WASHINGTON: The United States stands to gain a significant portion of Cuba’s import market, Agriculture Secretary Tom Vilsack said.
Vilsack, who is in Cuba to meet with government officials and tour agricultural operations in the country, said Cuba’s food imports are about $2 billion annually, with the U.S. holding about 16 percent of that total. Before sanctions were put in place, the U.S. was responsible for nearly half.
“There is no reason why if barriers can be reduced and eliminated that we wouldn’t be in a very competitive circumstance,” Vilsack told reporters from Cuba. He said a number of U.S. agricultural products could be attractive in Cuba, including several produced in Iowa such as pork, corn, soybeans and poultry.
The White House announced last year plants to expand trade, increase travel, and establish diplomatic relations with Cuba’s communist regime. Trade sanctions against Cuba have exempted food and agricultural exports since 2001. But even agriculture is slowed by obstacles — products must be paid for in dollars and Cubans do not have access to credit when purchasing American products — that have limited opportunities.
Vilsack said these challenges must be addressed in Washington for U.S. producers to benefit from eased relations with Cuba.
During his visit, Vilsack said Cubans have embraced organic agriculture, one of the fastest-growing food segments in the United States. Cuba, he said, has a strong organic sector because it hasn’t had access to chemicals and pesticides.
“They had no other alternative but to be organic,” Vilsack said. “I did emphasize this is an … opportunity for them because only 1 percent of America’s land mass is committed to organic production. There is no question the demand is there.”
Agricultural shipments to Cuba have remained volatile during the last decade, peaking at around $700 million in 2008. In 2013, shipments totaled nearly $350 million, with frozen chicken making up 41 percent of the figure, according to the U.S.-Cuba Trade and Economic Council. Soybean oil cakes, corn and soybeans made up an additional 48 percent.
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