

“That makes our products more expensive, compared to other countries that do not impose the same requirement,” Lenz stated. “The bill also changes ‘third party banking’ to allow the Cuban importer to pay a U.S. bank directly, instead of going through a non-U.S. third-party bank, which adds a transaction cost that our competitors do not require.”

The Illinois Soybean Assoc. (ISA) issued an Action Alert to its members urging them to contact elected officials and express support for H.R. 4645. The alert came one day prior to the House Foreign Affairs Committee’s scheduled markup of the bill.

ISA’s director of legislative affairs, Mike Levin, asked soybean producers to phone Rep. Don Manzullo (R-Ill.) and tell him to vote yes. Mazullo is said to be undecided regarding the bill, Levin reported.

“Knowing that Congressman Manzullo sits on the House Foreign Affairs Committee and being a member of the Illinois delegation, we feel it is truly important to communicate how we feel about this legislation, and to hear his thoughts as well,” Levin said. “The passage of this legislation would be truly instrumental to the agriculture industry and other industries in terms of exports.
“In 2009, the U.S. International Trade Commission estimated that U.S. exports to Cuba could increase by $500 million annually if restrictions were lifted. H.R. 4645 would result in 6,000 new jobs and over $360 million in new U.S. exports to Cuba.

In addition, lifting the U.S. travel ban to Cuba would add thousands of new jobs and boost the travel industry by over $1.1 billion annually.”

Though the committee postponed the bill’s markup, Levin is asking soybean producers to remain steadfast in their public support for H.R. 4645, which could be considered during a post-election session after Congress returns from a district work period.

“We will continue to work diligently on this issue. It remains a priority and will continue to be in these weeks leading up to the mid-term election, and looking past that, to a possible lame-duck session,” Levin said.

The bill, with 62 cosponsors, made it out of the House Agriculture Committee on July 1, when committee members voted 25-20 to report it with a favorable recommendation.

In August, the U.S.-Cuba trade and Economic Council announced U.S. ag sales to the island nation have declined steadily over the past six years, with U.S. ag and food exports to Cuba down 28 percent during the first six months of 2010, compared with one year earlier. The decline followed a 26 percent plunge in 2008.
Also in August, the Senate Agriculture, Nutrition and Forestry Committee addressed whether there would be significant export growth potential in relaxing trade and travel restrictions with Cuba during a farm bill hearing. Chair Blanche Lincoln (D-Ark.) cited reports indicating that relaxed restrictions with Cuba could double current exports from the U.S., adding that every $1 billion of agricultural products exported to Cuba would help create 9,000 American jobs.

American Farm Bureau Federation President Bob Stallman released a statement in July praising H.R. 4645 and defended the need to relax travel restrictions, along with increasing exports from the U.S.
“Lifting all travel restrictions will have a direct impact on U.S. agricultural sales,” he said. “Increased travel to Cuba will boost food demand in the country, and coupled with other reforms, the U.S. industry will meet increased food needs.”

Stallman reported that U.S. ag exports to Cuba have averaged around $320 million in revenue per year since 2000. The National Farmers Union and the National Corn Growers Assoc. are among other ag interests supporting H.R. 4645.