Opening Up Cuba

Opening Up Cuba. I’m Greg Martin with today’s Line On Agriculture.

It began as part of the Cold War when President Kennedy called the Communists bluff on the build up of missiles on Cuba. Even though it has been over 50 years, the jury’s still out…but improving U.S. Ag sales to Cuba may have taken some of the pressure off President Obama to go further than easing travel to Cuba and ease Ag trade as well. New data from the New York-based U-S Cuba Trade and Economic Council shows that despite its earlier threats to reduce U.S. goods purchases, Cuba’s increased its us buys…to almost 438-million in ’07—and a whopping 710-million in ‘08. Last year’s high number was largely due to higher commodity prices, but sales to Cuba so far this year are up…and would place Cuba 23rd among 212 U.S. customers. Better numbers may not help the Ag lobby, battling anti-Castro forces in Congress, make the argument to end credit restrictions on Cuban purchases…but Farm Bureau’s Dave Salmonsen has this.

SALMONSEN: Our figures show that they could be up to a billion dollar a year purchaser of all types of U.S. ag products. A little more competitive than some of the other things but as their economy grows, their economy changes they might be purchasing – we think they’d look forward to purchasing some of the higher value products.

Salmonsen says right now the big hurdle remains at the Treasury Department and the White House, still bowing to political opponents on the hill.

SALMONSEN: This is something the Treasury could do but is it something they would be more willing to do if they thought they had Congressional support to do it. That’s probably the real question meaning Congress through legislation would do it and it would be done and taken care of and there wouldn’t be any roll – or that the Treasury could do or at least some expression of Congressional support that we’ll support you if you make these changes.

Salmonsen does not expect the issue to be resolved ‘overnight.’ It’s a debate that continues after nearly 50-years of the U.S. Trade Embargo—backed by many Cuban-Americans.

SALMONSEN: The concerns of the people who have been against this certainly have weighed into this, have certainly guided this policy for a long time in dealing with Cuba but the benefits of it have been brought to peoples attention and will continue to be so and I think this is a developing issue and we’ll keep working on it but it’s certainly going to take some more time.

That’s today’s Line On Agriculture. I’m Greg Martin on the Northwest Ag Information Network.