March2017-Flipbook

in closing
DON'T STOP NOW
Soy Growers Hope for
Continued Opening of
Cuba to U.S. Soy
By Ron Moore
Ron Moore farms in Roseville, Ill., and serves as
president of the American Soybean Association
Trade is the lifeblood of the American soybean industry, and as
we move into 2017, soybean farmers face both opportunities and
barriers to enhancing global trade.
While the major foreign markets for U.S. soy—China,
Mexico, Japan, Germany—remain unchanged, one emerging
market that has shown a great deal of potential is Cuba. Given
its close proximity to major U.S. ports, its importation of more
than 80 percent of its food, and its emerging economic potential,
Cuba represents a growth market for American soybeans––if we
can get the policy right. That process begins with continuing the
progress on removing the economic embargo that stands in the
way of trade between our two countries. The American Soybean
Association supports that progress, and at the regional level, my
home-state Illinois Soybean Growers has been a leading voice in
the dialogue over normalization of trade with Cuba.
Cuba is a missed opportunity for American soy. As recently
as 2008, U.S. farm exports to Cuba totaled almost $700 million.
However, those sales totaled less than $200 million just
two years ago and have since slipped to less than 10 percent of
the nearly $2 billion market that Cuba represents. This loss is
due almost entirely to the continued trade embargo, and while
American companies have been able to export to Cuba since
2001, several key conditions exist that prevent those sales from
reaching their full potential. These barriers require congressional
action to overcome.
Chief among these roadblocks is Cuba's access to credit. As
long as the U.S. maintains its provision requiring Cuban purchasers
to pay cash in advance or use a third-party institution,
our farmers are placed at a serious disadvantage behind foreign
competitors that can extend credit.
Both chambers of Congress now have efforts ongoing to ease
trade between the U.S. and Cuba by addressing those remaining
barriers. ASA supports a bill sponsored by Rep. Rick Crawford
and Sens. John Boozman and Heidi Heitkamp to remove the
cash-in-advance provision.
While Cuba will not provide nearly as large a market for
U.S. soy as China or Mexico, we support the expansion of trade
between our countries because the island nation nonetheless represents
a valuable market for our products. In a time of distressed
markets and lower prices, we need to explore more trade, not less.
This expansion of trade makes for strong rural economies.
At the executive level, the Obama Administration took
significant strides to normalize relations between our two nations.
This included the reopening of the U.S. Embassy in Havana and
the removal of restrictions on the use of checkoff funds to market
American products in Cuba.
It is our sincere hope that President Trump and Congress
will continue our progress toward opening the Cuban marketplace
to American soy, and we look forward to working together
with both to see that happen. H
96 CUBATRADE MARCH 2017