Sec. 2. Findings

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Congress finds the following: The United States has a long history of providing safe and reliable exports. Close proximity to Cuba further lends itself to low transportation costs for United States goods exported to Cuba. The United States is geographically poised to be a significant trading partner in agricultural commodities. United States and Cuban borders are less than 100 miles apart, meaning lower shipping costs and shorter transit times compared to our competitors. Cuba imports approximately 80 percent of its food, with global agricultural exports to Cuba doubling over the past decade to $1.9 billion.

In 2005, the United States Department of the Treasury published a final rule narrowing the definition of cash in advance for trading with Cuba, requiring that cash payments must be made before United States products leave United States ports, rather than the more customary payment upon delivery. United States firms are precluded from offering credit to ALIMPORT, a state-owned and state-controlled entity that makes all decisions regarding United States imports to the Cuban market, resulting in declining United States agricultural exports to Cuba.

Notably, rice exports fell from a value of $64 million in 2004 to essentially $0 in 2009 and subsequent years. Recent action by the Administration reverses that change to the definition of cash in advance, but United States agricultural exporters are still not permitted to extend credit to Cuban buyers, a key disadvantage relative to other exporting nations. Despite these restrictions, the United States has been the largest exporter of agricultural goods to Cuba over the last decade.

However, the United States slipped to being the second leading exporter of agricultural goods to Cuba in 2013 and the third leading exporter of agricultural goods to Cuba in 2014. While trade opportunities exist, Cuba remains an undemocratic autocracy that oppresses its own people and restricts freedom. In addition, there is no opportunity for United States agricultural businesses to trade directly with the Cuban people and there is no Cuban market. At present, there is just one opportunity for United States businesses to trade with Cuba and that is through ALIMPORT, the state-owned and state-controlled entity described in paragraph (3).

With these cautionary factors in mind, it is important to provide United States farmers and ranchers additional opportunities to benefit from trade with Cuba.