The U.S. Grains Council (USGC) said it welcomes news of relaxation of restrictive measures that have hampered agricultural trade between the United States and Cuba. The U.S. government's $410 billion omnibus spending bill for 2009 included a change in the interpretation of the "cash in advance" language with regards to trade with Cuba, to mean payments for goods will be made upon delivery.
"This is great news for U.S. farmers and traders," said Jim Broten, USGC chairman and North Dakota corn and barley grower. "Softening the agriculture trade embargo will lessen delays of shipments to Cuba and allow more frequent U.S. agricultural sales opportunities to occur."
After a devastating hurricane hit Cuba in 2001, U.S. Congress alleviated the U.S., Cuba trade embargo to allow imports of medicine and food from the United States to be more accessible. In February of 2005, the U.S. Department of Treasury changed its interpretation of the term "cash in advance," established in the Trade Sanctions Reform and Export Enhancement Act, to mean money had to be sent before the cargo was loaded. This measure hindered the U.S.-Cuba relationship as it added yet another encumbrance to numerous trade restrictions already imposed by the United States.
"The U.S. Grains Council has always seen Cuba as a potential growth market for U.S. feed grains due to its proximity and the majority of its large population belonging to the lower to middle class," said Broten. "The Council has been active in the Cuban market since mid-1990s, when it donated corn and sorghum to the struggling animal feed industry. This loosening of trade barriers will help the United States and Cuba become bigger and better trading partners."
Since 2003, Cuba has imported approximately 20 million bushels annually of feed grains from the United States.
Source: USGC, March 13, 2009
