6-04-07, 9:20 am

If travel and trade between the United States and Cuba were to be normalized, the first five years of those relations would yield an increase of some $21 billion in goods and services exchanged.

That affirmation was made by Pedro Alvarez Borrego, president of the Cuban food import enterprise ALIMPORT, in his remarks at the opening of a new round of negotiations with U.S. agricultural producers.

From May 28 to 30, Havana received 265 businesspeople from 114 companies in 25 U.S. states, signing agreements for more than $100 million in food purchases. Tons of rice, flour, soy, corn and chicken pieces are on the list of goods to be purchased from the U.S. businesses.

According to Alvarez, Cuba is the principal market and a new one to be conquered for the United States business sector. In fact, the large delegation that participated in these talks expressed great interest in increasing trade — which is limited to the agricultural sector and is one-way, according to the dictates of the U.S. government — and for doing away with their country’s restrictions on it.

The policy of economic warfare on Cuba makes it impossible to expand trade to other sectors and forces the island to pay for its purchases in cash, upfront and via banks in third countries. These conditions forbid financial credits and require the goods to be transported in ships flying U.S. or third-country flags.

$570.8 MILLION IN PAYMENTS TO U.S. COMPANIES IN 2006

According to Alimport, in 2006, the total in imports and related costs paid to U.S. companies exceeded $570.8 million. These transactions, taking place under restricted conditions, represented a significant increase in financing costs for the island, estimated at some $21.8 million.

William Hawks, leading a group of agricultural sector representatives from Mississippi, stated on behalf of his colleagues that he was fully committed to doing away with political barriers that negatively affect relations between the two countries and hinder trade.

In his turn, Kirby Jones, president of the U.S.-Cuba Trade Association, said he feels fortunate to be part of the group of business owners who have traveled to Cuba over the last five years. And, he said, while he has not perceived any tangible changes in the Bush administration’s policies, he hopes that at some point, things will change between the two countries for their mutual benefit.

Congresswoman Rosa de Lauro, a Democrat from Connecticut and one of the legislators attending the event, expressed her support for the unarguable necessity of reaching an understanding through respectful and sincere dialogue.

“Even under harsh restrictions that deprive us of important sources of income” — such as travel by U.S. citizens and Cubans resident in that country (now restricted by Bush to once every three years to immediate family, no matter the relations between Cubans on either side of the Florida Strait), “and the impossibility of fair trade, our country has been able to develop excellent relations with agricultural associations, federations and departments in different U.S. states, and with ports and businesspeople in general.”

However, the obsessive persistence with continuing the blockade is preventing purchases from U.S. producers from increasing to almost triple, he said. In fact, the United States could become an essential supplier, in different lines, for Cuba’s domestic market and tourism sector.

And it is in the interest of guaranteeing food for Cuba’s 11 million people that ALIMPORT must import some $1.6 billion dollars in food, for an increase of $600 million over the last four years, with a tendency to double.

Currently, Cuba imports some 7.8 million tons of foodstuffs. Of that, 95% is allocated for the family basket of goods guaranteed to every Cuban household (a rationed distribution of products such as rice, legumes, sugar, coffee, milk, meats, etc.) by the state at heavily subsidized prices, much lower than their cost. For example, one kilogram of rice is purchased by the country for 43 or 44 cents of a dollar, while it is sold to the population at the equivalent of less than 3 cents of a dollar.

In opening the recent round of negotiations, Alvarez noted that from the start of this one-way trade, ALIMPORT has made contact with more than 4,351 companies in 45 U.S. states, and has signed agreements worth $2.431 billion.

In his closing remarks, the ALIMPORT president announced that at the next Havana Trade Fair – set for November 5 to 10 – negotiations will take place with U.S. producers for goods corresponding to the first quarter of 2008.

From Granma.