CHAIRMAN PETERSON INTRODUCES LEGISLATION TO EXPAND AG EXPORTS TO CUBA

News Date February 23, 2010

House Agriculture Committee Chairman Collin Peterson (D-MN) introduced legislation today to expand U.S. agriculture exports to Cuba. The bipartisan bill, the Travel Restriction Reform and Export Enhancement Act (H.R. 4645), is co-sponsored by 30 other Members of Congress, including Representatives Jerry Moran (R-KS), Rosa DeLauro (D-CT), and Jo Ann Emerson (R-MO).

The legislation contains a provision requiring agricultural exports to Cuba to meet the same payment requirements as exports to other countries by requiring payment when the title of the shipment changes hands.  Current Office of Foreign Assets Control (OFAC) regulation narrowly defines the term “payment of cash in advance” for sales to Cuba and restricts cash payments for U.S. agricultural goods sold to Cuba to payments received prior to shipment of the goods from U.S. ports.  This restriction is contrary to the Trade Sanctions Reform and Export Enhancement Act of 2000 (Export Enhancement Act), which allows for the shipment of agricultural goods under a broader interpretation of “payment of cash in advance” terms.

H.R. 4645 also contains a provision to eliminate the expensive and discriminatory requirement that payments to U.S. agricultural sellers must pass through banks in third countries.  Currently, Cuba must wire payments for U.S. goods through a third country bank in order for U.S. banks to receive the cash for the U.S. product to be delivered.  This process comes with a high fee increasing the cost of purchasing agricultural goods from the United States.  Having to go through a third country bank puts U.S. products at a disadvantage to those of our competitors.  While U.S. telecommunications companies are authorized to make payments directly to their Cuban counterparts, U.S agriculture is singled out by law for the expensive, unnecessary, and discriminatory requirement that payments must flow through foreign banks.

The legislation also would lift all restrictions on U.S. citizens traveling to Cuba.  This would facilitate agriculture sales.  (Contact: Amy Mann)