Agency Issues Report on Cuba Trade

[Jimmy2]

Agency Issues Report on Cuba Trade

HAVANA, 20 (AP) -- America's trade with communist-run Cuba could double if U.S. financing rules on direct agricultural sales to the island were lifted, the U.S. International Trade Commission said in a report released this week.

"All agricultural commodity sectors would likely benefit from the lifting of the financing restriction," said the 180-page report released Thursday in Washington.

Under an exception to the 45-year-old U.S. embargo on Cuba, American producers can sell food and agricultural products to the Caribbean nation on a cash basis. A separate exception allows sales of U.S. medicines and medical supplies to the island.

But American farm producers complain the transactions were slowed beginning in 2005 by new U.S. rules requiring them to receive payment from Havana before shipping their goods.

The report was requested by the Senate Finance Committee, the ITC said, which is chaired by Sen. Max Baucus, D-Mont. Baucus has introduced legislation that would lift most of the financing restrictions on U.S. agriculture exports and eliminate limits on travel.

"Common sense tells us that barring agricultural producers from doing business with the largest market in the Caribbean is hurting American interests," Baucus said in a written statement. "It's clearly time for Congress to curb the overzealous trade embargo on Cuba."

Baucus said his bill could increase U.S. agriculture exports to Cuba by over $300 million.

The ITC's report concludes that the cash requirement raises the cost of U.S. goods and likely limits sales to Cuba.

In addition, the report found that if travel restrictions were lifted, the number of U.S. visitors to the island would jump from 171,000 in 2005 to as many as 1 million annually. That would also likely increase demand in Cuba for U.S. farm goods, the ITC said.

The commission's report was welcomed by the USA Rice Federation, which opposes the financing rules and supports legislation to lift U.S. trade and travel restrictions on Cuba.

"The United States was the principal supplier of rice to Cuba before sanctions were imposed, and will be again once they are removed," said Marvin Lehrer, USA Rice senior consultant for Cuba.

Havana says it has spent more than $2.2 billion (euro1.6 billion) on American farm products and related costs since 2001, when it began taking advantage of a U.S. law allowing the deals. This year, it expects to match the $570 million it spent on U.S. food and agricultural goods in 2006.