But not many companies testify at Cuba hearings
By James Cox / USA
TODAY. Page 2B. September 21, 2000
WASHINGTON -- Two days of federal hearings on trade with Cuba ended
Wednesday with Caterpillar the lone major U.S. company to testify on the
politically charged issue.
The hearings by the International Trade Commission were ordered by the House
Ways and Means Committee. The ITC must report on the economic impact of the
38-year U.S. embargo against Cuba by Feb. 15.
Congressional sentiment has moved toward a slight easing of sanctions.
The 30 witnesses included academics, consultants, Cuban-American
organizations and industry groups. Supporters and foes of the embargo offered
wildly varying predictions about the effect of open trade between the two
countries.
''Talk of business opportunities in Cuba is much ado about nothing. How is
Cuba going to pay for anything?'' said Thomas Cox, director of the U.S.-Cuba
Business Council. He said the Castro regime refuses to recognize investors'
property rights, poses a huge credit risk and is too poor to be a promising
consumer market.
But rice and wheat growers said sales to Cuba could eventually be
significant. The island of 11 million people could rival Mexico as the largest
market for U.S. rice, said Riceland Foods CEO Richard Bell.
Consultant Paula Stern said unrestricted trade could create 20,000 U.S. jobs
and increased exports of $1.6 billion.
Others said Florida's tourism industry will suffer if Americans can travel
freely to Cuba. Florida citrus growers said competition from Cuban oranges and
grapefruit would be ''grossly unfair'' because Cuba has cheaper labor,
subsidized produce and an earlier, frost-free growing season.
The ITC notified more than 200 U.S. companies and business groups about the
Cuba hearings. Why didn't more companies show up? Some said that Cuba, with a
population the size of Illinois', got lost amid the successful push to get the
Senate to normalize trade with China.
Grain processor Archer Daniels Midland, an advocate of deeper economic ties,
said its views were reflected in testimony by the head of the U.S.-Cuba Trade
and Economic Council, John Kavulich. He said it's not that companies fear
criticism from anti-Castro Cuban Americans. ''They're less inclined to want to
talk for competitive reasons.''
Doug Cody, spokesman for travel and leisure giant Carlson, said, ''Everybody
knows how we feel: The U.S. is being disadvantaged'' by the embargo.
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