U.S. Reps. Rodney Davis (R-IL) and Cheri Bustos (D-IL) announced bipartisan support on Tuesday for legislation that would remove key barriers to agricultural trade with Cuba through the modification of prohibitions in the Trade Sanctions Reform and Export Enhancement Act of 2000.
The modifications presented in H.R. 3687 – the Cuba Agricultural Exports Act – would repeal restrictions on export financing for agricultural products, which would allow payment or financing terms from U.S. businesses for sales of agricultural commodities to Cuba. The act would also allow agricultural producers and businesses to access U.S. Department of Agriculture marketing programs to keep the U.S. competitive in foreign markets.
“These restrictions have placed U.S. farmers at a significant disadvantage compared to the rest of the world,” Davis said. “By removing barriers and allowing Cuba access to credit, which is offered to every other nation, we can provide increase trade opportunities for Illinois farmers.”
Additionally, the legislation enables limited investment in Cuban agribusinesses provided U.S. regulators certify that the entity is both privately-owned and not controlled by either the Cuban government or its agents.
Davis traveled to Cuba from Oct. 11-14 on a trip sponsored by the Illinois Cuba Working Group. Cuba is estimated to import 80 percent of its food supply, and its close proximity to the U.S. provides a serious advantage. Davis has also made a concerted effort to establish new economic development and export opportunities for Illinois Farmers.
The Cuban embargo has, since 1960, prevented most trade between Cuba and the U.S., although there are exemptions for agricultural exports. Illinois soy and corn exports to Cuba, according to the Illinois Cuba Working Group, were approximately $66 million in 2008 before falling to $24 million. Davis and Bustos have worked to engage stakeholders from both nations to increase agricultural exports in light of the 63 percent decrease.
“To grow our agricultural economy and create new exporting opportunities for Illinois farmers, we need to cut through the red tape to open new markets,” Bustos said. “By providing Cubans with access to the standard credit terms offered by virtually every other nation in the world, we’ll take a meaningful step toward increasing our agricultural exports, move toward normalizing relations with Cuba and strengthen our local economy.”