Lawmaker, Cuba Democracy Advocates Executive to Work on Bill to Finance Agricultural Exports to Cuba

Peterson said that ending the U.S. trade embargo could help increase Cuban incomes. “We can pass this bill,” he said. “I don’t see it’s going to make a whole lot of difference.” Lawmakers’ arguments included one claiming Cuba could conceivably follow the path of other traditionally socialist nations like China and Vietnam, in making capitalist reforms that better align trade standards with global norms, if the U.S. can establish a regular relationship with the country. “We’ve got a communist country in China that we do a great deal of trade with,” Rep. Jim Costa, D-Calif., said during the hearing. “They call it socialistic capitalism…. They needed to change, and they did. And now everybody trades with China.”

Other lawmakers said that although the Castro regime might be doing a poor job of implementing democracy in Cuba, restrictive U.S. trade policies with the nation over the last 55 years haven’t done anything to change its leaders’ behavior. Furthermore, Rep. Ralph Abraham, R-La., mentioned that representatives from Russia and other countries are meeting with the Castros in the near future, and cited concern that if U.S. representatives don’t work to cement normal ties with Cuba, other bad actors will capitalize.

Throughout his testimony (here), Claver-Carone reiterated that one entity of the Cuban military, ALIMPORT, handles all import transactions in Cuba, including payment arrangements. For this reason, it will be very hard to write legislation that would help Cuban citizens without bolstering the status of the Castro regime, he said. But another testifier, rice producer Mark Isbell, speaking on behalf of USA Rice, pointed out that the U.S. exports to several countries, including Japan, with similar state import structures, a situation he said isn’t ideal but is workable. On the finance side, CoBank Senior Vice President and Agriculture Export Finance Division head Karen Lowe (here) said in testimony that for more firms to consider financing exports to Cuba, should more opportunities open up through U.S. law, several issues must be addressed, including lack of transparency in Cuba’s banks, and concerns regarding repayment ability and contract enforceability. Attention should also be paid to possible establishment of a non-government import entity in Cuba to mitigate these and analogous concerns, she said.

Claver-Carone said he’d only support a bill that would benefit the people of Cuba and not the Castros. “We want to support U.S. agriculture, and likewise, I know that you don’t want to support a regime that is hurting our people, so therefore, I’m all open for continuing this dialogue and discussion and finding ways to do so,” Claver-Carone said. Crawford said he and Claver-Carone might be “prone to displays of emotion” moving forward on the bill, as both sides are “passionate” about the issues involved. Arkansas farmers produce more rice than any other state in the U.S., and Cuba consumes the long-grain rice so prominently grown in that state. South Florida congressional Republicans widely known for their bullish support for restrictive policies on U.S.-Cuba engagement -- including Reps. Mario Diaz-Balart, Ileana Ros-Lehtinen and Carlos Curbelo -- assured Crawford in July that the House would work on a long-term proposal that would end the cash requirement for Cuban government purchases of U.S. goods, and that would result from congressional committees’ vetting of the Cuban market and potential opportunities for U.S. agriculture producers.

Crawford's bill would repeal provisions in the Trade Sanctions and Trade Enforcement Act of 2000 that ban U.S. financing of agricultural exports to Cuba, and that only exempt pre-transport cash payments or payments from third-party financial institutions (see 1603160001). Furthermore, per the bill, any exports under the market access program, the export credit guarantee program and the foreign market development cooperator program would be exempted from further prohibitions against U.S. assistance to Cuba contained in that 2000 law. House Agriculture Committee Chairman Mike Conaway, R-Texas, said that although the trade embargo hasn’t had the intended effect of changing Cuban politics, the Castros are a questionable regime to open up a commercial relationship with, and he remains opposed to lifting the comprehensive trade ban. “I believe there lays an opportunity -- albeit a rather narrow one -- to make changes that will positively benefit both agricultural producers here at home while contributing to economic growth in Cuba,” Conaway said in written testimony (here). “I remain firmly opposed to lifting the embargo or restrictions on travel. We are dealing with a regime that cares about little more than ensuring its own perpetuity and prosperity.”