January 9, 2015

US agricultural coalition supports open trade with Cuba

In one of the most important milestones of his administration, US President Barack Obama has begun to open up diplomatic and trade relations with Cuba, a move that is strongly supported by the US food and agricultural industry.

The approval is reinforced with a recently formed coalition which will back further stimulation of the US-Cuba trade by lifting a decades-old embargo on Havana. 

The union, known as the US Agriculture Coalition for Cuba (USACC), consists of more than 30 agricultural organisations. It seeks to deepen ties with Cuban agricultural producers and support the import of food, beverages and other agricultural products produced in the country.

"Changes in US policy toward Cuba can support economic growth and well-being in both nations," said Devry Boughner Vorwerk, Cargill's vice-president and the chairman of USACC.

"Improvements in the Cuban market access allows for US farmers, ranchers and food companies to serve a nearby market… Cubans (also) gain improved access to healthy and affordable food and feed."

In the USACC's view, ending the embargo is of paramount importance: sanctions had, in the past several years, rendered it tough for US food and agricultural companies to export to Cuba due to financing and trade restrictions.  

Moreover, the competitive edge is in the hands of Canada, Brazil and Argentina which are trading without such hindrances in the way.

The situation could soon change if the US successfully puts to rest post-Cold war dissensions which have restrained potential trade opportunities.

"The historic policy changes announced by the President will take steps to make American farm and products more price competitive, which will expand choices for Cubans at the grocery store and create a new customer base for America's farmers and ranchers," said US agriculture secretary, Tom Vilsack.

"The administration looks forward to engaging in an honest and serious debate about next steps in Cuba, and I have no doubt that the USACC will have an important role to play as these conversations continue and we expand our relationship with the Cuban people in the coming years."