Cuba: US rice imports will exceed 500,000 tons

Ivan Terrero

Despite US Government restrictions on Cuban trade, the island has 
become the second-largest importer, after Mexico, of long grain 
rice from the United States after signing a letter of intent at 
Havana's Nacional Hotel on October 7, which also anticipates 
further purchases from this country.

This year, the island will buy approximately 93,000 tonnes of 
rice from the United States through its main food import company, 
ALIMPORT. This amount is in excess of 15 percent of the total 
volume purchased abroad every year, 550,000 tonnes.

ALIMPORT President Pedro Alvarez Borrego explained that this 
contract demonstrates Cuba's intention to increase rice and rice 
seed purchases.

Alvarez also pointed out that Cuba could overtake Mexico 
(currently importing over 600,000 tonnes of rice per year), the 
top buyer of US rice, and even become partners with the United 
States in its national rice production if the current limitations 
on trade imposed by the White House did not exist.

Dwight Roberts, director of the US Rice Producers Association and 
the counterpart in the Cuban letter of intent, highlighted that 
Cuba has the potential to import more than 500,000 tonnes of rice 
per year, but the main obstacle to this transaction as well as 
the purchase of other crops is the impossibility to grant credits 
to Cuban import companies, a common practice in worldwide trade.

Alvarez explained that, in addition to this obstacle, US business 
people and cargo vessels have to request special licences from 
their government to travel to Cuba. Moreover Washington obstructs 
Cuban foreign trade and tourism, diminishing its foreign currency 
income and limiting the country's purchasing capability as a 
result.

Hurricane Michelle severely damaged agriculture on the island, 
and in December 2001, as an exception, the United States 
authorised limited sales of food items under harsh conditions 
such as cash payment.

In that year, Cuban purchases in the agricultural sector reached 
US$4.4 million, increasing to US$175.8 million in 2002, and 
US$343.9 in 2003.

The ALIMPORT president explained that up to September 2004, his 
company has closed deals worth US$370.6 million, thus placing it 
among the 26 main purchasers of U.S. agricultural produce.

Approximately 3500 companies contacted ALIMPORT regarding the so-
called "opening," and 1500 have visited the island. Most of these 
delegations signed agreements, and in some cases letters of 
intent — such as the one on October 7 — which included a clause 
expressing both parties' commitment to fighting US sanctions 
against the island.

The US Government, however, has insisted that these commercial 
transactions do not open up new possibilities within the frame of 
the blockade's regulations in force for over 40 years, nor they 
mean a change in the hostile policy towards Havana.

Current transactions are only in one direction since Cuba can 
purchase US food items, but it is prohibited from exporting its 
goods to US territory.

In addition, the island is obliged to pay in cash and utilise 
banks from third countries. Cuba cannot ask for credit from US 
agencies or use its merchant fleet to transport the goods it 
buys.

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Granma