Groups Want Administration Action Favorable to Cuban Trade

April 8, 2002

Twenty-eight agricultural and agribusiness groups are urging the Bush administration to reconsider its opposition to repealing a provision in law and make it easier for U.S. exporters to trade with Cuba. The provision prohibits agricultural exporters wishing to sell products to Cuba from using U.S. banks or financial institutions to execute the sale.

Currently, the role of U.S. banks is limited to confirming or advising letters of credit issued by third-country financial institutions. The letter, addressed to Agriculture Secretary Ann Veneman, points out that this restriction increases the cost and complexity of the export transaction by adding additional banking fees and makes U.S. products less competitive in the Cuban market.

"Additionally it takes business away from the U.S. economy and hands it over to international institutions and disadvantages smaller exporters who may not have international banking relationships," the groups said. "These third-country financing restrictions placed on agricultural export sales prevent U.S. agricultural exporters from developing standard commercial relations with Cuban buyers."

Signing the letter were the Agricultural Retailers Association, American Farm Bureau Federation, American Meat Institute, American Soybean Association, Archer Daniels Midland Company, Cargill Incorporated, Farmland Industries, Inc., Grocery Manufacturers of America, Louis Dreyfus Corporation, National Association of Wheat Growers, National Barley Growers Association, National Chicken Council, National Corn Growers Association, National Milk Producers Federation, National Oilseed Processors Association, National Pork Producers Council, National Renderers Association, National Sunflower Association, North American Export Grain Association, North American Millers' Association, Rice Millers' Association, U.S. Canola Association, U.S. Dairy Export Council. U.S. Dry Pea & Lentil Council, U.S. Rice Producers Association, U.S. Rice Producers' Group, U.S. Wheat Associates and the Wheat Export Trade Education Committee.