Fw: Lincoln Urges White House to Remove Cuba Trade Barriers

Sent via BlackBerry from T-Mobile

---

From: "Becker, Ben (Agriculture)" <Ben_Becker@agriculture.senate.gov>

Date: Wed, 29 Sep 2010 12:33:30 -0500

Subject: Lincoln Urges White House to Remove Cuba Trade Barriers

FOR IMMEDIATE RELEASE

September 29, 2010

Contact: Courtney Rowe, Ben Becker (202)224-2035

 

Lincoln Urges White House to Remove Cuba Trade Barriers

 

Washington — U.S. Senator Blanche Lincoln (D-Ark.), Chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, this week urged the White House to remove regulatory obstacles that are obstructing trade with Cuba. The move, already under consideration by President Barack Obama, would bolster U.S. agricultural exports to Cuba.  

 

"Agriculture is a sector of our economy where we are proving that we can successfully meet the export demands that will help rebuild the U.S. economy," Lincoln said. "Lifting the travel ban and readjusting the payment terms for exports to Cuba would increase U.S. agricultural exports by more than $360 million annually, generating 6,000 domestic jobs and a $1 billion boost to the U.S. economy. This would be a tremendous help to Arkansas's agricultural producers that will grow our state's economy and create jobs in our rural communities."

 

As Chairman of the Senate Agriculture Committee, Lincoln has repeatedly called for increased access to the Cuban trade market, noting that Cuba was once a major export destination for U.S. rice, wheat and other agricultural products, and should be so again. Lincoln has introduced legislation that would facilitate the export of U.S. agricultural commodities, establish an agricultural export promotion program with Cuba, and relax travel and trade restrictions for U.S. citizens.

 

The letter urges the president to direct the Treasury Department to repeal a 2005 rule that requires U.S. exporters to receive cash payment before goods are shipped, which effectively ended all food and medicine-based sales. It also urges the Treasury Department to lift a requirement that cash payment for U.S. goods be routed through a third-country bank, which has resulted in delays and increased transaction costs.

 

The full text of the letter can be found below. 

 

 

September 28, 2010

 

President Barack Obama

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

 

Dear Mr. President,

 

We write to express our support for the regulatory changes that your administration is considering to increase people-to-people exchanges between the United States and Cuba.  These exchanges could have a profound impact on both of our nations, building relationships and goodwill between our societies.  But we also encourage you to implement further reforms to strengthen ties between the American and Cuban people and improve their economic well-being.

 

Specifically, we urge you to direct the Treasury Department to use its regulatory authority to remove two serious obstacles to food and medicine sales to Cuba.  Congress enacted legislation in 2000 authorizing the sale of food and medicine to Cuba by payment of cash in advance or third-country bank letters of credit.  For several years, U.S. exporters were able to make such cash-based sales, receiving payment after the goods shipped from U.S. ports and before transferring title and control to the Cuban buyers.  In 2005, however, the Treasury Department adopted a new and more restrictive rule that required U.S. exporters to receive cash payment before the goods were shipped from the United States, which effectively ended all cash-based food sales to the island.  We strongly urge repeal of this rule and reinstatement of a rule that is consistent with the cash-in-advance requirement and the intent of Congress to expand food sales. 

We also urge you to direct the Treasury Department to lift the requirement that cash payment for U.S. food and medicine sold to Cuba be routed through third-country banks.  This requirement, which is not mandated by the legislation, delays and increases the cost of these transactions.  Moreover, the Treasury Department does not impose this requirement on licensed U.S. telecommunications and travel service providers, which may transact business directly.  The Treasury Department should allow licensed U.S. agricultural exporters to do the same.

 

We recognize that other steps to increase food sales to Cuba require legislative action.  Most importantly, lifting the travel ban would boost demand for U.S. foodstuffs in Cuba and, as the Cubans' incomes grow, would help recapture and increase the cash-based trade that we have lost to foreign competitors who offer the Cubans credit.  In fact, a Texas A&M University study estimates that lifting the travel ban and addressing payment terms for U.S. exports to Cuba – without extending credit – would increase U.S. agriculture exports by more than $360 million annually, generating 6,000 jobs and a $1 billion boost to the U.S. economy.

There is broad support in Congress for taking these measures to reduce barriers on trade and travel with Cuba.  We would welcome your support for these efforts.  If we work together to increase U.S. food exports, and allow our citizens to travel freely to Cuba, we can establish and strengthen ties that benefit the American and the Cuban people.

 

-30-