NASDA URGES ACTION ON CUBA TRADE & CARBON MARKETS

News Date February 18, 2008

       The state agriculture departments are calling on the Bush administration to interpret the Trade Sanctions Reform and Export Enhancement Act as broadly as possible, to enable U.S. companies to compete with other countries in Cuba. NASDA members unanimously adopted a policy amendment offered by Nebraska Agriculture Director Greg Ibach during the group's recently concluded midyear meeting.

       NASDA President and North Dakota Agriculture Commissioner Roger Johnson noted that U.S. trade policy with Cuba is completely inconsistent with respect to the United States' relations with other countries. He said that "Cuba is a major potential market for U.S. products, especially agricultural products, but our efforts to increase trade there are severely restricted by our own federal government." Johnson is leading a 12-member North Dakota trade delegation to Cuba this week. 

       NASDA members also approved a resolution in support of a carbon emissions cap and trade system. Montana Agriculture Director Ron de Yong cosponsored the energy policy amendment with Johnson. de Yong noted that a cap and trade system for lowering carbon dioxide emissions has been adopted by the European Union, where carbon credits traded recently at about $24 per ton. In this country, the Chicago Climate Exchange manages a voluntary registry, from which industries can purchase carbon credits offered by agriculture and other industries. Credits on the Chicago exchange have traded recently for between $3.50 and $4 per ton. Farmers can currently earn up to $2 per acre by adopting no-till practices and other measures to reduce carbon dioxide emissions. The six-fold reduction in price compared to Europe would likely disappear if a nationwide mandatory system were adopted in the United States, de Yong said. (Contact: Charlie Ingram)