News

Cuba holds potential for importing U.S. ag products

New trade and travel rules regarding Cuba should result in greater exports of U.S. agriculture goods to that nation, according to Jim Sutter, the CEO of the U.S. Soybean Export Council.  In the last year, Cuba has imported about a half-million tons of soybeans and soybean products.  A little less than half of that total came from the U.S.

The nearly quarter-million tons of U.S. soybeans that have gone to Cuba in the last year have been exported with difficulty resulting from the red tape involved with the 1960s embargo, said Sutter.

“But with our geographic proximity to Cuba, you would think it would be a natural where we’d have a very, very strong market share, as we do in many other Latin American countries,” Sutter told Brownfield Ag News.

As regulatory issues become less of a burden, Sutter says the market share for U.S. ag products going to Cuba should grow.

“If they can get their economy rolling to a greater degree, I think that the potential for demand increases is there,” said Sutter.  “So we won’t only be talking about a half-million ton soy import market, but we could be talking about something, a million tons or a million-and-a-half tons I would think would be in the realm of possibility.”

The move, taking effect this past Friday, is the latest step in the Obama Administration’s announced effort to improve relations with Cuba.  Talks this week are aimed at normalizing relations between the two countries including opening embassies.

In spite of the easing restrictions, the 50-year-old embargo is still in place.  Only Congress can lift that.