Freer Relations with Cuba Sought

July 25, 2001

The American Farm Bureau Federation asked Congress Tuesday to repeal several provisions in law that presently limit trade with Cuba. "We believe it is imperative to repeal these onerous provisions that impede our ability to make meaningful commercial sales of agricultural commodities to Cuba," said AFBF President Bob Stallman.

The three items -- third party financing; a prohibition on ships re-entering U.S. ports; and travel restrictions to Cuba -- are contained in an amendment to the agricultural appropriations bill. The amendment will be offered by Sens. Bryon Dorgan (D-ND) and Pat Roberts (R-KS) and will repeal certain provisions governing unilateral economic sanctions with Cuba.

Third party financing imposes a challenging hurdle for exporters, as they are required to execute their financial transaction -- even if they do not involve the extension of credit -- through a foreign bank. The amendment also reforms shipping restrictions under the Cuban Democracy Act, which prohibits vessels that go to Cuba from entering U.S. ports for 180 days. That severely restricts the shipment of agricultural cargo. And, increased tourist travel to Cuba is necessary to generate demand for U.S. agricultural products to supply the growing hotel industry in that country, Stallman noted.

The three provisions were included in last year's Trade Sanctions Reform and Export Enhancement Act that was passed as part of the 2001 agriculture appropriations bill. "We strongly support this amendment," Stallman said. "Repeal of these provisions can provide tremendous benefits for agriculture in America. Our farmers and ranchers want and deserve to be able to compete in a market valued in excess of $6 billion."