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Group seeks Cuba office to promote Illinois ag exports

 

By TIM ALEXANDER

Illinois Correspondent

 

PEORIA, Ill. — The Illinois Cuba Working Group (ICWG), fresh from a trip to Cuba as part of a 30-member, bipartisan agricultural trade mission, is considering the establishment of a permanent office in Havana where state ag organizations can conduct business with Cuban buyers.

Also attending the Oct. 11-14 trade mission were U.S. Reps. Cheri Bustos and Rodney Davis, a Democrat and Republican from Illinois, who met with Cuban officials to explore the next steps in developing trade between the two nations – with agricultural imports from Illinois front and center in the talks.

"Our bipartisan agricultural trade mission gave me valuable firsthand insight into how the Cuban economy operates, and what it will take to ramp up Illinois’ agricultural exports," said Bustos. "While we have made real progress in the last year toward improving bilateral trade relations with Cuba, we still have a lot of work to do to cut through the red tape that holds back our family farmer’s ability to export."

The contingent included representatives from the Illinois Soybean Growers (ISG), The Maschhoffs, AGCO, ADM, Illinois Farm Bureau, Illinois Corn Growers Assoc., Illinois Chamber of Commerce and University of Illinois. Their itinerary included meetings with the Cuban National Assoc. of Small Farmers, members of the Cuban National Assembly, deputy director general and deputy minister of the U.S. Division of the Ministry of Foreign Affairs, officials from the Ministry of Foreign Trade and Investment and the American ambassador to Cuba, Jeffrey DeLaurentis.

The ICWG, which grew out of an initiative that began in 1999 when Illinois became the first state to travel to Cuba during the national embargo, led the trip with the goal of furthering Illinois agricultural trade with the island nation. Members returned with the idea of establishing a permanent office in Havana where state ag groups could host trade talks with Cuban buyers.

"Illinois agriculture has great potential in Cuba (but) we can’t maximize it because of the embargo," said Paul Johnson, ICWG executive director. "Illinois soybean and corn exports have dropped from $66 million in 2008 to $24 million last year. We can’t afford to lose out on these opportunities, and having an office where we can conduct direct business is essential."

Although the United States is allowed to export ag products to Cuba through a loophole in the decades-old embargo, Illinois is losing market share to South America and other competitors, Johnson added.

U.S. ag exports to Cuba could increase to $1.2 billion per year if remaining embargo restrictions are lifted, according to a recent Texas A&M University report. Illinois’ share would come to approximately $120 million annually, with some $80 million from soybean and corn exports alone.

Davis said while it’s clear Illinois farmers and the economy have much to gain from normalizing trade relations between the two countries, there are steps the Cuban government must take before increased trade opportunities can blossom. "I look forward to working on a bipartisan basis to encourage economic reforms in Cuba, such as moving to a single currency and expanding private enterprise, which will ensure Illinois and the Cuban people benefit from increased trade," he said. "I am also committed to helping the ICWG establish an office in Cuba, which would be a major step to improving and sustaining trade relations."

Opening up ag trade with Cuba would create jobs and opportunities for the people of Illinois, according to Daryl Cates, chair of the ISG. That goal can be facilitated by the U.S. allowing export promotion and assistance for ag commodities heading for Cuba, along with granting American food companies the ability to negotiate trade terms with Cuban officials and purchasers.

These changes would require amendments to the Trade Sanction and Reform and Export Enhancement Act of 2000, according to the ICWG.

"Improving our trade relations presents opportunities for both nations, and I’m committed to continuing the dialogue and fostering the relationships to ensure that Illinois’ agricultural community is well positioned to benefit from normalizing trade," said Bustos, who is currently traveling across Illinois’ 17th District meeting with farmers, business leaders and trade experts to discuss her trip and the expansion of ag trade with Cuba.

Johnson noted Bustos’ and Davis’ presences on the trip helped solidify the group of agricultural commodity association representatives and state employees. "The bipartisan support we are showing at the Congressional level really shows that we are interested in learning more, finding creative ways to engage Cuba to compete with their existing trade partners and restore (trade) relations," he said.

10/28/2015