Obama Announces Move Toward Normalizing Relations With Cuba

Dec 24, 2014

In a Dec. 17 statement, President Barack Obama announced that the United States will begin moving toward normalizing diplomatic relations with Cuba. Obama outlined several steps in the process, including the establishment of a U.S. embassy in Havana and lifting of certain restrictions that have inhibited business transactions between the U.S. and Cuba.

For agriculture one key move in Obama's action is to allow U.S. financial institutions to open accounts with their counterparts in
Cuba, making it easier for U.S. exporters to sell in Cuba, which has a population of 11 million people.

The U.S. has allowed agricultural exports to Cuba since 2001, but the process has been complicated because of the banking restrictions. Payments had to be routed from Cuban banks to banks in other countries before the money could be sent to the U.S.
Farm Bureau has long called for a removal of trade restrictions with Cuba, maintaining that expanded trade with the U.S. can serve as a cornerstone for additional reforms.

"The president's opening to Cuba promises to improve trade conditions by making it easier for Cuba to buy U.S. agricultural and food products. This is welcome news for our nation's farmers and ranchers," American Farm Bureau Federation President Bob Stallman said in a statement.

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