US Food Sales to Cuba Decline

While Congress considers legislation that would lift travel restrictions and some regulations of food sales to Cuba, the sales of US food to Cuba have dramatically declined since last year, according to Reuters.  To read an Ag&Food Law and Policy blog post on the legislation issue, click here.

US food sales to Cuba dropped by "35 percent from January through May compared with the same period in 2009."  Cuba, amid financial troubles, decided to cut imports from the US and buy from countries offering credit.  The US requires Cuba to purchase agricultural goods with cash "under a 2000 exemption to the embargo."  US food exports to Cuba were $182.3 million this year, while last year they amounted to $278.2 million.  The main US exports to Cuba are "corn, wheat, chicken, soybeans, and powdered milk."

Many farm, business, and human rights groups support the legislation.  "Cuban officials have encouraged visiting US trade delegations to work to abolish the travel ban and lift food sale regulations, arguing that boosting American tourism to the island would give Havana more money to buy US goods."  On the other hand, John Kavulich, head of the US-Cuba Trade and Economic Council, said that improved regulations would probably have little effect on sales.

To read the Reuters story, click here.

Posted: 07/28/2010