Senator and Congressman Urge Increased U.S. Agricultural Exports to Cuba

Arkansas’ U.S. Senator John Boozman and Congressman Rick Crawford make a forceful argument in the Wall Street Journal for increased U.S. agricultural exports to Cuba.[1] Here is what they stated.

“U.S. agriculture is struggling. Net farm income has fallen by half since 2013, and commodity prices across the board are below the cost of production. This is especially detrimental given the number of jobs agriculture provides our economy. Direct on-farm employment accounted for 2.6 million American jobs in 2015, and another 18.4 million jobs were supported by agriculture, according to the U.S. Department of Agriculture.”

“The U.S. should consider expanding the agricultural market in its backyard: Cuba. Less than 100 miles south of Florida, Cuba imports nearly 80% of its food annually, from countries like Vietnam and New Zealand, including about 400,000 tons of rice. But being closer to Cuba geographically, the U.S. has the comparative advantage here and could provide cheaper, better-quality goods in hours instead of weeks.”

“But the Trump administration may be taking a step in the opposite direction. For the past several months, the White House has been reviewing its trade policy with Cuba, and a major announcement is expected Friday. Early reports foretell a rollback of Obama-era policies that relaxed U.S. restrictions on the island nation. While the move may appease Cold War-era hawks and the minority of Cuban-Americans who still support the embargo, the American business community, agriculture in particular, needs access to Cuba’s market.”

“There is a better way forward that satisfies both parties without repealing the embargo or changing its structure: allow agricultural goods to be sold on credit through private financing. Currently the U.S. trades agricultural goods with Cuba, but there are restrictions that limit trade to cash-only transactions. Considering that nearly all international trade relies on credit, this policy puts American farmers on the sidelines while competitors like Brazil and China enjoy Cuba’s $2.4 billion market.”

“Two bills under consideration right now, the Cuba Agricultural Exports Act in the House and the Agricultural Export Expansion Act in the Senate, would remove the credit restriction and allow private financing of agricultural exports.[2] President Trump’s secretary of agriculture, Sonny Perdue, expressed his support for trade on credit with Cuba during his Senate confirmation hearing in March. Producers from Arkansas, Kansas, Louisiana, Minnesota, Texas and other states would be the first to benefit directly from this change.”

“If there ever was a time for this bill to move, it is now. Agriculture is a crucial part of rural states’ economies. The most important thing that can be done now for American agriculture is to open new markets for U.S. products.”

“Following Fidel Castro’s death in November, President-elect Trump said, ‘Our administration will do all it can to ensure the Cuban people can finally begin their journey toward prosperity and liberty.’ He also has promised time and again to bring back American jobs and ‘make America great again.’”

“Allowing agricultural trade on credit would be a good compromise: Those who support the Cuba embargo should be able to get on board. The Trump administration would accomplish a bilateral trade deal that supplies the Cuban people with high-quality food. And all of this can be done while supporting rural American jobs—an undeniable victory for the Trump White House.”

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[1] Boozman & Crawford, Open Cuba’s Market to U.S. Farmers, W.S.J. (June 13, 2017).

[2] Congressman Crawford is the author of H.R.525—Cuba Agricultural Exports Act. Senator Boozman is a cosponsor of Senator Heidi Heitkamp’s bill: S.275—Agricultural Export Expansion act of 2017; Press Release: Boozman, Heitkamp Reintroduce Bipartisan Bill to Expand Ag Exports to Cuba, Support American Farmers & Jobs (Feb. 2, 2017).