The Miami
Herald. Apr. 03, 2002.
U.S. food sales to Cuba far exceed planned amount
By Nancy San Martin. nsanmartin@herald.com. Posted on Wed,
Apr. 03, 2002
Five months after Hurricane Michelle ravaged crops across Cuba, companies in
half the states in America have joined the business bandwagon with the communist
nation, with total sales reaching an estimated $73 million, or more than twice
the original amount of the deal.
Agricultural products stretching across 25 states -- from Alabama to
Wisconsin, but not including Florida -- are being boxed and shipped to Cuba,
according to the U.S.-Cuba Trade and Economic Council Inc. report released this
week. The products are being provided by at least 15 U.S. companies that have
agreed to do business with the Cuban government.
Cuba is still recovering from the destruction caused by the Nov. 2 storm
that reached 125-mph winds, but the sales have gone far beyond replacement of
losses, the original objective, to assume a new dimension, Cuban officials and
business leaders say.
''The first purchases were strictly for reserves, but other purchases have a
different character,'' said Luis Fernández, a spokesman for the Cuban
Interests Section in Washington. "Whether this will continue, I don't
know.''
The sales consist of various food products, including corn, rice, chicken,
apples and peas. They come at a time when the Bush administration has threatened
to tighten the embargo, even as Congress is divided over the issue.
Since the first deals were reached in mid-November, the Bush administration
has tried to dampen speculation that they could lead to more permanent trade
relations. Yet, the amount of sales have risen from the original estimate of
about $30 million to $73 million. And more contracts are in the works.
But even as the sales have increased, the administration has impeded efforts
to strengthen ties between entrepreneurs and Cuban officials. Visas recently
were revoked for various Cuban officials, including Pedro Alvarez Borrego,
president of Alimport, the government entity responsible for import purchases.
He was among a group of Cubans that were to visit various farming states and
inspect poultry facilities in Michigan, Indiana, Georgia, Arkansas and Texas.
Efforts to reach Alvarez Borrego for comment were unsuccessful.
10 MILLION EGGS
Among the most recent contracts is the sale of 10 million eggs to be
delivered to Havana this month through June, in what is being billed as the
first import of eggs by Cuba in four decades. The eggs are coming from various
states including Maine, Massachusetts, Vermont, New Hampshire and Connecticut.
The agreement with Radlo Foods LLC based in Watertown, Mass., took place in
February with the support of United Egg Producers of Atlanta, the egg industry's
trade association, said David Radlo, president and owner of the company.
He traveled to the island with a delegation of 25 other food producers and
exporters.
''We see this sale as not just international cooperation and possibly
expanding market, but we're really helping people put food on their table,''
Radlo said. "They needed the product. They sustained a terrific blow with
Hurricane Michelle and they're trying to get back on their feet.''
FERRIED BY SEA
Like the first shipment of products in December, this one, too, is to be
ferried by sea. The shipments so far have gone through ports in Louisiana,
Mississippi and Texas.
Port directors say the new deals with Cuba are worth watching because of the
potential of establishing a growing market worth billions of dollars.
''Our expectation is that once relations are normalized, we think there is
an opportunity for this port,'' said Paul Dauphin, a spokesman for the Port of
New Orleans. "As a policy, we have not tried to go down there because of
the embargo, but we've got an eye on what's going on.''
Cuba was a leading trading partner with New Orleans in the 1950s. But the
relationship was severed after the United States implemented the trade embargo
following President Fidel Castro's rise to power in 1959 and his nationalizing
of U.S. property on the island.
The new purchases are allowed under the Trade Sanctions Reform and Export
Enhancement Act of 2000, which permits the commercial export of food and
agricultural products to Cuba with a caveat: The government must pay for the
purchases in cash.
Jorge Salazar-Carrillo, director of the Center for Economic Research at
Florida International University, said Cuba does not have enough cash in its
reserves to pay for the products, suggesting that underhanded deals are taking
place.
''These are off-the-cuff type of deals,'' Salazar-Carrillo said. "This
is a concerted effort to break the embargo.''
In Washington, enforcement authority seems to be unclear. Officials in the
Treasury Department said the responsibility belongs to Commerce. Officials in
Commerce did not have an answer and said they would check into the matter.
Radlo said Cuba makes payments through third countries. Though he has not
yet received his fee because the payment is made after the goods arrive, Radlo
said he is confident it will not be an issue.
''All the reference checks with other companies show they've gotten paid,
like clockwork,'' Radlo said. "Obviously, it's a reasonable risk. It took
us 43 years to get the first order. Hopefully, it won't take another 43 for the
next one.''
Coast Guard picks up seven Cuban migrants off Miami shores
By Luisa Yanez. lyanez@herald.com. April 3, 2002.
The Coast Guard rescued seven Cuban migrants Tuesday morning, just off Miami
and launched a search for others people after finding an empty raft.
The migrants rescued were found onboard an orange raft some five miles east
of Fowey Rocks Light, said Coast Guard Petty Officer Anastasia Burns.
The migrants were spotted by a boater about 8:15 a.m. and then picked up by
the 110-foot patrol boat the Chandeleur at 9 a.m., Burns said.
A second raft was also found 10 miles north of the first. The raft was
empty. A Coast Guard rescue boat and helicopter are conducting a search in the
area for other migrants who may be in the water, Burns said.
The migrants rescued were given food, water and, if necessary, medical
attention. Immigration officials will interview them to determine if they should
be repatriated to Cuba.
The Coast Guard rescued or intercepted 777 Cuban migrants last year. |