NW senators push to open doors to Cuba

Legislation to ease restrictions on U.S. farm exports to Cuba has been introduced in Congress with backing from several Northwest senators. The bill would promote exports of U.S. agriculture products and medical supplies. Sen. Mike Crapo, R-Idaho, said the measure could broaden market opportunities for Idaho potatoes, wheat, peas, beans, barley, lentils, dairy, beef and wood products. The bill, known as the "Promoting American Agricultural and Medical Exports to Cuba Act of 2009," seeks to:

• Increase activities relating to the export promotion of U.S. agricultural products to Cuba.
• Clarify congressional intent regarding advance payments for agricultural purchases.
• Remove travel bans to Cuba for U.S. citizens.
• Streamline bank-to-bank payments for transactions.

"This legislation is needed to curb the obstacles that have been placed on exporting to the country," Crapo said. The measure was introduced by Sen. Max Baucus, D-Mont., chairman of the Senate Subcommittee on International Trade, Customs and Global Competitiveness. Co-sponsors include Crapo, Sens. Ron Wyden, D-Ore., Maria Cantwell, D-Wash., and Patty Murray, D-Wash. A trade embargo in place since 1962 was eased in 2001 to allow for the export of some food and medicine to Cuba. But there has been no dramatic increase in U.S. exports, partly because of payment difficulties and the lack of normalized trade relations. Efforts to ship frozen french fries to Cuba haven't worked out as well as processors had hoped, said Frank Muir, president of the Idaho Potato Commission. Payments must be handled through third parties, and there's no established credit system between the two countries.

"It's difficult to sell product there," Muir said. "There's additional cost associated with it, and Cuba is not willing to pay any kind of premium to offset that." Selling to Cuba under the existing cumbersome system isn't impossible, but processors need to be compensated accordingly, Muir said. "We could do it at the right price, but there isn't a good meeting of price and demand right now," he said.

In 2007, North Dakota became the first state in decades to export seed potatoes to Cuba with a shipment of 100 tons. Idaho producers have explored the possibility too, but little has come of it so far. There wasn't a surplus of Idaho seed potatoes this year, and Cuba hasn't been asking to buy any either, Muir said. "There hasn't been a motivated buyer or seller, it seems to me," he said.

If the U.S. were to re-establish normalized trade relations with Cuba, it would open up new opportunities. "That would change the whole approach," Muir said. About three years ago, Idaho farm groups participated in a trade mission to Cuba led by Gov. C.L. "Butch" Otter. The Idaho potato industry will continue to monitor the changing relationship between the two countries and how it affects trade, Muir said. "If the governor chooses to go back there again, we'll go back with him," he said.

Staff writer Dave Wilkins is based in Twin Falls, Idaho. E-mail: dwilkins@capitalpress.com.