The year 2000 marked the beginning of trade between Cuba and the US after a period of nearly 40 years. Normalcy began in October the same year following the signing of the Trade Sanctions Reform and Export Enhancement Act (TSRA) by President Bill Clinton marking the end to an embargo on Cuba by President John Kennedy in the year 1962 because of Fidel Castro’s leadership (Foreignaffairs.house.gov).
Agricultural exports to Cuba improved over time hitting an all-time high of $685 in 2008, the amount represents 42% share of the Cuban market (Foreignaffairs.house.gov). However, the exports have since dropped. Wheat and rice exports have dropped from supplying 40% of the market demand in Cuba to exports. This turn of event signals some underlying challenges that trading with Cuba presents (Valdez 27).
In the first session of the Subcommittee on Terrorism, Non-proliferation, and Trade on September 9, 2015, Chairman Hon. Ted Poe attributes the fall to market manipulation by the Cuban government. American farmers, unlike their competitors, are forced to sell products to a company owned by the state. The discriminative practices by the Cuban government towards the United States give a competitive advantage to their competition.
Also, from the hearing it is evident that the lack of proper support to the farmers by the government is an impediment to increased agricultural trade. The United States’ policy on transport and the ban on provision of private funding to the farmers do not help the situation. The situation could improve if certain aspects of the ban were reviewed to allow farmers to travel freely to go and reach trade agreements, increased access to private funding, and removal of the prohibition of access to government export promotion programs
According to John E. Smith, the acting director OFAC as at September 2009, the changes in the policy are in a bid to give the Cuban population the chance to determine their future freely. Similarly, the changes would directly impact the lives of people in both countries as they would result in increased trade and communication between the countries.
The United States has an immense potential to increase its agricultural export to other nations, continent and the world over. To achieve this objective, and in particular with Cuba, it is not enough to reopen embassy. According to Phil Karsting, representing the Department of Agriculture in the hearing, there is the need to re-establish proper diplomatic ties and increase bilateral talks (Foreignaffairs.house.gov).
There are some concerns regarding the trade from the stakeholders such as Cuban agricultural produce are government subsidized, the products could lead to the introduction of a new breed of pests into the country, and could also result in the introduction of new varieties fruits and vegetable product creating real competition for local produce. The success of the agricultural trade is dependent on the proper legislation and changing fundamental aspects of the embargo.
Works cited
Foreignaffairs.house.gov,. "Subcommittee Hearing: Agricultural Trade With Cuba | House Committee On Foreign Affairs - Ed Royce, Chairman". N.p., 2016. Web. 23 Feb. 2016.
Valdez, Lana. Agricultural Trade Between The U.S. And Cuba. 2016. Print.
