The U.S. Grains Council (USGC) applauded the reopening of the Cuban embassy on Monday, a historic accomplishment that signifies the United States’ commitment to re-establishing diplomatic relations with that country. Yet there is still work to be done to develop and expand trade of U.S. coarse grains and co-products with this island nation.
Since 1998, the Council has had a steady engagement with Cuba to service the existing trade in coarse grains and co-products. Following the Obama Administration announcement, the Council has expanded its exchange with Cuban trade and agriculture officials to see how the establishment of diplomatic relations will impact agricultural trade, which is allowed under the current embargo.
“Cuba is a past and current market for U.S. coarse grain,� said USGC President and CEO Tom Sleight. “Recently, however, U.S. suppliers are facing increasing competition, and existing policies are clearly reducing our competitiveness, and competitors are starting to dominate a market 90 miles from our shores.
“If these barriers are removed, Cuba’s demand for U.S. corn could be as large as 900,000 metric tons (35.4 million bushels). Additionally, this demand can grow as-or more correctly, if-the Cuban economy can grow.�
Except for eggs, Cuban per capita meat consumption is limited when compared to similar-sized countries in the region, like the Dominican Republic. The Cuban government is keen for U.S. and private-sector cooperation in many pieces of the Cuban agriculture sector. Brazil, the European Union, China and Canada have substantial and expanding involvement and investment in Cuban agriculture.
Establishing diplomatic relations is a move in the right direction. The Council will continue its engagement in Cuba, focusing on sustaining and expanding U.S. market share under current policies.
More information about the embassy opening is available at http://havana.usembassy.gov/.