Exports to Cuba Fall Dramatically in the First Half of 2010

As the Travel Restriction Reform and Export Enhancement Act (HR4645) awaits approval in the House of Representatives, agriculturists continue to see their exports to Cuba fall while they wait for Congress to make changes to U.S. Cuban trade policy. According to the July 2010 Economic Eye on Cuba report, total U.S. food and agricultural exports to Cuba decreased 35 percent between January 2010 and May 2010 when compared to the same time period in 2009.  Meanwhile, U.S. wheat exports in 2009/10 fell 65 percent from the previous year to just 118.600 metric tons and Cuba has not made any commitments to buy U.S. wheat so far in 2010/11 according to USDA’s Export Sales report for the period ending July 29, 2010.  

HR 4645 would lift the ban on U.S. citizen travel to Cuba, would allow direct banking transfers between Cuban and U.S. institutions, removing the need to use a third-country bank, and would permanently remove the requirement for Cuba to pay for the commodity in advance of loading, which currently must be waived by Congress each year.  While financial transactions will be simplified under this legislation, it is important to note that there is no provision in the bill for Cuba to access any credit programs.  The bill has cleared the House Agriculture Committee and is expected to pass the House Financial Services Committee, but faces opposition in the House Foreign Affairs Committee, where it is estimated that only a few more votes are needed for this committee’s approval.

Source : U.S.Wheat Association