Small Chance of Liberalized U.S. Rules for Agricultural Exports to Cuba  

The U.S.-China trade war initiated by the Trump Administration has had a significant negative impact on U.S. agricultural exports to that country. In response, some U.S. senators and representatives have been pressing for relaxation of U.S. restrictions on such exports to Cuba. These advocates include Senators Heidi Heitkamp (Dem., ND), Amy Klobuchar (Dem., MN) and Tine Smith (Dem., MN)  and Representatives Collin Peterson (Dem., MN) and Tom Emmer, (Rep., MN). [1]

In addition, a bipartisan group of over 60 agricultural associations, businesses and elected officials from 17 states have urged the two congressional agriculture committees to include in the pending farm bills a provision to remove restrictions on private financing of U.S. agricultural exports to the island. [2]

This week Cuba President Miguel Diaz-Canel in New York City for a meeting of the U.N. General Assembly met separately with a bipartisan and bicameral group of Members of the U.S. Congress, including Sen. Ron Wyden (Dem., OR), Rep. Karen Bass (Dem., CA), Rep. Kathy Castor (Dem., FL), Rep. Robin Kelly (Dem., IL) Rep. Gregory Meeks (Dem., NY) and Rep. Roger Marshall (Rep., KA). Rep. Marshall told AG NET that the U.S. “can and should be Cuba’s number one supplier of commodities like sorghum, soy, wheat, and corn.”

But legislation to expand such exports by allowing credit sales to Cuba did not make it into the pending farm bills in both houses of the Congress, and most observers and participants think chances are nil of such a provision being added. And Senator Heitkamp’s provision in the Senate bill to allow the U.S. Department of Agriculture to use federal funds to develop the Cuban market could easily be cut from the bill in a conference committee.

The reason has more to do with politics than economics, according to Ted Piccone, a specialist in Latin American issues at the Brookings Institution. “It basically comes down to domestic politics in Florida,” Piccone said.

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[1] Spencer, Little appetite for effort to bolster ag trade with Cuba, StarTribune (Sept. 21, 2018).

[2] Engage Cuba, Agriculture Groups Support Farm Bill Cuba Provision that Would Save $690 Million (Sept. 5, 2018).

Lobbying the Incoming Trump Administration To Continue Normalization with Cuba  

Major supporters of U.S. normalization of relations with Cuba have been lobbying the incoming Trump administration to continue that policy. This includes Cuban entrepreneurs, as discussed in a prior post, and most recently U.S. agricultural and business groups.

Agricultural Groups[1]

On January 12 over 100 U.S. agricultural trade groups, including the American Farm Bureau and the American Feed Industry Association, sent a letter to President-Elect Trump. It said, ” we urge you to continue to show your support for American agriculture by advancing the relationship between the U.S. and Cuba and building on the progress that has already been made.”

The letter cited a recent deep dip in farm income to bolster their argument that U.S. farmers needed more trade. “Net farm income is down 46 percent from just three years ago, constituting the largest three-year drop since the start of the Great Depression.”

They also mentioned that under an exception to the U.S. trade embargo from the year 2000, Cuba may import agricultural products for cash, but this cash limitation limits the ability of U.S. agriculture to export to Cuba. Therefore, the letter calls on Trump to allow normal trade financing and credit so the sector can better compete for the Cuban market.

The letter concluded with these words: “As a broad cross-section of rural America, we urge you not to take steps to reverse progress made in normalizing relations with Cuba, and also solicit your support for the agricultural business sector to expand trade with Cuba to help American farmers and our associated industries. It’s time to put the 17 million American jobs associated with agriculture ahead of a few hardline politicians in Washington.”

Business Groups[2]

On January 17 the Cuban Study Group, an organization of Cuban-American business leaders, led a group of advocates for U.S.-Cuba normalization, in submitting to the President-elect a memorandum entitled “U.S. Policy Toward Cuba: the Case for Engagement.”

It argued that continued engagement with Cuba will create U.S. jobs and facilitate more positive change on the island. It states “constructive engagement — including the reduction of travel and commercial barriers — is the best strategy for supporting the Cuban people and boosting U.S. jobs and exports.” Indeed, further progress toward normalization stands the best chance of improving security just off U.S. shores, reducing irregular migration, enhancing the management of U.S. borders, and encouraging continued, positive evolution inside the island.” More specifically, continued engagement with Cuba should produce the following benefits to the U.S.:”

  • “U.S. Job Creation. Further engagement would allow the United States to regain lost market share in emerging Cuban markets from economic competitors such as China, Vietnam, and Brazil and employ thousands of U.S. workers in agribusiness, infrastructure, tech, and tourism.
  • Cuban-American support. Lifting restrictions on remittances and travel allows Cuban-Americans to support their families in Cuba and provide critical seed funding for the island’s nascent private sector.
  • Cuba’s burgeoning entrepreneurial sector. In just a few years, Cuba’s private sector has grown to account for 30% of the country’s workforce. U.S. travelers to Cuba have become the principal source of revenue for many small businesses.
  • Greater access to information. Internet access is growing, and continued engagement can further contribute to connectivity and the development of civil society in Cuba.”

Moreover, they say, “to reflexively reverse course could have pernicious consequences for U.S. economic and foreign policy interests and the prospects of evolutionary change in Cuba.”

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[1] Engage Cuba, Over 100 U.S. Agriculture Groups Urge Trump to Strengthen U.S.-Cuba Trade Relationship (Jan. 13, 2017); Reuters, U.S. Farmers Ask Trump to Stay the Course on Cuba, N.Y. Times (Jan. 12, 2017).

[2] Engage Cuba, Cuba Groups to Trump: Reversing Course Could Harm Cuban People and U.S. Interests (Jan. 17, 2017); Reuters, U.S.-Cuba Detente Supporters Make Last-ditch Effort to Sway Trump, N.Y. Times (Jan. 17, 2017).

The other signers of the memorandum are the American Society/Council of the Americas; the U.S.-Cuba Business Council; the Center for Democracy in the Americas; Ted Piccone, Senior Fellow, Brookings Institution; Richard E. Feinberg, Professor, UC San Diego and Senior Fellow (non-resident), Brookings Institution; William M. LeoGrande, Professor of Government, American University; Engage Cuba; Washington Office on Latin America (WOLA); Latin America Working Group; National Foreign Trade Council (NFTC); Christopher Sabatini, Executive Director, Global Americans and Lecturer, Columbia University’s School of International and Public Affairs; The National Cooperative Business Association CLUSA International (NCBA CLUSA) National Tour Association (NTA) United States Tour Operators Association (USTOA) TechFreedom The American Society of Travel Agents NAFSA: The Association of International Educators; the National Foreign Trade Council, the American Society of Travel Agents and the Association of International Educators; Christopher Sabatini, Executive Director, Global Americans and Lecturer, Columbia University’s School of International and Public Affairs; The National Cooperative Business Association CLUSA International (NCBA CLUSA); National Tour Association (NTA) United States Tour Operators Association (USTOA); TechFreedom; The American Society of Travel Agents; NAFSA: The Association of International Educators.

 

Recommended Obama Administrative Actions To Promote U.S.-Cuba Reconciliation         

On August 29, a U.S. coalition made important recommendations for the Obama Administration to promote further U.S.-Cuba reconciliation by taking administrative actions that did not need congressional authorization.[1] Here is a summary of these recommendations:

  1. Facilitate Greater Financial Engagement and Expand Commercial Transactions.”

These recommendations included (a) authorizing, “by general license, or a general policy of approval, participation by U.S. investors in business arrangements in Cuba, including with state-owned firms, cooperatives, or private sector firms, when the goods or services produced benefit the Cuban people;” and (b) authorizing “by a general policy of approval, the import and sale in the United States of Cuban agricultural products made by the private and cooperative sectors, including transactions that pass through Cuban state export agencies.”

  1. Expand Health-Related Engagement.”

These recommendations included (a) eliminating “barriers which deny U.S. citizens access to clinically proven Cuban-developed drugs; (b) authorizing “U.S. pharmaceutical and medical equipment companies to include Cuban hospitals and health centers in their clinical trials;” and (c) authorizing “U.S. entities (universities, research centers, and private firms) by general license to collaborate in medical and health-related research and development projects in Cuba, including commercial projects.”

  1. Strengthen Security Cooperation where there are U.S. Interests at Stake.”

These recommendations included (a) deepening and extending “counter-terrorism and counter-narcotics cooperation;” and (b) building “gradually on military–to-military contacts.”

  1. Eliminate or Suspend Programs that Fail to . . . Promote Democratic Opening.”

These recommendations were (a) suspending or redirecting “the ‘democracy promotion’ programs now funded through the National Endowment for Democracy (NED), the State Department’s Bureau of Democracy, Human Rights, and Labor (DRL), and USAID, while conducting a review of existing programs to ensure they are consistent with the President’s policies of normalization of relations with Cuba;” and (b) ensuring that “any program or policy that is carried out under this rubric should be conducted openly, transparently, and with the goal of expanding contacts between the people of the US and Cuba without interfering in Cuba’s internal affairs.”

Amen! This blog repeatedly has called for just such action. (See posts listed in “U.S. Democracy Promotion in Cuba” in List of Posts to dwkcommentaries—Topical: Cuba.)

  1. Normalize Migration.”

These recommendations were (a) increasing “the number of visas [the U.S.] issues for Cubans to obtain legal residence;” (b) ending “preferential treatment for Cuban migrants arriving at U.S. borders;” and (c) ending “the Cuban Medical Professionals Parole Program, which offers incentives to Cuban doctors working abroad to leave their country and immigrate to the [U.S.].”

Amen again! This blog repeatedly has called for just such action. (See posts listed in “Cuban Medical Personnel & U.S.” and “Cuban Migration to U.S., 2015-2016” in List of Posts to dwkcommentaries—Topical: Cuba.)

Conclusion

The coalition’s letter also supported Congress’ enacting measures to end the U.S. embargo of Cuba; to give U.S. farmers better access to the Cuban market, by permitting private financing for U.S. agricultural sales; to provide full staffing for the U.S. Embassy in Havana to protect American citizens and provide visas to qualified Cuban applicants; to better manage irregular migration from Cuba; and to take steps to level the playing field for U.S. businesses interested in the Cuban market, relative to foreign competitors.

The coalition consisted of Geoff Thale (Program Director, Washington Office on Latin America); Ted Piccone (Senior Fellow, Brookings Institution); William LeoGrande (Professor, American University); Fulton Armstrong (Senior Faculty Fellow, American University); Alana Tummino (Senior Director of Policy, Americas Society/Council of the Americas); Sarah Stephens (Executive Director, Center for Democracy in the Americas); Mavis Anderson (Senior Associate, Latin America Working Group); Tomas Bilbao (Managing Director, Avila Strategies); Mario Bronfman (Private consultant); and James Williams (President, Engage Cuba).

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[1] Letter, Coalition to President Obama (Aug. 29, 2016). This blogger assumes that the coalition independently researched and concluded that the Obama Administration has the legal authority to take such administrative actions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion of Seventh Congress of Communist Party of Cuba

The final three days (April 17-19) of the Seventh Congress of the Communist Party of Cuba featured criticism of President Obama’s words during his March visit to Cuba, adoption of the Party’s Central Committee’s report, election of the Party’s leaders for the next five years, a concluding speech by Raúl Castro and a surprise appearance of Fidel Castro.[1] These topics will be discussed in this post. Prior posts provided an overview of the Congress, Raúl Castro’s discussion of Cuba-U.S. relations and his discussion of socio-economic issues.

Criticism of President Obama

Bruno Rodriguez
Bruno Rodriguez

The most direct criticism of Obama came from Cuba’s Minister of Foreign Affairs, Bruno Rodriguez Parilla. He said, “Obama came to stand here and dazzle the non-state sector of the economy [the so-called cuentapropistas] as if he was not the defender of big corporations but the defender of those selling hot dogs and small businesses in the U.S.”

Moreover, according to the Foreign Minister, “In this visit, there was a deep attack on our ideas, our history, our culture and our symbols.” However, “Socialism and the Cuban Revolution are the guarantees that there can be a non-state sector that is not that of big North American companies. ”

The Foreign Minister also referred to Cuba’s constitutional referendum in the near future as “a battle” in a different context, with “a very heterogeneous society…in which there are changes in the perception of the enemy, which remains the enemy. And it is there, in the North.”

René González, one of the Cuban Five, said Obama was “the ‘Pied Piper’ . . . [who] came to play to our children and steal their hearts. He played the flute very well, because he has specialists who tell him how to play it.”

But Rene González also made an unusual call for the consideration of political reform in Cuba by saying the Party had focused excessively on the economy for 10 years. “Let the party [now] call for a broad public discussion that goes beyond concepts of economic development. Let’s arrive at the eighth party congress [in 2021] for the first time in human history with a consensus on that human aspiration that some call democracy, and that’s possible through socialism.”

Another member of the Cuban Five who was released from U.S. prison on December 17, 2014, Antonio Guerrero, dedicated a few verses from Cuban poet Cintio Vitier to Obama and his policy of rapprochement: “Don’t attempt with your delicacy to have me betray myself. Do not pretend you are going to believe in my situation.” According to a report in Juventud Rebelde, Guerrero turned to poetry, “as a resonant symbolic exercise against those who approach us today with fake softness.”

Adoption of the Central Committee Report

As reported in an earlier post, on April 16 Raúl Castro as the First Secretary of the Communist Party of Cuba, spent two hours reading the report of the Party’s Central Committee.

Miguel Diaz-Canel
Miguel Diaz-Canel

Two days later Miguel Diaz-Canel had the important, but boring, job of making a resolution for the Congress’ adoption of that report, which meant that he had to re-read that report. This included the report’s criticism of the Cuban governmental bureaucracy as having obsolete ways of thinking led both to inertia in enacting reforms and “a lack of confidence in the future. Along with other deficiencies, there’s a lack of readiness, high standards and control, and little foresight or initiative from sectors and bureaucrats in charge of making these goals a reality.”

That resolution was adopted unanimously by the 1,000 delegates to the Congress.

Election of Party Officials

Castro y Machado Vedntura
Castro y Machado Vedntura

Raúl Castro was re-elected as the Party’s First Secretary as was 85-year-old Machado Ventura as Second Secretary, who is known as the enforcer of Communist orthodoxy and an opponent of some of the biggest recent economic reforms. Raúl added that the “inexorable law of life” means that the Seventh Congress will be the last headed by the historical generation.

There had been speculation that Miguel Diaz-Canel might have replaced Machado Ventura as a clear sign that Diaz-Canel was the successor to Raúl as President. But Diaz-Canel was re-elected to the Political Bureau of the Party.

Raúl addressed the composition of the Party’s Political Bureau, noting that its 17 members include a four women, five Black or mixed-race members, two heads of mass organizations, five Council of State vice presidents, three Council of Ministers vice presidents, and four generals, including the First Secretary. Five new members were elected to this body.

The Central Committee was composed of 142 members, of which more than two-thirds were born after the triumph of the Revolution and the average age was 54.5 years, lower than in 2011. More than 98% of Central Committee members have university-level education, the representation of women has grown and now reaches 44 or 37% and blacks and mestizos with 35 or 92%

Fidel Castro’s Valedictory Remarks

Fidel Castro
Fidel Castro

I’ll be 90 years old soon [in August],” Castro said in his most extensive public appearance in years. “Soon I’ll be like all the others. The time will come for all of us, but the ideas of the Cuban Communists will remain as proof on this planet that if they are worked at with fervor and dignity, they can produce the material and cultural goods that human beings need, and we need to fight without a truce to obtain them.”

“This may be one of the last times I speak in this room,” Fidel Castro said. “We must tell our brothers in Latin America and the world that the Cuban people will be victorious.”

Raúl Castro’s Closing Speech

In a reprise of his two-hour speech on Saturday, Raúl Castro said the development of the national economy, with the struggle for peace and ideological firmness, was the main task of the Party. “This will be a revolution of the humble, by the humble and for the humble, as defined by comrade Fidel.”

Conclusion

I agree with other U.S. commentators that the harsh language against Obama at the Party’s Congress is a sign that the Cuban people had and still have a very positive opinion of President Obama, his speech to the Cuban people and his meeting with Cuban entrepreneurs. As Richard Feinberg, a former national security adviser to U.S. President Bill Clinton, put it, “The harsh rhetorical push-back by the ideological wing of the Communist Party suggests their heightened sense of vulnerability.”

“Clearly the Cubans are on the defensive after President Obama’s trip,” said Ted Piccone, a Cuba analyst at the Brookings Institution in Washington. Ted Henken, a Cuba analyst at Baruch College in New York, said Mr. Obama’s visit “was very effective in rattling” the regime. “Instead of taking Obama’s visit as a chance to open up and speed up the transition to a younger generation, they have circled the wagons.”

Carlos Alberto Pérez, who writes under the name La Chiringa de Cuba, said that he was not surprised by the party’s decision to keep President Castro and Mr. Machado in place. “The transition is planned for 2018 when Raúl steps down. Anyone who thought there would be a change now was dreaming.”

“Party leaders are trying to set up continuity in the context of reform — but it will be the type of reform managed by conservative politicians,” said Arturo Lopez-Levy, a lecturer at the University of Texas, Rio Grande Valley, and a former Cuban intelligence analyst. He added, “Generations do matter. Their formative experiences are different. The younger leaders will take up their posts at a time when the party is becoming more nationalist and less Communist. Younger militants also are less adverse to market mechanisms in the economy than their elders.”

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[1] Reuters, Cuba Calls Obama Visit ‘an Attack’ as Communists Defend Ideology, N.Y. Times (April 18, 2016); Assoc. Press, Cuban Leaders Criticize Both Bureaucracy and Private Sector, N. Y. Times (April 18, 2016); Assoc. Press, Cuba congress says state’s obsolete mentality is holding back economy, Guardian (April 18, 2016); Loforte, There is, and will be, a single Party, Granma (April 18, 2016); Torres, Riled Cuban Communists deploy colorful arsenal against Obama, InCubaToday (April 18, 2016); Whitefield, Cuba’s Communist Party Congress wants change, but also more of the same, Miami Herald (April 18, 2016); Raul Castro: The development of the national economy, with the struggle for peace and ideological firmness, main tasks of the Party, Granma (April 19, 2016); Assoc. Press, Fidel Castro gives Rare Speech Saying He Will Die Soon, N.Y. Times (April 19, 2016); Reuters, Cuba’s Castro Keeps Top Job but Leadership Changes to Come, N.Y. Times (April 19, 2016); Torres, Fidel Castro bids final farewell to his Communist Party comrades, Miami Herald (April 19, 2016);Whitefield, Raúl Castro and hardline deputy remain at helm of Cuba’s Communist Party, Miami Herald (April 19, 2016); Burnett, In Farewell, Fidel Castro Urges Party to Fulfill His Vision, N.Y. Times (April 19, 2016); Morales, Raúl reelected as First Party Secretary, Granma (April 19, 2016); Assoc. Press. Cuba’s Aging Leaders to Remain In Power Years Longer, N.Y. Times (April 20, 2016); Córdoba, Raúl Castro Re-Elected to Top Post in Cuba’s Communist Party, W.S.J, (April 20, 2016).