Bill to increase trade with Cuba introduced

House Agriculture Committee Chairman Collin Peterson (MN) and Congressman Jerry Moran (KS) have introduced bipartisan legislation that the Associated Press on Business Week online reports "would open markets for U.S. farmers and ranchers in Cuba." The bill, H.R. 4645, is called the Travel Restriction Reform and Export Enhancement Act.

According to the AP, the legislation changes how Cubans pay for commodities bought from farmers and ranchers in the United States. Moran and Peterson believe the current law, requiring the payments from the Cubans to go through foreign banks before being deposited in U.S. banks, increases the price of U.S. goods. So, the bill makes it so that payments won't impede trade. To do this, payments will now be allowed to travel directly from Cuban banks to U.S. banks. Additionally, American farmers and ranchers would be able to travel to Cuba to directly market their products.

Hoosier Ag Today online is reporting that the legislation is already receiving positive reviews from those in the U.S. agriculture industry. Both the National Corn Growers Association (NCGA) and the American Soybean Association (ASA) have backed the legislation. Chairman Peterson believes the bill will expand "U.S. agriculture exports to Cuba."

NCGA First Vice President Bart Schott, of Kulm, North Dakota, believes the legislation will increase "one-way agricultural trade from the U.S. to Cuba."

The Cattle Network online is reporting that both the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) "applauded yesterday's introduction" of the House bill. The dairy industry believes Cuban market '". . . holds significant promise for U.S. dairy exporters . . ."' states Tom Suber, president of USDEC, in the Cattle Network report.

How much traction this bill will get in Congress, despite its strong early support, remains to be seen.

The bill is not yet available online, but will eventually be available here.
To read the Associated Press report click here.
To read the Hoosier Ag Today post click here.
To read the Cattle Network article click here.

Posted: 02/25/10