Posted December 18, 2015
Agriculture Secretary Tom Vilsack stated that he believes agriculture will play an important role in strengthening the nation’s relationship with Cuba, according to a USDA statement available here. Politico also published an article here, The Des Moines Register here, and Reuters here.
“Throughout history, agriculture has served as a bridge to foster cooperation, understanding and the exchange of ideas among people. I have no doubt that agriculture will continue to play that powerful role as we expand our relationship with the Cuban people in the coming years.”
After more than 50 years, President Barack Obama announced that the U.S. plans to restore diplomatic relations with Cuba, according to Reuters.
The policy will “expand trade, increase travel, and establish diplomatic relations with Cuba’s communist regime,” according to The Des Moines Register.
“Today’s announcement expands opportunity for U.S. farmers and ranchers to do business in Cuba. It removes technical barriers between U.S. and Cuban companies and creates a more efficient, less burdensome opportunity for Cuba to buy U.S. agricultural products. It also makes those products far more price competitive, which will expand choices for Cuban shoppers at the grocery store and create a new customer base for America’s farmers and ranchers,” said Vilsack in a statement.
The Obama administration is trying to eliminate previous restrictions on agricultural trade such as regulatory and financial hurdles, including restrictions on cash transactions, according to Politico.
With transaction costs drastically reduced, “it’s more likely now that Cuba will be able to do business at a higher level, from an agricultural product perspective,” said Vilsack.
Farmers in the Southeastern states will benefit most as they can easily ship products like poultry, rice, and corn to Cuba.
Other states with potential to benefit, include Georgia, Arkansas, Texas, North Carolina and Mississippi, with most products funneling through Louisiana, Florida, or Virginia ports.
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