Wheat trade groups in the United States continue to lobby Congress to pass legislation that would lift restrictions on trade with Cuba.
Cuba has, at the same time, cut back sharply on wheat purchases from the U.S.
“U. S. agriculturists continue to see their exports to Cuba fall while they wait for Congress to make changes to U.S. Cuban trade policy,” wrote Jiana Escobar in the latest newsletter from U.S. Wheat Associates, a wheat trade promotion group.
U.S. wheat exports to Cuba declined by 65 percent in 2009-10 from the previous year to 118,600 tonnes.
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Also, Cuba has bought no U.S. wheat so far in 2010-11 (since June 1) and has made no commitments for future purchases, according to the U.S. Department of Agriculture.
Total food and agriculture exports from the U.S. to Cuba, including products like chicken, corn, soybeans and soy products and powdered milk, decreased by 35 percent between January and May 2010, compared with the same period a year earlier.
The proposed legislation has passed the House of Representatives agriculture committee and is expected to pass the financial services committee.
There will be opposition in the foreign affairs committee but just a few more votes are needed for approval.
That bill must also be approved by the Senate and its various committees, making it a tough row to hoe before the legislation is finally passed and implemented.
The bill, which was introduced in Feb. 2010 by Democratic congressman Collin Peterson from Minnesota, would:
• lift the ban on travel by U.S. citizens to Cuba;
• allow direct banking transfers between Cuban and U.S. institutions, removing the need for third country banks;
• remove the requirement for Cuba to pay for a commodity in full prior to loading;
• not allow Cuba access to U.S. credit programs.
The U.S. is normally the largest supplier of wheat to Cuba.
Sales have dropped so dramatically because Cuba is facing a lack of foreign exchange to finance purchases of imports, including wheat, according to the U.S.-Cuba Trade and Economic Council.
Also, special financial assistance from Venezuela and China has lessened Cuba’s need to buy products from the U.S.
Cuba has also developed new trading relationships with a variety of countries, including Brazil, Argentina, Vietnam, Mexico, Canada, Russia, Iran and France.
Finally, Cuba prefers to deal with government-controlled trading entities, which generally provide more favourable terms.
Canada has exported an average of 96,000 tonnes of wheat and durum to Cuba over the past 10 years, with a high of 203,700 tonnes in 2007-08.
WHAT IT’S WORTH
Following is the value of U.S. wheat sales to Cuba over the past five calendar years.
•2009 $72.9 million
•2008 $134.9 million
•2007 $70 million
•2006 $51 million
•2005 $47 million
(Source: U.S.-Cuba Trade and Economic Council)
In the first 11 months of 2009-10 (to June 30), Canadian exports totalled 128,000 tonnes.
Cuba buys high quality, high protein wheat from Canada and mixes it with lower quality from other suppliers like the U.S., Europe and Argentina.
