U.S. farm leader says weak Cuba trade bill is better than no bill

WASHINGTON (B)--U.S. farmers will benefit from a bill that opens up agricultural trade between the United States and Cuba even if that legislation has been severely weakened by alterations that forbid financing and government subsidies, a farm group leader said July 12.

American Farm Bureau Federation President Bob Stallman said that even though it would be "more difficult" to make sales to Cuba without the traditional banking finance system to fund the exports, "it will not be impossible." He spoke to reporters after testifying to the House Agriculture Committee on the need for a new farm bill.

Stallman said that after extensive talks between AFBF and Cuban importers, the U.S. group believes trade will flourish no matter how restrictive lawmakers make the trade reform legislation.

The Farm Bureau's stance is in stark contrast to groups such as the National Farmers Union and the U.S. Rice Producers Association who say that no trade to Cuba will be possible

without provisions allowing for private financing of sales.

A significantly watered down House version of legislation to lower sanctions on U.S. food and medicine trade to Cuba was stricken July 10 from the House version of the fiscal 2001 agriculture budget bill. But lawmakers promised to re-offer the amendment when the spending legislation goes to a House-Senate conference committee. The sanctions reform bill also seeks to codify the easing of sanctions President Bill Clinton ordered a year ago for Iran, Libya and Sudan.

The House sanctions reform bill, as originally penned by Rep. George Nethercutt, R-WA, allowed private banks to finance U.S. food and medicine exports to government and non-government buyers in Cuba. But strong opposition by the House leadership resulted in a the bill being significantly altered before being stricken altogether.

The changes not only removed the financing provisions, but also sought to codify a ban on the use of government trade subsidies such as low-interest loans and export credits. Furthermore, significant restrictions were laid on U.S. tourism to Cuba.

The Senate will likely be bringing its own sanctions reform bill to the conference committee, but that version still remains fully intact with provisions to allow for financing and insuring of food and medicine sales to Cuba. Lawmakers from both houses of Congress have declared that they do not want to give in on negotiations for a final conference version of a sanctions reform bill.