U.S. Wheat Organizations Join Coalition to Re-Establish Trade Relations with Cuba

USW and the National Association of Wheat Growers (NAWG) have joined more than 30 other U.S. food and agriculture organizations in forming a coalition that seeks to advance trade relations between the United States and Cuba and end the embargo policy. The U.S. Agriculture Coalition for Cuba (USACC) came together in the new year following the Obama Administration’s unexpected shift in U.S. policy on Cuba. Then just today, the U.S. Treasury Department announced sweeping changes in trade regulations that represent another very encouraging step toward opening the Cuban market. 

 

“We are still analyzing the effect the new regulations may have on wheat trade with Cuba,” said USW President Alan Tracy. “Our initial read is that new rules related to banking relationships, timing of payment for imports and more liberal rules on vessel logistics are the kind of regulatory change we hoped to see.” 

 

Tracy was one of several industry leaders who addressed the media at a news conference introducing USACC Jan. 8, 2015, in Washington, DC. 

 

“In 1998, the Kansas Wheat Commission, the North Dakota Wheat Commission and other states donated 20 metric tons of flour to Cuba,” Tracy said. “USW facilitated that shipment and Cuban bakers loved it!  As soon as U.S. legislation allowed it in 2002, we began to make sales and reached up to half the Cuban market. However, that tapered off to zero in 2011 because the Cubans got frustrated with us…and our competitors found their way back in there. With changes in U.S. law, we think there is pent up demand for high-quality U.S. wheat in Cuba that will help lift farm gate prices at home. USW and NAWG know there is a lot of work to do, and only Congress can end the embargo, but we look forward to working with the Administration, Congress and other groups to foster trade with Cuba.” 

 

USACC is now organizing a “Learning Journey to Cuba” for coalition members. This would be the first major U.S. business delegation to Cuba since President Obama’s announcement. USACC notes that the Cuban government welcomes this initiative and it expects final approval soon.