Tema: Lift the Cuba Embargo?

From truffles to fox furs, U.S. ships more than food to Cuba
http://www.miamiherald.com/news/americas/cuba/story/1220161.html

BY MARTHA BRANNIGAN

When a Havana family sits down for pollo asado, passes pan de ajo across the kitchen table or splurges on some chocolate soy ice cream, chances are the ingredients came from U.S. farms.

Venezuela may boast of its revolutionary friendship with Cuba, and China may send its youth there to study Spanish, but the United States has emerged as the No. 1 exporter of agricultural products to Cuba.

And that's not all that can be sent to Cuba legally. Try live primates, truffles, azalea bushes, fox furs -- even cigars.

When President Obama announced plans in April to ease the embargo by lifting family-travel restrictions to the island and allowing U.S. telecommunications firms wide latitude to do business there, many analysts said the policy changes could significantly expand ties between the estranged neighbors -- assuming Havana responds positively to the overture.

But fairly significant commerce has been going on since the Trade Sanctions Reform and Enhancement Act of 2000 opened the door to U.S. food and medicine exports to Cuba -- despite the tense relationship between Havana and Washington and a trade embargo that has spanned nearly 50 years.

U.S. agricultural exports to Cuba hit a record $711.5 million in 2008, as prices for commodities soared. That makes the United States Cuba's fifth-largest trading partner overall.

``We are the natural provider of food and agriculture products to Cuba,'' says Kirby Jones, president of Alamar Associates, a consulting firm for U.S. companies aspiring to trade with Cuba. ``We're No. 1 and could be selling a lot more, were it not for the restrictions.''

Over the past nine years, Cuba, which imports 80 percent of its food, has come to rely heavily on its nemesis to the north for wheat, corn, soy goods and scores of other key agricultural products.

American companies provide two-thirds of Cuba's imported chicken and more than 40 percent of its pork imports. Utility poles, organic fertilizer and chewing gum also make their way in.

Not much medicine has been shipped, however, since Cuba has other options

CASH FLOWS FROM U.S.

Much has changed since President John F. Kennedy imposed a total economic embargo of Cuba in 1962, making it illegal for Americans to spend any money in Cuba or trade with Havana.

The chinks began when some travel restrictions were lifted in the late 1970s, and through the years there has been a tightening and loosening of the embargo as administrations change in Washington.

In recent years, Cuba has raked in U.S. dollars in a host of other ways, too:
• The Castro government charges a 10 percent fee to exchange greenbacks for convertible pesos, or CUCs, used by Cuban Americans and other visitors, and there's another 10 percent hit due to the unfavorable exchange rate given by money changers.

• Cuba also gets millions of dollars -- perhaps hundreds of millions -- in fees from U.S. telecommunications companies that already provide long-distance service to the island through third countries.

• When Cuban Americans make trips to Cuba, they generally travel heavy, lugging an estimated $3,000 to $5,000 in goods for family and friends. If just half of the 200,000 Cuban travelers expected this year carried even the low end, or $3,000 worth, that would amount to $300 million of clothing, electronics and household gadgets winding up in Cuba in 2009 alone. These travelers also are allowed to spend up to $179 per day while in Cuba, according to U.S. regulations.

Cuba's airport-related fees levied on U.S. air-charter companies average $120 per passenger, according to charter officials, which would bring in some $12 million for the 100,000 U.S. visitors last year and possibly double that amount this year.

• And money sent by individual Cuban Americans to help family members amounts to an estimated $400 to $800 million a year, according to a 2004 study by the Commission for Assistance to a Free Cuba, which noted some estimates put U.S. remittances as high as $1 billion a year.

Even with all major portions of the embargo still in place, such commercial ties between the United States and Cuba could easily exceed $2 billion a year.

TOUGH BUSINESS

Meanwhile, a series of intentional hurdles reflects the U.S. government's conflicted attitude toward dealing with the communist regime that has outlived nine U.S. presidents.
The cash-strapped island must pay in advance for U.S. goods, and with no banking ties between two nations, Cuba has to pay through a bank in a third country, typically France.
U.S. exporters need clearance from the Office of Foreign Assets Control and the Commerce Department's Bureau of Industry and Security. Cargo ships carrying goods from the United States must go directly to Cuba before visiting any other nations, and they are forbidden from picking up anything to haul elsewhere. Cuban food inspectors often can't get visas to visit U.S. facilities.

And the trade remains a one-way street. Virtually nothing can be imported to the United States from Cuba, with the exception of artwork, printed materials and recordings. Last year, that came to a grand total of $39,126.

That gives Cuba the curious distinction of helping the United States with its chronic balance of trade deficit, albeit in a token fashion.

The obstacles to Cuba trade have tipped the scales in favor of agribusiness Goliaths like Cargill, Archer Daniels Midland and Tyson Foods.

For American businesses, there is only one customer in Cuba: Alimport, the government agency that coordinates purchases from the United States.

Small and mid-sized exporters are often spooked by the maze of regulations and the opaque process of selling to Cuba. More than a few would-be exporters have ventured to Havana trade fairs only to come home empty-handed.

``People [looking to export to Cuba] get discouraged,'' says Jay Brickman, vice president of government services at Crowley Maritime Corp. He travels frequently to Cuba for his company, which sends a cargo ship with chicken and other agricultural products to Havana from Port Everglades every week.

``They confuse being nicely received by the Cubans with the idea they're going to get business. Cuba is limited [in its ability to buy imports], and they're price-conscious. You almost have to have a certain passion to really want to be there,'' he said.

Some U.S. business executives imagine big opportunities in an untapped market. Others are drawn to the forbidden fruit.

Naples businessman John Parke Wright IV shipped beef cattle to Cuba from Port Everglades three years ago and flew to Havana to shepherd his herd from the dock.
Last year, Wright, a member of the Lykes family that owned vast agricultural lands in Cuba before they were seized in the revolution, exported 2,500 straws of Brahman bull semen from the J.D. Hudgins ranch in Hungerford, Texas, to impregnate Cuban heifers.

Now he's negotiating more cattle deals for Florida and Alabama Brangus cattle and semen. Wright, who has been making frequent visits to Cuba for nearly a decade, sees big potential for agricultural development on the island, in keeping with President Raúl Castro's recent call to the Cuban people to work the land. ``There was and there is another Florida there in the land mass and agricultural potential,'' says Wright.

But many others have called it quits after a few sales. Independent Meats shipped some goods about a year and a half ago, but decided its Idaho location is too far west to compete with other U.S. suppliers.

``It just didn't make a lot of sense for us,'' said Independent Chief Executive Patrick Florence.

Cuba, meanwhile, has spread out its purchases among as many U.S. states as it practically can in hopes of drumming up support in Congress for an end to the embargo.

And yet, this year, U.S. exports will likely trail 2008 as Cuba struggles with severe financial problems that limit its ability to pay for foreign goods..

CUBA'S CREDIT WOES

Some experts believe Cuba is facing its biggest challenges since the early 1990s, when the collapse of the Soviet Union left Fidel Castro scrambling for support in a changed world.

Just as poor families do, the Cuban government often makes purchases based on access to credit. That leaves U.S. businesses at a disadvantage, since transactions must be in cash.
U.S.-grown rice, especially the long-grain style favored in many recipes, was a huge hit with Cubans until 2005, when the Bush administration changed the meaning of cash in advance to mean payment before a product leaves U.S. shores -- instead of when it arrives in port in Cuba.

Since that tightening of policy -- which is expected to be reversed under provisions in the 2009 omnibus appropriations bill -- U.S. rice exports to the island have plunged. Cuba has relied more on Vietnam, which is thousands of miles away and sometimes delivers broken rice but provides generous credit.

Some argue, however, that the cash-in-advance rule is a blessing in disguise for American companies, because it ensures that they get paid.

``Cuba generally doesn't pay on time,'' says John Kavulich, senior policy advisor for the

Its amazing that they have to import chickens. Is their an easier farm animal to rise than a chicken? And over there seems to be very little sea food. After all, it’s an island. Do fish not bite a hook in Cuba? Cuba has some of the most fertile fishing waters in the Caribbean. Chickens are “self sufficient" and reproduce like crazy, yet they are imported.

Of course there is sea food in Cuba but only for tourist, .the Cubans doesn’t have access to sea food or beef. This has been going on for years, .they eat soy beef instead. The real embargo that the Cubans suffer has a name "Fidel & Raul". As soon as they are removed from power in Cuba, they will have access to everything they need.

Cuba imports ketchup, mostly from Spain (that is a long way to ship what are basically tomatoes with water and a little salt) and some from Mexico. Can’t these Socialist Genius figure out how to make ketchup? To me it sums it all up in a nutshell, and exposes the complete and utter failure of the Socialist system in even the most basic of industries, and their inability to feed their own population on a tropical island with more land mass than all other Caribbean islands combined.

In Cuba people earn about $18 dollars a month. They get a miserable government rations that lasts them about ten days. You can certainly buy food in communist Cuba, but you pay just about the same amount of money that a free person would pay in the USA. A hamburger in Cuba cost $3. How can a person making $18 a month at a government job afford a hamburger?

Iniciado por Tamakun

In Cuba people earn about $18 dollars a month. They get a miserable government rations that lasts them about ten days. You can certainly buy food in communist Cuba, but you pay just about the same amount of money that a free person would pay in the USA. A hamburger in Cuba cost $3. How can a person making $18 a month at a government job afford a hamburger?

While I don´t approve of the Cuban gregime, your claims are dishonest, since you leave out the facts pertaining free education, free healthcare, free housing, and other benefits that add up to much more than 18 dollars a month. Cuba has a higher income and standard of living than some of the Central and Caribbean states that are capitalist, for instance.

The embargo serves no purpose but to give the corrupt regime propaganda material.

Iniciado por Josean Figueroa

While I don´t approve of the Cuban gregime, your claims are dishonest, since you leave out the facts pertaining free education, free healthcare, free housing, and other benefits that add up to much more than 18 dollars a month. Cuba has a higher income and standard of living than some of the Central and Caribbean states that are capitalist, for instance.

Iniciado por Josean Figueroa

The embargo serves no purpose but to give the corrupt regime propaganda material.

Look that you haven't read the previous posts, look back and you will find the answers there.

Here you have the answer from the “horse” mouth with respect to the embargo:

“It is necessary to impose financial, economic and material restrictions to dictatorships, so that they will not take roots for long years….Diplomatic and morals measures do not work against dictatorships, because these make fun of the Governments and the population”. Fidel Castro*
*Excerpt from the book “Fidel Castro and Human Rights”, Editora Política, Havana, Cuba, 1988.

Communism is the social system which institutionalizes envy, which uses pressure and the organized violence of the State to expropriate wealth from those who produce. Everything is shared by everyone and control by the government, there are no incentives to work and compete. A large percent of the Cuban people fake that they work, and the farmers do the minimum, since the regime pay them the minimum.

You are making no sense, why should I care for an idiocy writen by the idiot Castro?

If Cuba embargo ended, U.S. businesses ready for rush, but not island
http://www.miamiherald.com/embargo/v...ding&pageNum=1

While U.S. companies dream of a post-embargo Cuba, infrastructure woes, a lack of financing and Cuba's legal system may present challenges.

Cuba is a bankrupt inefficient country that doesn’t generate the wealth necessary to a healthy trade. The embargo was a self inflicted consequence of the treacherous confiscation of US owned property in Cuba, and nothing else. You don’t do business with those who steals from you.

We can eliminate the symbolic “embargo” tomorrow and nothing will change, as the Cuban economy controlled by Castro brothers’ regime wouldn’t have enough hard currency to make a dent into their misery.

Iniciado por Tamakun

Cuba is a bankrupt inefficient country that doesn’t generate the wealth necessary to a healthy trade. The embargo was a self inflicted consequence of the treacherous confiscation of US owned property in Cuba, and nothing else. You don’t do business with those who steals from you.

We can eliminate the symbolic “embargo” tomorrow and nothing will change, as the Cuban economy controlled by Castro brothers’ regime wouldn’t have enough hard currency to make a dent into their misery.

Your ignorance is manifest. Cuba has a higher per capita income and higher human development than many of the capitalist states of the region, and the U.S. trades openly with this states, that can not generate as much wealth as Cuba. Why does the U.S. trade with other communist states like China or Vietnam? Why does it trade with Saudi Arabia, which violates human rights in a worst manner??

The Castro regime is given political capital by the ridiculous embargo. Take the embargo away and the excuse of agression by the U.S. is removed from the arsenal of Castroist rhetoric.

The embargo is simply a manifestation of U.S. imperialism towards Hispanic America, and of its bending to a group of untrustworthy Cuban exilees in Miami.

Cuba will change as Hispanic America evolves towards greater stability and prosperity during the next decade, and the U.S. because of its idiocy in policy, would have suffered a propaganda defeat in a region it will not be able to control anymore because of its obvious duplicity and hipocrisy.

If travel restrictions are lifted, we can expect the communist regime in Cuba, to do all it can to encourage immoral behavior. Spring breakers will be lured by the promise of unrestricted alcohol and drug sale to minors, the sex trade already a staple of tourism to Cuba will also increase, and all in all we can expect the communists to make a profit at the expense of our citizens, as Lenin said "the end justifies the means."

Sounds just like the U.S. or Mexico...

You have no argument save absurdities...

There is something obscene about wanting to have a good time in Cuba, a place where the citizens are restricted in their liberties and movement. You might be free to travel, but "they are not". Where they are put in prison because of their thoughts and beliefs, you will discuss openly your thoughts and religious beliefs, but "they" will not. Where they and their family can be deported to any region at a moments notice, you will be able to board your plane and go home when your visit is over, but "they" can not leave.