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U.S. details rules for food shipments to Cuba
By Richard Cowan, Reuters
July 13, 2001
 
WASHINGTON, July 12 (Reuters) - After a delay of more than four months, the Bush administration on Thursday published new regulations clearing the way for U.S. sales to Cuba of food, soft drinks, tobacco, cotton and other agricultural commodities.

The regulations carry out a law enacted by Congress last October to loosen Washington's nearly 40-year-old economic sanctions against Havana.

Agribusinesses like Archer Daniels Midland Co. (NYSE:ADM - news) and U.S. farm groups have been particularly active in recent years in trying to get permission for exports of grains and other commodities to Cuba. Their cause has been aided by the end of the Cold War and more favorable U.S. public sentiment toward the communist-ruled Caribbean island nation.

But even with the new regulations spelling out how companies can go about selling food and medicine to Cuba, it remained unclear how much business will actually be generated.

Obstacles include a continued prohibition on U.S. financing that would facilitate sales, as well as Cuban President Fidel Castro's vow that trade cannot occur until the United States lifts all of its economic sanctions.

The Commerce Department's regulations, which take effect July 26, had been anticipated since February.

But they were delayed by a dispute within the administration over how expansive the regulations should be, as well as pressure from Cuban-American groups opposed to the Castro government that urged the U.S. government to go slow.

The U.S. Agriculture Department has issued a 36-page list of products that will be eligible for shipment to Cuba, ranging from cookies to cows and fertilizer to fish.

Although Congress also intended the law to allow sales of U.S. medicine to Cuba, However, the new Commerce Department regulations do not include allowing medicine or medical devices to be sold to Cuba.

The new rule said that after obtaining a written sales contract, U.S. exporters have one year to ship agricultural commodities to Cuba.

Exporters must fill out an application with the Commerce Department's Bureau of Export Administration. The Defense and State Departments then have nine business days to consider if the shipment might promote international terrorism. If no government agencies raise objections within that period, the Commerce Department will confirm that the shipment may be made.

The new regulation also covered similar procedures for U.S. exporters planning to sell food to Sudan, Libya, and Iran.

U.S. agricultural commodities that can be sold to Cuba include the following:

* food commodities
* animal feed
* shellfish and fish products
* beer, wine and spirits
* soft drinks
* livestock
* cotton and other fibers
* tobacco and tobacco products
* wood and wood products, including lumber and utility poles
* seeds
* reproductive materials such as fertilized eggs, embryos and semen.
* fertilizers
* vitamins, minerals, food additives and dietary supplements
* bottled water