U.S. Firms Making Sales Pitches to Cuba
Moving to cement trade ties with U.S. businesses, Cuba on Tuesday agreed to buy $13 million in food from American companies and reached a tentative deal for up to $10 million in farm goods from California.
Hundreds of U.S. farm representatives hoping to build trade relationships with the communist nation traveled here for three days of talks organized by Cuba.
Cuba said it hoped by Thursday to have contracted to buy as much as $100 million more in American farm products. More than 300 people from about 150 U.S. companies are attending.
The biggest contract announced Tuesday was with Archer Daniels Midland Co. of Decatur, Ill., for $9 million in corn. The other contracts were for $3.4 million in rice from Riceland Foods Inc. of Stuttgart, Ark., and nearly $1 million for peas from PS International Ltd. of Chapel Hill, N.C.
Rep. Linda T. Sanchez (D-Lakewood) signed a letter of intent with Cuba for the sale of as much as $10 million in farm goods including dairy products, eggs, lumber, produce and cattle.
“It is my pleasure to try to advance the exchange to the benefit of people in both places,” Sanchez told the gathering in Spanish.
Other American officials at the talks were Republicans Rep. C.L. “Butch” Otter of Idaho and Lt. Gov. Brian Dubie of Vermont.
“We look forward to the opportunity to have investments here ... and have uninhibited trade between our two countries,” said Archer Daniels Vice President Gregory Webb.
Investments by U.S. firms in Cuba as well as two-way trade between the nations are prohibited under American trade sections that have been in place for more than four decades.
But an exception to the U.S. trade embargo, created by a 2000 U.S. law, allows for the direct sales of American farm goods to Cuba on a cash basis.
Among American farm interests participating in the talks is the USA Rice Federation, which represents about 85% of rice producers in the United States.
Since Cuba took advantage of the embargo exception, it has contracted to buy about $716 million in goods.
The U.S.-Cuba Trade and Economic Council, which tracks business between the two countries, estimates the value of American farm products purchased by Cuba thus far at about $430 million.
