| WASHINGTON (Reuters) - Cuba could become an important
supplier of fruits, vegetables and organic foods to the U.S. market if all
food trade barriers are eventually removed by Congress, the U.S.
Agriculture Department said on Thursday.
In a report on the outlook for agricultural trade with Cuba, the USDA's
Economic Research Service summarized food imports that Cuba would likely
buy from the United States if American private or public financing was
permitted.
The report also described Cuba's agricultural exports, especially those
that could be expanded with American investments.
Congress recently approved an easing of the long-standing food trade
sanctions against Cuba's Communist government, but barred any credits from
the U.S. government or private banks. Congress did not lift the
restriction on U.S. purchases of fruits, vegetables and other agricultural
goods from Cuba.
Several farm state lawmakers have vowed to press the new Congress next
year to lift the remaining food trade barriers.
That would open the door to financing of sales of U.S. rice, coarse
grains, beans, wheat flour and animal products, the USDA said. Elimination
of the financing restrictions could also boost U.S. sales of fertilizer,
pesticides, farm equipment and other technology, the report said.
Cuba purchases about $600 million worth of agricultural imports
annually, mostly from Europe and Canada.
Future changes in sanctions law could allow American companies -- which
were heavily invested in Cuban sugar, tobacco and other crops before the
1959 revolution -- to again invest in Cuban agricultural production for
the export market.
``The most likely candidates for Cuban export to the United States are
sugar, citrus, vegetables and tropical fruits, seafood, and tobacco,'' the
USDA said.
While Cuba may compete with Florida in some agricultural goods, other
exports would be complementary.
``The Cuban grapefruit harvest, for example, starts in mid-August. If
the trade embargo were lifted in full, this early harvest could put
grapefruit (particularly red seedless grapefruit) in U.S. markets in
August-September when U.S. supply is small,'' the USDA said.
Cuba's lack of hard currency to buy fertilizers and pesticides means
that the nation could become a major supplier of organic exports, the
report said.
Any further changes in the 40-year-old U.S. sanctions will face stiff
resistance from Cuban-American groups, conservative Republicans and
Florida lawmakers.
A complete copy of the USDA report, along with guidance for U.S.
exporters, was posted on the Internet at http:/www.ers.usda.gov/whatsnew/issues/cuba/. |