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Push continues for Cuban trade finance changes

Members of Congress continue to push for long-term credit solutions to boost agricultural commodity exports to Cuba.

The U.S. House Ag Committee heard testimony on the proposed Cuba Agricultural Exports Act (H.R.3687), which would relax lending restrictions on exports to the island nation.

Illinois Congresswoman Cheri Bustos says she wants to reduce trade barriers facing American farmers.  “By providing Cubans with access to the standard credit terms offered by virtually every other nation in the world, we can significantly grow our region’s agricultural exports, move towards normalizing relations with Cuba, and strengthen our 21^st century heartland.”

CoBank Senior Vice President & Agriculture Export Finance Division Head Karen Lowe supports the bill, saying it would help agribusinesses expand into that market.  “The bill would also give producers and processors access to the USDA promotion programs for ag exports, such as the Market Access Program and the Foreign Market Development Program. These can help American producers compete more effectively in this market, while ensuring that U.S. taxpayer funds don’t end up in the hands of the Cuban government.”

Lowe says other issues with Cuban trade need to be resolved, including transparency in their banking system, Cuba’s ability to pay, and how contracts can be enforced.

Minnesota Congressman and Ranking Member Collin Peterson told the committee that 50-plus years of U.S. policy hasn’t worked, but he’s not sure this will either, saying the Cuban people can’t afford to buy products.  Peterson reflected on his visit to Cuba and said, “If I go to the grocery store and they’ve got chicken from North Carolina, which is a big part of our exports, at five dollars a pound, and if the average people can’t buy them, it’s only the embassy people that are buying them and tourists.  I’m supportive of Mr. (Congressman Eric “Rick”) Crawford and what we’re trying to do here, but I just want to caution people.  I think that these folks are not going to change.” He added, “What I’m worried about is this, that we’re going to make some kind of a deal with Cuba to get them to come into the situation and we’re going to actually screw some of the people in the U.S. in the process.”  Peterson said, “I’m for lifting the embargo if it’s straight up and they don’t get anything out of it.  You know, we just lift it and let the economics and the situation take care of itself.  In my opinion, that’s probably the only way the average people are going to ever get to the point where they’ve got enough money to buy anything.”

Massachusetts Congressman Jim McGovern supports the bill.  “Any trade we can open up when it comes to U.S. rice, wheat, corn, beans, just opens up more markets for our U.S. farmers, so that we can supply the rest of the world.”

Cuba Democracy Advocates Executive Director Mauricio Claver-Carone testified that U.S. ag exports to Cuba have declined an additional 21% this year, and expresses concern about protecting American property and preventing support for the Cuban military regime.  Bunge North America Vice President and GM Matt Gibson, Dr. Luis Ribera from Texas A&M, and Arkansas rice producer Mark Isbell also testified at the hearing.

Several agriculture and trade organizations weighed in on the issue after the hearing.  The American Farm Bureau Federation says, “There is no better time than now to provide American farmers and agribusinesses the tools they need to expand agricultural exports to Cuba and help our industry survive this difficult economic environment.”  Engage Cuba issued a statement saying, “We heard from farmers, economists, and agriculture banks who all agree: removing financing restrictions on exports to Cuba would provide tremendous benefits to American farmers and the Cuban people. Congress should keep its word and pass legislation to allow American farmers to successfully export to our island neighbor.”