Posted December 18, 2015
Agriculture
Secretary Tom Vilsack stated that he believes agriculture will play an
important role in strengthening the nation’s relationship with Cuba, according
to a USDA statement available here.
Politico also published an article here,
The Des Moines Register here,
and Reuters here.
“Throughout
history, agriculture has served as a bridge to foster cooperation,
understanding and the exchange of ideas among people. I have no doubt that
agriculture will continue to play that powerful role as we expand our
relationship with the Cuban people in the coming years.”
After more
than 50 years, President Barack Obama announced that the U.S. plans to restore
diplomatic relations with Cuba, according to Reuters.
The policy
will “expand trade, increase travel, and establish diplomatic relations with
Cuba's communist regime,” according to The
Des Moines Register.
"Today's
announcement expands opportunity for U.S. farmers and ranchers to do business
in Cuba. It removes technical barriers between U.S. and Cuban companies and
creates a more efficient, less burdensome opportunity for Cuba to buy U.S.
agricultural products. It also makes those products far more price competitive,
which will expand choices for Cuban shoppers at the grocery store and create a
new customer base for America's farmers and ranchers," said Vilsack in a statement.
The Obama
administration is trying to eliminate previous restrictions on agricultural
trade such as regulatory and financial hurdles, including restrictions on cash
transactions, according to Politico.
With
transaction costs drastically reduced, “it’s more likely now that Cuba will be
able to do business at a higher level, from an agricultural product
perspective,” said Vilsack.
Farmers in
the Southeastern states will benefit most as they can easily ship products like
poultry, rice, and corn to Cuba.
Other
states with potential to benefit, include Georgia, Arkansas, Texas, North
Carolina and Mississippi, with most products funneling through Louisiana,
Florida, or Virginia ports.
