THE TTALK QUOTES 

On Global Trade & Investment

 

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No. 50 of 2015 

THURSDAY, JULY 16, 2015   

 

   

Filed from Portland, Oregon  

     

Click here for last Thursday's quote from a Japanese fisherman.


CUBA: WHEN THE U.S. DOESN'T SELL THERE  ...

"When we don't sell agriculture commodities, manufactured goods, when we don't trade with Cuba, it's not that they're not getting agricultural commodities or manufactured goods.  It's just that they're buying them from someone else."
 
Sen. Jerry Moran
January 8, 2015
CONTEXT
Senator Jerry Moran, a Republican from Kansas, is a strong supporter of ending America's embargo against Cuba and replacing it with a normal trading relationship.  He made that case forcefully at the January 8 launch of the U.S. Agriculture Coalition for Cuba (USACC), where he was one of several high-profile speakers.

The history of U.S.-Cuban relations is, to say the least, colorful but not very happy.  We are not going to attempt a full chronology.  For this discussion, we shall take note of just five dates.
 
On January 3, 1961, President Eisenhower announced that the United States was "formally terminating diplomatic and consular relations with the Government of Cuba."  This was after the Cuban government essentially expelled all but eleven of the U.S. diplomatic staff there.  As President Eisenhower explained in his statement, "There is a limit to what the United States in self-respect can endure."

On December 3, 2009, the Cuban government arrested, imprisoned, and later tried an American businessman, Alan Gross, who was a subcontractor for the U.S. Agency for International Development.  Mr. Gross's continued incarceration later became a significant obstacle to improving the U.S.-Cuba relationship.  Indeed in his remarks on January 8 - the source for today's quote - Senator Moran said that, two years ago, he had told his colleagues, "I'm done until Alan Gross is released."

On December 17, 2014, Alan Gross was released and returned to the United States.  On the same day,

President Obama, speaking in the Cabinet Room of the White House, talked about Cuba and said, "We will begin to normalize relations between our two countries."

On January 8, 2015, as mentioned, the U.S. Agriculture Coalition for Cuba was launched with an event at the National Press Club.  Secretary of Agriculture Tom Vilsack spoke.  So too did Representative Sam Farr (D) of California, and Senator Amy Klobuchar (D) from Minnesota, Senator Moran and several others.  Chaired by Cargill Vice President Devry Boughner Vorwerk, the coalition's goal "is to see relations between both countries fully normalized and put an end to the more than five decades old embargo."
 

On July 1, 2015, President Obama said:

"Today, I can announce that the United States has agreed to formally re-establish diplomatic relations with the Republic of Cuba, and re-open embassies in our respective countries."

***

Now let's return to Senator Moran and his comments at the USACC launch in January.    Before being elected to the Senate in 2010, Mr. Moran served seven terms in the U.S. House of Representatives.   As a Congressman in 2000 he championed a bill that put a dent in the embargo.  It carved out an exemption for food, medicine, and agriculture commodities.  That legislation was successful, and because if it, there is now some trade.  It is limited, though, because things like normal financing arrangements are not available. 

Here is a little more of what he said in January about U.S. trade with Cuba:

"And if the goal of U.S. policy is to change the nature of Cuban citizens in the relationship with their government, what we have been doing has not worked.  And it is not surprising it hasn't worked because it's a unilateral sanction.  When we don't sell agriculture commodities, manufactured goods, when we don't trade with Cuba, it is not that they're not getting agricultural commodities or manufactured goods, it's just that they're buying them from someone else.  And Kansans and Americans are smart enough to know that, when you're there by yourself, all you are doing is harming yourself.  ...

"We are a natural supplier of agricultural supplies to Cuba.  The cost of transportation from Europe to Cuba is about $25 a ton.  Costs from a port in the United States is $6 or $7 dollars a ton.  There's a natural opportunity for us, and we ought to take advantage of that."

COMMENT
In his Rose Garden statement on July 1, President Obama said he has called on Congress to lift the embargo.  That may be a heavy lift.  Fifty-four years of antagonistic relations are not easily undone.  Rep. Farr of California spoke specifically about the Helms-Burton Act - more formally the Cuban Liberty and Democratic Solidarity (Libertad) Act-which President Clinton signed into law in March 1996.  And that is just one a piece of the puzzle or rather set of pieces.  There are other elements and new ones in the pipeline.  Last month, for example, the chairman of the House Intelligence Committee, Rep. Devin Nunez (R-CA) introduced legislation (H.R. 2937) that would prohibit Americans from trading with "the Cuban military or the Cuban Ministry of the Interior, which controls the national police force."  Rep. Nunez is also a former chairman of the Trade Subcommittee of the House Committee on Ways and Means.

Arguably, Mr. Nunez's bill can be seen as much as an effort to complement the process of normalizing relations between the United States and Cuba as it can be as one to forestall it.  We mention it to underscore that the U.S. relationship with Cuba is not just one with a long and difficult history.  It is one with a wide spectrum of strongly held views.  Developing a new consensus for a new policy will be difficult.  The first challenge is to identify the issues--both the relevant laws and the concerns that need to be addressed.
RELATED EVENT

On September 10, 2015,  GBD will host a discussion of some of these issues.  Watch your inbox for further details of this program, Cuba, the United States, and the Road to MFN.    

SOURCES & LINKS

Coalition Launch is the C-Span page with the video recording of the proceedings at the January 8, 2015 launch of the U.S. Agriculture Coalition for Cuba, including the remarks of Senator Jerry Moran (R-KS).


Presidential Announcement No. 1 is a link to the text of President Obama's Cuba statement on December 17, 2014.


Presidential Announcement No. 2 is a link to the text of President Obama's Rose Garden statement on July 1, 2015, in which he announced that the U.S. and Cuba have agreed to re-establish diplomatic relations. 


About Alan Gross is the Wikipedia Entry on this U.S. businessman who was held for five years in a Cuban jail and whose release featured prominently in President Obama's announcement last December of a new policy toward Cuba.


USACC takes to you to the website of the U.S. Agriculture Coalition for Cuba.


Eisenhower Makes the Break is a link the statement issued by President Eisenhower on January 3, 1961, breaking off diplomatic relations with Cuba.


Regarding Trade with the Cuban Military is a link to the press release issue by Rep. Nunez on the introduction of the Cuban Military Transparency Act.  

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